Post on 16-Apr-2017
transcript
Innovation for Rural finance
Innovation for Rural finance
Innovation for Rural finance
Innovation for Rural finance
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
Mobile wallet potential in Kyrgyzstan
Mobile wallet potential in Kyrgyzstan
Kenya
Mobile wallet potential in Kyrgyzstan
Kenya
Kyrgyzstan
8 About Mobile Wallet in Kenya
9 About Mobile Wallet in Kenya
10 About Mobile Wallet in Kenya
11 Why was Mpesa so successful in Kenya?
12 Why was Mpesa so successful in Kenya?
13 Why was Mpesa so successful in Kenya?
• High mobile penetration
14 Why was Mpesa so successful in Kenya?
• High mobile penetration
• Low financial inclusion
15 Why was Mpesa so successful in Kenya?
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
16 Why was Mpesa so successful in Kenya?
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
• Big advertisement and massive territory coverage
17 Why was Mpesa so successful in Kenya?
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
• Big advertisement and massive territory coverage
• Supported by regulators
18 Mobile cellular subscription for 100 people
http://data.worldbank.org/indicator/IT.CEL.SETS.P2
19 Mobile cellular subscription for 100 people
http://data.worldbank.org/indicator/IT.CEL.SETS.P2
Kenya: 71 in 2014
20 Mobile cellular subscription for 100 people
http://data.worldbank.org/indicator/IT.CEL.SETS.P2
Kenya: 71 in 2014
Kyrgyzstan: 124 in 2014
21 Why was Mpesa so successful in Kenya
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
• Big advertisement and massive territory coverage
• Supported by regulators
22 Why was Mpesa so successful in Kenya
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
• Big advertisement and massive territory coverage
• Supported by regulators
23 Bank account penetration
Source: World Bank
24 Bank account penetration
Kenya (Mobile wallet excluded)
Source: World Bank
25 Bank account penetration
Kenya (Mobile wallet excluded) 53% for adults
Source: World Bank
26 Bank account penetration
Kenya (Mobile wallet excluded) 53% for adults 50% for women
Source: World Bank
27 Bank account penetration
Kenya (Mobile wallet excluded) 53% for adults 50% for women 15% for 40% poorest households
Source: World Bank
28 Bank account penetration
Kenya (Mobile wallet excluded) 53% for adults 50% for women 15% for 40% poorest households
Kyrgyzstan
Source: World Bank
29 Bank account penetration
Kenya (Mobile wallet excluded) 53% for adults 50% for women 15% for 40% poorest households
Kyrgyzstan 18% for adults
Source: World Bank
30 Bank account penetration
Kenya (Mobile wallet excluded) 53% for adults 50% for women 15% for 40% poorest households
Kyrgyzstan 18% for adults 19% for women
Source: World Bank
31 Bank account penetration
Kenya (Mobile wallet excluded) 53% for adults 50% for women 15% for 40% poorest households
Kyrgyzstan 18% for adults 19% for women 15% for poorest households
Source: World Bank
32 Why was Mpesa so successful in Kenya
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safari Com
• Big advertisement and massive territory coverage
• Supported by regulators
33 Monopoly situation
34 Monopoly situation
Kenya
35 Monopoly situation
Kenya
36 Monopoly situation
• 75% of market share
Kenya
37 Monopoly situation
• 75% of market share • Telco initiated
Kenya
38 Monopoly situation
• 75% of market share • Telco initiated
Kenya
Kyrgyzstan
39 Monopoly situation
• 75% of market share • Telco initiated
Kenya
Kyrgyzstan
40 Monopoly situation
• 75% of market share • Telco initiated
Kenya
Kyrgyzstan
41 Monopoly situation
• 75% of market share • Telco initiated
Kenya
Kyrgyzstan
42 Monopoly situation
• 75% of market share • Telco initiated
Kenya
Kyrgyzstan
43 Monopoly situation
• 75% of market share • Telco initiated
Kenya
• 4 Actors
Kyrgyzstan
44 Monopoly situation
• 75% of market share • Telco initiated
Kenya
• 4 Actors • 1 Bank Driven
Kyrgyzstan
45 Monopoly situation
• 75% of market share • Telco initiated
Kenya
• 4 Actors • 1 Bank Driven • 3 Independents
Kyrgyzstan
46 Why was Mpesa so successful in Kenya
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
• Big advertisement and massive territory coverage
• Supported by regulators
47 Why was Mpesa so successful in Kenya
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
• Big advertisement and massive territory coverage
• Supported by regulators
48 Advertisement and Coverage. Mpesa Vs Elcom
49 Advertisement and Coverage. Mpesa Vs Elcom
50 Advertisement and Coverage. Mpesa Vs Elcom
Market leader in Kyrgyzstan
51 Advertisement and Coverage. Mpesa Vs Elcom
• # Subscribers
Market leader in Kyrgyzstan
52 Advertisement and Coverage. Mpesa Vs Elcom
• # Subscribers
• % of population subscribed
Market leader in Kyrgyzstan
53 Advertisement and Coverage. Mpesa Vs Elcom
• # Subscribers
• % of population subscribed
• # of agents
Market leader in Kyrgyzstan
54 Advertisement and Coverage. Mpesa Vs Elcom
• # Subscribers
• % of population subscribed
• # of agents
• Rural focus
Market leader in Kyrgyzstan
55 Advertisement and Coverage. Mpesa Vs Elcom
18.2 Millions 97,000 • # Subscribers
• % of population subscribed
• # of agents
• Rural focus
Market leader in Kyrgyzstan
56 Advertisement and Coverage. Mpesa Vs Elcom
18.2 Millions 97,000
42% 1.6%
• # Subscribers
• % of population subscribed
• # of agents
• Rural focus
Market leader in Kyrgyzstan
57 Advertisement and Coverage. Mpesa Vs Elcom
79,000 in 2013 800 by summer 2014
18.2 Millions 97,000
42% 1.6%
• # Subscribers
• % of population subscribed
• # of agents
• Rural focus
Market leader in Kyrgyzstan
58 Advertisement and Coverage. Mpesa Vs Elcom
79,000 in 2013 800 by summer 2014
18.2 Millions 97,000
42% 1.6%
• # Subscribers
• % of population subscribed
• # of agents
• Rural focus Excellent rural coverage Very Urban focused strategy
See: club.elsom.kg/
Market leader in Kyrgyzstan
59
60 Why was Mpesa so successful in Kenya ?
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
• Big advertisement and massive territory coverage
• Supported by regulators
61 Why was Mpesa so successful in Kenya ?
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
• Big advertisement and massive territory coverage
• Supported by regulators
62 Regulatory environment
63 Regulatory environment
Kenya
64 Regulatory environment
Kenya Kyrgyzstan
65 Regulatory environment
Kenya Kyrgyzstan
“Lax” regulation allowed users to register Mpesa account with ID only
66 Regulatory environment
Kenya Kyrgyzstan
Daily and monthly transaction limit
“Lax” regulation allowed users to register Mpesa account with ID only
67 Regulatory environment
Kenya Kyrgyzstan
Daily and monthly transaction limit
“Lax” regulation allowed users to register Mpesa account with ID only
By law, only banks are allowed to issue mobile money (Jan 15)
68 Regulatory environment
Kenya Kyrgyzstan
Daily and monthly transaction limit Transaction limit
“Lax” regulation allowed users to register Mpesa account with ID only
By law, only banks are allowed to issue mobile money (Jan 15)
69 Why was Mpesa so successful in Kenya ?
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
• Big advertisement and massive territory coverage
• Supported by regulators
70 Why was Mpesa so successful in Kenya ?
• High mobile penetration
• Low financial inclusion
• Monopoly situation of Safaricom
• Big advertisement and massive territory coverage
• Supported by regulators
71 Contextual parameters
72 Contextual parameters
• Remittances from city to country side
73 Contextual parameters
• Remittances from city to country side
• Distance and road infrastructure
74 Contextual parameters
• Remittances from city to country side
• Distance and road infrastructure
• Risk of theft
75 Contextual parameters
• Remittances from city to country side
• Distance and road infrastructure
• Risk of theft
• Innovation mind-set
76 Contextual parameters
• Remittances from city to country side
• Distance and road infrastructure
• Risk of theft
• Innovation mind-set
Kenya
77 Contextual parameters
• Remittances from city to country side
• Distance and road infrastructure
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
78 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in
the whole city
• Distance and road infrastructure
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
79 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in
the whole city
• Distance and road infrastructure
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
80 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in
the whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
81 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in
the whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
82 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
83 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
84 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
85 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
86 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
87 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft
• Innovation mind-set
Kenya Kyrgyzstan
88 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Innovation mind-set
Kenya Kyrgyzstan
89 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Innovation mind-set
Kenya Kyrgyzstan
90 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Low in Kyrgyzstan
• Innovation mind-set
Kenya Kyrgyzstan
91 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Low in Kyrgyzstan
• Innovation mind-set
Kenya Kyrgyzstan
92 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Low in Kyrgyzstan
• Innovation mind-set • Quite good in Kenya
Kenya Kyrgyzstan
93 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Low in Kyrgyzstan
• Innovation mind-set • Quite good in Kenya
Kenya Kyrgyzstan
94 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Low in Kyrgyzstan
• Innovation mind-set • Quite good in Kenya
• Ok in Kyrgyzstan
Kenya Kyrgyzstan
95 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Low in Kyrgyzstan
• Innovation mind-set • Quite good in Kenya
• Ok in Kyrgyzstan
Kenya Kyrgyzstan
96 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Low in Kyrgyzstan
• Innovation mind-set • Quite good in Kenya
• Ok in Kyrgyzstan
TOTAL
Kenya Kyrgyzstan
97 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Low in Kyrgyzstan
• Innovation mind-set • Quite good in Kenya
• Ok in Kyrgyzstan
TOTAL
Kenya Kyrgyzstan
10/12
98 Contextual parameters
• Remittances from city to country side • 1M People in Nairobi’s slum for 5M in the
whole city
• High internal migration towards Bishkek, capital of Kyrgyzstan
• Distance and road infrastructure • Distances in Kenya
• + Mountains, no traditional money transfer, low infrastructure maintenance - Terminals
• Risk of theft • Significant in Kenya
• Low in Kyrgyzstan
• Innovation mind-set • Quite good in Kenya
• Ok in Kyrgyzstan
TOTAL
Kenya Kyrgyzstan
10/12 7/12
99 Summary
100 Summary
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
101 Summary
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
+ -
102 Summary
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
+ - • Need is real
103 Summary
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
+ - • Need is real • Excellent mobile penetration
104 Summary
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
+ - • Need is real • Excellent mobile penetration
• 4 independent companies
105 Summary
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
+ - • Need is real • Excellent mobile penetration
• 4 independent companies • Marketing focus on the capital
106 Summary
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
+ - • Need is real • Excellent mobile penetration
• 4 independent companies • Marketing focus on the capital
107 Summary
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
+ - • Need is real • Excellent mobile penetration
• 4 independent companies • Marketing focus on the capital
• How will regulation impact the spread of technology?
108 Summary
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
+ - • Need is real • Excellent mobile penetration
• 4 independent companies • Marketing focus on the capital
• How will regulation impact the spread of technology? • Can banks efficiently push the effort?
109 Summary
Can mobile wallet technology become a vector of innovation for Rural Finance in Kyrgyzstan?
+ - • Need is real • Excellent mobile penetration
• 4 independent companies • Marketing focus on the capital
• How will regulation impact the spread of technology? • Can banks efficiently push the effort?
Experience sharing on mobile wallet
BFC · Management Consulting · Analytics · Research Max-Högger-Strasse 6 Phone: +41 44 784 22 22 info@bfconsulting.com facebook.com/bfconsulting CH-8048 Zurich, Switzerland Fax: +41 44 784 23 23 www.bfconsulting.com twitter.com/bfconsultingcom
Thank You! Questions?