Download - ASEAN ICT Masterplan 2015 - Smart Axiata
Smart Axiata Confidential
Smart Axiata Confidential
2
Smart Axiata Confidential 11/26/2013
MOBILE OPERATORS CAN PLAY IMPORTANT ROLES IN THE DIGITAL EMPOWERMENT OF SOCIETIES AND PEOPLE.
FLEET MANAGEMENT AND TRANSPORT – manage fleet in real time
POINT OF SALE– Quick and easy payment method
SECURITY AND SURVEILLANCE – Remotely monitor security systems
M-Health – Wireless products for the medical markets covering Bluetooth, WLAN and 3G plus a complete web portal platform.
TELEMATICS – Access and transfer information to vehicles
VENDING AND RETAILS –Monitor vending machines in real time
METERING AND MONITORING –Industrial automation and monitoring solutions
EMERGENCY SERVICES – Voice and data communications when every second counts
PUBLIC TRAFFIC SYSTEM –Monitor major roadways, public transport systems and cities
DIGITAL SIGNS– Manage digital signs and public information displays to keep them relevant and up-to-date
“Leadingmobileoperators areventuring intoverticalmarketsbeyond voice,SMS/MMSand Internet”
Smart Axiata Confidential
3
Smart Axiata Confidential 11/26/2013
Traditional financial services providers in Cambodia, NBC (2013)
LEVERAGING ON ITS UNIQUE ASSETS, MOBILE OPERATORS CAN PROVIDE SEAMLESS AND SECURE MOBILE MONEY EXPERIENCE.
Ubiquitous mobile coverage.
High penetration of feature phone and growing adoption of smartphones.
Extensive networks of distributors and dealers available beyond typical business hours.
We have the consumer
trust.Interoperability – proven deployment Secured.
Locally relevant, user-friendly interface and Khmer unicode. Lower
transaction fee.
Smart Axiata Confidential
4
Smart Axiata Confidential 11/26/2013
ALTHOUGH THERE ARE 123 DEPLOYMENTS LED BY MOBILE OPERATORS, MOBILE MONEY DEPLOYMENT IN CAMBODIA IS BEING LED BY THE BANKS, REDUCING ITS REAL POTENTIAL.
Global 188
Banking and Finance52
MNO123
Products Offering Global MNO Led Banking & Finance Led
P2P Transfer (Domestic) 172 91% 116 94% 45 87%Airtime 161 86% 113 92% 38 73%Bill Payment 132 70% 95 77% 30 58%Other bulk payment 69 37% 53 43% 13 25%Merchant Payment 67 36% 47 38% 16 31%Link to Other banking products 31 16% 12 10% 16 31%International Remittance 25 13% 16 13% 7 13%Loan disbursement or repayment 14 7% 8 7% 4 8%
G2P 8 4% 5 4% 3 6%Mobile Micro Insurance 6 3% 2 2% 3 6%Total Deployments 188 123 52
CambodiaCambodia
Mobile Money deployment in
Cambodia2 (Acleda and WING)
Source: GSMA (2013)
Smart Axiata Confidential
5
TELCO-LED MODEL IS A PROVEN MODEL, HAVING BEEN IMPLEMENTED IN SRI LANKA BY OUR SISTER CO.
• Award winning innovation known as Ezcash.
• Operate under Mobile Payment Guidelines issued by Sri Lanka’s Central Bank.
• Partnership with one of the domestic banks to safeguard customer funds.
• Leverage extensively on existing telecom channels e.g. USSD, STK, Brand & Marketing, Distribution, Platform, and licenses.
• Proportional KYC, allows for self-registration and agent based registration.
Smart Axiata Confidential
Financial Services
Deposit
Loan
Remittance
Bill Payment
Payment-Commerce
Cards
HomeHome
SmallSmall
LargeLarge
EmergencyEmergency
DomesticDomestic
Int’lInt’l
Monthly PaymentMonthly Payment
Down Payment
Down Payment
InsuranceInsurance
OnlineOnline
OfflineOffline
Cr/DrCardCr/DrCard
ATMATM
SavingSaving
CurrentCurrentFixedFixed
Bank
MFIThird Party Processor (WING)
Others (Post Office, Bus Transportation, Money Exchange Shop, etc.
BranchesAgents
ATM
Internet Banking
M - Banking (USSD)
POS
Access Channels
UNFORTUNATELY, CAMBODIA MOBILE MONEY DEPLOYMENT IS DRIVEN BY TRADITIONAL BANKS.
Smart Axiata Confidential
7
Smart Axiata Confidential 11/26/2013
WE NEED TO ACCELERATE THE REFORM INITIATIVES TO ENABLE TELCO-LED MOBILE MONEY DEPLOYMENT.
Areas Key highlights of Prakas on Third Party Processors, August 2010
Scope • A communication facility • Inter-bank clearing facility • Managing / operating Bank’s customers account• Supporting sending/receiving payment orders • Mobile money remittance or other means • Clearing and settlement of debit and credit payment
Additionalscope
• Payment transactions and cash withdrawals service• Clearing and settlement for instruments of domestic and foreign payment in Cambodia • To be read together with Prakas on Payment Clearing Systems, Prakas on Control of
Systematic Risk and Prakas on Operations of Settlement Account
License term • Application fee Riel 2ml (USD500)• Annual license fee Riel 10ml (USD2,500)• 3 years
Obligations • Onerous and mandatory to partner with a Bank – act as a partner to the bank
Other potential legal/regulatoryissues
Additional remarks
Specific regulation on m-payment or electronic transfer is needed
• E Commerce Law, Law on National Payment System, Prakas on Standards for mobile phone messages, e Cash and e Wallet is still pending (Financial Sector Development Strategy 2011-2020)
Obligations imposed by existing legal instruments are not proportionate with size of the business
• Current obligations as per above is similar to the Bank, creating a barrier to entry for new entrant.
• Forcing new entrant to collaborate with Banks rather than building new platform.
• Introduce new retail payment
instrument i.e. E-Wallet / E-cash.
• Promulgate E –Commerce Law to facility online
and mobile transaction.
• Initiate licensing process and
guidelines i.e. AMLA, KYC,
standards for telco-led mobile
money deployment.
Smart Axiata Confidential
8
Smart Axiata Confidential 11/26/2013
> DISCUSSION.> QUESTIONS? > ANSWERS. > NEW PERSPECTIVE?
Smart Axiata Confidential