Role of Technology and Innovation in Promoting Financial ... · The Need for Financial Inclusion is...

ADVANCING INNOVATION ADVANCING COMMERCE

Anna Zanghi

Global Lead Youth Segment Product

September 18, 2013

Role of Technology and Innovation in Promoting Financial Empowerment for Youth

©2013 MasterCard. Proprietary and Confidential

ADVANCING INNOVATION ADVANCING COMMERCE

The Need for Financial Inclusion is Global

March 28, 2012 Page 2

Sources: 1) “Half the World is Unbanked”; McKinsey / Financial Access Initiative; October 2009. 2) 2011 FDIC National Survey of Unbanked and Underbanked Households, September 2012.

North America

68MM 23%

Latin America

250MM 65%

Central Asia / East Europe

193MM 49%

Middle East

136MM 67%

Sub-Saharan Africa

362MM 80% South Asia

612MM 58%

East / SE Asia

878MM 69%

©2013 MasterCard. Proprietary and Confidential

ADVANCING INNOVATION ADVANCING COMMERCE

Electronic payments drive

ECONOMIC

EMPOWERMENT

2.5B

DON’T HAVE ACCESS TO

FORMAL FINANCIAL SERVICES

… and 85% of all retail transactions

are still in cash and checks

©2013 MasterCard. Proprietary and Confidential

ADVANCING INNOVATION ADVANCING COMMERCE

Low Levels of Financial

Access

Business model for financial inclusion

Identification of people

Financial Education

Barriers to Widespread Financial Access

©2013 MasterCard. Proprietary and Confidential

ADVANCING INNOVATION ADVANCING COMMERCE

MasterCard Approach

PRODUCTS /

FORM FACTORS

USAGE &

EDUCATION

PROCESSING

MERCHANT

ACCEPTANCE

& APPLICATIONS

PUBLIC PRIVATE

PARTNERSHIPS

RISK MANAGEMENT

©2013 MasterCard. Proprietary and Confidential

ADVANCING INNOVATION ADVANCING COMMERCE

Prepaid Payment Accounts Can Remove Barriers to Financial Inclusion

Page 6 April 3, 2013

• Not eligible 1

• Available to anyone - no credit check

• Protection against indebtedness

• Works like a basic bank account

• Not affordable 2 • Lower costs than traditional bank

accounts

• Transparent pricing

• No access 3

• Increased competition increases

choice

• Mobile form factor enables deeper

distribution

Barriers to Financial

Inclusion for Youth

Advantages of Prepaid

Payment Accounts

©2013 MasterCard. Proprietary and Confidential

ADVANCING INNOVATION ADVANCING COMMERCE

TurkCell Cep-T Paracard

27 September, 2013 Moving from Inclusion to Empowerment

Page 7

• Turkcell Wallet is the most extensive mobile

wallet that exists in the market today

• Combines mobile payments, mobile banking

and loyalty

• Allows for money transfers, air-time top-up,

purchasing packages, plus location-based

offers based on usage preferences

• Subscribers can use a companion card or

their mobile phone to access these features

©2013 MasterCard. Proprietary and Confidential

ADVANCING INNOVATION ADVANCING COMMERCE

UNISCOO Prepaid MasterCard

• Extending financial empowerment to students in Kenya

• Student run organization with access to internships,

entrepreneurship and social initiatives

• ID card and payment card with access to discounts

• Provides financial flexibility and independence

• Promotes savings and financial management culture

27 September, 2013 Page 8

©2013 MasterCard. Proprietary and Confidential

ADVANCING INNOVATION ADVANCING COMMERCE

• Financial innovation for more than 6 million child social welfare beneficiaries

SASSA Debit MasterCard

27 September, 2013 Page 9

• Provides security for benefits

disbursement

• Uses biometric identification

• Improves financial transparency

• Entry into formal banking sector

©2013 MasterCard. Proprietary and Confidential

ADVANCING INNOVATION ADVANCING COMMERCE

Your Money Smarter – An Innovative Education Platform

Enhance the customer

experience with an innovative

education platform

From: MasterCard

Welcome to Your Money

Smarter financial tips

program brought to you by

the YOUR BANK Prepaid

MasterCard.

Let’s get started!

A “Smarter” Financial Tips

program via SMS text

messaging covering:

• Budgeting

• Planning for the Future

• Savings

Text

‘YOUR

BANK’ to

58124

27 September, 2013 Page 10