Better Than Cash: Tips & Strategies Using Mobile Money in the Field

Mobile Money for Development Workshop:Tips & Practical Experiences from the Field

CHEMONICS TECHNICAL PRACTICES | FINANCIAL SERVICES

Mobile Money for Development:Tips & Practical Experiences from the Field




Checklist to Assess Mobile Money System for Development Projects

Upfront diagnostic/feasibility study/Due diligence

Analyze the various mobile money providers in your country – banks, MNOs, 3rd party providers or collaborative partners

Regulatory approval

# Subscribers and active users

Existing & planned agent network

System functionalities (online tools)

Customer service



Launch Services –

Customer

Adoption

Launch Services –

Customer

Adoption

Regulatory IssuesRegulatory Issues

Preparing to Promote/Utilize Mobile Money and Mobile Financial Services

Customer

PerspectiveCustomer

Perspective

Product

DevelopmentProduct

Development

EnvironmentEnvironment

Institutional

PerspectiveInstitutional

Perspective

Product

TestingProduct

Testing



1. Customer Perspective How could mobile money be used by the target customer?Use cases? Is is accessible? Is it affordable?Is it easy to use?

2. Environment Nature of financial and retail marketLevel of financial/electronic literacy

3. Regulations Need supportive environment for mobile money systemsAre there wallet limits?Restrictions to cash-in/cash-out? Bring the regulators on board – earlyReview circulars & regulations

4. Institutional Perspective What are the benefits for the development partner/gov’t/institution? What is the appropriate revenue strategy? Can the institution reduce costs, improve efficiency, security, etc? High level management commitment



5. Product Development

Product features depends on use caseOnline system & reportingImplementation planProcess FlowAccounting Contingency PlansCustomer Service

6. Product Testing Beta & Alpha test

7. Launch Services – Customer Adoption

Marketing materials, education, printed procedures and guides.

Make sure customer service is working!



The Business Models for Mobile Money for Development

Reduce Costs

Improving Outreach

Greater EfficiencyIncrease Deposits



Merchants/Agents

Increase walk-in traffic (cross-selling opportunities)

Image building

Revenue from fees, commissions and incentives

ClientConvenient & more secure than cash

Comfort of dealing with corner merchant or agent in their neighborhood

Reduced transaction costs for accessing financial/payment services (no lines, no travel time/costs)

Development Partner

Leverage system and agents to expand client base and maximize revenue or reduce operating costs

Increase efficiency and staff time

Cross selling opportunities through agents‘ referrals

Significant image building opportunities

General Benefits of Mobile Money Services(along the Value Chain)



Determine MPB “Use Cases”

• Kapitbahay Banking “village banking”

• Make loan payments• Pay employees’ salaries• Pay utility bills via mobile phone• Pay suppliers (not checks or cash)• Send money to relatives

(remittance services)• Provide info for a fee (balance

inquiry)



Agent/Partner Selection Criteria



Issues and Lessons Learnt from Pilot TestsUnderstand your market

Keys:• Registration• Training• Customer/Merchant Adoption

Understand your market

Keys:• Registration• Training• Customer/Merchant Adoption

Acceptance and fear of the use of

technology especially

among elderly clients

Acceptance and fear of the use of

technology especially

among elderly clients



Issues and Lessons Learnt from Pilot Tests

Release of employee’s payroll/Allowances/transfers via mobile money is key

Plan for sufficient cash-in/cash-out points

Release of employee’s payroll/Allowances/transfers via mobile money is key

Plan for sufficient cash-in/cash-out points

Lack of Mobile Money

Outlets or source

especially in the rural

areas

Lack of Mobile Money

Outlets or source

especially in the rural

areas




How to reach clients in remote

communities - awareness

and information campaign

How to reach clients in remote

communities - awareness

and information campaign

Information and product awareness via media print, radio, TV, online, roadshows

Website http://mobilephonebanking.rbap.org

Promote mobile money services in key locations/events (such as local festivals), gatherings

Information and product awareness via media print, radio, TV, online, roadshows

Website http://mobilephonebanking.rbap.org

Promote mobile money services in key locations/events (such as local festivals), gatherings




Increasing the volume

and usage of mobile

money in the rural areas

Increasing the volume

and usage of mobile

money in the rural areas

Incentive programs for development partners

Sharing results via conferences & regional workshop events

Incentive programs for development partners

Sharing results via conferences & regional workshop events




Working with networks can

be key to outreach

Working with networks can

be key to outreach

Creating a sense of ownership/commitment among institutional partners

Regular training

Make use of customer/network meetings

Testimonials from institutional partners

Targeted promotions

Creating a sense of ownership/commitment among institutional partners

Regular training

Make use of customer/network meetings

Testimonials from institutional partners

Targeted promotions



Developing Mobile Money Ecosystems Commitment of Top Management at Institutional Partner/Mobile Money Issuer

Development of Mobile Money EcosystemSufficient Cash-In/Cash-Out Agents

Creating Awareness of the use of Mobile Money in the Rural CommunityPromote the Value Proposition for Institutional Partner & Clients



Financial Education

• Supported by MasterCard Foundation through Microfinance Opportunities

• Develop a financial education initiative that supports a more rapid expansion of MPB in rural areas by rural bank clients

• Medium: wallet guides, flipcharts, video clips, etc…



Speed of transactions“Money can be sent and received fast.”

Security or safety “Account is protected by PIN.”“No need to carry cash which might be lost or stolen.”“You are assured because there is confirmation.”

Convenience “Can send money any time.”“Can do transaction without leaving one’s home.”“I do not need to fall in to get my salary.”“I can easily get the money at cash-in/cash-out outlets.”“I can transact even at midnight.”

Cost “Low charges.”“Can save on transportation cost.”“Can save on time.”

Market Research Findings: What clients like



Risk“If you lose your cell phone or if your SIM is blocked, you will lose access to your e-money as well.”

Reliability

“Technical glitches”“Technical support for problems”“Sending the e-money to the wrong recipient”

Misconceptions Misconceptions on time limits of e-money vs. airtime load

Market Research Findings: Clients Concerns



An Effective Financial Education Program can:

• PROMOTE the benefits of shifting from traditional banking to mobile phone banking

• ADDRESS the misconceptions that hinder uptake and usage

• BE ANCHORED on merchants and re-sellers to teach clients and recruit potential clients



Mobile Money Now Accessible Via Multiple Platforms – Use Them

ATM

Bank Account

Debit Card

Mobile Phone



Thank You

http://www.mobilemoneyfordevelopment.wordpress.com/

https://www.facebook.com/MobileMoneyForDevelopment/

Better Than Cash: Tips & Strategies Using Mobile Money in the Field

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Transcript of Better Than Cash: Tips & Strategies Using Mobile Money in the Field