Improving Food Security through the use of Mobile Financial Services By mPay Connect, Inc. Presented for the INSEAD / SABC Seminar

1. ©mPay Connect, Inc.
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Improving Food Security through the
use of Mobile Financial Services
By mPay Connect, Inc.
Presented for the INSEAD / SABC Seminar
June 20, 2013

2. ©mPay Connect, Inc.
info@mpayconnect.com2
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agenda
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Agenda
Background
Why Mobile Finance for Food Security?
Mobile Finance Innovation Examples

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• 20 years of experience in mobile, high tech, alternative payments
with 8 years of experience in mobile financial services
• Founder of mPay Connect Consulting Services, Former PayPal Exec
• Harvard BA in Economics, Wharton MBA
• Mobile Financial Services Publications Include:
“Advancing the dialog on Mobile Finance and Mobile Health: Country Case Studies,” by
Menekse Gencer and Jody Ranck for The mHealth Alliance, February 2012.
“Amplifying the Impact: Examining the Intersection of Mobile Health and Mobile Finance,”
by Menekse Gencer for The World Economic Forum Davos Summit, February 2011
“Mobile Money: The Foundation for Food Security,” by Menekse Gencer for Innovations
Magazine, MIT Press, 2/2012
“The Mobile Money Movement(TM): Catalyst to Jumpstart Emerging Markets,” by
Menekse Gencer for Innovations Magazine, MIT Press, 12/2010
“Jamaican Regulatory Overview” by Camille Busette and Menekse Gencer for The Inter-
American Development Bank, 10/2010
“Jamaican Gender Issues and Mobile Financial Services Report,” by M. Gencer for The
Inter-American Development Bank, 11/10
Menekse Gencer Bio

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agenda
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Food Security Defined
“Food security exists when all people, at all
times, have physical and economic access to
sufficient, safe and nutritious food to meet their
dietary needs and food preferences for an active
and healthy life.” (FAO, 1996)

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Dimensions to Food Security
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Food
Security
Increase
income to
buy food
through
better crop
output
Create
efficiencies in
Infrastructure
/ Distribution
Increase
Nutrition/
Safety
Increase
income
through
Prices/
Market
efficiencies
© mPay
Connect, Inc.
2010, 2011, 20
2, 2013
Small Holder
Farmer Income
Supply Chain Efficiency
& Quality Control
Faster
settlement, cr
edit, insuranc
e, savings for
investment
Empower farmers & maximize
income through price visibility on
commodities and instant sales
Trace sources of supply throughout
value chain with
monitoring, evaluation, and
payments
Encourage
supply chain
participants
with instant
payments &
vouchers

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What is Mobile Finance?
Using the mobile phone as a channel
to conduct payments, account management, and
other financial services

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agenda
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Why Mobile Finance?
© mPay Connect
World Economic Pyramid
Source: World Resources Institute
(*IndividualAnnualIncome: 2005 USD PurchasingPower Parity)
500 Mill
*>$20k/yr
2 Billion
*$3260 to $20k/yr
4 Billion
*<$3260/yr or <$9/day
Today
2012
Unbanked, Mobil
e Opportunity:
1.7 Billion in
2012
Source: CGAP
Banks
At base of pyramid, 70% or 2.5 billion people
rely on food value chain for their income.
Up to 2/3 small farmers are women
No bank accounts,
but they do have (access to) mobile phones

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Why Mobile Finance? Foundation for all
industries in cash-dependent societies
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Mobile Financial Services
salary, payments, savings, insurance, credit
Health, Off-Grid Energy, Agriculture/Food Security

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Examples of Innovations
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Mobipay’s Agrilife: Providing credit and
payments to improve crop output
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Suppliers Farmers
Bulkers
/ Buyers
Certifier
Credit Issuing Financial Institution
Assesses
Risk & Issues
Small business loan
Coop Farmer group leaders
Extends
Credit
At Harvest, Bulker/Buyer
Pays supplier amount
Of credit + Interest once
crops are sold
At harvest,
Mobile Payment
(minus loan amount)
Sends data
on business
activities
Sends data
on business
activities
Increase
income to
buy food
through
better crop
output

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Kilimo Salama: Providing crop insurance to
mitigate against weather risk & encourage
investment
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Kalimo Salama
Increase
income to
buy food
through
better crop
output

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Mobile Transactions: Faster settlement
encourages supply chain participation
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Create
efficiencies in
Infrastructure
/ Distribution

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Questions?
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mGencer@mPayConnect.com