`

BANKING THE UNBANKED: GOING MOBILE IN
ETHIOPIA
INDEX
Some Important Facts …..
 Ethiopia has a population of 80 million people and expected to be over
120 million by 2030
 Th...
Where is the Gap?
• Lack of proximity and ease of access to the Financial Services
• Lack of simplicity and speed in proce...
Can we go “Mobile” to address it….
A little out-of-the-box tool as “Mobile Phone” could prove a massive
transformation…..
Banks are increasingly adopting innovative methods to reach
out applying the following channels……
•
•
•
•
•
•

Mobile Phon...
Changing Geography
• New touch points

1.5bn
25m

Source: WB 2005; VISA; UPU 2008
Operational Cost Efficiency
Comes from good channel management

Cost per Transaction

$4
$3
$2
$1
$0

$3.0
0
Traditional B...
Perspective driving the mobile and branchless banking

1. Regulatory
Environment

2. Customer perspective
(Customer Value ...
Migration Path from Branch to Branchless Banking
Branch
Banking

V-bank
Branch
Banking

Branch
Banking

Branch
Banking

V-...
Banks to offer…..
•
•
•
•
•
•
•
•

Process loan applications (using Credit Scoring)
Take Savings deposits/ Repayments
Allo...
How

‘We’ can help you ?

Our Experience….
•

We helped Banks and Microfinance institutes to grow exponentially in increas...
CBS

Communication Network..
Terminals in the
field

ATMs

Other hosts

Or at Merchant locations

Cell operator
GPRS

BREF...
Customer Perspective
Ease of Use or Convenience
– Low Cost Magnetic Stripe Card and or Biometric recognition for complete ...
How can we go “Mobile”
Biometric Point-of-Sales
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Account Opening
Authentication of customer ...
Mobile banking hardware
Authentication mechanism on mobile
Mobile Phone Banking authentication mechanism is be based on Signature / photograph. We...
Bankers Realm Mobile : sample screens

Customer can apply for a loan. The loan product
parameters and other information ge...
Biometric POS Cash dispensers
Some of our Customers
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Jamii Bora Bank , Kenya
Chase Bank, Kenya
Faulu DTM, Kenya
K...
Working Agency Banking Site..
Urban Agent

Rural Agent

CHASE Bank Kenya Agent
Practice common in S. America & Asia, CBK R...
Transaction mechanics

Customer comes to a
Chase Bank agent.

Hands in their ID
card and ATM
Card to the Agent
Operator.

...
Video- Branchless Banking……
INTRODUCING Craft Silicon

•A Kenyan software company started in 2000 with
fully owned subsidiaries in India, Nigeria, Tan...
About Us
•

A Kenyan software company started in 2000 with fully owned subsidiaries in
India, Nigeria, Tanzania and the US...
Our Solutions
•

Bankers Realm Core Banking Solution

•

Bankers Realm Core Micro Finance Solution

•

Bankers Realm Elect...
OUR FOOTPRINTS
GLOBAL PRESENCE
•

Africa
Kenya, Uganda, Tanzania, Rwanda, Ethiopia, Malawi, Zambia. Nigeria, Ghana, Gambia...
CRAFT SILICON FOUNDATION .... A SOCIAL INITIATIVE FOR THE
CHILDREN

•
•

Craft Silicon, as a part of our social responsibi...
With You Forever
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Banking the Unbanked using Mobile

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A presentation shown in the 12th Annual AFMIN Conference and General Assembly held in Addis on 16th October

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Banking the Unbanked using Mobile

  1. 1. ` BANKING THE UNBANKED: GOING MOBILE IN ETHIOPIA
  2. 2. INDEX
  3. 3. Some Important Facts …..  Ethiopia has a population of 80 million people and expected to be over 120 million by 2030  The country has less than 1 bank branch per 100,000 people  Ethiopia is the fastest growing economy in Africa and 3rd fastest growing economy after India and China in the world  Despite the growing population and the growth in the economy merely 5% people have access to bank accounts  Geographical inaccessibility, lack of infrastructure, high cost of banking services and lack of financial knowledge are the major constraints  Africa has 230 million unbanked households – constitutes an enormous profit potential for banks and microfinance Institutes Data collected from various sources
  4. 4. Where is the Gap? • Lack of proximity and ease of access to the Financial Services • Lack of simplicity and speed in processing loans and low-balance savings account • High cost of servicing within the traditional Brick & Mortar banking structure • Basic financial education of information since the unbanked may not understand even elementary concepts of banking Data collected from various sources
  5. 5. Can we go “Mobile” to address it…. A little out-of-the-box tool as “Mobile Phone” could prove a massive transformation…..
  6. 6. Banks are increasingly adopting innovative methods to reach out applying the following channels…… • • • • • • Mobile Phones Agency Banking Self Service Kiosks ATM Internet Banking SMS Banking Branchless Banking
  7. 7. Changing Geography • New touch points 1.5bn 25m Source: WB 2005; VISA; UPU 2008
  8. 8. Operational Cost Efficiency Comes from good channel management Cost per Transaction $4 $3 $2 $1 $0 $3.0 0 Traditional Branch Marketing Branch Telephone Through Merchants ABC Banking $1.50 $0.75 $0.20 $0.10 Source: Tower Group
  9. 9. Perspective driving the mobile and branchless banking 1. Regulatory Environment 2. Customer perspective (Customer Value Proposition) 4. Institutional Perspective (The Business Case) 3. Technological Environment
  10. 10. Migration Path from Branch to Branchless Banking Branch Banking V-bank Branch Banking Branch Banking Branch Banking V-bank Pilot Phase Roll-out Phase
  11. 11. Banks to offer….. • • • • • • • • Process loan applications (using Credit Scoring) Take Savings deposits/ Repayments Allow Withdrawals /Disbursement Provide Remittances / Fund Transfers Balance enquiry Mini Statements Mobile Phone Top-ups Bill Payment COMPLEMENTARITY CROSS-SELLING FULL RANGE BANKING SERVICES As presented at a World bank Seminar 2009
  12. 12. How ‘We’ can help you ? Our Experience…. • We helped Banks and Microfinance institutes to grow exponentially in increasing their footprints in unrepresented areas • MFIs like WWBG Ghana, Jamii Bora Bank, Chase Bank, Faulu Kenya, etc are able to save 50% of their operational cost by introducing Branchless Banking • Banks/MFIs improves their operation efficiencies in terms of Loan Disbursements and Repayments • Replacement of hardware and networking equipment from branches
  13. 13. CBS Communication Network.. Terminals in the field ATMs Other hosts Or at Merchant locations Cell operator GPRS BREFT Server
  14. 14. Customer Perspective Ease of Use or Convenience – Low Cost Magnetic Stripe Card and or Biometric recognition for complete transaction – Third Party lodgments allowed – Simplified Processes completed at the client’s business location: Pre –Enrolment Process Enrolment Process Enrolment Process Transaction Process
  15. 15. How can we go “Mobile” Biometric Point-of-Sales • • • • • • • • • • • • • • • Account Opening Authentication of customer using signature/photograph Savings Deposit Savings Withdrawal Balance Enquiry Loan Application Loan Disbursement Loan Re-payment Mobile Airtime Top-up Utility Bill Payments School Fees Tax Payment Money Transfer Merchant Payment Reports
  16. 16. Mobile banking hardware
  17. 17. Authentication mechanism on mobile Mobile Phone Banking authentication mechanism is be based on Signature / photograph. We show customer photograph and signature online on phone from the core system .
  18. 18. Bankers Realm Mobile : sample screens Customer can apply for a loan. The loan product parameters and other information gets downloaded from the central server in online mode. Credit Officer can open a new customer account in the field. He can also take customer picture using the Phone Camera . Account will be opened. To activate the account, customer may have to visit the bank in order to sign the documents.
  19. 19. Biometric POS Cash dispensers
  20. 20. Some of our Customers 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Jamii Bora Bank , Kenya Chase Bank, Kenya Faulu DTM, Kenya K-Rep bank , Kenya Nakumatt Retail Services FINCA , Uganda Botswana Saving Bank, Botswana OIBM , Malawi FBN MFI , Nigeria, Afribank , Nigeria La Regionale , Cameroon WWBG & SAT , Ghana
  21. 21. Working Agency Banking Site.. Urban Agent Rural Agent CHASE Bank Kenya Agent Practice common in S. America & Asia, CBK Regulated, Agent earns commission for every transaction.
  22. 22. Transaction mechanics Customer comes to a Chase Bank agent. Hands in their ID card and ATM Card to the Agent Operator. The Agent Operator will swipe the clients card on the POS terminal, select the transaction and ask the client to key in their PIN to authorize the transaction. The POS terminal connects to the Core Banking Software at the bank and debits the client’s account while crediting the agent’s account on a real time basis. Two receipts will be printed and the client will sign both leaving the agent with one.
  23. 23. Video- Branchless Banking……
  24. 24. INTRODUCING Craft Silicon •A Kenyan software company started in 2000 with fully owned subsidiaries in India, Nigeria, Tanzania and the USA. •More than 300 Employees across all offices.
  25. 25. About Us • A Kenyan software company started in 2000 with fully owned subsidiaries in India, Nigeria, Tanzania and the USA. • More than 300 Employees across all offices. 25
  26. 26. Our Solutions • Bankers Realm Core Banking Solution • Bankers Realm Core Micro Finance Solution • Bankers Realm Electronic Payment Switch • Bankers Realm Internet Banking Solution • Bankers Realm Investment Banking Solution • Bankers Realm Mobile & Agent Banking Solution • Bankers Realm Islamic Banking Solution • Elma – Mobile Commerce and Life Style Platform
  27. 27. OUR FOOTPRINTS GLOBAL PRESENCE • Africa Kenya, Uganda, Tanzania, Rwanda, Ethiopia, Malawi, Zambia. Nigeria, Ghana, Gambia. Sudan, Madagascar, Swaziland, Burundi*, Congo*, Botswana, Ivory Coast, Niger, Cameroon, South Africa, Sera Leon, Senegal, Namibia. • Eastern Europe Bulgaria, Armenia* • Asia India, Mongolia, Afghanistan, Philippines, Indonesia. • Pacific Micronesia, Vietnam*, Papa new Genuine, Fiji* • Middle east UAE. .
  28. 28. CRAFT SILICON FOUNDATION .... A SOCIAL INITIATIVE FOR THE CHILDREN • • Craft Silicon, as a part of our social responsibility, we provide free computer education to less fortunate people of the society. We have a bus loaded with computers, internet – powered with solar, which parks itself into various slum areas, and students walk inside for a regular sessions. 28 SLUM
  29. 29. With You Forever

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