1. Mobile MoneyProduct InnovationDriving financial inclusion through research and development Lisa Kienzle Grameen Foundations AppLab Money March 8, 2012

2. 70% of adults in Kenya Less than 10% of mobileuse M-PESA phone banking customersdemonstrating that the are poor, new tomobile channel can banking, and doingsuccessfully reach poor anything more than

3. Few providers have moved beyond payments in their product offering ~100% offer standard payments 120 38% # operators offering the 100 provide other payment types 29% product type 80 enable interaction 60 with financial institutions 10% facilitate 40 loans 4% offer 20 insurance 0 Traditional Other Bank Credit Insuran Payments Payments Linkage ce (Transfer, Bill Pay, Airtime) Payments Beyond PaymentsSource: GSMA deployment tracker, November 2011.

4. So why arent we seeing more innovation? People dont buy products they buy solutions.

5. How do we drive innovation?In villages inUganda,the entireeconomy isdriven by theagriculturalcycle.

6. How do we drive innovation? Education is an untouchable expenditure.

7. Insights arise from close studies of the end-userOne of the largest schools inUganda but not using mobilepayments.

8. Insights arise from close studies of the end-user No stress, no more lines, pay instantly anywhere, anytime but not being

9. So why arent we seeing more innovation? The payments process is not the pain point for the poor facing big expenses during low earnings cycles is.Make saving for A savings sub-wallet money isschool fees painless diverted every time airtime isand secure purchasedHelp customers plan Create an annual mobile education fund your phone prompts you tofor the expenses put away more in harvest times, less otherwiseIncentive early For early payers, 1 individual perpayment, when cash region awarded annualis available scholarship

10. Insights arise from close studies of the end-userwww.grameenfoundation.applab.org

11. So why arent we seeing more innovation? Lets make a quarter-inch hole.