Designing for your Mobile Money Initiative Prepared by Yolande Van Wyk
Sep 12, 2014
Designing for your Mobile Money Initiative
Prepared by Yolande Van Wyk
WHAT IS MOBILITY?
The first is the ability to use a wireless
phone or other mobile device to conduct
financial transactions and exchange
payments over the Internet.
The second is the ability to deliver information that can facilitate a
transaction.
Mobile commerce consists of two primary components.
FOR TODAYUsing mobile initiatives to provide access to your core services and
systems
AnywhereAnytime
MOBILE TECHNOLOGIES
THE MOBILE PHONE
SMS
USSDVoice
IP
THE TECHNOLOGIES
HSCSD/GPRS/3G/4G
IP
ProductivityPBX/VOIPDatabasesValuations
EtcEtc
CONNECTING TO THE NETWORK
WASP
SMS
USSD
MMSAPI
CONNECTING TO THE NETWORK
SMS
USSD
MMS
SOME ATTRIBUTESTechnology Attribute
SMS
Store & ForwardNeed connection to each MNOGenerally SMPPCan get costly at high volumes
USSD
Session basedSession limits imposed by MNO20c per 20 seconds for userSOAP/XML type interfaces
MMSPriceySimilar to emailVendor specific
IP based services
Huge growth area.mobiApplicationsRemoves dependance from MNO
Mobile Market, Agreements & Trends
Emerging Market Segments
Financial Institutions
eWallet
MNO’s
Unbanked population
MNO’s
Banked/Unbanked Market eWallets
P2P
Remittance
Pioneers of the first mobile money initiatives
Systems, Credibility, Trust amongst
The customers
Financial Institutions
Pre-Paid
MicroInsurance
Micro Finance
First offering to the market
Agreement
Mobile Initiatives in Banking
Mobile as a
channel
Mobile as
wallet
Person to person payments
Merchant payments
Content
Account information
Airtime transfer
Mobile phone account
Bank Account/
card
eWallet
Mobile banking
Unbanked
Bank account
MNO as enabler
OUTIN
IN
Channel
Value store OUT
Channel
Bank channels
Formal agents
Informal agents
Bank channels
Agents
Retailers
Virtual services
Mobile Initiatives at FNB
THE GOAL
• Reduce the average cost per transaction:o Innovative application of technologyo Cost efficiency o Re-use of technologyo Reduce the face-to-face as much as possibleo Development of alternative electronic channelso Provide more customer options
FNB’S MOBILE SERVICES
2002
2005
20082008
2009
2010
2007
FNB CELLPHONE BANKING
• Multi-bearer
• Any phone, anytime, anywhere
• Full transactional banking
INCONTACT
www.fnb.co.za
*120*321#
CELLPHONE BANKING
MO SMSUSSD-1
USSD-2*120*321# fnb.mobi fnb.exe application
CELL PAY POINT
CELLPHONE BANKING BASE
CELLPHONE BANKING GROWTH
BRINGING OUR OWN COSTS DOWN
BENEFITS
• Cellphone Banking is a low cost channel to the bank• Cheaper for customers
• Reduces queue times at ATMs and branches
• Services like InContact reduces service calls at branches and call centres.
QUICK FACTS
• In December 2010, FNB sent 79 million SMSs (approximately 2.5 million SMSs per day)
• In December 2010, FNB recorded 2.6 million customers• In December 2010, FNB processed in excess of 15 million transactions• In December 2010, FNB processed transactions worth R1.7 billion
through Cellphone Banking• In December 2010, the FNB.MOBI site attracted more than 250 000 visits.
THE WORLD OF EWALLETCardless Transactions
FNB EWALLET
1. Send from any FNB account:o Online bankingo Cellphone bankingo ATM
• Recipient can:o Cash at ATM (no card)o Buy airtimeo Send to someone elseo Buy from 35 online merchants
PAY WALLETPay Wallet allows FNB Corporate, Commercial and Public Sector customers to pay anyone electronically, without the recipient requiring a bank account.
• Single source• Multiple recipients• Personal information
captured & stored• Pay to phone or card
Cardless cash out
AFRICA REACH
Cellphone Banking
InContacteWallet
PayWallet
Cellphone Banking
InContact
Cellphone Banking
InContact
InContact
Cellphone Banking
Cellphone Banking
InContact
InContact
Cellphone Banking
EWALLET GROWTH
QUICK FACTS
eWallet services was launched in October 2009.
As at April 2011 close to 523 108 eWallets had been created.
In April 2011 alone, more than R69,000,000 was sent to cellphones with FNB eWallet
THE WORLD IS MOBILE
• 6.8 Billion is the world population• 1.9 Billion Internet subscribers• 5 Billion Cellphone subscribers
Source:Internet world statisticsc
THANK YOU
Questions?