1 IFAD- Conference RORAIMA GROUP Public – Private Partnership Overview Colin Vickerie, CEO March 4, 2015
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IFAD- Conference RORAIMA GROUP
Public – Private Partnership
Overview
Colin Vickerie, CEO
March 4, 2015
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Serving Clients Anywhere… Reaching the underserved ...here, there, & everywhere... A Business Partner… Not just a Vendor…
THE RORAIMA GROUPFor Your Global Financial Data Processing Solutions
Public- Private PartnershipObjectives
Public entity mandate- National Distribution and Processing Facility. Reach all citizens Serve all citizens Respond to the need of all citizens
Public Corporate Mandate Increase Revenue Lower cost People focus-
Customers/Employees/Stakeholders3
DATA INTEGRATION
FRAUD DETECTION & MONITORING
IMPROVED BILLING SERVICES
REDUCTION OF LOSSES
INCREASED REVENUE/INCREASED COLLECTION
NETWORK MANAGEMENT
NETWORK SOLUTIONS
Some Partner Objectives
Establishment of user friendly points of entry via various mediums …. POS, Mobile, Call Center, etc
Linking partner to a national and global network to facilitate electronic transaction processing.
Integration of as many banking, financial services, and transaction processing products and services that should also be accessed via Mobile Platform.
Real Time Transaction processing and Real Time Integration with Vendors
Availability of relevant data to facilitate a better interaction between teller and customer
Real Time Account reconciliation and daily settlement data.
Provision of access to real time transaction processing platform via WAP, USSD, Android, IOS, and any other means available to customers.
Detection, monitoring, and elimination of fraud within the payment and processing environment.
Offer extensive network to provide coverage across the country, Africa and and select international locations facilitating the sale of products and services to its clientele.
https://www.cash4africa.com/test
Client Deliverables
.
Competitive Forces How PO Respond
ReachWide range of productsLow Cost of servicesMobile ProcessingDigital ProductsMust Remain Profitable
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Value Proposition- Partners
Proprietary and Confidential 7
Post Office
Capital Invested
=+ Roraima
•Increase Revenue•Increase Profits
•Greater Efficiency•Lower Cost
•Electronic Link Network•More Products/Services•Global/Regional Access
•National Payments & Collection
•Etc..
Zero +Platform
License=
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Value Proposition- Roraima
We will create value added in several areas first and foremost we will be priced 20% to 30% below other similar services in comparable countries and be seen as providing a quality service at desirable prices.
We will utilize proven technology to automate and speed up the customer process as well as create a scalable vehicle for delivery.
We will organize partner’s labor force to better understand and respond to agents and customers as well as keep costs at extremely competitive levels.
We will convert our agent network (Post Office, Credit Unions, etc) to service bureaus in country for micro-finance institutions, un-banked masses, and the under-served.
We will approach the market as a local player with brands that build national loyalty and immediate recognition.
We will work with partners to develop a network focused on delivering service in locations where our customers live and work, in towns and villages where their families reside which are convenient and trusted by the community.
Extending the Delivery of Governmental Services Reduce Costs associated with Cash Production and Storage Increase Efficiency Collection of Taxes, Duties and Fines via Mobile phone Pension and other benefits Payments via Mobile phone Enable the Micro Sector Micro trade Micro Financing Increase FX inflow through Remittances
Priority Name Service Ease of Acquisition
1 Ministry of Finance Payroll Services, Bill Payment Difficult
1 Ministry of Education, Youth and Culture
Payroll Services Medium
1 Ministry of National Security & Justice
Payroll Services, Pension Payments Medium
2 Ministry of Health Payroll Services Difficult
2 National Defense Force Payroll Services Medium
SALES NETWORK AND VALUE PROPOSITION
RORAIMA’s Value Proposition RORAIMA’s Value Proposition BRANCHLESS BANKINGBRANCHLESS BANKING Link to available network in real-time basis (Post Office, Bank Locations, Micro Finance companies, government offices, schools…..) Low Cost “ready-made” infrastructure to facilitate a wide range of new services to existing Customers … utilising WAP, Wide Network, and customer’s available facilities (phone, internet, etc.) Offer all banking services and products in addition to other financial services and transaction processing services on mobile network. Attract new Customers from expanded service offering Accessibility to a new un-banked market Segment Costs saving as a result of migration from traditional to low cost mobile electronic channel Earn new revenue from new product and services being offered Increase funds raised by accessing previously ignored remittance customers Providing additional consumer value by linking into the ecosystem availing of all the services provided therein
SALES NETWORK AND VALUE PROPOSITION
Investment Generating Returns
Investment must be directed to areas that require the most attention.
Investment must be directed to areas that would show immediate impact.
Investment must be people focused- customer/employees/stakeholders.
Ownership of resources that are readily available Vs directing resources used in acquisition to other areas.
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Investment Generating Returns
Partnership/Alliance must provide contribution to areas where cash capital by proposing partner is insufficient.
Partnership/Alliance must provide resources to fill the GAP.
Partnership/Alliance must be “win-win”- all parties must have full vested interest.
Strengths and weaknesses must be aligned to take advantage of real synergies.
Weaknesses of one partner should be aligned with strength of the other. 12
Compensation Modules
Low cash to offset customization and medium revenue share.
No cash upfront and amicable revenue share on transactions processed within project. Can be fixed over a period of the contract Can be on a sliding scale based on time
elapse on the contract or other sales events.
Vendor Financed Module Fixed price established plus small earnings
spread over a period of time. 13
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Current Africa Postal Footprints
EthiopiaPost
ZamPost
ZimPost
NiPost
SA-Agt
GhanaPost
UgandaPost
MalawiPost
Pending
(1)Tanzania(2)Rwanda(3)Mali(4)Burkina Faso(5)Togo(6)Cameroon(7)Senegal(8)Sierra Leone(9)Liberia(10)Botswana(11)Lesotho(12)Swaziland(13)Mozambique Malawi
PostLiberiaPost
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Current Caribbean Linkage
SKBPost
JamaicaPost
Est. Cr Union
Guy Post
COK
Regional Network
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New Product Summary
Based on the mandates of our partners our focus extends beyond the remittance and bill payments and includes a broader set of offerings that addresses the various customers’ needs for payments, purchases, payrolls, etc. More specifically, our portfolio includes:
- E-Wallet
-International Money Transfer -Debit Cards
-Bulk Mail -Stored Value Cards
-Intra-Regional Money Transfer -Micro-Credit
-Domestic Money Transfer -Money Orders
-Pension Payments -Home Shopping
-Express Mail Tracking -Bill Payments
-Bank Deposits -Internet Café
-Bank Withdrawals -Pre-Paid Phone Cards
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Strategic Map
RoraimaPost Office
Data Services
PrepaidServices
Bill
Payments
Purchases
Micro-Credit
Remittances
CardProducts
InternetProducts
Money
Orders
Pension
Payments
Government
Disbursements
Wireless
Services
Transaction
Services
Consumer
Services
Government
Services
Commercial
Services
Data
Services
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Customer Product Lifecycle
Over time, the un-banked population will move up the lifecycle curve increasing demand for more sophisticated products.
Early acquirers of these customers tend to enjoy the benefits of retention and increased profitability.
Acculturation
Int’lTransfers
BillPayments
PensionPayments
PrepaidServices
Stored ValueCards
Credit Cards
Shopping
Loans
Money Orders
DepositsWithdrawals
Parcel Shipping
DomesticTransfers
Processing Model
Mobile to Mobile Transaction Power Bills
Water Bills
Pay for goods and services online
School Fees Payments
Holding Bank
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System Process Flow
Host MainframeHost MainframePrimary System inPrimary System inThe United States The United States With Redundancy With Redundancy
in Europein Europe
Customer goes to
Representative location
Customer provides
Transfer details to
operator
Operator clicks on
‘Send’
Operator verifies details
& enters them into
computer
SEND
The location’s computer
Connects directly toCash4Africa ‘Host” and
Communicates transfer
details
The location’s computer
Connects directly to
Cash4Africa ‘Host’ and
Retrieves transfer details
PAYOUT
Customer goes to
Representative location
Customer provides
Transfer details to
operator
Operator verifies details
& looks them up on
computer
Operator clicks on
‘Pay Transaction’
The Host database holds details
of all money transfers from and to
all countries and locations and maintains
this information for financial, marketing,
and compliance requirements
Electronic Financial Service Ecosystem
KEY MARKET DRIVERS
Ghana Network
Ghana Post – 404 locations – 175 active SAT – 43 Locations Star Oil – 210 locations (currently piloting) Other Petrol Stations – 250 locations (Pending)
ATM’s 400- Fully Tested Ezwich Network Small Worlds
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RDS/GPO v HFC LocationsThe Roraima Group C4A locations comparison to HFC
Regional Spread Roraima Loc HFC Avg Mth vol Non Br Busy Locations
Ashanti 23 4 2,500Kejetia, Konongo, Mampong, Suame.
Brong Ahafo 10 1 2,000Berekum, Dorma, Sunyani, Wenchi
Central 17 4 3,000Adisadel, Dunkwa, Elmina, Winneba
Eastern 25 3 2,200 Akim-oda, Mpraeso, Nkawkaw,
Greater Accra 46 16 7,300
Abeka, Achimoto, Amasaman, Kaneshie, Madina, Osu, Tema Comm 11,
Northern 9 1 600 Bole, Damango
Upper East 3 0 1,200 Bawku, Bolgatanga
Upper West 5 0 1,300 Jarapa, Tumu, WA
Volta 11 0 1,700 Aflao, HO, Kapando
Western 17 8 4,300
Axim RD, Bibiani, Prestea, Sefwi Bekwai, Sefwi Wiawso, Takoradi Main, Tarkwa
166 37 26,100
Notes
(1) Roraima operates the Cash4africa platform at 166 locations across Ghana. (2) HFC has 23 locations
(3) The data discloses that at those areas where there were a C4A branch but no HFC locations, C4A processed an
average of 26,100 transactions per month which equates to serving 52,200 persons.
(4) Each transaction had an average value of 240 ghc, which equates to 6.2 mil GHC per month.
(5) Overall C4A processed about 470,000 transactions on the platform in 2013 and served 940,000 persons with a
principal cash value of about 112 Mil GHC.
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RDS/GPO v HFC Locations
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Marketing Strategy The focus of the marketing strategy will be to become a niche player in
the Africa and Caribbean markets and concentrate on the key elements that drive the target customer’s purchasing decision:
Products & Services: Constant development of new product pipeline catering to specific market segments. Products will leverage Roraima’s proprietary technology platform and distribution network, while addressing the needs of the target consumer.
Pricing: Cost savings and company-wide efficiencies will be passed-on to the consumer to ensure that product & service pricing is at parity with, or better than, the category average within each business. Roraima will create a reputation in the marketplace as offering clear, transparent, and understandable pricing to consumers.
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Marketing Strategy (cont’d)
Promotion: Communication of promotions will leverage the flexibility inherent in the branding strategy and architecture. Product-specific promotions will be consistent with the pricing strategy, brand architecture and needs of the target market.
Distribution: Each consumer interaction channel (e.g. locations, call center, Internet, etc.) will maintain consistency in branding, service quality, product delivery, pricing strategy and promotions.
CRM: A robust consumer loyalty program will be used to retain and build relationships across all brands. The objective is to humanize the purchase decision and create such goodwill toward the brand, that consumers will “sell” the products & services to others.
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Roraima Yesterday, Today and Tomorrow
The company was founded in 2000 by three individuals as a remittance company sending money transfers to Africa and the Caribbean.
The primary focus was on building a payment network in Africa and the Caribbean and then working closely with the United States remitters delivering transfers to cities and villages.
Roraima elected not to obtain a license in the United States as compliance, competition, and network scarcity proved cost prohibitive.
After extensive alliances and pilots with post offices and micro-finance Cos in Africa and credit unions in the Caribbean it became apparent that a huge opportunity existed for in-country and cross border payment, and transaction processing.
The company raised over $5,000,000 in capital for the first 5 years providing seed money to launch its payment business in Africa and the Caribbean.
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Executive Summary
The market for financial services, payment and transaction processing services continues to expand as customers are defined through new products, expanded distribution, technology, global economic shifts, and population growth.
World population and demographic changes continue to point to an opportunity in the un-banked and under-served marketplaces, with 73% of the population controlling only 21% of global wealth and having little or no access to financial and support services.
The categories of money transfer, bill payments, travel, prepaid services, etc. each have one or two well-branded players with sizeable market share. No single company dominates any category, with none having market share greater than 20%.
In addition, the global economic decline have placed more micro-enterprises, SME’s, and entrepreneurs with stronger appetites for micro-funding.
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Executive Summary (cont’d)
Roraima has built a payments and transactions processing company in the Africa and Caribbean regions where, today, there is a large void of competition and services especially in domestic rural communities.
Utilizing key relationships in post offices, micro-finance cos, credit unions, and service companies, the company is building in-country and regional networks that experience large consumer traffic but are unable to deliver a solution for servicing their product needs.
The establishment of a regional network of hubs and spokes is creating a web of telecommunications and technology to facilitate in country and cross border payments that, today, is necessary in either Africa or Caribbean regions.
Capitalizing on the reach provided by its partners and its sophisticated technology in the Africa market and a strategy for being the low cost provider of these products and services will allow the company to capture the largest segment of transactions and payments.
Contributing Experience
RFS (formerly New Millenium) was lead Business Data Analyst to STRATE that automated the JSE.
RFS (formerly New Millennium) was lead consultant for Process Re-engineering projects at Socgen, Nedbank, and other institutions in SA.
RFS was lead consultant for 5/3rd $20 Billion Mutual Funds Operations process re-engineering.
RFS founder was Project Manager to NATWEST Bank $25 Billion divestiture from the USA.
RFS founder was formerly co-chairman to several SWIFT Investment Operations Automation committees.
RFS founder was Senior Investment Banking executive for Pension Investment Operations at several banks in the USA with over $350 Billion in funds under administration in each instance.
RFS Executive Director have over 25 years of experience in worker compensation, insurance settlement, arbitration, claims management, and other labor compensation settlement matters.