Mobile Money: Telco’s or Bank business?

Yves EonnetCEO of

The first mobile money platformdesigned for financial institutions

Installed in more than 30 countries

What does it mean?

Mobile payment…Mobile wallet…Mobile money transfer…Mobile banking…Mobile financial services…

Mobile Money

Mobile MoneyThe issue

Mobile Money

+The issue

Mobile Money

vs

The issue

Mobile Money

/

The issue

Mobile Money

?

The issue

Mobile MoneyThe issue

2 multinational markets

Globaly banked

Globaly unbanked

When Mobile meets Money

• New user experience• New services• New targets• New players• And new banking

architecture

The mobile will redesign the bank

When Mobile meets Money

• New user experience• New services• New targets• New players• And new banking

architecture

The mobile will redesign the bank

New market rules

Mobile Money:

Africa is inventing the future of banking

Let’s focus on Africa

Africa is leading Mobile money

2007 Creation2012: 17 000 000 users

30 000 agents20% of Kenyan GDP

Why Africa?

Africa is HUGE!

Africa is unbanked and covered with

mobile phones

* Le taux de pénétration peut inclure des double comptage dû au phénomène de multi-SIM-cards

Source: Wireless Intelligence, World Bank, WMM

Accès aux services financiers %

Africa

Taux de pénétration du mobile %

Why Africa?

Commercial banks

MFI

“Middle of the

pyramid“The emerging middle class

The target

Commercial banks

MFI

“Middle of the

pyramid“The emerging middle class

The target

The next Billion !

1. The DNA story2. The value chain battle3. The regulatory issues4. The ecosystem5. The tehnology impact6. The next step

Telcos, Banks and mobile money

Telco / Bank DNA story

high CAPEX …. low OPEX high gross margin

Telcos

Low CAPEX …. low OPEX low gross margin

Banks

Very low Capex …. Very low Opex low gross margin

Mobile Money

!

!

Central Banks

Central Bank with a central role (naturally)

• Control money supply• Protection of citizen savings • War against money laundering

/

Silicon manufacturer

Card Manufacturer

Terminal manufacturer

Transaction processor Issuing bank Aquiring bank

The value chain war

Card based payment value chain

Silicon manufacturer

Han

dset

m

anuf

actu

rer

Tele

com

op

erat

or

Terminal manufacturer

Transaction processor Issuing bank Aquiring bank

Mobile payment value chain with telcos

Silicon manufacturer

Card Manufacturer

Terminal manufacturer

Transaction processor Issuing bank Aquiring bank

The value chain war

Card based payment value chain

Silicon manu-

facturerHandset manufacturer Telecom operator Terminal

manufacturer

Transac-tion

processor Issu

ing

bank

Acqu

iring

ba

nk

Mobile payment value chain with telcos

Mobile money ecosystem

+

Mobile money ecosystem

Acquiring Bank

Issuing Bank

The 4 corner achitecture

Acquiring Bank

Mobile money ecosystem

Acquiring Bank

Issuing Bank

The 4 corner achitecture

Acquiring BankTelco

POS

Mobile money

A technology issue

Time

Mat

urity

/ b

anca

risati

on /

finan

cial

incl

usio

n

BanksTelecom

Example: a small video from Bamako

In developing countries

Banks or financial service

providers

In developing countries

Banks or financial service

providers

Thank you