Carol RealiniCEO, Obopay

carol@obopay.comTwitter - carolrealini

New Model for Technology-Enabled Financial Inclusion

Global Savings Forum, Nov 2010

Mobile Branchless Banking

• We know from early implementations that mobile-facilitated branchless banking at scale is a “game-changer” for financial inclusion

• Key factors to scale:• Large agent network• Ease of enrollment (ease of personal authentication)• Important uses

• Only a few places in the world will achieve scale with a simple implementation model and one or two players

• For the rest, need an open collaborative model to achieve scale• Open collaborative model will also achieve an added benefit –

more financial offerings and more choice when branchless banking scales

Participants in Open Collaborative Model

Traditional Financial Service ProvidersRegulators

Branchless Bankers

Network Operators

Interoperable Systems

MerchantsInnovators

Open, Trusted, Scalable and Interoperable Financial Network

Multiple providers:Banks andNon Banks

AgentDistribution

NetworkOpen

Access to Financial Services

Merchant Acceptance

Network

Collaboration is Key

Why is this so KEY

• Most countries in the world where the need is great – Kenya success will be extremely difficult to replicate

• Fragmented mobile market – challenging to create a Ubiquitous agent and merchant network

• Investment for any single entity will be huge • Those that invest will struggle to scale if they try and do everything

themselves

Once a network is established (critical mass of agents, merchants, consumers, financial offerings), Open Collaborative Model will encourage: Highest value, more choice, more innovation, more utility

Create “app-store” or “internet marketplace” for financial offerings to all.

Building Blocks of Open Collaborative Model

Full range of services, choice

Social Applications and Self Organizing

Cost reduction via National ID and Disbursements

Business Models for Shared Merchant – initial investment for “terminalization”

Program model for P2P and Merchant Payment interoperability

Open Access Program Rules – new and traditional provider participation encouraged

Mobile Networks

Interbank Money Movement and Settlement

International Money Movement and Hubs

Regulatory Framework, UID

Users

Open Collaborative Programs

Enabling Infrastructure

Recommendation

Private sector investments sans an open collaborative approach will achieve only a fraction of their true potential

We recommend the creation of a funded initiative that will champion, conceive and execute a collaborative ecosystem in countries that have the need, motivated players and the regulatory environment to make it a real success

In a world where half the adult population lacks affordable and convenient access to simple banking, we owe it to the underserved to move quickly to this model

What is at stake is inclusive growth and empowerment of the poor powered by a self-sustainable framework

User Benefit of Open Collaborative Model

• Start simple, seek to achieve full range of financial services

• Empowers life and work• Accessibility• Affordability• Full range of offerings• Multiple options• User driven collaboration, applications, and

content• Scale and Utility even in challenging markets

APPENDIX

Technology - Open PlatformBANKING

Banking System& Lending Platform

Mobile Banking Platform

PaymentCollections and

Settlement

OPERATIONS AND MIS

Credit DecisionsAnd Analytics Central Registry

OperationsManagement

Platform

MFI Gateway

GATEWAYS

Telecom Gatewaysand Adapters

Merchant Gateways

CUSTOMERS

AccountManagement

KYC Complianceand Risk

Media andAdvertising