Omer Omarabi

Collaborative & Interoperable Module for Branchless Banking

www.ebs-sd.com

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July 2016

Agenda 2

Mobile Money Business ModulesWhy Collaborative Module?Stakeholders.Current Challenges & Way forward.

Mobile Money

Associate the Mobile with SVA Available to anyone who has mobile. No bank account or KYC. Self Registration or through Agents. Can be used for most financial services through all Channels

You put money in it through Agents or P2P  Protected by a pin #

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Mobile Money Global models4

Service Providers(CSP-FSP)

Gov Units

CBOS

Billers

Collaborative model for Mobile Money

Cash inCash-out

Money Transfer

Bill Payment

Mobile Top-up

SMS

USSD

ATM

PoS

API

Purchase

Agent

Transfer to Bank Account

Customers

MNO

Banks

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CPS Payment Platform

o Centralized platform owned and Regulated by CBOSo Operated by EBSo Managed by all Stakeholderso Customer mobile wallets, balances  and transactions managed centrally throw SVA

o Integrated with all existing payment eco‐systems.o Has agent management system

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Why We need a Collaborative System? Electronic Money Issuance Daily  settlement between different FSP Enforcement of Financial Policies and rules Interoperability Customer protection (Financial Services) AML and AFT

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SMS Command

USSD

SMS

POS

e-commerce

ATM

Customer Service Provider(Front End)

Web-service API response

Web-service API request

SMS NotificationSMPP

Mobile Application

Retailers

Billers

Governmental institutes

Payment Processor Service Providers(Back End)

Customer

System Architecture

VPN

Mobile Payment Platform(CPS)

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Payment Channels

- USSD- SMS- Mobile Application - Webservices- SDK

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Available Services Money Transfers

− From Mobile to Mobile− From Mobile to account− From account to Mobile

International Remittance Purchase Cash-in Cash-out Vouchers Buying Electricity Balance Enquiry Procurement Cash deposit & withdrawal E-Government payments E-commerce Salaries & Payroll Distribution

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Financial Services – CPS

1. Send request 2. Validate Request3. Customer SVA is debited:Transaction amount + Fees

5. Confirm Payment and retrieve payment info

External System

6. Notify Customer

4.1. P2P: Credit recipient wallet4.2. Payment/Purchase: . Send Credit request to Biller/retailer

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Money FlowCBOS

- Creates FSP Mobile Wallet- E-money Issuance

FSP- Buy E-money from CBOS

- Distributes E-money to CSP (MNO)

CSP (MNO)- Buys E-money from a single or Multiple FSPs

- Distributes E-money to Agents

Agent- Buys E-money from FSP

- Distributes E-money to Agents

E-MoneyPhysical Money

E-MoneyPhysical Money

E-MoneyPhysical Money

Cash-out Cash-in

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Cash-in

Branchless Services Stakeholders

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Government

Telecomm. Companies

Central Bank

(CBOS)Banks

NTC

Private Sectors

Agents

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Stakeholders ‐ CBOS

E‐money Issuance.Regulations and policies.Customer protection.Financial Settlement. Licensing participants

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CSP (MNO)

data communication network management.Managing customers.Branding.Provide service delivery channels e.g. USSD and SMSAgent network  provision and management.Direct customer support.

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FSP (Banks)

Buy electronic money from CBOS on behave of MNOManage LiquidityEnsure settlement and other CBOS requirements are maintained

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Platform Operator (EBS)

Operation and support of the CPS platform.Ensure reliability and high availability of the system.Provide back office support for CSPs, FSPs, Retailers, and Utility providers

Resolution of customer financial disputes Issuance of daily settlement & reconciliation files.Ensure security of the platform and data privacy of all parties.

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Vision for e-Services and Public sector Development

e-Services

Technology &

Infrastructure

Laws &

Regulations

Information Security

Basic Requirement of e-Services

Aw

areness cam

paigns

Service Channels

Payment Platform

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Billers

Internet

ATM

POS

Mobile Apps

Government Network

Banks Network

International Payment Networks

19eServices

Current Challenges Collaboration Building Effective Agent Networks Banking Sector Awareness Customer Awareness & Adoption Private Sector Involvement Regulations Government Adoption Services Cost  Infrastructure

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Regulation

Education

FinancialIncentive

Adoption

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omarabi@ebs-sd.com

Thank You!