M O N Y F O N 1 22 2009 Presentation Colombia

mOny$fonEnabling p2p Banking

MONYFONThe Evolution of Money


Transforming the Wireless Paradigm

Mobile Money Transfers will be a trillion dollars by 2012.

“The movement of capital, information, people and culture are converging to create un-paralleled and powerful transformations in the global marketplace.” –Marcelo Suarez-Orozco


Facts

• Six Billion people on Planet Earth. Most of them have no access or need for the formal banking system.

• Four Billion Mobile phones in the world by 2010.• Mobile Phones outnumber ATMs by 2000/1.• The world is changing, technology is evolving, and

money is undergoing an evolution.


Borderless Money Transfers

According to the Aite Group, worldwide remittances reached $369 billion in 2007 and are expected to grow by an 8 percent CAGR through 2010


Why Mobile?

• Expands the accessibility of remittances and dramatically lower fees, particularly for low denomination amounts, while enhancing value to mobile operators through share of fees, SMS traffic and customer loyalty.

• Position the mobile operator community as leading the way in helping these poorer migrant workers, and in so doing secure public and government recognition


Expand The Market

GSMA forecasts global remitance market to expand from 380B USD in 2007 to one trillion

US dollars by 2012 with the expansion of mobile money services.


Mobile Wallet

Mobile Wallet • The Mobile Wallet enables the provision of banking services to those

traditionally excluded from banking facilities. These services can be provided both in-market and cross-border and include:

• Cash loading • Cash withdrawal • P2P payments • Bill payment • International money transfer How it works• The mobile wallet account is topped-up via a prepaid voucher and/or SMS

message • Alternatively, a person can top up another’s mobile wallet via a P2P transfer • The customer uses the wallet to pay bills and withdraw cash at designated

money agents.


Benefits of P2P Transactions

• Increase money flow due to higher number of micro-transactions (10-25 USD due to lower transaction costs).

• Safer than cash.• Creates microbanking and jobs as the

entrepreneurs begin to seek opportunities• Create Social Finance Networks with micro

lending opportunities.


Current Method for Transfers

Sending Party

$

Bank

Money Transfer Agency

Money Transfer Agency

Money Transfer Network

$

$ $

Receiver

Telecomunicaciones

1, Send Me $200 Dollars

2. OK, I have to go the bank

3. Trip to bank $10

4. ATM FEE$2

5. Money Transfer Fee $20

InternationalPhone Call $3

6. Local Fees $2

7. Trip to Transfer Agent $3

Money Transfer CycleTwo-Four Hours

$40 Total Cost of a $200 Remittance


Mony$Fon Method

Sending Party

$

$ $

Receiver

WorldWide Network

WorldWide Network

POS

1. Send Text Message

Requesting Money

2. Receive Request for Money via

SMS

3. Transfer Money via Prepaid Card

or Credit Card using SMS

4. Automated loading of account

via SMS 5. Visit POS to get money or

leave in account for

P2P transactions

MonyFon Transfer 1. Less than 10 Minutes2. Actual Cost to company is less than .10 USD3. Customer Saves Time and Money


M-Wallet

No Need for Cash & Credit Cards

One Phone many uses.


Microtransfers

• Send Small Sums of Money

• Better control of spending.


Country Example

Colombia– Large Expatriate Population >3.3M – High Percentage of GDP is remittance based– Mostly cash based economy with few

participants in formal banking system.– Large informal underground economy creates

a large opportunity for P2P banking using m-wallets

– Social Finance Network Opportunity


COLOMBIA Market

• GDP 256B USD• Remitances from expats

4.9B USD• Transfer fees, costs ~10% • Market size 490M USD


Remesas y la Diaspora Colombiana


Remesas de El Exterior

Banco Central de Colombia


Bancarización por Regiones en ColombiaBancarización por Regiones en Colombia

REGIONAL POBLACION HOGARES INGRESO INGRESO FAMILIAR POB_BANCO ESTABLEANTIOQUIA 8.232.172 2.252.309 178.918.620 2.726.656.887.669 2.310.814 158.543 NORTE 8.387.432 2.198.327 155.556.022 2.096.739.852.698 2.841.366 124.268 CENTRO 9.137.591 2.602.896 103.573.319 3.521.418.815.107 813.346 165.199 OCCIDENTE 8.954.842 2.416.453 219.022.806 2.572.551.479.703 3.159.440 122.746 ORIENTE 6.032.125 1.612.544 287.137.679 1.655.253.754.687 2.204.455 136.355 TOTAL 40.744.162 11.082.529 944.208.446 12.572.620.789.864 11.329.421 707.111


Cobertura Bancaria en ColombiaCobertura Bancaria en Colombia


Puntos de Banca no Tradicional


Host Country

• Remitances can be collected at possible partners including gas stations, local food markets, lottery sales sites etc…

• SMS transfers can replace cash.• Create microenterprise in host country,

Microlending & Microbanking.


Hurdles

• Security • Government Regulations• Anti Money Laundering Laws• Create Customer Confidence• Overcome 100 years of Western Union

branding.

M O N Y F O N 1 22 2009 Presentation Colombia

Economy & Finance

Transcript of M O N Y F O N 1 22 2009 Presentation Colombia