Mobile Money Agent Networks
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Transcript of Mobile Money Agent Networks
Mobile Money Agent Networks
Examining the NGO Sector’s Role
What is an Agent?
Agent
Client
A person or business that is contracted to facilitate transactions for users. The most important of these are cash-in and cash-out (deposits/withdrawals). Agents bridge the gap between
traditional brick and mortar bank branches and potential down market clients.
Bank
MNO
Source: Sarah Rotman, “Branchless Banking 101” March 2012
Roles of an Agent
2) Educating and Registering Costumers
1) Promoting the product
3) Facilitating Transactions
Mobile Money Agent Hierarchy(illustrative)
“Super Agents” Financial Institutions(e.g. MFIs)
“Agents”Large Merchants /
Specialized Companies
“Sub Agents” Local Retailers / Small Vendors
Who can be an Agent?
Your local convenience store (sub agent) Your local bookstore (sub-agent)
National Post Office (Super Agent) Aggregator networks (Agent)
Agent Business CaseBeing an agent can help small merchants generate more
revenue for their local business
Source: CGAP: “Agent Management Toolkit” 2011
Agent Network Development: The Mercy Corps Haiti Experience
Table of Contents• Background & Context
FundingFinancial InclusionUnique Operating Environment
• Haiti Case StudyStrategy ApproachExecutionLessons Learned Potential Roles for NGOs
Background & Context
• Funding – Sizable flows of donor funds in response to the earthquake; flexible funding for innovation
• Financial Inclusion – Core mission objective for Mercy Corps: enhancing market-driven financial inclusion among underserved communities
Background & Context
• Unique Operating Environment –Logistical/implementation challenges on
the ground created an opportunity to explore alternative delivery channels
Distinct context for mobile money integration : massive earthquake, no prior country office presence, staff “churn”, etc.
Haiti Case Study
• Strategy – a) Focus activities in regions that received large influxes of IDPs post-earthquake; b) Provide financial assistance via alternative delivery mechanisms c) flexible funding and a TA grant from USAID allowed us more room to experiment
Haiti Case Study
Mercy Corps ERP Operations
Haiti Case Study• Approach
Which partners? Trilogy/Voila Proactive relationship development
Which programs? Cash-for-work Unconditional cash transfers Food security (Kenbe-La)
Which participants? Selecting beneficiaries and merchants Aligning program objectives with funding parameters
Haiti Case Study• Kenbe-La Program Overview
– Recurring conditional cash transfer program to alleviate food security concerns among vulnerable HHs
– 9 month program that targeted 5 districts in St. Marc and 2 surrounding towns,
– Engaged ~7,000 beneficiaries and ~100 merchants; monthly disbursements = 1,618 HTG (~40 USD)
– Program parameters allowed for incubation of merchants from acceptance points to agents
Haiti Case Study
Mac Donald
Centre Ville
Blockhaus
Bocozelle
Haiti Case Study
• ExecutionMobilization & Sensitization
• Airtime purchase/transfer as “the bridge” to mobile-$Mobile Money Training
• Pictograms and simulationDisbursements
• Who hits send, to whom, when, and for how much?Mobile Money Agent Training
• Interactive exercises, explaining “buckets of money”
Haiti Case Study1. Cash-out
m-$ User
m-$ Sub Agent
3. Sub-Agent Rebalances
• e-wallet balance increases
m-$ Sub Agent
2. Change in Liquiditym-$
Sub Agent
• Cash on-hand decreases
m-$
m-$
4. Additional Cash-outsm-$
Agentm-$ User
m-$ Sub Agent
m-$
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12 12
Blockhaus Vendor Profile: Lundy Myslande
Sex / Age:• Female / NA
Name of Business / Launch Date:• Rosie Boutique / 2009 (3 yrs)
Source of Start-up Capital & Plans for Business:• Source: Personal savings then small loan to grow her
inventory• Plans: Increase her inventory; diversify products to
include “brand name” items; purchase refrigerator to sell meats (poultry, beef)
Average cash sales pre-Kenbe La program (monthly):• ~$1,925 USD (~77,000 HTG)Average T-Cash sales from Kenbe La clients (monthly):• ~$2,900 USD (~116,050 HTG)Average number of Kenbe La clients (monthly):• 70
Centre Ville Vendor Profile:Alexis Moise
Sex / Age:• Male / 50
Name of Business / Launch Date:• Betabara Store / 2004 (8 yrs)
Source of Start-up Capital & Plans for Business:• Source: Personal savings• Plans: Increase the size of the store and offer an even wider
selection of products
Average cash sales pre-Kenbe La program (monthly):• ~$6,750 USD (~270,000 HTG)
Average T-Cash sales from Kenbe La clients (monthly):• ~$18,420 USD (~737,035 HTG)Average number of Kenbe La clients (monthly):• 302
Average Monthly T-Cash Sales in HTG (Dec ‘11 – Sep ’12)
Bocozelle Blockhaus Centre Ville Mac Donald -
50,000
100,000
150,000
200,000
250,000
300,000
188,164
127,240
248,056
199,026 Avg = 190,621 (~$4,766 USD)
Bocozelle Blockhaus Centre Ville Mac Donald Overall0%
17% 18%
0%9%
100%
83% 82%
100%91%
Yes No
Perceived Disruption of Cash Sales due to T-Cash
Time to Conduct T-Cash Transactions (Start vs. End of Program)
Sense of Preparedness to be a Mobile Money Agent Post Program
Haiti Case Study
• Lessons Learned– Agent Mobilization & Training– Integrating Mobile Money– External Partnership Management
Haiti Case Study
• Potential NGO Role(s)– Financier– Acquirer– Trainer– Service Promoter