The document summarizes a presentation on using new business models and mobile technology to increase financial inclusion in Mexico. It discusses how traditional banking has failed to reach many rural and low-income communities. A proposed model involves a non-bank government agency using agents and partnerships with telecom companies to deliver low-cost financial services to underserved areas via mobile phones. This could potentially expand access from the current 35.5% of municipalities to 78.2% and benefit over 6 million people with services like domestic remittances, bill payments, and stored-value accounts. Key challenges include regulation limiting non-bank activities and the potential for dominant players to control the mobile money market.

1. Aníbal Bustillo, Armando Maldonado Mobile Money for the Unbanked: New Business Model Adoption Depto. Acad. de Sistemas Digitales - ITAM [email_address] December 9 th 2010 Cartes 2010 Payment in Emerging Countries C12 1 1 2 2 Technomadic Interactive SC [email_address]

9. The Business Model Canvas (1) (1) Business Model Generation. Alexander Osterwalder & Yves Pigneur. 2009 Value Propositions (2) Customer relationships (4) Customer Segments (1) Key activities (7) Key Partnership (8) Key Resources (6) Channels (3) Revenue Streams(5) Cost Structure(9) An organization serves one or several Customer Segments . Customer Relationships are established and maintained with each Customer Segment . Value propositions are delivered to customers through communication, distribution, and sales Channels . Result from value propositions successfully offered to customers . It seeks to solve customer problems and satisfy customer needs with value ´propositions . ..by performing a number of Key Activities . Are the assets required to offer and deliver the previously described elements… . Some activities are outsourced and some resources are acquired outside the enterprise The business model elements result in the cost structure Social Benefits Social Costs

10. Regulation Rural Communities Mobile Telephony Technology Market Trends Financial Inclusion of Unbanked People Business Model: Purpose and Restrictions

12. Fuente: CNBV. Potential Coverage of Banking Agents Financial Inclusion Penetration Using Agents Notes: Large Retail Stores :: Wal-Mart, Soriana, Chedrahui, Comercial Mexicana, Sears, Samborns, Coppel. Small retail Stores Oxxo, 7 eleven, Farmacias Benavides, Farmacias del Ahorro, Farmacias Guadalajara, Waldos, Office Max, Mix Up, Muebles América, Pitico, Promujer. Diconsa: Only 25% of the stores have IT &Ccapabilities . Gas Stations (*) Not authorized as Banking Agent 11,066 2,775 9,324 568 1,570 1,692 5,801 8,578 32.9% 33.7% 37.5% 42.3% 44.4% 46.2% 74.9% 80.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% - 2,000 4,000 6,000 8,000 10,000 12,000 Commercial Banks Large Retail Stores Small Retail Stores Devel. Banks Telecomm S&L Thrifts Diconsa Gas Stations (*) # of Branches % Attended Municipalities Number of Municipalities Financial Services Penetration