© 2014 mFino Ltd.| All Rights Reserved |Confidential Exploring the Intersection between Microfinance, Agency Banking & Mobile Money in Africa for Financial Inclusion
May 09, 2015
© 2014 mFino Ltd.| All Rights Reserved |Confidential
Exploring the Intersection between
Microfinance, Agency Banking &
Mobile Money
in Africa for Financial Inclusion
© 2014 mFino Ltd.| All Rights Reserved |Confidential
Financial Inclusion
Finance is not an end by itself but a
means to help solve significant
development challenges in order to
improve the lives of people
Financial Inclusion helps to make
basic, essential services and utilities
like energy, health, education, and
water more accessible to people at
the bottom of the economic pyramid
Access to affordable financial services
helps in overcoming poverty, reducing
income disparities, and contributes
towards overall social and economic
development (GDP Growth)
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Mobile Financial Services (Mobile Money)
Value is stored in electronic form in mobile
phones which can be used to purchase
airtime, transfer funds to others, make
payments and receive bulk payments (e.g:
G2P Payments)
Mobile Money Capabilities• P2P Transfer/ Remittance• Banking• Commerce• Payments• Top-ups and many more
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Mobile Money in Africa
Africa has more than 800 million
mobile subscribers
Africa leads the world with 117 out
of the total 220 Mobile Money
deployments in the world
Mobile Money Services
1. Airtime Purchase
2. P2P Transfer
3. Pay Bills
4. Receive Bulk Payments
Currently, Mobile Money technology is perceived as a Money Transfer
solution
According to GSMA, 1% increase in
mobile penetration contributes to
over 6% growth in the region’s
GDP, higher than any other region
globally, and this is forecasted to
rise to over 8% by 2020
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Microfinance in Africa
Low bank penetration and a very largeinformal sector, Africa is a fertile ground formicrofinance
Benefits for MFI Customers1. Access to savings, credit & insurance2. Affordable and secure services3. No collateral required4. Helps in employment & wealth creation5. Plan for lifecycle needs – retirement,
medical, education, marriage, funeral etc
Main Challenges of MFIs in Africa1. High cost of delivering services2. Security risk3. Fraud4. Lack of adequate back office capabilities
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Agency Banking (Branchless Banking)
The delivery of financial services outside conventional bank
branches through the use of retail agents and information and
communications technologies to transmit transaction details.
Branchless Banking involves:
• Use of technology to identify customers and record transactions
electronically• Use of outlets such as post offices and small retailers, that act asagents for financial services providers• Offer of at least basic cash deposit and withdrawal in addition totransactional or payment services• Backing of a government-recognized, deposit-taking institution, suchas a formally licensed bank• Structuring of the above so that customers can use these bankingservices on a regular basis (available during normal business hours)and without needing to go to bank branches at all
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Banks & Financial Institutions
Agent Agent Agent
Customers Customers Customers
Delivering Financial Services through Agents via Mobile Phones
Mobile Agents & Stationary Agents New sources of revenue for agents
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Mobile Money
MicrofinanceAgency Banking
Financial Inclusion
P2P Transfer
Airtime Top-ups Bill Payments
Receive Bulk Payments
Savings
Micro-credit
Micro-insurance
Banking Products & ServicesEmployment &
Wealth Creation
Asset Creation &
Quality of Life
Affordable, Convenient & Secure
Intersection of Mobile Money, Microfinance & Agency Banking
© 2014 mFino Ltd.| All Rights Reserved |Confidential
Intersection of Mobile Money, Microfinance & Agency Banking
Benefits for Customers1. Cash remains within the system2. Helps in better money management3. Helps in building a corpus for future lifecycle needs
(asset creation)4. Helps in building a credit history and improving
borrowing power5. Access to wide range of financial services6. Business expansion7. Financial literacy and access to information8. Mobile Marketplace will help farmers to buy fertilizers
during off-season at a discount, get to know prices ofcommodities, helps in accepting payments for sale andmaking payments for purchases
9. Help to improve access to utilities and essentialcommodities like water, energy, education, health etce.g: automatic water dispensers (pay & use), prepaidelectric meters etc
10. Helps to lead a better quality of life
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Mobile is the gateway to Financial
Inclusion
© 2014 mFino Ltd.| All Rights Reserved |Confidential
Innovative Mobile Financial Products & Services
• Cash-in/Cash-out at agent• Savings• Credit• Insurance• P2P Transfer• Bill Payments• Online Payments• Merchant Payments• Airtime Top-ups• Ticket Booking• Remittances• Cardless ATM Access• Loyalty Points• Salary Credit• Offers• Welfare Payments
© 2014 mFino Ltd.| All Rights Reserved |Confidential
mFino MFS platform ensures that
cash remains within the system
The platform connects both the
source and destination with an
integrated first mile to last mile
mobile wallet
All sources of funds can be routed
to the mobile wallet and payments
can be made using the mobile
mFino Mobile Financial Services Platform
Any Phone Any Payment Method Any Channel
© 2014 mFino Ltd.| All Rights Reserved |Confidential
Questions..???
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Thank You!!