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Integrating Mobile Services within the Financial Structure<br />Deepak Chandnani<br />President, Obopay INC.<br />MMT Duba...
Agenda<br />Mobile Banking  & Money<br />Value for Banks<br />What Banks seek from Partnership<br />Overarching Payments  ...
Mobile & Financial Services Universe<br />1.6 billion bank accounts 1 billion credit cards<br />4.6 billon <br />mobile ph...
Mobile Era: Path to Customer Value<br />High<br />“Mobile Money”<br /><ul><li> Pay anyone
Receive money</li></ul>Customer Value<br />Revenue Opportunity<br />“Mobile Banking”<br /><ul><li> Balances
Recent transaction history</li></ul>Low<br />“Mobilize Website”<br /><ul><li> Render static content on devices</li></ul>Co...
Mobile Banking & Money : Key Use Cases<br /><ul><li> Get Paid from card, electronic check or stored value account
 Over 70% of sellers of goods and services representing over 1/3 of most economies do not accept electronic payments today.
 Family Money: Send money to loved ones or emergencies or scheduled payments instantly across banks.
 Over $400B in payments annually worldwide.
 Extend banking to those that have never had access before by opening up non traditional channels through mobile.
 5B underserved consumers worldwide.</li></ul>Corporate Website<br />
Mobile Banking & Money : Emerging Markets<br />Uses mobile banking for greater access and control, balances and account ac...
Mobile Banking & Money : Developed Markets<br />Teen / Young Adults<br />Micro-Merchants<br />Social Payments<br />Working...
Value for Banks<br />ROI is both Tangible & Intangible<br />Consumers are interested in bank-offered mobile financial serv...
Costs vis-à-vis branch / ATM
Support calls from offline customers reduces by 30-40%* (saves call cost of $3.75* in the US)
SMS balance & transaction alerts convert to large savings on support costs
Mobile has lowest support channel cost at $0.08*
Retention & personalization
Reach offline customer base – segment with largest cost-saving potential
Increase in CASA deposits – low-cost funds
Revenue from new services such as bill due alerts</li></ul>Corporate Website<br /><ul><li>* Source: Fiserv / MCOM / Verisi...
Brand control - Out of the box, configurable
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Mobile Money Transfer(MMT) within the Financial Structure

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Obopay integrates mobile services into the Finanacial structure. Mobile Banking & Money, Value for Banks,
What Banks seek from Partnership, Overarching Payments Opportunity,
Cash management ,
Remittance,
Domestic Payment Opportunities are the issues Demystified here.

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Mobile Money Transfer(MMT) within the Financial Structure

  1. 1. Integrating Mobile Services within the Financial Structure<br />Deepak Chandnani<br />President, Obopay INC.<br />MMT Dubai, 2010 <br />
  2. 2. Agenda<br />Mobile Banking & Money<br />Value for Banks<br />What Banks seek from Partnership<br />Overarching Payments Opportunity <br />Cash management <br />Remittance<br />Domestic Payment Opportunities<br />Corporate Website<br />
  3. 3. Mobile & Financial Services Universe<br />1.6 billion bank accounts 1 billion credit cards<br />4.6 billon <br />mobile phones<br />Underserved<br />6.6 billon people<br />Gap Narrowing<br />Gap Widening<br />Can financial services follow the mobile phone?<br />Corporate Website<br />
  4. 4. Mobile Era: Path to Customer Value<br />High<br />“Mobile Money”<br /><ul><li> Pay anyone
  5. 5. Receive money</li></ul>Customer Value<br />Revenue Opportunity<br />“Mobile Banking”<br /><ul><li> Balances
  6. 6. Recent transaction history</li></ul>Low<br />“Mobilize Website”<br /><ul><li> Render static content on devices</li></ul>Costs<br />Transactional<br />Interactive<br />Static<br />Corporate Website<br />
  7. 7. Mobile Banking & Money : Key Use Cases<br /><ul><li> Get Paid from card, electronic check or stored value account
  8. 8. Over 70% of sellers of goods and services representing over 1/3 of most economies do not accept electronic payments today.
  9. 9. Family Money: Send money to loved ones or emergencies or scheduled payments instantly across banks.
  10. 10. Over $400B in payments annually worldwide.
  11. 11. Extend banking to those that have never had access before by opening up non traditional channels through mobile.
  12. 12. 5B underserved consumers worldwide.</li></ul>Corporate Website<br />
  13. 13. Mobile Banking & Money : Emerging Markets<br />Uses mobile banking for greater access and control, balances and account activity<br />Shops for family<br />NREGA, JSY, SSA payments<br />Recharges his wife’s mobile<br />Pays for a ride to work<br />Pays for Pizza delivery<br />Pays MFI loan<br />Sends money home<br />Visits BC to withdraw money<br />Pays bills<br />Visits BC to deposit or withdraw money<br />Pays for daily needs<br />Pays for Groceries<br />Buys movie tickets<br />Corporate Website<br />Buys from mandi<br />
  14. 14. Mobile Banking & Money : Developed Markets<br />Teen / Young Adults<br />Micro-Merchants<br />Social Payments<br />Working Families<br />
  15. 15. Value for Banks<br />ROI is both Tangible & Intangible<br />Consumers are interested in bank-offered mobile financial services<br />Have Stronger loyalty<br />And Engagement<br />Make Higher spends, more frequent spends<br />Mobile browser<br />Match budget<br />To choice of <br />channels:<br />Text Messaging<br />Opt for more products<br />Demonstrate Spending Confidence arising from Control<br />Native applications<br /><ul><li>Cost Savings
  16. 16. Costs vis-à-vis branch / ATM
  17. 17. Support calls from offline customers reduces by 30-40%* (saves call cost of $3.75* in the US)
  18. 18. SMS balance & transaction alerts convert to large savings on support costs
  19. 19. Mobile has lowest support channel cost at $0.08*
  20. 20. Retention & personalization
  21. 21. Reach offline customer base – segment with largest cost-saving potential
  22. 22. Increase in CASA deposits – low-cost funds
  23. 23. Revenue from new services such as bill due alerts</li></ul>Corporate Website<br /><ul><li>* Source: Fiserv / MCOM / Verisign research 2009 Fall</li></li></ul><li>What Banks seek from Partnership<br /><ul><li>Easy, Low Cost & Rapid Entry
  24. 24. Brand control - Out of the box, configurable
  25. 25. Support for Any Carrier, Any Devices
  26. 26. Payment Interoperability
  27. 27. Regulatory compliance, Mobile security & anti-fraud controls
  28. 28. Seamless Support Operations</li></ul>Corporate Website<br />
  29. 29. An Overarching Payments Opportunity<br />Retail Payments<br />~$10 trillion<br />~$5 trillion<br />Check & Cash Replace<br />E/M Commerce<br />~$500 billion<br />~$400 billion<br />X Border P2P<br />Corporate Website<br />
  30. 30. An Overarching Payments Opportunity<br />Cash Management<br />Remittance<br />DomesticPayments<br />Corporate Website<br />
  31. 31. Cash Management Opportunity<br /><ul><li>Instant fund transfer
  32. 32. Payment ubiquity via Mobile
  33. 33. Cashless & secure
  34. 34. Operational efficiency
  35. 35. MIS alerts
  36. 36. Receivables Management
  37. 37. Payable Management
  38. 38. Liquidity Management</li></ul>1. Payroll<br />5. B2B<br />2a. P2P (domestic)<br />Dist. To Manuf.<br />2b. Cross-border P2P (remittance)<br />Retailer to Dist.<br />4. P2M<br />3. Cash in/out<br />Corporate Website<br />
  39. 39. Cash Management Opportunity<br />Obopay FI Partner<br />Buyer<br />Distributor/ Merchant<br /> Increased working capital<br /> Improved cash flow<br /> Credit history development<br /> Access to formal bank credit<br /> Low APR credit terms <br /> Loyalty Reward programs<br /> Elimination of cash & checks<br /> Streamlined A/P administration<br /> Increased transaction data<br /> Elimination of cash & checks <br /> Reduced process costs<br /> Accelerated settlement <br /> Reduced bad debt <br /> No stolen/counterfeit funds<br /> Reduced bank fees<br /> Less time collecting, more <br /> time selling<br /> Increased Buyer credit<br /> Automated reconciliation<br /> Typical savings of 1.75% - <br /> 2.5% of targeted revenue<br /> Powerful market differentiator<br /> New revenue channels <br /> Low risk, low cost growth <br /> expansion of customers<br /> Enhancement of corporate <br /> customer relationships; fulfills <br /> operational needs & adds <br /> “stickiness”<br /> Increased deposits<br /> Cross-sell revenue opportunities <br />Corporate Website<br />
  40. 40. Remittance Opportunity<br /><ul><li>Remittances totaled $414 billion in 2009: $316 billion went to developing countries, involving some 192 million migrants or 3.0% of world population
  41. 41. Commercial banks in most regions are yet to adapt infrastructure for P2P migrant services, which will loser costs
  42. 42. Reduction of 5 percentage points in the cost of sending remittances, would result in remittance recipients receiving over $16 billion dollars more annually</li></ul>Corporate Website<br />
  43. 43. Remittance Hub Overview<br />Cost Efficiency achieved via the hub due to flexibility of connecting variety of sending & receiving types (cash/ account/ card/ mWallet)<br />
  44. 44. International Remittance using Cards: US to Mexico Association-led Model: MasterCard MoneySend<br />a person in the USA uses MasterCard MoneySend remittance to send money to customers with MasterCards at participating banks outside the USA<br />
  45. 45. Domestic Payments : MMT using nation-wide ATM network: US<br />Debit network support enables ATM cash withdrawal<br />Support for PINless debit and credit with STAR and NYCE.<br />Utility: Pay a person, the recipient gets immediate credit to their NYCE, STAR prepaid card or NYCE/STAR connected DDA.<br />Debit<br />Credit<br />Immediate, spendable money<br />Debit card funded payments provide for instant transactions<br /><ul><li>Existing settlement relationships
  46. 46. Good funds on payment initiation
  47. 47. Ability to issue immediate credit instruction to the bank account, up to bank to make funds available
  48. 48. Can extend mobile #/debit card mapping to ecommerce and eventually POS</li></ul>Corporate Website<br />
  49. 49. MMT Integrated with ATM Networks<br />Cash-out via card / card-less:<br />MMT to recipient’s Card, Recipient uses card at ATM<br />Recipient does not have card, does Cardless withdrawal at ATM<br />Card-less Step 1: <br />Initiate via Mobile<br />Card-less Step 2: <br />Provide the Authorization <br />Code at the ATM to get cash<br />Corporate Website<br />
  50. 50. MMT using Cards: US domestic<br />Unregistered beneficiaries pick up money to a MasterCard or…<br />… a bank account via ACH<br />… or a debit network payment credit<br />
  51. 51. MMT using Cards: ‘Get Paid’ Functionality,US<br /><ul><li>Request payment from phone, email, buttons, links, widgets
  52. 52. Get paid from web, social network (e.g. Facebook), phone
  53. 53. Unregistered user pays with debit card, option to register after payment
  54. 54. Registered subscriber pays with mobile number/PIN</li></ul>Rodney Smith requests $100.00.<br />Pay by replying ACC 234569 or at www.obopay.com/p2p234569 Description: Registration fee<br />Corporate Website<br />
  55. 55. MMT using Cards: US<br />Text to Pay eg: Donations<br />Payment by<br />Accepting (registered) or card (unregistered)<br />Payment deposited to bank or card account<br />Customer/donor texts BOOSTERS to Obopay Text-to-Pay short code.<br />Receives Request for Payment SMS<br />Payee gets keyword:<br />BOOSTERS (example)<br />Consumers and organizations supported<br />Text BOOSTERSto 48510 to donate now!<br />
  56. 56. MMT using Cards: Differentiators<br /><ul><li>Bank centric approach with easy integration
  57. 57. Instant sending and receiving
  58. 58. No risk of ACH reversal
  59. 59. Front end options
  60. 60. Backend options
  61. 61. Focus on how consumers will adopt
  62. 62. Fully operational platform and service with recognized partners
  63. 63. Regulatory Compliance</li></ul>Corporate Website<br />
  64. 64. The Obopay Edge<br />For customers:Easy to AccessSimple to UseInstant Payment<br />24x7Secure<br />For partners:Payment Interoperability<br />Multiple Wallet Types<br />Scalable, resilient and Secure PlatformPackaging, Branding<br />Regulatory ComplianceRisk ControlFast to MarketIntegration Flexibility<br />Easy to Deploy<br />Corporate Website<br />
  65. 65. Catalyzing Mobile Payments Worldwide<br />Thank You<br />

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