Presented at AITEC Conference in Nairobi, Kenya; March 8, 2012.

1. Mobile Money
Product Innovation
Driving financial inclusion
through research and
development
Lisa Kienzle
Grameen Foundation’s
AppLab Money
March 8, 2012

2. 70% of adults in Kenya Less than 10% of mobile
use M-PESA – phone banking customers
demonstrating that the are poor, new to
mobile channel can banking, and doing
successfully reach poor anything more than

3. Few providers have moved beyond payments in
their product offering
~100%
offer standard
payments
120
38%
# operators offering the
100 provide other
payment types
29%
product type
80
enable interaction
60 with financial
institutions 10%
facilitate
40
loans
4%
offer
20 insurance
0
Traditional Other Bank Credit Insuran
Payments Payments Linkage ce
(Transfer, Bill
Pay, Airtime)
Payments Beyond
Payments
Source: GSMA deployment tracker, November 2011.

4. So why aren’t we seeing more innovation?
People don’t buy products –
they buy solutions.

5. How do we drive innovation?
In villages in
Uganda,
the entire
economy is
driven by the
agricultural
cycle.

6. How do we drive innovation?
Education is
an
untouchable
expenditure.

7. Insights arise from close studies of the end-user
One of the largest schools in
Uganda… but not using mobile
payments.

8. Insights arise from close studies of the end-user
No stress, no more
lines, pay instantly
anywhere, anytime
– but not being

9. So why aren’t we seeing more innovation?
The payments process is not the pain
point for the poor – facing big expenses
during low earnings cycles is.
Make saving for A savings sub-wallet – money is
school fees painless diverted every time airtime is
and secure purchased
Help customers plan Create an annual mobile education
fund – your phone prompts you to
for the expenses
put away more in harvest
times, less otherwise
Incentive early For early payers, 1 individual per
payment, when cash region awarded annual
is available “scholarship”

10. Insights arise from close studies of the end-user
www.grameenfoundation.applab.org

11. So why aren’t we seeing more innovation?
Let’s make a quarter-inch hole.