This document discusses the challenges of providing computing services in remote financial institutions in developing countries. It provides examples of two banks, BPR in Rwanda and NMB in Tanzania, that have partnered with Rabobank to implement mobile and automated banking solutions. Both banks have expanded access to services through mobile banking apps and ATM networks. However, operating technology in remote, rural environments presents difficulties such as unreliable power, lack of infrastructure, environmental conditions, and scarce IT skills and resources. Rabobank aims to help banks overcome these challenges to increase financial inclusion.

1. Harsh Computing Environments in
Financial Services Markets
Dan Armstrong
Takashi Mobile and Financial Services
takashimobile.com
http://www.slideshare.net/danarmstrong

2. Rabo Development
 Rabobank Development is a division of Rabobank
International, one of the world’s largest food/agri-
banks
 Wholesale banking in 47 countries, 65.000 employees
 AAA status as a retail bank, but focused on rural/retail and agri-
banking
 Rabo Development partners/takes minority equity in
banks in developing countries that match this historical
profile and our skillsets (see following slide).
 In addition to support in food/agri- and basic banking
services, Rabo Development also supports partners
with brick-and-mortar branch network strategies,
channels/automation projects (mobile, ATM, internet),
banking products, fraud and in-country personnel.

3. Rabobank & Rabo Development World-Wide
RIAS & Rabo
Development
Rabo International (logos indicate Rural/Retail banks)
Rabobank Foundation
Advisory Projects / Partners

4. Banking in Harsh Environments
 Bringing compute resources and solutions to banks in
remote locations with limited infrastructure is a major
challenge:
 Fixed line internet connectivity (fibre, WiMax) and, if available, huge cost
 Mobile internet connectivity (GSM/HSDPA, GPRS/EDGE, WCDMA, etc.)
 Power (lack of power at all, or lack of stable power and/or UPS)
 Weather conditions (humidity, flooding, sun exposure, lack of closed buildings
and server environments)
 Environmental conditions (dust, exponentially higher maintenance cycles)
 Security of computing platforms (theft, transport, as well as e.g. stolen cooper
phone wire for other purposes like jewelry)
 IT skills (system set-up, monitoring, maintenance, usage of computers)
 Literacy

5. We’re talking about the dark areas

6. Case Study: 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)
 Currently 47/191 BPR branch banks are automated/
connected
 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.

7. Case Study: Banque Populaire du Rwanda
 BPR Mobile Banking
 Launched in Q3 2010, 10k new
customers per week
 Check balances, make
transfers, pay bills, buy prepaid
airtime
 BPR Debit Cards
 Enables “automated” account,
lower fees, 24/7 service
 BPR Quickcash ATMs
 100+ ATMs nation-wide
 Connectivity
 New solar/electric and GPRS
modem programme launched
in 2011 will automate BPR in
18 months

8. Case Study: NMB Tanzania
 NMB: National Microfinance Bank Ltd.
 Also by-far the largest bank in Tanzania
 1.9 mln customers: regular Tanzanians, all teachers, army, etc.
 ATMs in place (300+), most customers have ATM cards
 150 connected branches (100%)
 However, major queue problems
 In branches and at ATMs

9. Case Study: NMB Tanzania
 NMB mobile launched in
August 2009
 400.000+ active customers to-date
 Highly profitable for NMB
 Prepaid airtime, bill payment,
prepaid electricity
 Vodacom, Zain, Tigo, Zantel (99%
mobile penetration)
 SMS Alerts to 220.000 customers
monthly
 Moving into merchant
payments, business services
NMB mobile
1. Balance Enquiry
2. Mini-Statement
3. Money Transfer
4. Prepaid Services
5. Other Services
6. Help

10. Challenges in Rwanda, Tanzania and Elsewhere
 Utilities: high-quality power, paved roads,
 Environmental conditions: heat, humidity, dirt
 Knowledge: trained technicians, maintenance and
support personnel
 Equipment: spare parts, local hardware/software
licenses
 Costs: generator electricity only option in some
remote locations (costly), high-quality solar still
expensive … but GPRS is being widely available and
can be a cheap and effective solution!