December 7-12, 2009 EDSA Shangri-La Hotel

Manila

Photo slideshow (on mouse click)

2009 Mobile Money Transfer Asia Pacific Conference and

M-Banking Dialogue

Microenterprise Access to Banking Services (MABS)

Menekse Gencer, Director of mPay Connect Inc., commenced the Mobile Money Transfer Asia-Pacific (MMT APAC) Conference and Exposition with an introduction to mobile money transfer during the pre-conference held at EDSA Shangri-La Hotel in Manila on December 7, 2009.

She discussed the role of various stakeholders such as mobile network operators (MNOs), banks, microfinance institutions, money transfer networks, regulators, agent network, and vendors in mobile money operations. She also discussed the business and partnership models – demonstrating how stakeholders work together, the costs and revenues for each party, and the key phases of MMT project management.

Also during the pre-conference, Amarante Consulting Director and former M-Paisa Product Director Aiaze Mitha presented steps, tips and guidelines on how to talk with regulators regarding MMT issues, regulations and operations.

He provided a comprehensive discussion on know-your-customer (KYC) procedures, anti money laundering laws, and fraud management. He also discussed how to diagnose a country’s regulatory environment, the implication of regulations on various business models, common compliance requirements for sign up procedures and record keeping, and presenting a business plan to the regulators.

Utiba Senior Vice President Gregg Marshall, on the other hand, gave a presentation that oriented the participants on approaching payment cultures in different countries by providing insightful tips on defining an entry strategy for a new market.

Drawing from Utiba’s experiences across Malaysia, Indonesia, Singapore, Pakistan, India and the Philippines, Mr. Marshall discussed how to assess market opportunities in various markets having different socio-economic indicators.

He also discussed the essential things a stakeholder has to remember on macro economy, culture, literacy levels, usage of VAS, competitive landscape, trust in mobile banking, domestic and cross border money transfers. Finally, he discussed how to determining and negotiate an optimum partnership and branding model.

Joined by MABS Chief of Party John Owens, presidents and key officers from five MABS’ participating rural banks offering mobile phone banking services (MPBS) shared the Philippine rural banks’ experiences on mobile money transfer and MPBS. GM Bank President Tomas Gomez IV, 1st Valley Bank President Nicholas Lim, Cantilan Bank Executive Committee Chairman Charles Hotchkiss, PR Bank President Robert Alingog, and Green Bank President Joseph Omar Andaya, shared the practical issues between mobile money issuers and microfinance institution (MFI) partnerships, lessons learnt from pilot tests, and the mobile money business model for financial institutions. They also discussed the banks’ experiences in preparing small financial institutions to promote mobile money and mobile financial services, overcoming cash-in/cash-out constraints in rural communities, and developing mobile money ecosystems.

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. delivered the opening speech on the first day of the MMT APAC conference.

In his speech, he expressed BSP’s openness to allowing retailers to become mobile money conduits. By permitting retail outlets and other third parties to act as mobile money transfer agents, more Filipinos will have easier access to financial services even without immediate access to banks.

The Philippines is the most mature mobile money market worldwide. SMART and Globe Telecom, the Philippines’ two giant mobile network operators the global pioneers in offering MMT products, each provided keynote presentations, sharing tips based on their MMT experiences.

Globe Telecom Inc. President and CEO Ernest L. Cu (right) discussed how to avoid the myths and learn the facts around building a mobile money business;he also presented a successful roadmap where they transformed a simple mobile wallet service into a robust mobile commerce platform; showed multi-ecosystems built by establishing key partnerships that highlighted the successful partnership with rural banks; and shared new initiatives that will push the second wave of growth in the mobile money arena.

Smart Communications Inc. President and CEO Napoleon L. Nazareno (left) presented a review of ecosystems, key stakeholders, and business models; discussed the next level for MMT with predictions on the future of m-payments; and shared the Asia Pacific MMT experience and why it will continue to drive key markets to the next level.

Representing US Ambassador to the Philippines Kristie Kenney, US Embassy Deputy Chief of Mission Leslie A. Bassett delivered the welcome remarks on the second day of the conference. Ms. Bassett emphasized that the US Government, through the USAID-supported MABS Program, remains committed to supporting innovations in mobile money transfer technologies. She mentioned how mobile phone banking services have given more microentrepreneurs and residents of rural communities access to financial services.

On the second day of the conference, BSP Deputy Governor Nestor Espenilla Jr. outlined the BSP’s policies and mechanisms that provided an enabling environment for proper incentive structure and business opportunities so MMT can flourish. He also discussed consumer protection and redress mechanisms and anti-money laundering and KYC requirements in the Philippines.

A panel facilitated by Alliance Financial Inclusion Regional Associate Eduardo Jimenez and composed of Amarante Consulting Director Aiaze Mitha, MABS Program Chief of Party John Owens, Indosat Mobile Commerce Product Development Manager Ichwansyah Putra, CGAP Senior Policy Specialist Michael Tarazi, joined Deputy Governor Espenilla to discuss regulatory issues bearing on MMT.

A long line of leaders, experts, regulators, operators, and other stakeholders in the MMT industry graced the conference and dialogue with presentations and comprehensive discussions on MMT , mobile phone banking and other industry-related developments and issues. Among the speakers and panelists were (from top left): Lance Blockley, Managing Director of Edgar, Dunn & Co.; Josias dela Cruz, Vice President of Bank of the Philippine Islands; Ling Xiang, Director of the Strategic Copperation Department of Union Mobile Pay; Matt Dill, Head of Digital Ventures of Western Union; Ichwansyah Putra, mWallet Head of Product Development of Indosat; Jeremy Cleaver, Private Sector Development Specialist of Asian Development Bank; Naushad Contractor, Head of Marketing Mobile Commerce of Vodafone Essar; Jojo Malolos, Wireless Consumer Division Financial Services Group Head ofSmart Communications, Inc.; Matthew Talbot, VP for mCommerce of Sybase 365; and Janine Firpo, EAP Mobile Banking Consultant for the IFC.

Ms. Rizza Maniego-Eala, president of Globe Telecom subsidiary G-Xchange Inc. (GXI), participated in a panel session along with representatives of Western Union, MoneyGram, Smart and MABS on how to make MMT profitable.

EKO Co-founder and CEO Abhishek Sinha, Amarante Consulting Director Aiaze Mitha, MicroSave Program Director Graham A.N. Wright, CGAP Microfinance Specialist Chris Bold, IFC Mobile Banking Consultant Janine Firpo, ACCION International Channels Specialist Amitabh Saxena, and MABS Chief of Party John Owens participated in a panel discussion on how to make MFIs ready for mobile microfinance. They tackled various issues regarding the use of mobile money technology in microfinance, including regulation, consumer relations, efficiency, cost, and technology platforms, among others

Using the SIM cards provided during the MMT conference, the MMT attendees purchased products from merchants accepting GCASH for payment. Mobile wallet developer Utiba, the MABS Program, GXI, and MABS participating bank Philippine Rural Banking Corporation (PR Bank) facilitated the site visit to help participants learn how the succesful partnership between USAID, RBAP, MABS, and GXI have helped to support greater access to banking services for microenterprise clients utilizing the GCASH platfrom.

To provide the international delegates with hands-on experience of MMT in the Philippines, they were given an exposure tour to G-Xchange Inc office, PR Rural Bank and then Greenhills Shopping Center, where PR Bank’s participating merchants already accept GCASH as payment for their products.

In the afternoon, Smart Communications also provided conference participants with their own Smart SIMs and Smart Money cards for a mobile money experience in the EDSA Shangri-La Mall.

After the MMT conference and with support from USAID-MABS, MicroSave, GXI, BPI-Globe, and Mercy Corps, selected representatives attended the MicroSave and MABS M-Banking Dialogue also held at the EDSA Shangri-La Hotel in Manila on December 9 and 10. This is the third M-Banking Dialogue that MicroSave has conducted over the past 5 years. These private dialogues allow m-banking practiitoners to openly discuss issues and challenges in rolling out m-banking services to support greater access to banking services. This year’s dialogue looked at managing strategic partnerships and the implications for the business model, approaches to optimizing agent performance and optimizing the customer value proposition among other topics.

MMT APAC was put on by Clarion Events – a committed, highly experienced team, the UK’s largest independent events company, the team behind MMT09 at Clarion Events draw on over 80 years of experience hosting strategic conference focusing on payments innovations, telecommunications, government and emerging technologies. Clarion considers it a great privilege to host such a diverse, dynamic and exciting community of practitioners-they are very passionate about MMT and are immensely grateful to the expert speakers, advisors and sponsors for their generous support.

MMT APAC EVENT HOST

M-Banking Dialogue Sponsors