Mobile money agent network expansion:

Experience from a mobile network operator in WAEMU

March, 2015

Scope of the project

Increase the mobile money distribution network capacity with 1500

new agents

Reduce the circulation and the usage of cash

Structure and facilitate the financial exchanges

Train the new agents to financial management, by providing

appropriate and simple tools and practices;

Generate new jobs (Creating micro-entrepreneurs)

Accompany the new agents through a customized supervisory staff

system

Diagram of the deployment process

PresentationsTrainings

Deployed Animated AssessedEligible &Selected

NotEligiblePoints

of Sales to visit

• SIM Card activation•1st order of

Electronic Money

Mass Communication

campainsKPI

• Points of Sales geolocated

• Complete applications received• Administrative time

(1 ½ months max.)• Tax Status

• Kits delivery: Branding, Equipments, SIM cards

• Customizedsupervisory staff

• Classic visits• Monitoring visits• Mini Promotional

activities

SELECTION /

VALIDATIONDEPLOYMENT - ANIMATION MONITORING /

EVALUATION

• Reports : Monitoring

& Evaluation

Visited

• Plans for visits• GPS• Appraisal form• Logistics

Eligible &Replacement

portfolio

Agents's deployment (1/2)

3,954

2,344

1,652 1,528

124 270 270 270

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Agents Visited

Agents Selected

Agents Validated Recruted

Agents Deployed

Agents Pending

Deployment

Agents Supervised

Agents Supervised

Agents Monitored

Target: 1 500 Agents

Agents's deployment (2/2): The targeted agents

A nationwide deployment of Mobile Money agents

Two categories of agents were targeted for their proximity

and their close daily interaction with the population:

1,456 agents, consisting of neighborhood shops;

72 agents, consisting of managers of cellphone booths

including 31 exclusively located in rural areas.

Outcomes (1/3)

Effectiveness of agents deployment process

Evaluation - Validation Training - Deployment Supervision-Monitoring

Application submissionAgent analysis

Validation visits with: GPS + Appraisalform

Introduction to supervisorsTraining of agents

Delivery of portable kit (SIM & Branding)

Regular advisory visitsRegular agent monitoring

Performance appraisal

Review of applications

SIM card deliveryOn-site branding

Training of agentsValidation visits -

Decision commiteeSporadic advisory &

Monitoring

Before Project

After Project

Deployment time> 1 month on average

Deployment time: maximum 3 weeks

Outcomes (2/3)

High satisfaction rate of agents about the customized supervisory system

Agents called

Agents interviewed

Agents supervised

Agents confirming visits

Agents satisfied

83% 82% 81% 90%All Mobile Money (MM)

agents

100% 98% 92%MM PoS managed by

employees

100% 86% 100%MM PoS managed by

owners

90%

10%

All Mobile Money (MM) agents•83% of the supervised agents were called •82% of respondents were interviewed•81% of respondents confirmed the visit from a supervisor•90% having confirmed the visit are satisfied

MM PoS managed by employees•They represent 90% of the called agents•All were interviewed•98% of respondents confirmed the visit from a supervisor•92% having confirmed the visit are satisfied

MM PoS managed by owners•They represent 10% of the called agents•All were interviewed•86% of respondents confirmed the visit from a supervisor•100% having confirmed the visit are satisfied

Outcomes (3/3)

Performance of the agents

• Nearly 10 million transactions observed in 10 months

• More than 100 billion CFA francs of electronic money transactions

within the network

• More than one billion FCFA paid to agents in 10 months

The key success factors:

• Adopting a specific organization related to mobile money business.

• Establishing appropriate procedures.

• Adopting a consistent participatory synergy of all the company's

decision-making bodies that contribute to the operational deployment.

• Anticipating the required resources (human, logistic, etc.) that can be

relatively important including for: the deployment, the activation of the

SIMs cards, the supervision & monitoring of agents, the technical

assistance.

Learnings (1/4)

Pre-project

Phase Learnings

Evaluation - Validation

It is necessary having significant logistics

resources for mass deployment

Improved agents portfolio is achieved through the

use of a simple appraisal form

The use of GPS allows to optimizing the

geographical distribution of agents

Learnings (2/4)

Phase: Evaluation – Validation

Learnings (3/4)

Phase: Training – Deployment

Phase Learnings

Training - Deployment

Introducing the supervisors to the agents that fall under

their responsabilities, during training sessions allows

better adoption of the supervision concept by agents

Training performed by supervisors to the agents make

easier the understanding of the conditions of the activity,

clarify the role of the supervisor, and precise the purpose

of initiation to the cash management

The conversion of some informal candidates to become

the formal agents can generate costs and add additional

time to the deployment that need to be anticipated

Possibilities and opportunities establishing partnerships

with certain financial institutions to finance the activity and

allow some agents to have enough working capital,

particularly in rural areas should be considered

Opportunities for partnerships and / or agreements with

public authorities need to be explored to find suitables

taxes status for the actors of the new activity, particularly

in rural areas

Learnings (4/4)

Phase: Supervision – Monitoring

Phase Learnings

Supervision-Monitoring

The use of qualified staff for the supervision of the agents

is a critical component for quality monitoring

The supervision system has enabled the supervised

agents to better anticipate the supply of Electronic money,

the liquidity management including better anticipation of

periodic flows (daily, weekly ...) deposit / withdrawal.

Adoption of simple reporting tools with relevant KPIs

(stock of electronic money, level of transactions ...)

facilitates monitoring of the activity by the agents as well

as by the supervisors

Fees related to accounts openings, is an additional

source of motivation for agents

Appendix 1: Content of the customized supervisory system

• Training on the overall management of a point of sale

• Training and checking on holding a transactions book

• Training and monitoring the customer experience

• Stock Check of electronic money / Cash

• Recommendations on anticipating the supply of electronic money

• Recommendations and preventions against scams and frauds

• Assistance and information on the portfolio of mobile money services

Appendix 2: Example of the criterias for the appraisal form

General Informations

Numberof the formRegionCityLocalit, Area, District

GPS coordinates

Eligibility

Type of Point of Sales (PoS)Rate of frequentationVisibility of the PoSProximity of the PoSProximity of shops, entreprises, SME, SMI

Number of existing mobile money agents in the neighborhood

SelectionStatus of the candidat: Owner - ManagerLast Name et Surname of the: Owner - ManagerDetails of: Owner - ManagerAssessement elements of the candidate's motivation and level of interestAssessment elements of the financial capability of the candidate Assessment elements of the treasury of the candidateAssessment elements of the level of security of the shop of the candidateExistence of financial institutions nearby the candidate's PoS (banks, MFIs, others)Number of years of activity of the PoSAssessment elements of the literacy level of the: Owner - ManagerEducation level of the: Owner - ManagerType of products / services offered by the PoSOpening hours of the PoS

Number of employees of the PoS

Advancing financial inclusion to improve the lives of the poor

www.cgap.org 15