1

Mobile Money for Social Innovation

Agenda

• What is Mobile Money?• How/where is it being used to promote wider

development? • What is the potential for BRAC? (this is the

question only you can answer)

Reducing Channel Cost of Banking Infrastructure

• $250k Traditional branch

• $50k In-store branch

• $10k ATM

• $2k Agent with POS terminal

• $400 Agent with mobile

• $0k No agent (cashless)

1.7 billion people worldwide have a mobile phone but no bank account.

Achieving scale and reducing costs with technology

3

6.2 b

In “mature” mobile money markets, broad adoption

Use of mobile money in few (though more “mature” platforms ) outweighs (by far) the use of any other means

Kenya Uganda Tanzania0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

90%

68%60%

0.01

0.05

2%

2% 6%

7%

29% 30% Cash

Transfer through Bank

Money Transfer Co. (i.e. WU)

Mobile Phone Transfer

Means of payment, for people making any kind of payment

Value to Individuals

Source: Data is from Godoy, Kendall, Sonnenschein, and Tortora, “Payments and Money Transfer Behavior of Sub-Saharan African Households” (forthcoming). 4

Mobile money making its mark in poor people’s lives

Is it really reaching

poor people?

Kenya: Broad adoption across all levels of the population

Source: Jack & Suri, 2012; http://www.slate.com/blogs/future_tense/2012/02/27/m_pesa_ict4d_and_mobile_banking_for_the_poor_.html

2012

5

6

Angaza SolarCustomers buys Angaza Solar Kit off Sunny Money Agent

Solar Kit uses a tone-based technology to communicate with server

Customers tops- up Angaza PAYGO account via M-PESA Paybill

Once “top-up” approved, an 1800 number dials the customer’s phone. They place the phone next to device and the sound transmits information to the receiver topping up Electricity.

Embedding SIM = 15 USD (M-KOPA)Angaza technology bypasses the MNO at a cost of 2USD by not using SIM.

8

Kytabu

KYTABU is a textbook leasing application for low cost tablets.

User has the option of ‘renting’ a book instead of buying it. It’s textbook subscription at its best.

Reducing the cost of a book by more than 60%, users can rent textbooks on an hourly, weekly, monthly, school term or annual plan

User selects Kytabu app and has access to database of books and chooses what book they would like to subscribe to.

Changamka

1. Mobile phone vouchers:reducing infant mortality

Paid to mothers for antenatal,Postnatal and delivery care, travel

2. Savings for birth: for maternalcare only

SMS reminders, matchingsubsidies, easy place to deposit

All information, payments done over mobile. Results evaluation by Geogetown University,gui2de program http://gui2de.georgetown.edu/

What is the potential for BRAC?

• 95m SIM Subscribers, roughly 70m users• bKash, Dutch Bangla, Islami Bank: – 7m plus accounts in 2 years, rising fast– 50,000 agent points of service

• No longer experimental: it will soon be available everywhere

• Bangladesh is today a leading market for mobile money (largest and fastest growing in Asia during 2013)

• Tanzania, Uganda, and Pakistan also fast growth

BRAC can address with 2 questions:

1. How can mobile money improve existing programs?

2. How does mobile money enable entirely new ways to deliver or empower?• Many small payments, less direct contact required,

national, control of technology, pay-as-you-go• Focus on client problem/pain points, not sexy

technology

12www.cgap.org