Harsh Computing Environments in Financial Services Markets

Dan ArmstrongTakashi Mobile and Financial Services

takashimobile.comhttp://www.slideshare.net/danarmstrong

Rabo Development

Rabobank Development is a division of Rabobank International, one of the world’s largest food/agri-banks Wholesale banking in 47 countries, 65.000 employees AAA status as a retail bank, but focused on rural/retail and agri-banking

Rabo Development partners/takes minority equity in banks in developing countries that match this historical profile and our skillsets (see following slide).

In addition to support in food/agri- and basic banking services, Rabo Development also supports partners with brick-and-mortar branch network strategies, channels/automation projects (mobile, ATM, internet), banking products, fraud and in-country personnel.

Rabobank & Rabo Development World-Wide

RIAS & Rabo Development

Rabo International (logos indicate Rural/Retail banks)

Rabobank Foundation

Advisory Projects / Partners

Banking in Harsh Environments

Bringing compute resources and solutions to banks in remote locations with limited infrastructure is a major challenge: Fixed line internet connectivity (fibre, WiMax) and, if available, huge cost Mobile internet connectivity (GSM/HSDPA, GPRS/EDGE, WCDMA, etc.) Power (lack of power at all, or lack of stable power and/or UPS) Weather conditions (humidity, flooding, sun exposure, lack of closed

buildings and server environments) Environmental conditions (dust, exponentially higher maintenance cycles) Security of computing platforms (theft, transport, as well as e.g. stolen

cooper phone wire for other purposes like jewelry) IT skills (system set-up, monitoring, maintenance, usage of computers) Literacy

We’re talking about the dark areas

Case Study: BPR Rwanda

BPR (Banque Populaire du Rwanda) is by far the largest bank in Rwanda, “bank of the people” with roots in cooperative and food/agri-banking (>85% of Rwandans are farmers)

Currently 47/191 BPR branch banks are automated/ connected Around 150 locations use paper-and-pencil ledgers Staff may have no previous experience with computers Fraud and information integrity are problems. Customers can only bank at one

bank location.

Case Study: Banque Populaire du Rwanda

BPR Mobile Banking Launched in Q3 2010, 10k new

customers per week Check balances, make transfers, pay

bills, buy prepaid airtime

BPR Debit Cards Enables “automated” account, lower

fees, 24/7 service

BPR Quickcash ATMs 100+ ATMs nation-wide

Connectivity New solar/electric and GPRS modem

programme launched in 2011 will automate BPR in 18 months

Case Study: NMB Tanzania

NMB: National Microfinance Bank Ltd. Also by-far the largest bank in Tanzania 1.9 mln customers: regular Tanzanians, all teachers, army, etc. ATMs in place (300+), most customers have ATM cards 150 connected branches (100%)

However, major queue problems In branches and at ATMs

Case Study: NMB Tanzania

NMB mobile launched in August 2009 400.000+ active customers to-date Highly profitable for NMB Prepaid airtime, bill payment,

prepaid electricity Vodacom, Zain, Tigo, Zantel (99%

mobile penetration) SMS Alerts to 220.000 customers

monthly

Moving into merchant payments, business services

NMB mobile1. Balance Enquiry 2. Mini-Statement3. Money Transfer4. Prepaid Services5. Other Services6. Help

Challenges in Rwanda, Tanzania and Elsewhere

Utilities: high-quality power, paved roads, Environmental conditions: heat, humidity, dirt Knowledge: trained technicians, maintenance and

support personnel Equipment: spare parts, local hardware/software

licenses Costs: generator electricity only option in some

remote locations (costly), high-quality solar still expensive … but GPRS is being widely available and can be a cheap and effective solution!