$m$: financial inclusion, not exclusion!
DESCRIPTION
This is my presentation from the 2011 Mobile Money Forum Canada Event. Great event that is helping shape the future mobile financial services. Looking forward to next iteration of the event. Many thanks to Neotelis for including Gulf Bay Consulting in this high profile, mobile money event.TRANSCRIPT
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
www.gulfbayconsulting.com