Intersection of Microfinance, Agent Banking & Mobile Money in Africa for Financial Inclusion

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    09-May-2015

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mFino talks about the intersection of Microfinance, Agent Banking & Mobile Money for Financial Inclusion in Africa at the 4th Mobile Money Expo, Nigeria.

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<ul><li>1. 2014 mFino Ltd.| All Rights Reserved |Confidential Exploring the Intersection between Microfinance, Agency Banking &amp; Mobile Money in Africa for Financial Inclusion </li></ul> <p>2. 2014 mFino Ltd.| All Rights Reserved |Confidential Financial Inclusion Finance is not an end by itself but a means to help solve significant development challenges in order to improve the lives of people Financial Inclusion helps to make basic, essential services and utilities like energy, health, education, and water more accessible to people at the bottom of the economic pyramid Access to affordable financial services helps in overcoming poverty, reducing income disparities, and contributes towards overall social and economic development (GDP Growth) 3. 2014 mFino Ltd.| All Rights Reserved |Confidential Mobile Financial Services (Mobile Money) Value is stored in electronic form in mobile phones which can be used to purchase airtime, transfer funds to others, make payments and receive bulk payments (e.g: G2P Payments) Mobile Money Capabilities P2P Transfer/ Remittance Banking Commerce Payments Top-ups and many more 4. 2014 mFino Ltd.| All Rights Reserved |Confidential Mobile Money in Africa Africa has more than 800 million mobile subscribers Africa leads the world with 117 out of the total 220 Mobile Money deployments in the world Mobile Money Services 1. Airtime Purchase 2. P2P Transfer 3. Pay Bills 4. Receive Bulk Payments Currently, Mobile Money technology is perceived as a Money Transfer solution According to GSMA, 1% increase in mobile penetration contributes to over 6% growth in the regions GDP, higher than any other region globally, and this is forecasted to rise to over 8% by 2020 5. 2014 mFino Ltd.| All Rights Reserved |Confidential Microfinance in Africa Low bank penetration and a very large informal sector, Africa is a fertile ground for microfinance Benefits for MFI Customers 1. Access to savings, credit &amp; insurance 2. Affordable and secure services 3. No collateral required 4. Helps in employment &amp; wealth creation 5. Plan for lifecycle needs retirement, medical, education, marriage, funeral etc Main Challenges of MFIs in Africa 1. High cost of delivering services 2. Security risk 3. Fraud 4. Lack of adequate back office capabilities 6. 2014 mFino Ltd.| All Rights Reserved |Confidential Agency Banking (Branchless Banking) The delivery of financial services outside conventional bank branches through the use of retail agents and information and communications technologies to transmit transaction details. Branchless Banking involves: Use of technology to identify customers and record transactions electronically Use of outlets such as post offices and small retailers, that act as agents for financial services providers Offer of at least basic cash deposit and withdrawal in addition to transactional or payment services Backing of a government-recognized, deposit-taking institution, such as a formally licensed bank Structuring of the above so that customers can use these banking services on a regular basis (available during normal business hours) and without needing to go to bank branches at all 7. 2014 mFino Ltd.| All Rights Reserved |Confidential Banks &amp; Financial Institutions Agent Agent Agent Customers Customers Customers Delivering Financial Services through Agents via Mobile Phones Mobile Agents &amp; Stationary Agents New sources of revenue for agents 8. 2014 mFino Ltd.| All Rights Reserved |Confidential Mobile Money Microfinance Agency Banking Financial Inclusion P2P Transfer Airtime Top-ups Bill Payments Receive Bulk Payments Savings Micro-credit Micro-insurance Banking Products &amp; ServicesEmployment &amp; Wealth Creation Asset Creation &amp; Quality of Life Affordable, Convenient &amp; Secure Intersection of Mobile Money, Microfinance &amp; Agency Banking 9. 2014 mFino Ltd.| All Rights Reserved |Confidential Intersection of Mobile Money, Microfinance &amp; Agency Banking Benefits for Customers 1. Cash remains within the system 2. Helps in better money management 3. Helps in building a corpus for future lifecycle needs (asset creation) 4. Helps in building a credit history and improving borrowing power 5. Access to wide range of financial services 6. Business expansion 7. Financial literacy and access to information 8. Mobile Marketplace will help farmers to buy fertilizers during off-season at a discount, get to know prices of commodities, helps in accepting payments for sale and making payments for purchases 9. Help to improve access to utilities and essential commodities like water, energy, education, health etc e.g: automatic water dispensers (pay &amp; use), prepaid electric meters etc 10. Helps to lead a better quality of life 10. 2014 mFino Ltd.| All Rights Reserved |Confidential Mobile is the gateway to Financial Inclusion 11. 2014 mFino Ltd.| All Rights Reserved |Confidential Innovative Mobile Financial Products &amp; Services Cash-in/Cash-out at agent Savings Credit Insurance P2P Transfer Bill Payments Online Payments Merchant Payments Airtime Top-ups Ticket Booking Remittances Cardless ATM Access Loyalty Points Salary Credit Offers Welfare Payments 12. 2014 mFino Ltd.| All Rights Reserved |Confidential mFino MFS platform ensures that cash remains within the system The platform connects both the source and destination with an integrated first mile to last mile mobile wallet All sources of funds can be routed to the mobile wallet and payments can be made using the mobile mFino Mobile Financial Services Platform Any Phone Any Payment Method Any Channel 13. 2014 mFino Ltd.| All Rights Reserved |Confidential Questions..??? 14. 2014 mFino Ltd.| All Rights Reserved |Confidential Thank You!! </p>

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