Benefitting from Financial Inclusion Using Mobile Technology Platforms 35 th ADFIAP Annual Meetings...

Benefitting from Financial Inclusion Using Mobile Technology Platforms

35th ADFIAP Annual Meetings Istanbul, Turkey

Dinesh FernandopulleGroup CIO DFCC Bank & CEO Synapsys Ltd.

BANKDIFFERENT

FINANCIALINCLUSION

PAYMENTNETWORK

Financial Access to Unbanked &

Underbanked

Financial Access to Unbanked &

Underbanked

Ultra Convenient Financial ServicesUltra Convenient Financial Services

Low-Cost Efficient Payments

Low-Cost Efficient Payments

2.5 billion unbanked people

The mobile opportunity – where is the value for banks?

• Ultra-convenient and Innovative banking

• Cashless Payments

• Disrupting new markets

24/7 Access

Unique ID Most used device

Easy to use

Geographicalpositioning

What’s so different about mobile?

Ultra convenient & Innovative banking

Cashless Payments

Disrupting New Markets

1

2

3

UltraconvenientInnovative banking

Deepening Customer Relationships

Must-have “home page” driving targeted marketing and cross-selling

On-the-go advice-based sales and financial management

Cashless Payments

Mobile Wallets

Personalized location-aware merchant offers

Instant Credit

Disrupting New Markets

Provide financial services to the un-banked and under-banked

Leverage partner networks to activate and service new customers

Rapidly grow market-share and wallet-share with lower operating costs

Financial Needs

• Deposits and Cash Withdrawals with agents• Other services: Loan application, Transfers/Bill Payments, Statements

• Move money between people across borders/distances

• Secure storage of money• Secure transport• Convenient access• Earn interest

• Access to capital• Microfinancing (daily repayment)• Instant credit

• Consumer pays for goods and services through mobile phone/card• Merchant accepts payments and receives analytics• Merchant has ability for mobile targeted marketing

Day-to-day Financial Transactions

Market Opportunity

High Net Worth

2.5 billion unbanked

Moving to encompass most of pyramid with youth and widespread smartphone use

Moving to encompass most of pyramid with youth and widespread smartphone use

Cost of ServiceCost of Service

Challenges from peers and non-bank disruptorsWinners and Losers

Market Competitors

Retail Remittance

Lending Value Added Services

12

Consumer Mobile Operator

Bank

Retailer

MobileOperator

Bank

Consumer

Customers

Partners

Any Device

Mobile TelecomService Provider

Banking, Financial Services& Insurance

Retail &Supply Chain

Retail

Instant Rebates

Money Management

Transaction Management

Bundled Services

Mobile Cashless Payments

Incentives

Consumer

Mobile –Financial – Retail

Ecosystem Actors

Payments

Operational View

Other Bank

Bank

Inter BankNetwork

Field Services

Extended Marketplaces

Telco

Thank you

Statistics

Number of respondents 392

Considered banks 212

Used them 114

Used them in past 3 months 91

% of respondents who considered using banks, n = 212

Minimum balance in banks is too high

Bank personnel do not listen to me

Bank is too far away

Unaware of savings-deposit services from banks

Can’t take out money whenever I want

Top 5 reasons for considering but not using banks for small savings deposits, n = 99, % of respondents