Presenter: Mr. Loeung Sopheap

Senior Vice President & Head of

Product Development Division

Mobile Money ConferenceEBRD, London14th March 2013

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ACLEDA Unity

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Challenges of introducing Mobile

Money and how to overcome them? and

How to drive consumer adoption?

Slide Outline

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• About Cambodian Market

• About ACLEDA Bank

• The Objectives of ACLEDA Unity

• Phase One – Existing Customers

• Phase Two – Underserved Consumers

• Infrastructure and Architecture

• Key Challenges

• Overcome the Challenges

• Drive Consumer Adoption

• ACLEDA Unity in the Future

About Cambodian Market

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85% of Cambodian have no access to financial

services at all.

1/4 of Cambodia’s live on $1 a day

Half of population is under 25 year of age

For the past 3 years average economic growth

by 7% and 2013 will be 7.50%, estimated.

About ACLEDA Bank

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Our Vision - to be Cambodia’s leading commercial bank providing superior

financial services to all segments of the community

1. Founded in 1993 as ACLEDA NGO

2. The largest bank in Cambodia (31/01/2013)

• Total Assets > 2 billion US$,

• Total Deposit >1.4 billion US$,

• Total Loan Portfolio > 1.3 billion US$,

• NPAT > 64.2 million US$, (31/12/2012)

• Employees > 7,700,

• Customers > 1.2 million

• 238 office network,

3. Four subsidiary companies:

• ACLEDA Bank Lao Ltd.

• ACLEDA Securities Plc.

• ACLEDA Training Center Ltd. and

• ACLEDA MFI Myanmar Co., Ltd.

ACLEDA Unity – Our Objectives

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First 24/7/365 Channel for Customers

Anytime, Anywhere Safe and Convenient Access

Key Objective - to secure existing customers base while attracting

new customers through differentiation

Banked and Never banked Consumers

Appropriate Controls & Risk Management

Cash Out @ Branch, ATM & Offline Offices

Phase One – Existing Customers (1)

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Target customers All ACLEDA Bank existing customers including

depositors, borrowers, money transfer users,

insurance policyholders, individual and corporate,

and those who has account with ACLEDA Bank.

Account link Formal bank account

Channel SMS, WAP, and/or APP

Mobile phone Smartphone or feature phone (not smart)

MNO Any mobile network operator

Language English or Khmer

Currency KHR, USD, and/or THB

Services offering via SMS

channel

• View exchange rate,

• View account balance, and Mini statement,

• Mobile top up, and

• Request WAP link, and Help request

Phase One – Existing Customers (2)

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Services

offering via

WAP and

APP

Channel

• View exchange rate,

• View account balance,

and Mini statement,

• Own account transfer

• Person to person

account transfer

• Bill payments –

Electricity, Water Supply,

and other utilities bills,

and

• Mobile top up.

Phase Two – Underserved Consumers (1)

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Target customers Customers who use other bank services and consumers

who never use any banking services before. E.g.

Workers, famers, and family money transfer

Account link Mobile Wallet Account which is the Mobile Phone number

that is fully registered for ACLEDA Unity

Channel SMS, USSD, WAP, and/or APP

Mobile phone Smartphone or feature phone (not smart)

MNO Any mobile network operator

Language English or Khmer

Currency KHR, USD, and/or THB

Services offering via

SMS channel

• View exchange rate,

• View wallet account balance, and Mini statement,

• Mobile top up, and

• Request WAP link and help request

Phase One – Existing Customers (2)

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Services offering via

USSD, WAP and APP

Channel

• View exchange rate,

• View account balance, and Mini statement including

mobile wallet account,

• Own account transfer,

• Person to person account transfer,

• Transfer to/from mobile wallet account,

• Transfer to mobile phone number (unregistered

phone),

• Bill payments – Electricity, Water Supply, and other

utilities bills,

• Mobile top up, and

• ATM cash withdrawal without using ATM card.

• All ACLEDA Unity users can deposit to mobile

wallet account, make loan repayment, make

insurance premium payment, and make payment to

credit card account etc.,

Phase Two – Underserved Consumers (3)

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Mobile Wallet

Accounts

Personal

Payments/Transfers

ATM Cardless

Cash Withdrawal

Infrastructure and Architecture

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SMS

USSD

Browser

App

Enrollment & Customer Care

Branch/Agent(Online & offline Teller)

T24 CoreCustom API

Value

Manager

ATM Switch

IOS8583IOS8583

IOS8583

Reporting /

Diagnostics /

Administration

ATM(Cardless withdrawal via ATM)

Biller

Biller

Biller

Biller

Web Service

Offline interface

Control Center

Key Challenges

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Regulatory & Compliance:

License/Approval, AML & KYC

Multiple currencies and Multi languages

Lower literature rate

7 Mobile Operators – Competition

High Tech, Self-service, and New to

Cambodia

Customers Care & Protection

Higher TCO => Higher cost for consumers

Key to Overcome Challenges

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Security

Registration

Authentication – PIN & OTP

Dynamic Risk & Velocity Check

Roles & Privileges

AML - Daily Limit

Max. Amt/txn, Max. Amt/day

Max. Txn/day

Bank Account & Wallet Account,

Unregistered Phone

KYC - Registration

Registration at Bank

Mobile Phone + SIM

National ID and Name

Maker & Checker/Authorizer

Customers Care & Protection

Management & Staff Training

User’s Guide/Manual

Call Centre & Support Team

Complaint Handling Procedure

Driving Consumer Adoption (1)

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Consumer Benefits

Safe & Convenience access,

Anytime & Anywhere

Save travel cost & no waiting time

Minimize risk of carrying cash,

cash counting & counterfeit note

Bank in your hand/pocket – online

& real time processing

Usability

Channel – WAP, APP, USSD, and/or

SMS

Device – Smart phone and feature

phone (not smart phone)

Any mobile network operator

Currency – USD, KHR, and THB

Khmer or English language

Full banking service – view

exchange rate, view a/c info,

payments & money transfer, and top

up and others.

Driving Consumer Adoption (2)

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Market Education and Promotion User’s Guide/Manual, Brochures

TV Spot, Radio/Talk Show

Call Centre and Support team

Face to face explanation

Driving Consumer Adoption (3)

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Launching Event Bill payment promotion Money transfer promotion

ACLEDA Unity in the Future

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General growth – adoption &

transactions

360o

Money Transfer – Local & Int’l

transfer, A/C Based & Cash Based

Extending through our Offline Offices

Extending through ACLEDA

Merchants

Merchant Payments

The behind building is under construction

Number of Customer Registered

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The Value & The Number of Transaction

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Mobile is Strategic in Every Sense

In particular the growth of our highly successful mobile

banking service, ACLEDA “Unity”, has enabled is to access

the previously unbanked and to become the leading

financial services provider amongst the paddy growers and

farmers in the remote rural areas.

Dr. In Channy, President and CEO, ACLEDA Bank

ACLEDA Bank Annual Report, 2012

22Question and Discussion

Thank you very much for your attention!

M: (855) 15 900 124

eMail: lsopheap@acledabank.com.kh

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