121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Unleashing the...
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Bank Sinar Branchless Banking Project- Sinar Sip Experience
1. Bank Sinar Branchless Banking Project-
Sinar Sip Experience
Mobile Banking & Payment For Emerging Asia Summit 2012
October 2012
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2. Bank Sinar Harapan Bali Overview
Bank Sinar Harapan Bali is one of Bank Mandiri’s (largest
Indonesia bank) subsidiary which focus on the micro segment
development
TOTAL PROFIT : Rp. 8.84 bio Bank Sinar Strategy
1• Product Development
TOTAL ASET : TOTAL FUNDING: TOTAL CREDIT: 2• Branch expansion outside Bali
Rp. 1.03 Tn Rp. 833.9 bio Rp. 628.7 bio
3• Branchless Banking implementation
NUMBER OF CUSTOMERS : 140.366
BSHB Vision : “TO BE DOMINANT IN MICRO & SMALL BUSINESS IN BALI
Source : Bank Sinar Data, June 2012 2
3. Financial Inclusion Level Comparison
Many countries are still facing Financial Inclusion …including Indonesia which have 49% of
Issue population with no financial access
OECD Countries*)
Middle Asia & East Europe 60 million people
193 million people 8%
49%
South Asia
612 million
58% SE Asia & Asia East Asia
876 million people
Middle East Africa
136 million orang 59% 326 million
67% 80%
Latin America
250 million
65%
Source: Global Financial Inclusion (McKinsey & Company, 2010) Source : World Bank, 2010
*) OECD (Organisation for Economic Co-operation and Development)
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4. Main Reasons for high Un-banked Population
1 Low number of branches/ATMs 2 Low level of Financial Literacy
Insufficient money 79%
Saving Unemployed 9%
Account
Feel no benefit 4%
Feel do not deserve 60%
Credit / Loans Do not need credit 20%
No collateral 4%
To open or set up a new branch/ATM need considerably Insufficient money 45%
high cost, Capex and Opex Approximately, a new branch Insurance Lack of knowledge 29%
requires Rp. 350 million of Capex and over Rp. 950 millon
Opex/year. Thus banks are more likely to open a new Feel no benefit 17%
branch/ATM in a higher density area such as city or urban
area.
Source: World Bank Database, 2010
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5. Understanding Un-banked Segment
Banking is
not for me
I want convenient,
easy, and immediate Banking brand
access to my money enhances trust
in services
Payments need
to be easy for
Agent need to be me
educated on the
services in order to
serve me well I (just like other 93%
mobile subscribers)
won’t change my
number.
I and most of my friends and families have mobile phones
Source : Visa, BSHB research 5
6. Adaptation to New Technology
At the same time, Indonesian are adaptive to new technology
Mobile phone subscribers (millions) Facebook users outside US (millions)
Only within 18 years, mobile phone has swiftly Indonesia ranks 3rd in terms of facebook users
penetrated Indonesia population. It is so ubiquitous that (outside US) with around 18% penetration of the
it also reaches the un-banked segment. total population. Most of them access facebook via
mobile phone.
Source: Association of Indonesia Cellular Phones and industry checking Source: Socialbakers.com, April 2012 6
7. Good Opportunity to Increase e-Commerce
Number of Internet Users (millions) Indonesia e-Commerce
Transaction Volume Projection (Rp Tn)
• People are no w more likely to use e-commerce as the
result of easiness and convenient to use
• However, micro payment transactions generally are
not yet facilitated.
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8. Main Key Issues for M-Payment in Indonesia
E-Money as one of m-payment
C
A Mobile Network Operators instrument is still lack of interoperability
• High churn rate becomes a problem especially when m-
banking/m-payment services are view as increasing
customer Stickiness
• Level of active SIM cards in the market
• Network coverage
• M-banking cost charged by the MNO
B D Some MNOs also have develop Mobile
Regulation
Money products
• Cash-in/cash-out • More harmonize cooperation needed
• Agent banking • Separate and clearer role between Banks
and MNOs by regulation
• KYC/AML
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9. Indonesia Readiness for Mobile Payment
Although number of phone subscribers
Mobile phone prevalence is also relatively
exceeds number of population, mobile
low*)
coverage is still an issue
*)Mobile phone subscribers as a percentage of the 15-to 64 y.o population
Source: MasterCard Mobile Payment Readiness Index
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10. Indonesia Readiness for Mobile Payment
Global Perspective on Consumer Sentiment in
Indonesia
Consumer in Indonesia are not yet persuaded of the value of mobile payments. Willingness to use
them and current frequency of use, Indonesia ranks below average. Therefore, intense marketing and
education program may bring Indonesian consumers to adopt mobile payments
Source: MasterCard Mobile Payment Readiness Index
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11. Bank Sinar Harapan Bali – Branchless Banking Project
• Promote national economic development by expanding financial
access
• Help prove that branchless banking can run well in developing
countries
• Increase micro & small segment • Provide additional
customers services to subscribers
• Cross-sell & provide additional • Increase number of
services to existing customers AXIS customers
Developed Sinar Sip as the seed for branchless banking
• Increase access to financial services for the un-banked segment
• Increase customer loyalty
• Support partner’s growth and increase access to partners services
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12. Branchless Banking Concept
Traditional Banking
Account Opening
Customer
Cash In / Deposit
G Bank
Cash Out / Withdrawal
Customers have to go to a bank branch to open an account or cash-in/cash-out
Branchless banking
Agent
Account Opening
m
Transfer P2P
Customer
Cash In / Deposit
m
Fund Management
G
Customer Cash Out / Withdrawal m Bank
Not only from traditional banking access, customers may use mobile phone or come to agents in order to do
their financial transactions
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13. Sinar Sip Feature
Sinar Sip is a saving account that can only be accessed through mobile phone. It offers
easiness, low rates and security
Key Features
Can be accessed from any type of mobile
phones (GSM)
P2P
Linked to Bank Sinar Account
Cash-token
Bill Payment
Airtime Top-Up
Purchase
Low initial deposit
PIN required
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14. Sinar Sip Feature
The Sinar Sip product is a very low in pricing and fit for the unbanked populations.
1. Cash-In/Cash-out FREE
2. Transfer a. Inter Sinar Sip FREE
b. Sinar Sip – Bank Sinar Account FREE
c. Inter Bank Sinar Account FREE
d. Bank Sinar Account – Sinar Sip FREE
3. Token Transaction Rp. 4.000,-
4. Bill Payment a. Handphone FREE
b. Telkom Product Rp. 1.000,-
c. Telkom Vision FREE
5. Airtime Topup a. Axis FREE
b. Mentari FREE
c. IM3 FREE
d. XL Bebas FREE
e. Tri FREE
f. Fren FREE
g. Esia FREE
6. Request Payment FREE
7. Monthly Account Fee FREE
8. Account Statement Print Account Statement / sheet Rp. 2.500,-
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15. Sinar Sip Feature
Release 1 Release 2 * (date TBC) Future
Account Opening Connect to other MNOs ATM Functionality
Cash-In / Cash-Out Loan Disbursement & Inq. Loan Application
Sinar Sip to Sinar Sip Product & System Enhncnt. Fixed Term Deposit Purchases
Transfers Agent Development Micro Insurance
Cash to Cash Transfers E-Money
Airtime Top-up
Linked Bank Sinar A/C
Bill Payment
Some rationales behind
E-Money has greater flexibility than bank
account in terms of KYC. Easiness to have e-
money account will have great benefit
ATM is essential to increase customer base
since ATM can be an “AGENT”
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16. Some customer education and adoption strategies
“Banking education
“Low income
Sinar-Mandiri”
Payroll Package”
• 50 markets
•1.000 users targeted
targeted
•~60 participants
•~7500 participants
“Promo at Game “Community
Online” creation at Schools ”
•Current 8 stores •Canteen, school fee
•35 stores targeted payment usage
“Motorbikes / car “Program at bulk
wash Program” laundry”
•50 stores targeted •25 laundries
targeted
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19. Sinar Sip Achievement
Number Of Account Total Float (Rp. 000)
2500 100,000
2112 86,708
1996 77,221
2000 1772 80,000
1582 62,639
1348 1428
1500 60,000 51,673
41,949 45,407
1000 40,000
500 20,000
0 -
Jan Feb Mar Apr Mei Jun
Jan Feb Mar Apr May Jun
Transaction Frequency Type Of Transaction
5,000 4,537 2.12% 2.23% 2.64%
0.76%
3,869 3,978 2.97%
1.23% Balance Enquiry
4,000 Deposit
3,212
2,931 2,967 AirTime Topup
3,000 Linked Balance Enquiry
44.26% P2P Transfer
2,000 25.15% Withdrawal
Mini Statement
1,000 Linked Mini Statement
Linked Transfer In
- 10.11%
Others
Jan Feb Mar Apr May Jun 8.52%
Source : Bank Sinar Data, June 2012 19
20. What Sinar Sip Needs
1 • KYC still must be done by bank personnel
• KYC requirements perceived to be very rigid by the un-banked
REGULATION
• Agent Banking regulation has not been implemented
• E-Money regulation which needs to be fine-tuned
2 • 3 major MNOs have e-money platform and product
MNO • MNOs have full access to infrastructure
Collaboration
3
NETWORK/ • Agents needed to expand its network
AGENTS • May Increase access to customers fund
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FINANCIAL • Need efforts / expensive to educate un-banked segment
LITERACY • Government campaign in relation to financial inclusion, less cash
society and mobile payment
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• Community as used case
COMMUNITY • need lot of merchants
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