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TRANSFORMINGTRANSFORMINGTRANSFORMINGTRANSFORMING
FINANCIAL SERVICESFINANCIAL SERVICESFOR UNDERFOR UNDER--SERVED MARKETSSERVED MARKETS
The Macroeconomics of Mobile Money
Securing Mobile!Money:The Ugandan Experienceg p
Friday, April 2, 2010Columbia University
Table of ContentsTable of Contents
• About MAP
• Case Study: Uganda
• MAP in the News
2
Our Technology and Executive Leadership Helped Pioneer the Mobile Banking Space
• Our Chief Technology Officer and
Technology HistoryMAP’s Information Technology
Group
gy
Chief Information Officer were both members of the original architect team of Fundamo – one of the first mobile banking technology firms:
• Based in Cape Town, the Group boasts 20+ full time team members, including a full staffing of:
! Solution Architectsg gy
! Led comprehensive implementations throughout Africa and the MidEast
! Developed the Mobile Security Solution, the industry’s first pin-based
! Business Analysts
! Project Managers
! Developers
! Graphic DesignersSolution, the industry s first pin basedsystem still utilized throughout the Fundamo network
• Our CTO went on to build a technology development house to create and
p g
! DBAs & Networking Specialists
• The Group can manage the full spectrum of MAP’s product offering including:de e op e ouse o c ea e a d
deploy the next generation of mobile financial services
• MAP acquired the group, technology, and IP in early 2009
including:! Biometric ID systems
! ATM switching and management
! POS switching and processing
! Mobile banking
3
and IP in early 2009 Mobile banking
! Partner integration and maintenance
The Technological Backbone to MAP is Provided by a The Technological Backbone to MAP is Provided by a Proprietary HUB Mobile Banking SystemProprietary HUB Mobile Banking System
• The MAP HUB Intelligently routes
multiple transaction types that originate
from multiple communication devices:
Point of Sale Terminals ATM’s Mobile
FINANCIAL PLATFORMFINANCIAL PLATFORM
Point of Sale Terminals, ATM s, Mobile
Phones, and PC’s),
• The HUB also integrates between
multiple Companies, Banks or Financial
Institutions, Databases & Application
Modules to return a desired transaction
type to the originating device
• The HUB enables multi channel layerThe HUB enables multi channel layer
communication and multi tiered
architecture
• The HUB can transact: Person to Person
(P2P), Business to Person (B2P), Person
to Business (P2B), and Business to
Business (B2B)
• The system is agnostic to mobile player
4
The system is agnostic to mobile player
and financial institution
The MAP Systems Also Offers a Unique Product The MAP Systems Also Offers a Unique Product Distribution PlatformDistribution Platform
• The platform provides
for the creation of
multiple franchises and
products distributedproducts, distributed
through a pre-registered
vendor network
• Franchisees operateFranchisees operate
independently from one
another and in turn are
responsible for the setup
of their entire down-line
• It enables the selling of
multiple virtual products,
ffwith different discount
structures
5
Table of ContentsTable of Contents
• About MAP
• Case Study: Uganda
• MAP in the News
6
Executive Sponsorship Secured Uganda as the Executive Sponsorship Secured Uganda as the Launch Market for MAPLaunch Market for MAP
Th MAP t fi t i it d t U d b th P id t! The MAP team was first invited to Uganda by the President,
Yoweri Museveni, to explore areas for partnership
! MAP was asked to focus on his two key concerns:
" #1All governmental salaries as well as most other salary payments#1All governmental salaries, as well as most other salary payments,
were paid in cash
– This led to rampant abuse, ghost workers, fraud, shrinkage, and loss
" #2 A network of rural unregulated banks, SACCOs, were the weak
backbone of the Ugandan rural economybackbone of the Ugandan rural economy
– SACCOs lacked the financial stability and trust of the people to
properly offer modern financial services
! The MAP offering has evolved to meet the immediate needs of
Uganda
Country Profile:
P l ti 32 4 illi• Population: 32.4 million
• Pop. Growth Rate: 3.2%
• GDP: $15.04B (2008 estimate)
• GDP Growth Rate: 6.4%
GDP it $465
7
• GDP per capita: $465 per year
• Mobile Phones: 8 Million (2009)
The Nature of the Ugandan Initiative is a Public Private The Nature of the Ugandan Initiative is a Public Private PartnershipPartnership
Key Competitive Building Blocks (Uganda):
! Three way, exclusive contract and subsequent agreements with the
Government of Uganda and the government-owned PostBank to:Government of Uganda and the government-owned PostBank to:
" Convert 100% of PostBank current and new customers to MAP cardholders
(currently 300k active account holders with an ambitious growth plan to 1M
customers)
" Process all federal salaries and pension payments" Process all federal salaries and pension payments
" Rollout ATM’s at all PostBank branches
" Rollout a country-wide network of POS units
" Incorporate the 800+ unregulated SACCO’s (micro-finance institutions) into the
regulated environment under the PostBank umbrellaregulated environment under the PostBank umbrella
" Provide ATM, POS, and mobile switching capabilities
" Rollout a linked mobile banking platform
! Exclusive contract with one of the country’s largest agent-based airtime
distribution network, X-Tel
! Partnership and distribution agreements with the national mobile network
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! Partnership and distribution agreements with the national mobile network
operators
Review of MAP Progress to DateReview of MAP Progress to Date
! Card approved by Central Bank for International KYC standardsAll 350 000
Card approved by Central Bank for International KYC standards
! Proprietary MAP Data Capture Stations deployed at PBU branches
! Cards produced in MAP’s Kampala office and distributed by PBU branches
! 75,000 cards have already been deployed; additional 35,000 accounts
enrolled at mobile biometric events
Bio
Card
All 350,000
PBU
customers will
have cards by
12/2010
cts
cts ! 26 ATMs currently deployed at all PostBank branches
! MAP processes all ATM switching with its own propitiatory switch
Average
transaction
volume:
P P
rod
uP
Pro
du 73/day/ATM
165 POS
MA
PM
AP ! Agreements achieved with Shell, Total, Haas Gas Stations, representing
over 300 service stations
! Three-year goal of 3000+ POS access points
devices
deployed at
leading
retail points
! First mobile program launched in early December (Uganda Telecom)
! Full functionality currently available
! Can be accessed through any Java-enabled mobile phone
PBU Market
Launch:
Q1 2010
9
Q1 2010
In August of 2009, MAP Signed an Agreement with Wazalendo, the Country’s Largest SACCO
Wazalendo Military SACCO
! 50,000 members (80,000 expected
by 2011)
MAP Revenue Streams
! MAP receives an enrollment fee for all
t h ld ($3 USD)y )
! 14 branches across the country
! Members include Ministry of
Defense workers, UPDF personnel
and retired officers and their families
account holders ($3 USD)
! Wazalendo contractually provides a monthly
subscription fee for each account holder to
MAP ($.50 USD)
! Wazalendo has signed a contract with MAP for MAP to provide all branches a core
Basic Agreement
Wazalendo has signed a contract with MAP for MAP to provide all branches a core
operating system, biometric card system, ATMs, POS devices and mobile banking
! The solution will automate all SACCO transactions and create a full audit trail
! All SACCO funds will be held at PostBank affording regulatory oversightAll SACCO funds will be held at PostBank affording regulatory oversight
! Wazalendo account holders will be able to access their accounts from any MAP access point
across the country, as well as from their mobile phones
! Enrollment began on November 23rd, and 34,000 account holders have been
10
Enrollment began on November 23 , and 34,000 account holders have been
enrolled
LAP Green, a Multi-Market African Mobile Phone Operator has Selected MAP as its Mobile Banking Partner
• MAP’s proprietary technology will power• MAP s proprietary technology will powerLAP Green mobile money and mobile banking products
• MAP will be an ongoing operational
LAP Green’s LAP Green’s Operator PortfolioOperator Portfolio
g g p
partner, and the two partners will share
product revenues
• Lap Green will use MAP’s nation-wide network of commercial access points
• MAP will assist in direct-to-consumer mass marketing efforts and its logo will be included on all collateralbe included on all collateral
• MAP and LAP will soft launch with Uganda Telecom in December of 2009:
! Five year expected profit contribution ofe yea e pected p o t co t but o o$20+ million
• MAP and LAP will launch with Rwandatel in Q2 of 2010
! Five year expected profit contribution of $17+
With over 5 million subscribers, and additional
licenses in two new countries (Togo & Sierra
L ) L G i f Af i ’ l di
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Five year expected profit contribution of $17+million
Leone) Lap Green is one of Africa’s leading
mobile phone operators
Table of ContentsTable of Contents
• About MAP
• Case Study: Uganda
• MAP in the News
12
Presidential Visit to OfficePresidential Visit to Office
MAP’s launch was met with
palpable regional excitement
13
MAP Launches ATMsMAP Launches ATMs
14
MAP Partners with Military SACCO
15
MAP Launches Linkage Banking
16
Two United Nations Publications Featured MAP Over the Last Year
17
MAP was also invited to address the UN and the European Parliament
18
MAP’s Growing Profile Led to its Nomination for a GSM Association Global Mobile Award
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