committed to connecting the world mobile money opportunities & challenges regional regulatory...

Committed to Connecting the World

Mobile Money Opportunities &

Challenges

Regional Regulatory Conference for EuropeTowards Mobile Broadband Ubiquity in Europe

Budva, Montenegro, 29 September 2014

Telecommunication Standardization Bureau of ITU

Outline Financial Services Digital Financial Services Opportunities Challenges ITU-T Study Group 13- Technology Watch Report- Focus Group: Digital Financial

Inclusion

ITU Key Cybersecurity Initiatives2

Financial Services Purpose

- Save, Borrow, - Make payments, Manage risk

Benefits - the Poor & the Disadvantaged- businesses - socio economic development of a nation

Barriers- high cost- physical distance- lack of proper documentation

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Regional Regulatory Conference for Europe - Towards Mobile Broadband Ubiquity in EuropeBudva, Montenegro, 29 September 2014

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UNBANKED – No Financial Services

Digital Financial Services – Mobile Money

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Financial Inclusion through Mobile Money

Low levels of financial inclusion represent a barrier to socio economic development in developing countries

Globally, more than 2.5 billion adults do not have a formal bank account, most of them in developing economies

59% of adults in the developing countries do not have a formal bank account

But most of them have a mobile phone

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Source: GSMA - 2013

World view - trends

World view - interoperability

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52 countries have 2 or more mobile money services – there is a need for interoperability.

Source: GSMA - 2013

Mobile Money - Some Statistics

203 million registered accounts globally in June 2013 compared to 108 million in June 2012

9 countries have more mobile money accounts than bank accounts: Cameroon, the Democratic Republic of Congo, Gabon, Kenya, Madagascar, Tanzania, Uganda, Zambia and Zimbabwe

In 44 countries there are now more mobile money outlets than bank branches

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Source: GSMA - 2013

Mobile Money Payment in Europe (I)

Orange Cash (France) - Visa prepaid card on a mobile phone

- Smartphone with NFC and the orange app

Mobito (Czech Republic)

- Payment through the Mobito service, bank, mobile wallet or credit/debit card

- Use any mobile phone -Intra money transfer

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Turkcell Mobile Wallet (Turkey) - Turkcell mobile operator and Garanti Bank

- integrated public transport card Urfakart

Vodafone M-Pesa(Kenya, Romania) - based on simple text messaging - launched in Kenya in 2007 now has 15 million

users in Kenya - April 2014 announced launch for Romania

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Mobile Money Payment in Europe (II)

Mobile Money Transfer in Europe

MoneyGram (Spain) - Launched in 2013, - MoneyGram & Movistar Remesas - allow consumers to send money using their

mobile phones from Spain to any of MoneyGram’s 293,000 agent locations around the world

Mobile Banking Most banks in Europe

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Two main technologies emerging

• Cloud-based payments

• NFC-based payments (Near Field Communications)

Business Models

OPPORTUNITIES Individual

- fast track to financial inclusion

Business - New ventures for mobile operators and

financial institutions to tap a global market

National - Accelerated socio-economic development

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Interoperability between mobile money service providers

Coordination between regulators from telecom and financial services

Consumer protection against fraud Access to business critical technology

Analyze best practices to develop global standards

Challenges

ITU-T Study Group 13 outcomes on financial transactions via Mobile

Following proposal to the WTSA-08 and contributions from Member States Recommendation ITU-T Y.2740 (01/2011) “Security requirements for mobile remote financial transactions in next generation networks”

http://www.itu.int/rec/T-REC-Y.2740/en and • Recommendation ITU-T Y.2774 (01/2011) “Architecture of secure

mobile financial transactions in next generation networks” http://www.itu.int/rec/T-REC-Y.2741/en

Both available for free download in English, French, Spanish, Arabic, Chinese and Russian

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Reports on Mobile Money ITU TechWatch 2013

free download at http://www.itu.int/en/ITU-T/techwatch/Pages/mobile-money-standards.aspx

GOAL: Recommend a standardization roadmap for interoperable digital financial services for financial inclusion.

Established by ITU-T TSAG (June 2014 meeting)

Chaired by Sacha Polverini (Bill & Melinda Gates Foundation)

First meeting: 5 December 2014, ITU, Geneva

Workshop on Digital Financial Services and Financial Inclusion: 4 December 2014, Geneva

Homepage & Mailing List: http://www.itu.int/en/ITU-T/focusgroups/dfs/ Terms of Reference

For more information contact Mr Vijay Mauree, Programme Coordinator [email protected]

Focus Group on Digital Financial Services(FG DFS)

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For more information on SG 13 Contact Ms Tatiana KURAKOVA, Counsellor, ITU.

We look forward to contributions to ITU-T study groups by ITU members

Key Cybersecurity Initiatives

National CIRT ProgrammeHuman Capacity Building Global Cybersecurity IndexChild Online Protection Least Developing Countries

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National CIRT Programme

Educate / Plan Educate / Plan Establish/ Operate Establish/ Operate CollaborateCollaborate

Assessments conducted for 56 countriesImplementation completed for 8 countries Implementation in progress for 6 countries8 cyberdrills conducted with participation of over 70 countriesFirst African region Cyberdrill taking place today

Human capacity building

Cybersecurity training workshops for over 2700 government officials, regulators, and ICT professionals worldwide

Timely dissemination of latest reports on cyberthreats from industry partners Symantec and Trend micro to Member States

6 reports, 4 e-guides and InfographicsMore to come

Soon.. courses through the ITU Academy

Objective

The Global Cybersecurity Index (GCI) aims to measure and rank each nation state’s level of cybersecurity development in five main areas: •Legal Measures•Technical Measures•Organizational Measures•Capacity Building•National and International Cooperation

Goal

Promote government strategies at a national level

Drive implementation efforts across industries and sectors

Integrate security into the core of technological progress

Foster a global culture of cybersecurity

90 countries have respondedPreliminary results : Arab region, Africa region and Asia Pacific regionFinal Global Results targeted for end of 2014

Child Online Protection

• Under the GCA umbrella, ITU initiated the Child Online Protection initiative (COP) in November 2008.

• COP has been established as an international collaborative network for promoting the online protection of children and young people worldwide by providing guidance on safe online behavior.

Objectives

•Identify risks and vulnerabilities to children in cyberspace

•Create awareness

•Develop practical tools to help minimize risk

•Share knowledge and experience

NEW GUIDELINES : For Industry on Child Online Protection

July 2013: H.E. Dame Patience Goodluck Jonathan, First Lady of Nigeria was appointed ITU COP Champion

Enhancing Cybersecurity in Least Developed Countries project

Aims at supporting the 49 Least Developed Countries in strengthening their cybersecurity capabilities.How •Assessment for selected key government ministries &

subsequent solutions provision•Capacity building through training of trainers, workshops,..•Customised guidelines on legislation, regulation and technologies

Status•Implemented in Sierra Leone •In progress : Afghanistan, Angola, Bhutan, Burundi, Chad, Comoros, Djibouti, Gambia, Haiti, Kiribati, Lao, Mauritania, Myanmar, Republic of Guinea, Rwanda, Tanzania, Uganda, Vanuatu and Zambia

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We are only as secure as our weakest link …

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Let’s work together

Respond to the questionnaire for the Global Cyber Security

Index

Partner with us to ‘Enhance Cybersecurity in Least

Developed Countries’

International cooperation to address Child Online Protection

Join our study groups

National CIRT assessment, implementation or join our

cyberdrills

Attend our conferences, workshops

More information on the above at

http://www.itu.int/en/ITU-D/Cybersecurity/Pages/default.aspx

Committed to Connecting the World

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Thank You

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