Mobile Money Agent Network Development- Haiti
Post on 08-Jul-2015
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Mobile Money Agent Networks
Examining the NGO Sector’s Role
What is an Agent?
Agent
Client
A person or business that is contracted to facilitate transactions for users. The most important of
these are cash-in and cash-out (deposits/withdrawals). Agents bridge the gap between
traditional brick and mortar bank branches and potential down market clients.
Bank
MNO
Source: Sarah Rotman, “Branchless Banking 101” March 2012
Roles of an Agent
2) Educating and Registering Costumers
1) Promoting the product
3) Facilitating Transactions
Mobile Money Agent Hierarchy(illustrative)
“Super Agents” Financial Institutions
(e.g. MFIs)
“Agents”Large Merchants /
Specialized Companies
“Sub Agents” Local Retailers /
Small Vendors
Who can be an Agent?
Your local convenience store (sub agent) Your local bookstore (sub-agent)
National Post Office (Super Agent) Aggregator networks (Agent)
Agent Business Case
Being an agent can help small merchants generate more
revenue for their local business
Source: CGAP: “Agent Management Toolkit” 2011
Agent Network Development: The Mercy Corps Haiti Experience
Table of Contents
• Background & ContextFunding
Financial Inclusion
Unique Operating Environment
• Haiti Case StudyStrategy
Approach
Execution
Lessons Learned
Potential Roles for NGOs
Background & Context
• Funding – Sizable flows of donor funds
in response to the earthquake; flexible
funding for innovation
• Financial Inclusion – Core mission
objective for Mercy Corps: enhancing
market-driven financial inclusion among
underserved communities
Background & Context
• Unique Operating Environment –
Logistical/implementation challenges on
the ground created an opportunity to
explore alternative delivery channels
Distinct context for mobile money
integration : massive earthquake, no prior
country office presence, staff “churn”, etc.
Haiti Case Study
• Strategy – a) Focus activities in regions
that received large influxes of IDPs
post-earthquake; b) Provide financial
assistance via alternative delivery
mechanisms c) flexible funding and a
TA grant from USAID allowed us more
room to experiment
Haiti Case Study
Mercy Corps ERP
Operations
Haiti Case Study
• Approach
Which partners?
Trilogy/Voila
Proactive relationship development
Which programs?
Cash-for-work
Unconditional cash transfers
Food security (Kenbe-La)
Which participants?
Selecting beneficiaries and merchants
Aligning program objectives with funding parameters
Haiti Case Study
• Kenbe-La Program Overview
– Recurring conditional cash transfer program to
alleviate food security concerns among
vulnerable HHs
– 9 month program that targeted 5 districts in St.
Marc and 2 surrounding towns,
– Engaged ~7,000 beneficiaries and ~100
merchants; monthly disbursements = 1,618
HTG (~40 USD)
– Program parameters allowed for incubation of
merchants from acceptance points to agents
Haiti Case Study
Mac Donald
Centre Ville
Blockhaus
Bocozelle
Haiti Case Study
• Execution
Mobilization & Sensitization
• Airtime purchase/transfer as “the bridge” to mobile-$
Mobile Money Training
• Pictograms and simulation
Disbursements
• Who hits send, to whom, when, and for how much?
Mobile Money Agent Training
• Interactive exercises, explaining “buckets of money”
Haiti Case Study
1. Cash-out
m-$ User
m-$
Sub Agent
3. Sub-Agent Rebalances
• e-wallet balance
increases
m-$
Sub Agent
2. Change in Liquiditym-$
Sub Agent
• Cash on-hand
decreases
m-$
m-$
4. Additional Cash-outs
m-$
Agent
m-$ User
m-$
Sub Agent
m-$
12
12
12
Blockhaus Vendor Profile:
Lundy MyslandeSex / Age:
• Female / NA
Name of Business / Launch Date:• Rosie Boutique / 2009 (3 yrs)
Source of Start-up Capital & Plans for Business:• Source: Personal savings then small loan to grow her inventory
• Plans: Increase her inventory; diversify products to include “brand name” items; purchase refrigerator to sell meats (poultry, beef)
Average cash sales pre-Kenbe La program (monthly):• ~$1,925 USD (~77,000 HTG)
Average T-Cash sales from Kenbe La clients (monthly):• ~$2,900 USD (~116,050 HTG)
Average number of Kenbe La clients (monthly):• 70
Centre Ville Vendor Profile:
Alexis MoiseSex / Age:
• Male / 50
Name of Business / Launch Date:• Betabara Store / 2004 (8 yrs)
Source of Start-up Capital & Plans for Business:• Source: Personal savings
• Plans: Increase the size of the store and offer an even wider selection of products
Average cash sales pre-Kenbe La program (monthly):• ~$6,750 USD (~270,000 HTG)
Average T-Cash sales from Kenbe La clients (monthly):• ~$18,420 USD (~737,035 HTG)
Average number of Kenbe La clients (monthly):• 302
Average Monthly T-Cash Sales in HTG
(Dec ‘11 – Sep ’12)
188,164
127,240
248,056
199,026
-
50,000
100,000
150,000
200,000
250,000
300,000
Bocozelle Blockhaus Centre Ville Mac Donald
Avg = 190,621 (~$4,766 USD)
0%
17% 18%
0%
9%
100%
83% 82%
100%
91%
Bocozelle Blockhaus Centre Ville Mac Donald Overall
Yes No
Perceived Disruption of Cash Sales
due to T-Cash
Time to Conduct T-Cash Transactions
(Start vs. End of Program)
Sense of Preparedness to be a Mobile
Money Agent Post Program
Haiti Case Study
• Lessons Learned
– Agent Mobilization & Training
– Integrating Mobile Money
– External Partnership Management
Haiti Case Study
• Potential NGO Role(s)
– Financier
– Acquirer
– Trainer
– Service Promoter
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