M O N Y F O N 1 22 2009 Presentation Colombia


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M O N Y F O N 1 22 2009 Presentation Colombia

  1. 1. MONYFON The Evolution of Money
  2. 2. Transforming the Wireless Paradigm <ul><li>Mobile Money Transfers will be a trillion dollars by 2012. </li></ul>“ The movement of capital, information, people and culture are converging to create un-paralleled and powerful transformations in the global marketplace.” – Marcelo Suarez-Orozco
  3. 3. Facts <ul><li>Six Billion people on Planet Earth. Most of them have no access or need for the formal banking system. </li></ul><ul><li>Four Billion Mobile phones in the world by 2010. </li></ul><ul><li>Mobile Phones outnumber ATMs by 2000/1 . </li></ul><ul><li>The world is changing, technology is evolving, and money is undergoing an evolution. </li></ul>
  4. 4. Borderless Money Transfers According to the Aite Group, worldwide remittances reached $369 billion in 2007 and are expected to grow by an 8 percent CAGR through 2010
  5. 5. Why Mobile? <ul><li>Expands the accessibility of remittances and dramatically lower fees, particularly for low denomination amounts, while enhancing value to mobile operators through share of fees, SMS traffic and customer loyalty. </li></ul><ul><li>Position the mobile operator community as leading the way in helping these poorer migrant workers, and in so doing secure public and government recognition </li></ul>
  6. 6. Expand The Market <ul><li>GSMA forecasts global remitance market to expand from 380B USD in 2007 to one trillion US dollars by 2012 with the expansion of mobile money services. </li></ul>
  7. 7. Mobile Wallet <ul><li>Mobile Wallet </li></ul><ul><li>The Mobile Wallet enables the provision of banking services to those traditionally excluded from banking facilities.  These services can be provided both in-market and cross-border and include: </li></ul><ul><li>Cash loading </li></ul><ul><li>Cash withdrawal </li></ul><ul><li>P2P payments </li></ul><ul><li>Bill payment </li></ul><ul><li>International money transfer </li></ul><ul><li>How it works </li></ul><ul><li>The mobile wallet account is topped-up via a prepaid voucher and/or SMS message </li></ul><ul><li>Alternatively, a person can top up another’s mobile wallet via a P2P transfer </li></ul><ul><li>The customer uses the wallet to pay bills and withdraw cash at designated money agents. </li></ul>
  8. 8. Benefits of P2P Transactions <ul><li>Increase money flow due to higher number of micro-transactions (10-25 USD due to lower transaction costs). </li></ul><ul><li>Safer than cash. </li></ul><ul><li>Creates microbanking and jobs as the entrepreneurs begin to seek opportunities </li></ul><ul><li>Create Social Finance Networks with micro lending opportunities. </li></ul>
  9. 9. Current Method for Transfers
  10. 10. Mony$Fon Method
  11. 11. M-Wallet No Need for Cash & Credit Cards One Phone many uses.
  12. 12. Microtransfers <ul><li>Send Small Sums of Money </li></ul><ul><li>Better control of spending. </li></ul>
  13. 13. Country Example <ul><li>Colombia </li></ul><ul><ul><li>Large Expatriate Population >3.3M </li></ul></ul><ul><ul><li>High Percentage of GDP is remittance based </li></ul></ul><ul><ul><li>Mostly cash based economy with few participants in formal banking system. </li></ul></ul><ul><ul><li>Large informal underground economy creates a large opportunity for P2P banking using m-wallets </li></ul></ul><ul><ul><li>Social Finance Network Opportunity </li></ul></ul>
  14. 14. COLOMBIA Market <ul><li>GDP 256B USD </li></ul><ul><li>Remitances from expats 4.9B USD </li></ul><ul><li>Transfer fees, costs ~10% </li></ul><ul><li>Market size 490M USD </li></ul>
  15. 15. Remesas y la Diaspora Colombiana
  16. 16. Remesas de El Exterior Banco Central de Colombia
  17. 17. Bancarización por Regiones en Colombia
  18. 18. Cobertura Bancaria en Colombia
  19. 19. Puntos de Banca no Tradicional
  20. 20. Host Country <ul><li>Remitances can be collected at possible partners including gas stations, local food markets, lottery sales sites etc… </li></ul><ul><li>SMS transfers can replace cash. </li></ul><ul><li>Create microenterprise in host country, Microlending & Microbanking. </li></ul>
  21. 21. Hurdles <ul><li>Security </li></ul><ul><li>Government Regulations </li></ul><ul><li>Anti Money Laundering Laws </li></ul><ul><li>Create Customer Confidence </li></ul><ul><li>Overcome 100 years of Western Union branding. </li></ul>