Successfully reported this slideshow.

More Related Content

Related Books

Free with a 14 day trial from Scribd

See all

Related Audiobooks

Free with a 14 day trial from Scribd

See all

Rabo Development Retail Distribution Case Study: Mobile Banking and Payments

  1. 1. Rabo Development Retail Distribution Case Study: Mobile Banking and Payments How Rabo Development is Using Mobile, Branchless Banking Formulas to Change Access to Financial Services in Africa A few slides on mobile banking and payments developments within Rabo Development partner banks. Dan Armstrong, 10 May 2012
  2. 2. Some Popular Banking Channels Physical Banking Channels Virtual Service Channels  Branch Networks  IVR Banking and Call-Centre  Self-Service Machines (ATMs, teller Support / Banking machines)  Internet Banking (incl. Internet  Partnership Models & Agency Banking Kiosks) Banking  Mobile Banking  “Branchless” Banking with Bank-  SMS Banking and Information Owned Channels/Personnel Services for Consumers, Farmers,  Vehicle Banks Business  Container Banking  Merchant and Retail Payments, Support for the Supply-Chain  Flash and Capacity-Management Service Channels  Email Banking  Physical Mail  Television Banking  Other Value-Added Services
  3. 3. Distribution as a Customer Acquisition Tool Banked Customers Time
  4. 4. Distribution : Banking and Banking Usage Trends Alternative Traditional Physical Virtual
  5. 5. Distribution: No Channel is Independent of Other Issues Personnel Capacity & Bank Priorities ATM Internet Branch Switching Banking Locations Strategy Automation Other Regulatory & Core Distribution Environment Banking Channels System Agency Mobile Cards Banking Banking Existing Bank Inter-Bank Agent Competition Switching Partnerships Mobile VISA & Branch POS Operator MasterCard Strategy Competition Merchant Segmentatio Acquiring n Goals Strategy
  6. 6. Mobile Payments & NFC IVR Banking & Payments SMS Alerts Basic Banking, Info. Mobile Banking & Remote Payments & Mobile Contactless / Payments Electronic Wallets Proximity Payments “Mobile Money” Mobile Remittances Advertising-led Models = banks deploy = bank-led models = cooperative models = public transportation-led models = mobile operator-led models = mobile operators deploy = third-parties deploy
  7. 7. First of all, what do we expect from a wallet?  A place to store cash?  A place to store payment tokens?  A place to store other tokens?  A personal object?  A private object?  Something small enough to be portable/mobile?  … but … do we need a physical object?
  8. 8. Then, what do we expect from a transaction device?  Identification of myself, my rights and capabilities, memberships.  Identification of myself, an authentication tool for payment.  Secure, multi-factor  Tamper-resistant/evident  Personal and private  Easy to use  … but … do we need a physical object?
  9. 9. Mobile phones accepting cards, leverages existing card bases And of course, allowing traditional credit card payments, without a card present ..
  10. 10. NFC stickers can be a bridging technology But the Secure Element (SE) standardisation discussions have led to stalling the ubiquity of Single Wire Protocol- enabled phones and NFC acceptance devices world- wide since 2007.
  11. 11. Some MFS Rabobank has launched in NL 2003-2012
  12. 12. Other Rabobank and Partner MFS Apps, Trials, Products
  13. 13. 4 of NFC trails/pilots Rabobank has carried out ..
  14. 14. Rabobank World-Wide Key Rabobank Group Rabo Development  48 countries, 59.000 employees Rabo International – Retail & Wholesale  Partner Banks: Brazil, Paraguay, Zambia, Tanzania, Rwanda, Mozambique, China  Robeco, Sarasin, Orbay, Obvion, Interpolis, Rabo International - Wholesale Lage Landen, Athlon , etc.  Projects: Egypt, Malaysia, Vietnam, RIAS & Rabo Development Kazakhstan, Pakistan, Ukraine, Malawi, etc.  Main focus on food and agri-banking, cooperative banking, and retail Rabobank Foundation
  15. 15. Generating Successful Formulas Currently has / uses another financial product Too poor Target / Does not have Excluded by Addressable access to the design Market product Excluded by default Does not have / use a financial product Does not want the product Has access to the product, but does not use it Potential users Based on: http://www.bankablefrontier.com/assets/pdfs/access-frontier-as-tool.pdf
  16. 16. Zanaco  40+ years of success, growth and stability, successful expansions, privatisation and IPO  650.000 customers, 1.200 employees, 50 branches  Year-on-year profitability, K3 bln in assets, mature risk management regime. Healthy account portfolio including: • Retail: account services, personal loans, e-banking, Xapit, remittances, cash services • Corporate: credit facilities, e-banking, cash services, treasury and investments, trade services  Transformation to modern banking tools: 100+ ATMs, internet banking, mobile banking
  17. 17. Xapit Instant Banking  Mobile Banking: Launched in late 2008, USSD mobile banking • 250.000+ customers to-date • 20+ bill payment partners, prepaid airtime, etc., 21 transactions per month  Light Account: Also, Xapit „account‟ = welcome pack + mobile banking + ATM card  DSA: Sign-up for an account *444# and get mobile banking and a VISA debit card in 5 minutes.  Agency Banking: 123 ZamPost & 9 independent agency locations  Truck Banking: Zanaco mobile banking vehicles
  18. 18. FMB Fast Account  First Merchant Bank (Malawi) • 19 branches, corporate and retail banking, 600 employees, growing strongly • 1/11 commercial banks in Malawi  FMB Mobile / FMB Fast Account • Launched summer of 2010, 50.000+ customers to-date • Successful to-date – packaging of ATM card, bank account and mobile banking functionality • *** Includes immediate (small) balance on customers’ account, facilitating usage of the new product
  19. 19. Case Study: NMB Tanzania  NMB: National Microfinance Bank Ltd. • Also by-far the largest bank in Tanzania • 1.8 mln customers: regular Tanzanians, all teachers, army, etc. • ATMs in place (400+), most customers have ATM cards • 150 connected branches (100%)  However, as a former government bank: • Must handle bill payments, salary dispersal and non- customer transactions • Major queue problems
  20. 20. NMB mobile – mobile banking  Dial *155*66# to access  Features: • Balance Inquiry • Mini-Statement NMB mobile 1. Balance Enquiry • Money transfers to any NMB account 2. Mini-Statement 3. Money Transfer • Tanesco Luku Prepaid Electricity Purchase 4. Prepaid Services 5. Other Services • Vodacom and ZAIN Prepaid Airtime Top-Up 6. Help • NMB Services like ATM card block, settings  No need to fill-in forms or visit an NMB branch to sign-up, simply dial *155*66*123#  NMB mobile: • Launched in August 2009 • 550.000+ active customers to-date • All mobile networks, 100% nation-wide coverage • SMS Alerts to 220.000 customers monthly
  21. 21. BPR Rwanda  BPR (Banque Populaire du Rwanda) is by far the largest bank in Rwanda • “Bank of the people” with roots in cooperative and food/agri-banking (>85% of Rwandans are farmers) • 1,3 mln accounts (8x larger than the second largest bank)  In 2011, 47/191 BPR branch banks were automated: • Around 150 locations use paper- and-pencil ledgers • Staff may have no previous experience with computers • Fraud and information integrity are problems. • Customers can only bank at one bank location.
  22. 22. Bank Branch: Rwanda No power, internet connectivity
  23. 23. Bank Branch: Rwanda Waiting for teller cash withdrawals
  24. 24. Bank Branch: Rwanda Teller
  25. 25. Bank Branch: Rwanda Teller
  26. 26. BPR Mobile Banking  “Project Columbus” • Automated all 191 branches in 11 months • Mobile internet (incl. USB modems, laptops) • Data migration, training of staff and customers, card distribution  New BPR E-Channels • BPR Mobile Banking (launched 09/2010, 125.000+ customers to-date) • BPR SMS Alerts • BPR ATM Cards • BPR QuickCash ATMs • BPR Call Centre
  27. 27. BPR “Quickcash” ATMs  Quickcash and ATM Cards • 100 BPR ATMs online in 2011 throughout Rwanda (donated by local Rabobanks) • Increased ATM usage through new marketing and promotions, usability campaigns and POS roll-out  New E-Banking Call Centre • BPR call centre successful operating, incl. ACD/call queue system • Inbound and outbound calling to improve usage, sign-ups and customer satisfaction • 650-1.000 calls per day, service level is 85%+
  28. 28. BPR Mobile Banking Mobile Banking 1. Balance Inquiry 2. Mini-Statement 3. Money Transfer (BPR Accounts) 4. Prepaid Airtime • MTN • Tigo (pending) 5. Bill Payments • RECO Prepaid Electricity • StarTimes Africa TV • DStv • MTN Postpaid Bill • Tigo Postpaid Bill (pending) 6. Bank Services • Change BPR Mobile Banking PIN • Change Language • Order Cheque Book 7. Help
  29. 29. BPR Mobile Road Shows & Sign-up Success
  30. 30. BPR Mobile Road Shows & Sign-up Success
  31. 31. BPR: Simbuka
  32. 32. Banco Regional (Paraguay) – mobile strategy
  33. 33. Paraguayan Socio-Economic Distribution & MB Data Source: PRESENTACION - TARJETAS DE CREDITO AGOSTO 10 - FINAL.pptx High-value customers and enterprise businesses 4 % (ALTO) need to be targeted in other ways. Traditionally expensive to attract these customers. Massive potential to expand in middle, middle- 26 % (MEDIO) lower and lower income customer base with MB. This is the area where Paraguayans are under- served, but still can be profitable, long-term Banco Regional customers. Bajo alto 10 % Massive potential to expand in low-income 56 % Bajo medio 16 % (BAJO) customer base with MB. Traditionally these are un-banked Paraguayans and not automatically attractive to Banco Regional. Bajo bajo 30 % However, with a limited product set, and cost- effective support & maintenance, these could also be profitable for the bank. 14 % (MUY BAJO) Question: What are the segments applicable to a Banco Regional MB product? Likely this is upper-middle, middle, lower-middle and lower segments. Is Banco Regional interested in trying to expand successfully in these segments?
  34. 34. Business Case Drivers Primary: Secondary: 1. Customer Acquisition Tool 4. Loyalty • New customers in current regions • Service addition in bundles for • New customers in un-served existing customers regions • New 24/7 channel, bank in your • New customers to banking pocket 2. Cost-Savings 5. Innovation • Innovative “virtual” (alternative) • Supports Banco Regional’s channel position in Paraguay • Helps lower branch queues • Leverages lessons learned from partner banks 3. New Revenues 6. Enterprise Customers • Deposits and loans from new • Supports business account customers management with new consumer • Bundle revenues payment product in Paraguay • Direct transaction revenues • Supports payroll strategy
  35. 35. Concepts Introduced: Channel Management Concepts, Market Analysis, Marketing Actions, Bus. Development In-Life Feasibility, Product Business Channel Management, Case, Project Changes & Planning, Strategy Improvement, Pricing New Features Channel Management KPIs, Channel Channel Profitability Development, Analysis, Design, Development Marketing Improvement, Testing, Trial, Management Launch Reporting
  36. 36. Thank You! Dan Armstrong, +31652085071 www.rabobank.nl dan.armstrong@takashimobile.com www.rabobank.com

×