TRANSFORMING TRANSFORMING TRANSFORMING TRANSFORMING FINANCIAL SERVICES FINANCIAL SERVICES FOR UNDER FOR UNDER- -SERVED MARKETS SERVED MARKETS The Macroeconomics of Mobile Money Securing Mobile � Money: The Ugandan Experience g p Friday, April 2, 2010 Columbia University Table of Contents Table of Contents • About MAP • Case Study: Uganda • MAP in the News 2
Our Technology and Executive Leadership Helped Pioneer the Mobile Banking Space MAP’s Information Technology Technology History Group • Our Chief Technology Officer and gy • Based in Cape Town, the Group Chief Information Officer were both boasts 20+ full time team members, members of the original architect team including a full staffing of: of Fundamo – one of the first mobile banking technology firms: g gy � Solution Architects � Business Analysts � Led comprehensive implementations � Project Managers throughout Africa and the MidEast � Developers � Developed the Mobile Security � Graphic Designers p g Solution, the industry s first pin based Solution, the industry’s first pin-based system still utilized throughout the � DBAs & Networking Specialists Fundamo network • The Group can manage the full • Our CTO went on to build a technology spectrum of MAP’s product offering development house to create and de e op e ouse o c ea e a d including: including: deploy the next generation of mobile � Biometric ID systems financial services � ATM switching and management • MAP acquired the group, technology, � POS switching and processing � Mobile banking Mobile banking and IP in early 2009 and IP in early 2009 � Partner integration and maintenance 3 The Technological Backbone to MAP is Provided by a The Technological Backbone to MAP is Provided by a Proprietary HUB Mobile Banking System Proprietary HUB Mobile Banking System • The MAP HUB Intelligently routes multiple transaction types that originate FINANCIAL PLATFORM FINANCIAL PLATFORM from multiple communication devices: Point of Sale Terminals, ATM s, Mobile Point of Sale Terminals ATM’s Mobile Phones, and PC’s), • The HUB also integrates between multiple Companies, Banks or Financial Institutions, Databases & Application Modules to return a desired transaction type to the originating device • The HUB enables multi channel layer The HUB enables multi channel layer communication and multi tiered architecture • The HUB can transact: Person to Person ( P2P ), Business to Person ( B2P ), Person to Business ( P2B ), and Business to Business ( B2B ) • The system is agnostic to mobile player The system is agnostic to mobile player and financial institution 4
The MAP Systems Also Offers a Unique Product The MAP Systems Also Offers a Unique Product Distribution Platform Distribution Platform • The platform provides for the creation of multiple franchises and products distributed products, distributed through a pre-registered vendor network • Franchisees operate Franchisees operate independently from one another and in turn are responsible for the setup of their entire down-line • It enables the selling of multiple virtual products, with different discount ff structures 5 Table of Contents Table of Contents • About MAP • Case Study: Uganda • MAP in the News 6
Executive Sponsorship Secured Uganda as the Executive Sponsorship Secured Uganda as the Launch Market for MAP Launch Market for MAP � The MAP team was first invited to Uganda by the President, Th MAP t fi t i it d t U d b th P id t Yoweri Museveni, to explore areas for partnership � MAP was asked to focus on his two key concerns: � #1All governmental salaries as well as most other salary payments #1All governmental salaries, as well as most other salary payments, were paid in cash – This led to rampant abuse, ghost workers, fraud, shrinkage, and loss � #2 A network of rural unregulated banks, SACCOs, were the weak backbone of the Ugandan rural economy backbone of the Ugandan rural economy – SACCOs lacked the financial stability and trust of the people to properly offer modern financial services � The MAP offering has evolved to meet the immediate needs of Uganda Country Profile: • Population: 32.4 million P l ti 32 4 illi • Pop. Growth Rate: 3.2% • GDP: $15.04B (2008 estimate) • GDP Growth Rate: 6.4% • GDP per capita: $465 per year GDP it $465 • Mobile Phones: 8 Million (2009) 7 The Nature of the Ugandan Initiative is a Public Private The Nature of the Ugandan Initiative is a Public Private Partnership Partnership Key Competitive Building Blocks (Uganda): � Three way, exclusive contract and subsequent agreements with the Government of Uganda and the government-owned PostBank to: Government of Uganda and the government-owned PostBank to: � Convert 100% of PostBank current and new customers to MAP cardholders (currently 300k active account holders with an ambitious growth plan to 1M customers) � Process all federal salaries and pension payments � Process all federal salaries and pension payments � Rollout ATM’s at all PostBank branches � Rollout a country-wide network of POS units � Incorporate the 800+ unregulated SACCO’s (micro-finance institutions) into the regulated environment under the PostBank umbrella regulated environment under the PostBank umbrella � Provide ATM, POS, and mobile switching capabilities � Rollout a linked mobile banking platform � Exclusive contract with one of the country’s largest agent-based airtime distribution network, X-Tel � Partnership and distribution agreements with the national mobile network � Partnership and distribution agreements with the national mobile network operators 8
Review of MAP Progress to Date Review of MAP Progress to Date � Card approved by Central Bank for International KYC standards Card approved by Central Bank for International KYC standards All 350 000 All 350,000 � Proprietary MAP Data Capture Stations deployed at PBU branches PBU Bio � Cards produced in MAP’s Kampala office and distributed by PBU branches customers will Card have cards by � 75,000 cards have already been deployed; additional 35,000 accounts 12/2010 enrolled at mobile biometric events Average cts cts � 26 ATMs currently deployed at all PostBank branches transaction � MAP processes all ATM switching with its own propitiatory switch volume: P Produ P Produ 73/day/ATM 165 POS MAP MAP � Agreements achieved with Shell, Total, Haas Gas Stations, representing devices over 300 service stations deployed at leading � Three-year goal of 3000+ POS access points retail points � First mobile program launched in early December (Uganda Telecom) PBU Market � Full functionality currently available Launch: � Can be accessed through any Java-enabled mobile phone Q1 2010 Q1 2010 9 In August of 2009, MAP Signed an Agreement with Wazalendo, the Country’s Largest SACCO Wazalendo Military SACCO MAP Revenue Streams � 50,000 members (80,000 expected � MAP receives an enrollment fee for all by 2011) y ) account holders ($3 USD) t h ld ($3 USD) � 14 branches across the country � Wazalendo contractually provides a monthly � Members include Ministry of subscription fee for each account holder to Defense workers, UPDF personnel MAP ($.50 USD) and retired officers and their families Basic Agreement � Wazalendo has signed a contract with MAP for MAP to provide all branches a core Wazalendo has signed a contract with MAP for MAP to provide all branches a core operating system, biometric card system, ATMs, POS devices and mobile banking � The solution will automate all SACCO transactions and create a full audit trail � All SACCO funds will be held at PostBank affording regulatory oversight All SACCO funds will be held at PostBank affording regulatory oversight � Wazalendo account holders will be able to access their accounts from any MAP access point across the country, as well as from their mobile phones � Enrollment began on November 23 rd , and 34,000 account holders have been Enrollment began on November 23 , and 34,000 account holders have been enrolled 10
LAP Green, a Multi-Market African Mobile Phone Operator has Selected MAP as its Mobile Banking Partner • MAP’s proprietary technology will power • MAP s proprietary technology will power LAP Green mobile money and mobile LAP Green’s LAP Green’s banking products Operator Portfolio Operator Portfolio • MAP will be an ongoing operational g g p partner, and the two partners will share product revenues • Lap Green will use MAP’s nation-wide network of commercial access points • MAP will assist in direct-to-consumer mass marketing efforts and its logo will be included on all collateral be included on all collateral • MAP and LAP will soft launch with Uganda Telecom in December of 2009: � Five year expected profit contribution of e yea e pected p o t co t but o o $20+ million • MAP and LAP will launch with Rwandatel in With over 5 million subscribers, and additional Q2 of 2010 licenses in two new countries (Togo & Sierra � Five year expected profit contribution of $17+ Five year expected profit contribution of $17+ L Leone) Lap Green is one of Africa’s leading ) L G i f Af i ’ l di million mobile phone operators 11 Table of Contents Table of Contents • About MAP • Case Study: Uganda • MAP in the News 12
Presidential Visit to Office Presidential Visit to Office MAP’s launch was met with palpable regional excitement 13 MAP Launches ATMs MAP Launches ATMs 14
MAP Partners with Military SACCO 15 MAP Launches Linkage Banking 16
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