Initiatives Designing for your Mobile Money - FNB

Designing for your Mobile Money Initiative

Prepared by Yolande Van Wyk

WHAT IS MOBILITY?

The first is the ability to use a wireless

phone or other mobile device to conduct

financial transactions and exchange

payments over the Internet.

The second is the ability to deliver information that can facilitate a

transaction.

Mobile commerce consists of two primary components.

FOR TODAYUsing mobile initiatives to provide access to your core services and

systems

AnywhereAnytime

MOBILE TECHNOLOGIES

THE MOBILE PHONE

SMS

USSDVoice

IP

THE TECHNOLOGIES

HSCSD/GPRS/3G/4G

IP

ProductivityPBX/VOIPDatabasesValuations

EtcEtc

CONNECTING TO THE NETWORK

WASP

SMS

USSD

MMSAPI

CONNECTING TO THE NETWORK

SMS

USSD

MMS

SOME ATTRIBUTESTechnology Attribute

SMS

Store & ForwardNeed connection to each MNOGenerally SMPPCan get costly at high volumes

USSD

Session basedSession limits imposed by MNO20c per 20 seconds for userSOAP/XML type interfaces

MMSPriceySimilar to emailVendor specific

IP based services

Huge growth area.mobiApplicationsRemoves dependance from MNO

Mobile Market, Agreements & Trends

Emerging Market Segments

Financial Institutions

eWallet

MNO’s

Unbanked population

MNO’s

Banked/Unbanked Market eWallets

P2P

Remittance

Pioneers of the first mobile money initiatives

Systems, Credibility, Trust amongst

The customers

Financial Institutions

Pre-Paid

MicroInsurance

Micro Finance

First offering to the market

Agreement

Mobile Initiatives in Banking

Mobile as a

channel

Mobile as

wallet

Person to person payments

Merchant payments

Content

Account information

Airtime transfer

Mobile phone account

Bank Account/

card

eWallet

Mobile banking

Unbanked

Bank account

MNO as enabler

OUTIN

IN

Channel

Value store OUT

Channel

Bank channels

Formal agents

Informal agents

Bank channels

Agents

Retailers

Virtual services

Mobile Initiatives at FNB

THE GOAL

• Reduce the average cost per transaction:o Innovative application of technologyo Cost efficiency o Re-use of technologyo Reduce the face-to-face as much as possibleo Development of alternative electronic channelso Provide more customer options

FNB’S MOBILE SERVICES

2002

2005

20082008

2009

2010

2007

FNB CELLPHONE BANKING

• Multi-bearer

• Any phone, anytime, anywhere

• Full transactional banking

INCONTACT

www.fnb.co.za

*120*321#

CELLPHONE BANKING

MO SMSUSSD-1

USSD-2*120*321# fnb.mobi fnb.exe application

CELL PAY POINT

CELLPHONE BANKING BASE

CELLPHONE BANKING GROWTH

BRINGING OUR OWN COSTS DOWN

BENEFITS

• Cellphone Banking is a low cost channel to the bank• Cheaper for customers

• Reduces queue times at ATMs and branches

• Services like InContact reduces service calls at branches and call centres.

QUICK FACTS

• In December 2010, FNB sent 79 million SMSs (approximately 2.5 million SMSs per day)

• In December 2010, FNB recorded 2.6 million customers• In December 2010, FNB processed in excess of 15 million transactions• In December 2010, FNB processed transactions worth R1.7 billion

through Cellphone Banking• In December 2010, the FNB.MOBI site attracted more than 250 000 visits.

THE WORLD OF EWALLETCardless Transactions

FNB EWALLET

1. Send from any FNB account:o Online bankingo Cellphone bankingo ATM

• Recipient can:o Cash at ATM (no card)o Buy airtimeo Send to someone elseo Buy from 35 online merchants

PAY WALLETPay Wallet allows FNB Corporate, Commercial and Public Sector customers to pay anyone electronically, without the recipient requiring a bank account.

• Single source• Multiple recipients• Personal information

captured & stored• Pay to phone or card

Cardless cash out

AFRICA REACH

Cellphone Banking

InContacteWallet

PayWallet

Cellphone Banking

InContact

Cellphone Banking

InContact

InContact

Cellphone Banking

Cellphone Banking

InContact

InContact

Cellphone Banking

EWALLET GROWTH

QUICK FACTS

eWallet services was launched in October 2009.

As at April 2011 close to 523 108 eWallets had been created.

In April 2011 alone, more than R69,000,000 was sent to cellphones with FNB eWallet

THE WORLD IS MOBILE

• 6.8 Billion is the world population• 1.9 Billion Internet subscribers• 5 Billion Cellphone subscribers

Source:Internet world statisticsc

THANK YOU

Questions?