Afghanistan 17 banks have 266 branches collectively Most ATMs located in bank branches 70% cell phone penetration by 2014
Mobile Money For Afghanistan
Mobile Money in Afghanistan Building on Success: Leveraging the Mobile Network to Transform Afghanistan’s Financial Sector January 24, 2012
Leveraging the Mobile Network The areas shaded red are the population covered by the existing mobile network. The circles represent the main concentrations of the approximately 266 brick-and- mortar bank outlets, which are limited almost exclusively to urban areas. Using the Mobile Network to Bridge the Infrastructure, Security and Illiteracy Gaps• Less than 5% of Afghans have bank accounts. This number is not projected to grow significantly.• 55% of Afghans (over 13 million) use mobile phones. This number is projected to rise to 70% by 2014 (Transition).• 85% of Afghans already live in areas covered by the four mobile telephone companies.• Government salaries could be delivered on time and in full, improving governance by instilling transparency.• Interactive Voice Response technology allows mobile banking to bridge the illiteracy gap. 2• A nationwide mobile banking platform would provide a traceable alternative to cash payments.
How does mobile money work? Mobile Money Service Provider BankAgent bank account Accounts (Pooled funds from all clientslinked to Mobile in at least four banks to diversify risk) Bank -Money ServiceProvider for cash and Agent account debitedcommission transfer 4 + Client account credited Client opens mobile 1 money account via agent Electronic value sent Agent Client 2 to client’s mobile wallet (salary, family) Cash out from agent 3 to client 3
Building Momentum in 2011• On March 29 in Kabul, over 150 delegates attend the mMoney Stakeholder Summit.• Association of Mobile Money Operators of Afghanistan formed.• On April 25, Afghan Central Bank issues first Electronic Money Institution License to Roshan’s M- Paisa service• On August 24 in Kabul, Administrator Shah and the Minister of Education and Minister of Communications and IT highlight importance of mobile money.• Etisalat and MTN launch mobile money services in November 2011 followed by AWCC in 2012.• USAID’s Financial Access for Investing in the Development of Afghanistan (FAIDA) program: – Providing technical assistance to government agencies and mobile network operators; – Supported eight person Afghan Government delegation to the GSM Assoc. Mobile Money Summit in Singapore at the end of June; 4 – Managing $5 million Mobile Money Innovation Grant
Aiming for over 100,000 Active Users in 2012 PARTNER ORGANIZATION MNO MOBILE MONEY APPLICATIONS USAID GRANT COVERAGE EXPECTED RESULTS Mutahid Microfinance1 Roshan Loan Payments and Disbursements $362,000 Grant approved 5 Provinces 15,000 borrowers Institution Da Afghanistan Breshna Sherkat2 Etisalat Electricity bill payments $717,000 Grant approved Kandahar 50,000 utility customers - Electricity Utility3 Ministry of Education MTN-A Teachers’ salary payments $957,000 Grant approved 10 Provinces 20,000 school teachers Association of Mobile Money University Contest for Students4 ALL $ 80,000 Grant approved 18 Provinces 8 Top Applications Operators of Afghanistan (Freshman-Senior) Agricultural Development Fund5 Roshan Farmers’ loan repayments Not Required 3 Provinces 500 Farmers (USAID-funded) PROJECTS IN PIPELINE Farm Service Center Alliance6 MTN-A Farmers’ loan repayments $250,000 estimated Grant 4 Provinces 10,000 Farmers (USAID-funded) Women’s Garden business7 Ministry of Women’s Affairs Etisalat $500,000 estimated Grant 4 Provinces 20,000 Women opportunities Afghan Payment System Banks and Interoperability of Banks &8 ALL National Payment Switch $650,000 estimated Grant (with World Bank funding) MNOs MNOs9 Afghan Public Protection Force TBD APPF Salary payments $500,000 estimated Grant TBD 10,000 Personnel and Families World Food Program10 Roshan Distribution of Food Vouchers $400,000 estimated Grant 4 Provinces 50,000 Families (partially USAID-funded) Effective management of11 Capacity Building Team ALL Seconded Project Managers to MNOs $400,000 estimated Grant National mobile money projects12 Integrated Agent Network ALL Single Agent Network for all MNOs $250,000 estimated Grant National Effective agent deployment IDLG/District Delivery Program13 ALL Payment of top-ups Not Required 45 Districts 3,500 GIRoA Officials (USAID-funded) 5 Afghan Civilian Assistance Kinetic14 ALL Civilian Casualties Payments Not Required 1,000 families Program II (USAID-funded) Provinces