This was presented at the Mobile Banking and Payment Summit, Emerging Markets, Nagaworld, Cambodia

1. Generating Traffic on the Mobile
Channel in Developing Market
Mahesh Amarasiri
13th June,2013
Mobile Payment and Banking
Summit, Nagaworld, Cambodia

2. Agenda
 Why the OTC Channel is so significant success
factor?
 Deploying the Mobile Account Product and the right
products
 Moving beyond Basic Transactional Products

3. WHY THE OTC CHANNEL IS SO
SIGNIFICANT SUCCESS FACTOR ?

4. Over the counter transactions vs.
Electronic/ Mobile Transactions
OTC
 Trust
 Reliability
 Assistance
 Service availably ( minimum
technical glitches)
 Language
 Physical Evidence
Electronic/ Mobile Transactions
 Convenience
 Low transaction /
transportation cost
 Round the clock availability

5. What do people expect when they are
performing a financial transaction?
• Trust
• Reliability
• Assistance
• Privacy
• Service availability
• Convenience

6. OTC meets exactly what customer
expects……
OTC
 Trust
 Reliability
 Assistance
 Service availably ( minimum
technical glitches)
 Language
 Physical presence
Electronic/ Mobile Transactions
 Convenience
 Low transaction /
transportation cost
 Round the clock availability
OTC Channel provides what exactly customer wants ,
where as the newer channels yet to catch up with this

7. And Telcos are yet to recover from the poor
perceptions ……
What the
customer expects
Trust
Reliability
Assistance
OTC
Own
language
What Telco has
offered
Poor billing
relationships
Often
unreliable
experience
Call center/
IVR
Interface is in
English

8. DEPLOYING THE MOBILE ACCOUNT
PRODUCT AND THE RIGHT PRODUCTS

9. OTC vs. Mobile/E Transactions
OTC
Strengths
Assistance
Physical
Presence
Trust
security
Weaknesses
Availability (
Time)
Availability (
location)
Transaction
cost
Transportation
cost
Mobile/ E Transactions
Strength
convenience
Availability (
time/location)
Many formats
(sms/ussd/data)
Zero
transportation
cost
Weaknesses
Reliability (
Perception)
Security (
Perception)
Self help

10. Can OTC be replaced?
• Yes and No….
• It is difficult to meet or beat all the strengths
of OTC
• However, customer does not need all the
strengths of a OTC every time
• OTC can be replaced in such instances

11. OTC vs. Mobile/E Transactions
OTC
Strengths
Assistance
Physical
Presence
Trust
security
Weaknesses
Availability (
Time)
Availability (
location)
Transaction
cost
Transportation
cost
Mobile/ E Transactions
Strength
convenience
Availability (
time/location)
Many format (
sms/ussd/data)
Zero
transportation
cost
Weaknesses
Reliability (
Perception)
Security (
Perception)
Self help

12. Frequency vs. Transaction value
Low High
• Convenience
• Availability
• Low cost
• Trust
• Reliability
• Privacy
• Security
• Assistance
Frequency
High
Low
Transaction Value
OTC
M/E Transactions

13. Right Products
Low High
• Airtime Transfer
• Ticketing ( Travel)
• Micro Savings
• Cash in/out
Frequency
High
Low
Transaction Value
* Footnote
Source: Source
M/E Domain
• Local Remittances
• Utility Bill Payments
• International
Money Transfer
• Ticketing ( movie)
• Doctor Channeling
OTC Domain

14. The successful deployment involves
focus on
• Micro Transactions
• Frequent Transactions
• Round the clock availability
• Unique P & S
– beyond payments
– Relevant
– Understanding painpoints

15. However, telcos should clear the bad perceptions
associated with its telecom services..
What the
customer expects
Trust
Reliability
Assistance
OTC
Own
language
What Telco has
offered
Poor billing
relationships
Often
unreliable
experience
Call center/
IVR
Interface is in
English

16. MOVING BEYOND BASIC
TRANSACTIONAL PRODUCTS

17. Enabler for Mobile Money…Sri Lankan
Perspective….
9
10
25
35
40
69
Bangladesh
Afghanistan
Pakistan
Sri Lanka
India
Nepal
Enabler Description Status
1. Population 20 mn
2. Banked
Population
70%
3. Urbanization 27%. Relatively
lower
4. Remittances $ 5bn, 10% of
GDP
5. High Mobile
Penetration
Over 100%
Account at a formal financial institution (% age 15+)
Analysis of Enablers






18. It appears Sri Lanka is not a case for
mobile money………………
• Yes and No
• Yes…if we discuss the basic transactional
services
• No… if we talk about innovative business
models that goes beyond basic transactional
services
• There is room for innovative business models

19. Moving Beyond Transactional
Services…leveraging “telecom assets”
• Telecom Assets
– Reach
– Customer information
• Beyond Transactional services
– Micro Savings
– Micro Insurance
– Web Payments
– Mobile Advertising
– Location Based Services
– M Couponing
– M Loyalty
– M ticketing

20. Thank you