The mobile money movement: jumpstart to emerging markets

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This presentation will be used for an upcoming webinar where the author of the publication "The Mobile Money Movement: Catalyst to Jumpstart Emerging Markets" will present the findings. This article was published by The Innovations Magazine in June 2011. To register for the event, go to: www.mpayconnectseries6.eventbrite.com

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  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • ½ the world’s population (3 billion people) earn less than $2 a dayNo access to savings, loan, insurance, or money transfer
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • Today we will go over the basicsBoth banked and unbankedToday, focus on the unbanked
  • The mobile money movement: jumpstart to emerging markets

    1. 1. The Mobile Money Movement (TM): The Catalyst to Jumpstart Emerging MarketsmPay Connect, Inc.<br />
    2. 2. agenda<br /> background<br /> what will be mobile money’s impact GDP?<br /> why will it have this impact?<br />challenges ahead<br />2<br />
    3. 3. background<br />
    4. 4. mPay Connect Consulting<br />Join our Linked In Group: Mobile Payments Series – mPay Connect<br /><ul><li>Representative Clients:
    5. 5. World Economic Forum
    6. 6. United Nations Foundation (mHealth Alliance)
    7. 7. bKash: Bangladesh Joint Venture between BRAC and Money in Motion
    8. 8. Jamaican Central Bank
    9. 9. Inter-American Development Bank
    10. 10. 3 of the 4 largest banks in the U.S.
    11. 11. Global mobile operators
    12. 12. Publications:
    13. 13. World Economic Forum, The mHealth Alliance, “Amplifying the Impact: Examining the</li></ul> Intersections between Mobile Health and Mobile Money,” (January 2011) for Davos Annual<br /> Summit.<br /><ul><li>Innovations Magazine (MIT Press) (June 2011) on “(The) Mobile Money Movement: Catalyst to Jumpstart Emerging Markets”
    14. 14. Inter-American Development Bank: “Addressing Gender Concerns around Mobile Money Access in Jamaica”</li></ul>4<br />4<br />
    15. 15. mobile money defined<br />Using the mobile phone as a channel<br />to conduct payments, account management, and <br />other financial services<br />
    16. 16. categories of mobile money<br />Mobile Financial Services<br />=Mobile Money<br />Mobile Payments <br />Mobile Finance<br />Mobile Banking<br />Mobile Payments<br />Mobile Banking<br />Mobile Microfinance<br />B2B<br />B/G 2C<br />P2P<br />C2B<br />Credit/Insurance/ Savings<br />Informational<br />Transactional<br /><ul><li> Salary </li></ul> disbursements<br /><ul><li>Pensions
    17. 17. Domestic Money </li></ul> Transfer<br /><ul><li> International</li></ul> Remittances<br /><ul><li>Retail payments</li></ul> at store (contactless<br /> payments)<br /><ul><li> Mobile online </li></ul>“mCommerce” <br />(e.g. eBay or ringtones)<br /><ul><li> Replace cash in supply chain
    18. 18. Mobile bill payment
    19. 19. Mobile Remote Deposit Capture
    20. 20. Brokerage
    21. 21. Alerts
    22. 22. Account balance &</li></ul>history<br /><ul><li> Disbursement/Repayment
    23. 23. Insurance premiums/claims
    24. 24. Asset accrual</li></ul>©mPay Connect<br />
    25. 25. what will be the impact?<br />
    26. 26. Kenya’s mPesa<br />15 million users, >$400 million/month<br />
    27. 27. 2011<br />today’s GDP cartogram<br />
    28. 28. future impact of mobile money<br />a change to relative GDP<br />
    29. 29. why?<br />
    30. 30. GDP = Consumption + Investment + Government Spending + Net Exports<br />
    31. 31. why?<br />mobile money = 5 forces at work<br />Mobile Money<br />Mobile<br />Technology with ubiquitous reach<br />New Industry<br />Enabling Infrastructure<br />4. Method to capitalize informal sector<br />5. More efficient than cash<br />
    32. 32. 1. reaches those currently with <br />no access to financial services<br />World Economic Pyramid<br />Banks<br />Mature Markets<br />500 Mill<br />*>$20k/yr<br />2 Billion<br />*$3260 to $20k/yr<br />Emerging Markets<br />Unbanked, Mobile Opportunity:<br />1.7 Billion in 2012<br />Today<br />4 Billion<br />*<$3260/yr or <$9/day<br />Survival Markets<br />Source: CGAP <br />2012<br />Source: World Resources Institute <br />(*Individual Annual Income: 2005 USD Purchasing Power Parity)<br />
    33. 33. 2. new industry spurs<br />investment = new jobs<br />over 200+ mobile payments initiatives<br />
    34. 34. 3. mobile finance = <br />enabler of new industries<br />mHealth, off-grid energy, trading<br />Mobile Financial Services<br />
    35. 35. 4. formalizing capital<br />increase in savings, credit, investment<br />informal to formal financial services<br />
    36. 36. 5. digital efficiencies<br />eliminate <br />“shoe leather costs”<br />reduce theft<br />increase traceability<br />smoothing transactions<br />money at time of need <br />
    37. 37. mobile money = linchpin to GDP growth in emerging markets<br />GDP = Consumption + Investment + Government Spending + Net Exports<br />
    38. 38. challenges ahead<br />
    39. 39. challenges<br />lack of other infrastructure<br />government & regulatory policies<br />fragmented / lack of interoperability<br />investor fatigue<br />
    40. 40. For a copy of the publication<br />For advisory services:<br />info@mPayConnect.com<br />

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