Bruce Burke: Gulf Bay Consulting

SMS:

Financial

Inclusion,

Not

Exclusion

SMS text messaging is the

most widely used data

application in the world!

Revenue: $105.5 B in 2010!

Financial inclusion facilitates currency flow, exclusion inhibits circulation

Number of mobile money subscribers in emerging

markets will grow at a compound annual growth rate

(CAGR) of 40 % to reach 709 million users in 2015.

In 2010 there were only 133 million users and the total

value of mobile money transactions was US$ 25 billion.

This value now expected to grow at a CAGR of 54 percent

to US$ 215 billion in 2015.

Mobile is expected to become the primary digital channel

for financial services. Financial institutions are now

viewing mobile money services as high-priority strategic

projects.

Despite the popularity

of mobile email, IM, &

MMS …

SMS is predicted to

exceed 10 trillion in

2013. Triple the

amount of 2007!

“SMS is used by 4.2

Billion consumers

worldwide”

Tomi Ahonen, Author

Mobile As 7th Of The

Mass Media

U.S. wireless subscriber

connections: 302.9 million

Compared with year-end

2009’s 285 million, 6% increase

Minutes of Use: 2.241 trillion

Compared with 2009’s 2.275

trillion.

USA: SMS sent and

received: 2.052 trillion,

compared with 2009’s

1.563 trillion, for an

increase of 31 percent!

Source: Annual Report :2011

“I have a teenage daughter who’s regularly sending and receiving

more messaging than we expected, so we accepted reality and

selected the unlimited plan. I don’t know how many messages she and

her friends exchanged last year, but I know they contributed to the

additional 500 billion messages in 2010 compared to 2009”

Dr. Robert Roche

Users text 'War & Peace' every 5 years!

Mobile phone users are texting so often that

the average consumer is sending the

equivalent of Tolstoy's War and Peace nearly

every five years.

Most phones allow up to 160 characters per

text, it would take customers just five years

and six months of texting, ten times a day, to

send all of the 3,197,779 characters of

Tolstoy’s War & Peace across the mobile

phone networks.

• Linked to a customer's checking

account and processed as an ACH

transaction

• MurPay purchases have helped

Murphy Oil cut credit card fees, while

positioning the chain as a cutting-

edge retailer.

• Since April rollout, MurPay has

offered users gas prices guaranteed

to be the lowest posted within last 24 hours at 1,115 Murphy USA locations.

http://bit.ly/jz0r2c

720 M Smartphones Worldwide

Includes iOS, Android, BlackBerry,

Symbian, Bada, WP 7 and all others

5 B Mobile Subscribers Worldwide

Excludes Over Four Billion Users!

Inclusion or Exclusion?

2010: Over 22 million

people in the United States

do not have a formal bank

account.

Source: FDIC National Survey of Underbanked & Underbanked Households

Sources: Consultative Group to Assist the Poor; IMF; Federal Deposit Insurance Corporation; Honohan (2008) UNDP and Alliance Bernstein, Morgan

Stanley; Hanson; Kashyap and Stein (2011) Berger, Herring and Szego;D. Sheppard(1971); Bank of England; Bank for International Settlements;

Reinhart (2010); comScore; national sources; The Economist

Special Report:

International Banking

May 2011

Saimon Outiri works as a cook

in a restaurant in Kibera, a

sprawling, crowded community

in Nairobi and one of Africa's

largest slums.

Like most people in Kibera,

Outiri doesn't earn very much —

just $4.37 a week. He would like

to put that money in a bank, but

he can't afford to.

"If I want to open up a bank account, it will cost

me some charges, which I am unable to incur"

56 % growth in M-PESA revenue in 2011!

With almost 14 million of users representing

81% of Safaricom’s customer base in

Kenya, M-PESA accounts for 12.4% of

total revenues

With a 50% year over year increase in M-

PESA revenue and customer numbers,

Safaricom’s mobile money service has

undoubtedly become a corner stone of the

company’s strategy.

Safaricom’s CEO, Bob Collymore:

“Our strategy to continually invest in

all areas of our network to deliver on

our customer needs, driving M-PESA

to grow financial inclusion and

democratizing data and internet to

bridge the digital divide have

delivered very strong growth”.

Full report available:www.safaricom.co.ke/index.php?id=323

"The Cloud Phone supports Airtel Madagascar's aim to increase penetration of

mobile services to rural users," said Nigel Waller, Founder and CEO of Movirtu.

"Both Movirtu and Airtel recognize the needs of those earning less than $2 a

day, who have previously been left out of mobile phone or SIM ownership for

reasons of affordability.

http://bit.ly/MFSR2011 223 page report

focuses on the

development of

services

for those excluded

due to lack of

proximity,

opportunity cost,

and/or socio-cultural

barriers.

Bruce Burke | Founder

M: (727) 612-5775

gbc@gulfbayconsulting.com

www.gulfbayconsulting.com