121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Benchmarking global remittances The future of money transfers
- 1. Benchmarking global remittances The future of money transfers Mobile banking & payments for emerging Asia Summit 2012 Bali, Indonesia October 2012
- 2. About BICS 22.4% 57.6% 20% HQ in Brussels with offices in Bern, Dubai, Singapore and New York more than 700 customers incl. over 400 mobile data customers world leader in mobile data services top 4 voice carrier with over 27 bio minutes 1.6 bio euro revenues 400+ employees bics confidential | September 2012
- 3. Agenda The market evolution on Mobile Money Role of Mobile in Mobile Remittances - An Asia Perspective Complexities worldwide Solving issues Creating a worldwide ecosystem slide 3 | BICS confidential | 12 October 2012
- 4. The emergence of a new market 129 live mobile money deployments around the globe today, with another 91 planned Buyster, Mobipay, Payforit, Paybox, Etc.. … ISIS GCash … Smart Padala Felica … MPesa Wizzit Source: GSMA Analysis … Mobile Payment in developed countries and developing countries – different story slide 4 | BICS confidential | 12 October 2012
- 5. The Remittance market Remittance flows to emerging markets continues to be a story of growth 2013 USD 404 billion 2010 USD 325 billion Source: World Bank slide 5 | BICS confidential | 12 October 2012
- 6. Inward Remittance flow into Asia In Bio US$ 70 60 2010 2011 50 40 30 20 10 0 Source: World Bank Data 2012 slide 6 | BICS confidential | 12 October 2012
- 7. Remittance outflow from Asia In Bio US$ 12 11 10 9 2010 2011 8 7 6 5 4 3 2 1 0 Source: World Bank Data 2012 slide 7 | BICS confidential | 12 October 2012
- 8. The mobile remittance market Over US$ 65 Bio in mobile transfers are anticipated in 2014 Over Up to TODAY Up to 13% of 2014 2015 75% of the 15% of formal planet has formal remittances access to a remittances mobile mobile mobile Mobile technology is disrupting Transferring Generating traditional USD 65 Bio USD 6.2 Bio models, which per annum in commissions rely on fixed infrastructure & agent networks Source: World Bank 2011, Juniper Research 2011, Berg Insight slide 8 | BICS confidential | 12 October 2012
- 9. Are we ready for mobile based payments Mobile readiness index 1 Singapore 45,5 18 Columbia 32,4 2 Canada 42,0 19 Germany 31,6 3 United States 41,5 20 Thailand 31,8 4 Kenya 40,4 21 India 31,5 Key factors: 5 South Korea 39,7 22 Nigeria 31,3 • Consumer demand 39,5 31,2 6 Japan 23 France • Market infrastructure United Arab Emirates 37,5 Egypt 30,2 7 24 • Financial services 8 Saudi Arabia 37,5 25 Vietnam 30,1 37,5 20,1 • Regulatory 9 United Kingdom 26 South Africa 38,5 28,8 landscape 10 China 27 Turkey 11 Taiwan 38,1 28,5 • Digital commerce 28 Russia 12 Australia 36,3 29 Poland 27,9 enablement 13 Philippines 34,7 30 Mexico 27,7 14 Malaysia 34,3 31 Hungary 27,0 15 Hong Kong 33,7 32 Italy 25,5 16 Brazil 33,4 33 Indonesia 22,4 17 New Zealand 32,7 34 Argentina 24,0 Source: MasterCard International – Mobile Payments Readiness Index slide 9 | BICS confidential | 12 October 2012
- 10. The complexities of the ecosystem To move to a truly open ecosystem of tomorrow requires a coordinated effort by all participants involved MTOs Banks Regulators Receiving PSPs Cash-out agents Cash-in agents Sending PSPs Open money transfer ecosystem slide 10 | BICS confidential | 12 October 2012
- 11. From competition to cooperation Moving from closed networks to interoperable ecosystems Yesterday Today Few dominant and Open Ecosystem Model competitive players • Proprietary networks • Interoperability between • Few dominant brands industry networks • No interoperability • Collaboration between banks, MNOs and MTOs to reach the receiver slide 11 | BICS confidential | 12 October 2012
- 12. From bilateral to hub model Bilateral models in ecosystems with hundreds of players across differing industries are simply not scalable Bilateral Model Hub Model • Separate commercials • Single commercial relationship • Multiple technical interfaces • Single technical interface • Many settlement counterparties • Single settlement counterparty slide 12 | BICS confidential | 12 October 2012
- 13. Need for a Hub Standardized integration, National/International connectivity Internet/Mobile Branches Banking Banks Utility ATMs Companies Value Added Services Other Value Added MNO 1 Hub MNO 2 Hub Services Cash-in Merchants /out MNO – Mobile Network Operator MTO – Money Transfer Organisation Agents PSP – Payment Service Provider slide 13 | BICS confidential | 12 October 2012
- 14. Introducing • Global hubbing service enabling P2P cross-border transfers & airtime, from/to various sources (mWallet, eWallet, bank account, cash-in/out agents…) • Open and neutral intermediary between various participants in the ecosystem: MNOs, MTOs, banks, PSPs… › gateway between mobile and financial industry • Single technical and commercial interface › one time setup to reach the world • Fully compatible with any m-Wallet system and bearer • Secured connectivity through BICS IP Exchange network or through IPSEC • Smooth and fast integration through published APIs • Regulatory compliancy Branches e-wallet Shops providers Internet/mobile Banks MNOs Distributors banking endorsed ATMs MTOs PSPs Other Agents hubs Merchants slide 14 | BICS confidential | 12 October 2012
- 15. Beyond remittance Domestic interoperability will drive user uptake and revenue growth Larger Increased Growing Reach critical mass addressable number of transactions revenues and network effects! market ‘’ The mobile industry can learn from the introduction of SMS interoperability … … within seven months of interoperability being allowed there was a 350% increase in messaging traffic ’’ (Ovum, 2011) slide 15 | BICS confidential | 12 October 2012
- 16. The Qtel Remittance service Solving interoperability in practice Regulatory AML compliance monitoring Hub-to-Hub peering Remittance hubbing slide 16 | BICS confidential | 12 October 2012
- 17. The open network effect HomeSend’s current and anticipated coverage extends to over 24 countries UK Belgium EU • MvNO • PSP Netherlands Nepal • MvNO • iMTO’s • MNO’s • MTO Spain • MNO • MTO • MTO • Bank • MNO Liberia Canada • MNO • iMTO USA Russia • Banks • Bank Italy Qatar • MvNO • MNOs • Bank Morocco Nigeria • MNO • MNO • Bank • Bank’s Ghana Malaysia • MNO • MTO • MVNO Kenya Indonesia • MNO • MNO Rwanda Pakistan • MNO • Bank China India • PSP Australia • Bank Philippines Bangladesh MTO • • MNOs Vietnam • MNO • MNO slide 17 | BICS confidential | 12 October 2012 • Bank
- 18. Conclusion • Take up micro-payments promising in developed markets • For emerging markets remittances are key • The market is fragmented and complex Terima • Solving complexity and Kasih ! interoperability is key • Your support is sought to widen the WW ecosystem via HomeSend slide 18 | BICS confidential | 12 October 2012
- 19. Questions ? Frédéric Schepens www.homesend.com [email protected] www.bics.com +32 475 349401 www.pingping.be bics confidential | September 2012