mobile money opportunities in south east asia - 2016
TRANSCRIPT
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Mobile Money Opportunities in SEA
May 2016
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Nathamaly SinbandhitDigital Banking Specialisthttps://sg.linkedin.com/in/nathamaly/en
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Mobile Money
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Any opportunities in SEA countries
to launch new Mobile Money services?
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● Mobile Money market (selected Asian countries)
● Outlook 2016
● Opportunities in countries with the highest potential
● Current competition landscape
● Main types of products/ offer that could be launched
● Key success factors of an entry strategy
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Agenda
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What is Mobile Money?
1. Mobile Banking — use of a mobile phone to remotely access a bank account, primarily for account balance checkup and bill payment services
2. Mobile Money transfer (remittance) — a peer-to-peer application making use of a mobile phone to send money to family or friends, primarily across international borders
3. Mobile Commerce (payment)— use of a mobile phone to perform financial transactions for purchases or sales, either remotely or on-site, retrieve promotion information or coupons, and deliver gift items
Source: Ernst & Young, Mobile Money - An overview for global telecommunications operators, report 2015
http://www.ey.com/Publication/vwLUAssets/Mobile_Money./$FILE/Ernst%20&%20Young%20-%20Mobile%20Money%20-%2015.10.09%20(single%20view).pdf
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Mobile Money Objective
Universal access to safe and convenient financial services.
Easy, Fast and Safe
Mobile Money helps to:
- reduce the vulnerability of the financial system and - mitigate risks due to the widespread use of cash and informal financial services.
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Mobile Money market in 2014-15
6Source: The Singapore FinTech Consortium, As of Q4, 2014
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Outlook 2016
The global Mobile Money market is expected to grow from $12.34 Billion in 2014 to $78.02 Billion by 2019, at a Compound Annual Growth Rate (CAGR) of 44.6% during the forecast period from 2014 to 2019.
Source: Expert Interviews, Secondary Literature, and MarketsandMarkets Analysis
According to research firm Gartner, the value of mobile payment transactions in Asia-Pacific is expected to reach $165 billion in 2016, overtaking Africa as the largest region for mobile payments.
Source: Capacity Magazine June-July 2015 Asia Pacific
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Opportunities in countries with the highest potential
8Source: The Singapore FinTech Consortium
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Why?
● High penetration of mobile○ Population is comfortable with mobile technology○ Limited fixed line infrastructure○ Mobile operator is trusted brand
● Limited access to financial services○ Low banking penetration○ Financial services mainly available in urban areas○ Limited credit and debit facilities available to mass
● Migrant population○ High need to transfer money from urban to rural areas
● Poor infrastructure/ security○ Limited public transport○ Traditional money transfer services are costly○ Security concerns associated with carrying cash
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Mobile Money - Current competition landscape
Players
● Mobile Network Operators: Vodafone Group PLC, Bharti Airtel Limited, Orange S.A.
● Device Manufacturers and Mobile Operating System Providers
● Financial Institutions
● Payment Networks: Paypal, Alibaba, Globe, Alipay, UnionPay, YeePay, Taobao
New entrants
● Online messaging service providers: KaoKao Talk (South Korea), Line (Japan), WeChat (China)
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38 Mobile Money Operations in Asia Pacific
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Focus in Indonesia
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Mobile Money - Launch new products and services
Products/ Services Indonesia Philippines Vietnam
Banking services ✓ ✓ ✓
P2P transfers ✓ ✓
P2B payments ✓ ✓ ✓
Bill payments ✓ ✓ ✓
Public Service Access
Airtime purchase ✓ ✓ ✓
G2P transfers ✓ ✓
Savings accounts ✓ ✓ ✓
Micro-Credit ✓ ✓ ✓
Micro-Insurance ✓ ✓ ✓13
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The future of Mobile Money products
Mobile Money in particular has become the foundation for a range of other innovative financial products:
● Life and health insurance coverage paid for by topping up prepaid airtime● Interest-bearing savings accounts for non-banked customers● Instant personal and small-business micro-loans, and even investment bonds bought
through a mobile phone.
Mobile value-added services: promotions (advertising, loyalty, couponing, promotions/ offers, shopping assistant)
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Key success factors of an entry strategy
MarketCompetitive (low) pricesInnovative offeringBreakthrough innovationDifferentiation Early starterMarketing (branding and communication)Customer centric experienceCustomer segmentation
TechnologyInteroperability: NFC technology could be a way to address interoperability between all parties offering services and technology standards Enhanced security
Business model Partnership: establish strong partnerships with other financial institutionsJoint venture
InfrastructurePayment networkPoint of saleAdoption of the system by agents and susbcribers
RegulationFinancial regulations and legislationRegulatory complianceLicences under domestic legislation and regulations
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Thank you
Check out my LinkedIn profile
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Nathamaly SinbandhitDigital Banking Specialisthttps://sg.linkedin.com/in/nathamaly/en