Psychic Reading | Spiritual Guidance – Astro Ganesh Ji
Banking and Infrastructure in Developing Financial Services Markets
1. Banking and
Infrastructure in
Developing
Financial Services
Markets
A few slides on recent challenges in a few developing
markets, showcase of a few Rabo Development partner
banks.
Dan Armstrong
Takashi Mobile, 30 November 2011
4. Rabo Development
Rabobank Development is a
division of Rabobank
International, one of the world‟s
largest food/agri-banks
• Wholesale banking in 48 countries,
59.000 Rabobank employees
• AAA status as a retail bank, but focused
on rural/retail and agri-banking
Rabo Development
partners/takes minority equity in
banks in developing countries
that match this historical profile
and skillsets.
In addition to support in
food/agri- and basic banking
services, Rabo Development also
supports partners with brick-and-
mortar branch network
strategies, channels/automation
projects (mobile, ATM, internet),
banking products, fraud and in-
country personnel.
5. Rabobank World-Wide
Key
Rabobank Group Rabo Development
48 countries, 59.000 employees Rabo International – Retail & Wholesale Partner Banks: Brazil, Paraguay, Zambia,
Tanzania, Rwanda, Mozambique, China
Robeco, Sarasin, Orbay, Obvion, Interpolis, Rabo International - Wholesale
Lage Landen, Athlon , etc. Projects: Egypt, Malaysia, Vietnam,
RIAS & Rabo Development Kazakhstan, Pakistan, Ukraine, Malawi, etc.
Main focus on food and agri-banking,
cooperative banking, and retail Rabobank Foundation
6.
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9. Banking in Harsh Environments
Bringing compute resources and
solutions to banks in remote
locations with limited
infrastructure is a major
challenge:
• Fixed line internet connectivity (fibre,
WiMax) and, if available, huge cost
• Mobile internet connectivity
(GSM/HSDPA, GPRS/EDGE, WCDMA,
etc.)
• Power (lack of power at all, or lack of
stable power and/or UPS)
• Weather conditions (humidity, flooding,
sun exposure, lack of closed buildings
and server environments)
• Environmental conditions (dust,
exponentially higher maintenance
cycles)
• Security of computing platforms (theft,
transport, as well as e.g. stolen cooper
phone wire for other purposes like
jewelry)
• IT skills (system set-up, monitoring,
maintenance, usage of computers)
• Literacy
10. Generating Successful Formulas
Currently has /
uses another
financial product Too poor
Redistribution
Zone
Target / Does not have Excluded by design
Addressable access to the
Market product
Excluded by
default Development
Zone
Does not have / use
a financial product
Does not want
the product
Has access to the
product, but does
not use it Potential users
Enablement
Zone
Based on: http://www.bankablefrontier.com/assets/pdfs/access-frontier-as-tool.pdf
11. Zanaco
40+ years of success, growth
and stability, successful
expansions, privatisation and
IPO
450.000 customers, 1.200
employees, 50 branches
Year-on-year profitability, K3 bln
in assets, mature risk
management regime. Healthy
account portfolio including:
• Retail: account services, personal
loans, e-banking, Xapit, remittances,
cash services
• Corporate: credit facilities, e-banking,
cash services, treasury and
investments, trade services
Transformation to modern
banking tools: 100+ ATMs,
internet banking, mobile banking
12. Xapit Instant Banking
Mobile Banking: Launched in
late 2008, USSD mobile
banking
• 250.000+ customers to-date
• 20+ bill payment partners, prepaid
airtime, etc., 21 transactions per
month
Light Account: Also, Xapit
„account‟ = welcome pack +
mobile banking + ATM card
DSA: Sign-up for an account *444#
and get mobile banking and a
VISA debit card in 5 minutes.
Agency Banking: 123
ZamPost agency locations
Truck Banking: Zanaco
mobile banking vehicles
13. FMB Fast Account
First Merchant Bank (Malawi)
• 19 branches, corporate and retail
banking, 600 employees, growing
strongly
• 1/11 commercial banks in Malawi
FMB Mobile / FMB Fast
Account
• Launched summer of 2010,
50.000+ customers to-date
• Successful to-date – packaging of
ATM card, bank account and
mobile banking functionality
• *** Includes immediate (small)
balance on customers’ account,
facilitating usage of the new
product
14. Case Study: NMB Tanzania
NMB: National Microfinance
Bank Ltd.
• Also by-far the largest bank in
Tanzania
• 1.9 mln customers: regular
Tanzanians, all teachers, army, etc.
• ATMs in place (400+), most
customers have ATM cards
• 150 connected branches (100%)
However, as a former
government bank:
• Must handle bill payments, salary
dispersal and non-customer
transactions
• Major queue problems
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18. NMB mobile – mobile banking
Dial *155*66# to access
Features:
• Balance Inquiry
• Mini-Statement NMB mobile
1. Balance Enquiry
• Money transfers to any NMB account 2. Mini-Statement
3. Money Transfer
• Tanesco Luku Prepaid Electricity Purchase 4. Prepaid Services
5. Other Services
• Vodacom and ZAIN Prepaid Airtime Top-Up 6. Help
• NMB Services like ATM card block, settings
No need to fill-in forms or visit an NMB
branch to sign-up, simply dial
*155*66*123#
NMB mobile:
• Launched in August 2009
• 550.000+ active customers to-date
• All mobile networks, 100% nation-wide coverage
• SMS Alerts to 220.000 customers monthly
19. BPR Rwanda
BPR (Banque Populaire du
Rwanda) is by far the largest
bank in Rwanda
• “Bank of the people” with roots in
cooperative and food/agri-banking
(>85% of Rwandans are farmers)
• 1,3 mln accounts (8x larger than the
second largest bank)
In 2011, 47/191 BPR branch
banks were automated:
• Around 150 locations use paper-and-
pencil ledgers
• Staff may have no previous
experience with computers
• Fraud and information integrity are
problems.
• Customers can only bank at one bank
location.
20. BPR Mobile Banking
“Project Columbus”
• Automating all 191 branches in 14
months
• Mobile internet (incl. USB modems,
laptops)
• Data migration, training of staff and
customers, card distribution
New BPR E-Channels
• BPR Mobile Banking
(launched 09/2010, 110.000+ customers
to-date)
• BPR SMS Alerts
• BPR ATM Cards
• BPR QuickCash ATMs
• BPR Call Centre
21. BPR “Quickcash” ATMs
Quickcash and ATM Cards
• 100 BPR ATMs online in 2011 throughout
Rwanda (donated by local Rabobanks)
• Increased ATM usage through new
marketing and promotions, usability
campaigns and POS roll-out
New E-Banking Call Centre
• BPR call centre successful operating,
incl. ACD/call queue system
• Inbound and outbound calling to improve
usage, sign-ups and customer
satisfaction
• 650-1.000 calls per day, service level is
85%+
22. BPR Mobile Banking
Mobile Banking
1. Balance Inquiry
2. Mini-Statement
3. Money Transfer (BPR Accounts)
4. Prepaid Airtime
• MTN
• Tigo (pending)
5. Bill Payments
• RECO Prepaid Electricity
• StarTimes Africa TV
• DStv
• MTN Postpaid Bill
• Tigo Postpaid Bill (pending)
6. Bank Services
• Change BPR Mobile Banking PIN
• Change Language
• Order Cheque Book
7. Help
25. BPR: Simbuka
Creating awareness of
technology and it‟s benefits for
Rwandans
Automatically include new
technologies in new account
packages.
Bring older (loyal) customers
along with the launch of new
services.
26. Challenges in Rwanda, Tanzania and Elsewhere
Utilities Costs
• high-quality power • connectivity (VSAT, 2G/3G, land
• paved roads lines)
• generator electricity only option in
Environmental conditions some remote locations (costly)
• heat • high-quality solar still expensive
• humidity • but GPRS is being widely available
• dirt and can be a cheap and effective
solution – both for connectivity and
Knowledge for electricity
• project management Cultural Acceptance
• branches as ambassadors • technology acceptance
• trained technicians • trust
• maintenance and support personnel • usability
Equipment • PIN/2FA
• spare parts
• local hardware/software licenses
27.
28. Thank You!
Dan Armstrong, +31652085071 www.rabobank.nl
dan.armstrong@takashimobile.com www.rabobank.com