Strategic Management for digital credit EMW09_Prior.ppt
etebarkhmichale
16 views
29 slides
Jul 09, 2024
Slide 1 of 29
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
About This Presentation
4. Avoid office or work gossip. Avoid things that tarnish your name or reputation. Don't join the bandwagon that backbites your bosses and colleagues. Stay away from negative gatherings that have only people as their agenda. 5. Don't ever compete with your bossesn. 7. Save some money. L...
Slide Content
1
Expanding financial services
for the poor:
“Banking the unbanked using prepaid
platforms and mobile phones (mobile
banking)”
IESE Business School
Universidad de Navarra
Francesc Prior Sanz
November, 2009
Expanding financial services
for the poor:
“Banking the unbanked using prepaid
platforms and mobile phones (mobile
banking)”
IESE Business School
Universidad de Navarra
Francesc Prior Sanz
November, 2009
2
Banking the unbanked
1. Introduction: Access to finance and economic
development
3. Solutions proposed for increasing access to finance
4. Conclusions
2. Review of access to financial services
Banking the unbanked
1. Introduction: Access to finance and economic
development
3. Solutions proposed for increasing access to finance
4. Conclusions
2. Review of access to financial services
3
An extensive number of economic studies demonstrate that
there is a casual relationship between financial deepening and
economic development (Schumpeter, 1911)
Access to finance and economic development
1-FIRST APPROACH:The impact of creditin economic growth has been
extensively analyzed by King & Levine (1993) Demirguç-Kunt, and Loayza (2000)
that show that credit is the explanatory variable in economic growth, especially in
countries with underdeveloped capital markets
2-SECOND APPROACH : The development of capital marketsis a second
explanatory variable for economic growth analyzed by Levine & Zervos (1998),
Levine (1991), Bencivenga & Smith (1991) and specially Rojas-Suarez & Weibrod
(1994)
3-THIRD APPROACH : Explains economic growth not only in relation to the
development of the banking sector, but also to its stabilityin the provision of
financing as an explanatory variable on the levels of economic development:
Freixas (1997), Rochet (1997), the Interamerican Development Bank (2005) and
Garrido (2005)
An extensive number of economic studies demonstrate that
there is a casual relationship between financial deepening and
economic development (Schumpeter, 1911)
Access to finance and economic development
1-FIRST APPROACH:The impact of creditin economic growth has been
extensively analyzed by King & Levine (1993) Demirguç-Kunt, and Loayza (2000)
that show that credit is the explanatory variable in economic growth, especially in
countries with underdeveloped capital markets
2-SECOND APPROACH : The development of capital marketsis a second
explanatory variable for economic growth analyzed by Levine & Zervos (1998),
Levine (1991), Bencivenga & Smith (1991) and specially Rojas-Suarez & Weibrod
(1994)
3-THIRD APPROACH : Explains economic growth not only in relation to the
development of the banking sector, but also to its stabilityin the provision of
financing as an explanatory variable on the levels of economic development:
Freixas (1997), Rochet (1997), the Interamerican Development Bank (2005) and
Garrido (2005)
4
Banking the unbanked
1-Introduction: Access to finance and economic
development
3. Solutions proposed for increasing access to finance
4. Conclusions
2-Review of access to financial services
Banking the unbanked
1-Introduction: Access to finance and economic
development
3. Solutions proposed for increasing access to finance
4. Conclusions
2-Review of access to financial services
5
According to the World Bank (Beck, Demirgüç-Kunt, Levine, 1999), in the 24 most
developed countries, the average credit to the private sector as a percentage of
GDP was 84% between 1990 and 1999; while it was 33.6% in the 79 developing
countries analyzed
Review of access to financial servicesRegion
Number of
countries
Private sector
credits (percent of
GDP)
Credit and market
capitalization
(percent of GDP)
GDP per capita,
1995 (US$)
Developed countries 24 84 149 23.815
East Asia and Pacific 10 72 150 2.867
Middle East and Northern Africa 12 43 80 4.416
Latin America and Caribbean 20 28 48 2.632
Eastern Europe and Central Asia 18 26 38 2.430
Sub-Saharan Africa 13 21 44 791
Southern Asia 6 20 34 407
Table 1: Financial development by region, 1990-99-Interamerican Development
Bank, IPES 2005.
According to the World Bank (Beck, Demirgüç-Kunt, Levine, 1999), in the 24 most
developed countries, the average credit to the private sector as a percentage of
GDP was 84% between 1990 and 1999; while it was 33.6% in the 79 developing
countries analyzed
Review of access to financial servicesRegion
Number of
countries
Private sector
credits (percent of
GDP)
Credit and market
capitalization
(percent of GDP)
GDP per capita,
1995 (US$)
Developed countries 24 84 149 23.815
East Asia and Pacific 10 72 150 2.867
Middle East and Northern Africa 12 43 80 4.416
Latin America and Caribbean 20 28 48 2.632
Eastern Europe and Central Asia 18 26 38 2.430
Sub-Saharan Africa 13 21 44 791
Southern Asia 6 20 34 407
Table 1: Financial development by region, 1990-99-Interamerican Development
Bank, IPES 2005.
6
The factors that explain the lack of access to financial services
are related to the demand, regulation, and supply
1-Price
2-Distribution networks
3-Risk methodologies and database analysis
4-Regulatory framework
SUPPLY OF
FINANCIAL
SERVICES:
INADEQUATE
BUSINESS
MODEL
5-Lack of trust in the financial system and
financial education
Review of access to financial services
The factors that explain the lack of access to financial services
are related to the demand, regulation, and supply
1-Price
2-Distribution networks
3-Risk methodologies and database analysis
4-Regulatory framework
SUPPLY OF
FINANCIAL
SERVICES:
INADEQUATE
BUSINESS
MODEL
5-Lack of trust in the financial system and
financial education
Review of access to financial services
7
1-Prices for basic financial services are higher in developing
nations that in developed countries
Review of access to financial servicesRegion
Number of
countries
Interest rate
differences
(percentage)
Operational Costs
(percentage of
assets)
Private sector
credit (percentage
of GDP)
Sub-Saharan Africa 32 10,6 5,1 15
Eastern Europe and Central Asia 23 8,8 5 26
Latin America and the Caribbean 26 8,5 4,8 37
East Asia and Pacific 16 5,1 2,3 57
Southern Asia 5 4,6 2,7 23
Middle East and Northern Africa 13 4 1,8 38
Developed countries 30 2,9 1,8 89
Table 2: Interest rates differences and efficiency by region, 1995-2002 , IPES 2005-
Data from IMF and Bankscope
1-Prices for basic financial services are higher in developing
nations that in developed countries
Review of access to financial servicesRegion
Number of
countries
Interest rate
differences
(percentage)
Operational Costs
(percentage of
assets)
Private sector
credit (percentage
of GDP)
Sub-Saharan Africa 32 10,6 5,1 15
Eastern Europe and Central Asia 23 8,8 5 26
Latin America and the Caribbean 26 8,5 4,8 37
East Asia and Pacific 16 5,1 2,3 57
Southern Asia 5 4,6 2,7 23
Middle East and Northern Africa 13 4 1,8 38
Developed countries 30 2,9 1,8 89
Table 2: Interest rates differences and efficiency by region, 1995-2002 , IPES 2005-
Data from IMF and Bankscope
8
However, Prices for basic financial services do not refer not to
only interest rates but also to:
1-Minimum balances
2-Maintenance costs of accounts, debit and
credit cards
3-Transfer and withdrawal commissions
4-Other commissions
5-Interest rates
Prices are too
high mostly
due to
inefficient
business
models and
lack of
competitionin
the financial
industry and a
value
management
strategy
Review of access to financial services
However, Prices for basic financial services do not refer not to
only interest rates but also to:
1-Minimum balances
2-Maintenance costs of accounts, debit and
credit cards
3-Transfer and withdrawal commissions
4-Other commissions
5-Interest rates
Prices are too
high mostly
due to
inefficient
business
models and
lack of
competitionin
the financial
industry and a
value
management
strategy
Review of access to financial services
9
2-Distribution networksare too limited because traditional
banking branches are too costly, so alternative distribution
networks are needed to serve the population
Source: World Bank, 2005 Geographic Area Number
of
Countries
Bank branches
per 100,000
people
Bank branches
per 1000 KM2
Number of
loans per 1000
people
Number of
deposits per
1000 people
United States 1 30,86 9,81 N/A N/A
Western Europe 10 44,66 61,25 470 2.197
Asia 10 8,13 18,57 110 715
Eastern Europe 9 7,39 6,83 87 1.040
Latam 17 7,02 5,20 120 490
Africa 5 2,06 0,57 30 146
Table 3: Density of bank branches and financial deepening: Based on data from Beck,
Demirguc-Kunt y Martinez Pereira, 2006
Review of access to financial services
2-Distribution networksare too limited because traditional
banking branches are too costly, so alternative distribution
networks are needed to serve the population
Source: World Bank, 2005 Geographic Area Number
of
Countries
Bank branches
per 100,000
people
Bank branches
per 1000 KM2
Number of
loans per 1000
people
Number of
deposits per
1000 people
United States 1 30,86 9,81 N/A N/A
Western Europe 10 44,66 61,25 470 2.197
Asia 10 8,13 18,57 110 715
Eastern Europe 9 7,39 6,83 87 1.040
Latam 17 7,02 5,20 120 490
Africa 5 2,06 0,57 30 146
Table 3: Density of bank branches and financial deepening: Based on data from Beck,
Demirguc-Kunt y Martinez Pereira, 2006
Review of access to financial services
10
3-Credit risk analysis methodologiesare not adapted to
developing nations economies where informal activities are so
relevant
Only include stable and taxable cash flows (wages)
Do not include informal sources of revenue
Focus on already banked customers
Do not include socio-demographic variables
Are too slow and costly
Require guarantees not adapted to the informal economy
Credit Bureaus do not report non-banking credit experiences
Better use of technology and data is required in
order to improve risk methodologies and obtain
faster results
Review of access to financial services
3-Credit risk analysis methodologiesare not adapted to
developing nations economies where informal activities are so
relevant
Only include stable and taxable cash flows (wages)
Do not include informal sources of revenue
Focus on already banked customers
Do not include socio-demographic variables
Are too slow and costly
Require guarantees not adapted to the informal economy
Credit Bureaus do not report non-banking credit experiences
Better use of technology and data is required in
order to improve risk methodologies and obtain
faster results
Review of access to financial services
11
Credit risk methodologies: Credit bureaux are required in order to
prevent over-indebtedness of individual lenders. However, they need to
be complemented with additional methodologies as the US subprime
crisis showsRegion
Legal Rights
Index
Credit
Information
Index
Public
registry
coverage
(% adults)
Private
bureau
coverage
(% adults)
East Asia & Pacific 5.0 1.9 3.2 10.1
Europe & Central Asia 5.5 2.9 1.7 9.4
Latin America & Caribbean 4.5 3.4 7.0 27.9
Middle East & North Africa 3.9 2.4 3.2 7.6
OECD 6.3 5.0 8.4 60.8
South Asia 3.8 1.8 0.1 1.3
Sub-Saharan Africa 4.2 1.3 1.5 3.8
“Getting credit”. World Bank, 2006
Review of access to financial services
Credit risk methodologies: Credit bureaux are required in order to
prevent over-indebtedness of individual lenders. However, they need to
be complemented with additional methodologies as the US subprime
crisis showsRegion
Legal Rights
Index
Credit
Information
Index
Public
registry
coverage
(% adults)
Private
bureau
coverage
(% adults)
East Asia & Pacific 5.0 1.9 3.2 10.1
Europe & Central Asia 5.5 2.9 1.7 9.4
Latin America & Caribbean 4.5 3.4 7.0 27.9
Middle East & North Africa 3.9 2.4 3.2 7.6
OECD 6.3 5.0 8.4 60.8
South Asia 3.8 1.8 0.1 1.3
Sub-Saharan Africa 4.2 1.3 1.5 3.8
“Getting credit”. World Bank, 2006
Review of access to financial services
12
4-The regulatory frameworkcan increase costs that affect the
ability of financial institutions to offer financial services to the
non affluent population
Most common regulatory obstacles in Latin America are:
1-Price Caps
2-Taxes on transactions
3-Supervision Costs
4-Inadequate system of guarantees
5-Government forced investments in non profitable activities
Review of access to financial services
4-The regulatory frameworkcan increase costs that affect the
ability of financial institutions to offer financial services to the
non affluent population
Most common regulatory obstacles in Latin America are:
1-Price Caps
2-Taxes on transactions
3-Supervision Costs
4-Inadequate system of guarantees
5-Government forced investments in non profitable activities
Review of access to financial services
13
In sub-saharian Africa, a major regulatory effort has been
undertaken where most countries have recently updated their
regulatory framework for microfinance activities
•Kenya: Microfinance Act 2006
•Uganda:Microfinance Deposit Taking Institutions, 2003
•Tanzania:Microfinance Companies and microcredit activities 2005;
Financial Cooperatives Societies Regulations 2005. Savings and Credit
Cooperatives Regulations
However, since supply inefficiencies have not been solved there is a clear lack of
microfinance supply in Sub Saharian -frica
Review of access to financial services
In sub-saharian Africa, a major regulatory effort has been
undertaken where most countries have recently updated their
regulatory framework for microfinance activities
•Kenya: Microfinance Act 2006
•Uganda:Microfinance Deposit Taking Institutions, 2003
•Tanzania:Microfinance Companies and microcredit activities 2005;
Financial Cooperatives Societies Regulations 2005. Savings and Credit
Cooperatives Regulations
However, since supply inefficiencies have not been solved there is a clear lack of
microfinance supply in Sub Saharian -frica
Review of access to financial services
14
Magreb: While the financial sector has been progressively
deregulated, the microfinance sector is mostly state controlled
and not adequately monitored
•Tunisia: The microfinance law determines a price cap of 5% and gives the
monopoly of microfinance activities to the government agency BTS,
without providing adequate supervision
•Egypt:There is no specific regulation for microfinance activities. So banks
and non regulated NGOs provide most microcredit.
•Morocco: The microcredit association law is a good framework for
avoiding price caps, but their inability to collect deposits is a problem to
solve
•Argelia: The postal service is the leading microfinance distributor (third
party provider)
The postal serviceis the leading provider of microdeposits in all the region
(French Colonial institution) , although the existing law prohibits this agency from
granting credit
Review of access to financial services
Magreb: While the financial sector has been progressively
deregulated, the microfinance sector is mostly state controlled
and not adequately monitored
•Tunisia: The microfinance law determines a price cap of 5% and gives the
monopoly of microfinance activities to the government agency BTS,
without providing adequate supervision
•Egypt:There is no specific regulation for microfinance activities. So banks
and non regulated NGOs provide most microcredit.
•Morocco: The microcredit association law is a good framework for
avoiding price caps, but their inability to collect deposits is a problem to
solve
•Argelia: The postal service is the leading microfinance distributor (third
party provider)
The postal serviceis the leading provider of microdeposits in all the region
(French Colonial institution) , although the existing law prohibits this agency from
granting credit
Review of access to financial services
15
In the USA 40 million American households are underbanked:
Customer identification requirements and the retail payments structure
are factors that help explain this problem
1-Banking immigrants: Identification requirements for opening
bank accounts are vague:
•No clear rule determines what documents are to be provided to
comply with the “know your customer rule”
•and nothing prevents non US citizens from opening accounts
•and that the TIN is accepted by supervisors as an identification
document
•in the current political context, the fact that most illegal
immigrants have TIN and not social security numbers makes
banks unwilling to open bank accounts to customers without
Social Security Numbers
Review of access to financial services
In the USA 40 million American households are underbanked:
Customer identification requirements and the retail payments structure
are factors that help explain this problem
1-Banking immigrants: Identification requirements for opening
bank accounts are vague:
•No clear rule determines what documents are to be provided to
comply with the “know your customer rule”
•and nothing prevents non US citizens from opening accounts
•and that the TIN is accepted by supervisors as an identification
document
•in the current political context, the fact that most illegal
immigrants have TIN and not social security numbers makes
banks unwilling to open bank accounts to customers without
Social Security Numbers
Review of access to financial services
16
2-The retail payments structure in the USA is characterized by
the dominance of checks, and importance of offline debit
Distribution of the number of Noncash Payments for 2003 and 2000. Federal Reserve
Payments Study, 2004
Review of access to financial services
2-The retail payments structure in the USA is characterized by
the dominance of checks, and importance of offline debit
Distribution of the number of Noncash Payments for 2003 and 2000. Federal Reserve
Payments Study, 2004
Review of access to financial services
17
The still inadequate pricing of ACH transfers(direct debits and
direct credits) compared with checks by the Federal Reserve (the
main ACH provider), and the late differentiation of interchange
for online debit and offline debithas negatively impacted the
access to financial services by the poor in the USA
1-The importance of checks has created a parallel network of financial
services centersthat offer not only check casing but also money transfers,
bill payments, Earned Income Tax Credit declarations (EITC), short term
credit (pay day lenders) even mortgages (subprime lenders)
•These financial centers offer much higher cost financial services but
•Serve unbanked immigrants
•US citizens that have been expelled from mainstream retail banking
•And other customers that are not being served by the retail banking
industry in the US
2-The late adoption of online debit in the US, created overdraft risks that
banks did not want to take with unknown customers
Review of access to financial services
The still inadequate pricing of ACH transfers(direct debits and
direct credits) compared with checks by the Federal Reserve (the
main ACH provider), and the late differentiation of interchange
for online debit and offline debithas negatively impacted the
access to financial services by the poor in the USA
1-The importance of checks has created a parallel network of financial
services centersthat offer not only check casing but also money transfers,
bill payments, Earned Income Tax Credit declarations (EITC), short term
credit (pay day lenders) even mortgages (subprime lenders)
•These financial centers offer much higher cost financial services but
•Serve unbanked immigrants
•US citizens that have been expelled from mainstream retail banking
•And other customers that are not being served by the retail banking
industry in the US
2-The late adoption of online debit in the US, created overdraft risks that
banks did not want to take with unknown customers
Review of access to financial services
18
Banking the unbanked
1-Introduction: Access to finance and economic
development
3. Solutions proposed for increasing access to finance
4. Conclusions
2-Review of access to financial services
Banking the unbanked
1-Introduction: Access to finance and economic
development
3. Solutions proposed for increasing access to finance
4. Conclusions
2-Review of access to financial services
19
The solutions proposed would apply existing best practices in
low cost bankingand the better use remittances
1-Specially tailored low cost financial products:
prepaid instruments
2-Low cost distribution networks
3-Alternative risk methodologies
5-Adapted regulatory framework and economies
of scale are needed in order to be able to afford
the infrastructures required
4-Optimization of remittances
Solutions proposed for increasing access to finance
The solutions proposed would apply existing best practices in
low cost bankingand the better use remittances
1-Specially tailored low cost financial products:
prepaid instruments
2-Low cost distribution networks
3-Alternative risk methodologies
5-Adapted regulatory framework and economies
of scale are needed in order to be able to afford
the infrastructures required
4-Optimization of remittances
Solutions proposed for increasing access to finance
20
1-Prepaid instrumentsare the best electronic banking products
for “banking the poor” since they function as a low cost bank
account
Types of card products based on authorization and authentication mechanisms Credit
Bank
account
balance
Internal
account Online Offline PIN based
Signature
based
Prepaid Yes Yes
Only if PIN
based
If POS
enabled,
always in
ATM's
If POS not
enabled
Debit online Yes Yes
For very
limited
transaction
amounts
If POS
enabled,
always in
ATM's
If POS not
enabled
Debit OfflineYes Yes
If POS
enabled,
always in
ATM's Yes
Credit Yes Yes
If POS
enabled,
always in
ATM's Yes
Solutions proposed for increasing access to finance
1-Prepaid instrumentsare the best electronic banking products
for “banking the poor” since they function as a low cost bank
account
Types of card products based on authorization and authentication mechanisms Credit
Bank
account
balance
Internal
account Online Offline PIN based
Signature
based
Prepaid Yes Yes
Only if PIN
based
If POS
enabled,
always in
ATM's
If POS not
enabled
Debit online Yes Yes
For very
limited
transaction
amounts
If POS
enabled,
always in
ATM's
If POS not
enabled
Debit OfflineYes Yes
If POS
enabled,
always in
ATM's Yes
Credit Yes Yes
If POS
enabled,
always in
ATM's Yes
Solutions proposed for increasing access to finance
21
1-Prepaid instrumentscan be used for deposits (where
regulation allows), withdrawals and POS transactions
Prepaid platforms have characteristics that make them especially useful for developing
low cost payments systems:
1-Customers using prepaid systems do not need bank accounts, debit or credit cards
2-Users do not need to develop or invest in new technologies
3-This payment mechanism can be used in a number of platforms such as PCs, mobile phones,
hand-held and set-top boxes
4-It is a payment system specially designed for micropayments, and microdeposits and even
microcredits (Banco de Crédito del Perú, Tarjeta Solución Negocios)
5-Allow users control their cash flow by receiving statements (some providers offer this
feature online others provide physical statements) or accessing balances through PCs, mobile
phones, hand-held and set-top boxes.
Solutions proposed for increasing access to finance
1-Prepaid instrumentscan be used for deposits (where
regulation allows), withdrawals and POS transactions
Prepaid platforms have characteristics that make them especially useful for developing
low cost payments systems:
1-Customers using prepaid systems do not need bank accounts, debit or credit cards
2-Users do not need to develop or invest in new technologies
3-This payment mechanism can be used in a number of platforms such as PCs, mobile phones,
hand-held and set-top boxes
4-It is a payment system specially designed for micropayments, and microdeposits and even
microcredits (Banco de Crédito del Perú, Tarjeta Solución Negocios)
5-Allow users control their cash flow by receiving statements (some providers offer this
feature online others provide physical statements) or accessing balances through PCs, mobile
phones, hand-held and set-top boxes.
Solutions proposed for increasing access to finance
22
2-LOW COST DISTRIBUTION NETWORKS are needed to resolve
the lack of banking branches
Cost comparison by distribution channelPoint of
intermediation
Financial Services
Estimated Cost
(Thousand US$)
Mobile phones
0 for mobile
users
EFTPOS 20 USD
Representative teller 5
ATM 15
Branch 200
Source: Superintendencia de Bancos y Seguros del Perú 2006
Mobile phones and
EFTPOS are the
lowest cost
intermediation
channels
But in order to use them
prepaid instruments are
needed
Solutions proposed for increasing access to finance
2-LOW COST DISTRIBUTION NETWORKS are needed to resolve
the lack of banking branches
Cost comparison by distribution channelPoint of
intermediation
Financial Services
Estimated Cost
(Thousand US$)
Mobile phones
0 for mobile
users
EFTPOS 20 USD
Representative teller 5
ATM 15
Branch 200
Source: Superintendencia de Bancos y Seguros del Perú 2006
Mobile phones and
EFTPOS are the
lowest cost
intermediation
channels
But in order to use them
prepaid instruments are
needed
Solutions proposed for increasing access to finance
23
3-ALTERNATIVE RISK ANALYSIS METHODOLOGIES must also
use best practices in order to grant and follow up small credits
1-Inclusion of informal economy verified on the
field (PROCREDIT)
2-Automated acquisition and behavioral scorings
using socio demographic and payments
information
3-Group based lending and village banking
(COMPARTAMOS)
4-Decentralization of the credit risk analysis
(ACCION INTERNATIONAL)
5-Use of Credit Bureaux
Infrastructure and organizational changes
Solutions proposed for increasing access to finance
3-ALTERNATIVE RISK ANALYSIS METHODOLOGIES must also
use best practices in order to grant and follow up small credits
1-Inclusion of informal economy verified on the
field (PROCREDIT)
2-Automated acquisition and behavioral scorings
using socio demographic and payments
information
3-Group based lending and village banking
(COMPARTAMOS)
4-Decentralization of the credit risk analysis
(ACCION INTERNATIONAL)
5-Use of Credit Bureaux
Infrastructure and organizational changes
Solutions proposed for increasing access to finance
24
Comparing the value chain of the banking and remittances industry shows
potential savings in common elements such:
The technology platform
Risk analysis
Financial services distribution network
Call center and Internet
Marketing and commercial campaigns
POS network and SME business
4-BANKING REMITTANCES flows and receivers will allow to
exploit synergies between the banking and remittances industry
Solutions proposed for increasing access to finance
Comparing the value chain of the banking and remittances industry shows
potential savings in common elements such:
The technology platform
Risk analysis
Financial services distribution network
Call center and Internet
Marketing and commercial campaigns
POS network and SME business
4-BANKING REMITTANCES flows and receivers will allow to
exploit synergies between the banking and remittances industry
Solutions proposed for increasing access to finance
25
Recibo con
No.
confirmaciónCliente
Beneficiario
Recibo de la
orden de pago en
moneda local
Agencia receptora
en país de destino
Punto de
pago No. 1....”N”
No.confirmación
Cédula identidad o
Pasaporte
No.
confirmación
Cash
Tesorería:
Operaciones
de
divisas
Plataforma validadora
Banco o entidad
asociada en país destino
On line /
Tiempo Real
Agencia
emisora
Terminal Intranet
Corporativa
Country of origin
Country of
destination
€200
€180
Solutions proposed for increasing access to finance
Recibo con
No.
confirmaciónCliente
Beneficiario
Recibo de la
orden de pago en
moneda local
Agencia receptora
en país de destino
Punto de
pago No. 1....”N”
No.confirmación
Cédula identidad o
Pasaporte
No.
confirmación
Cash
Tesorería:
Operaciones
de
divisas
Plataforma validadora
Banco o entidad
asociada en país destino
On line /
Tiempo Real
Agencia
emisora
Terminal Intranet
Corporativa
Country of origin
Country of
destination
€200
€180
Solutions proposed for increasing access to finance
26
5-Adapting the regulatory framework to the needs of the poor
Solutions proposed for increasing access to finance
1-Support the development of prepaid instruments and low cost
intermediation channels by developing e.money regulations that allow all
basic payment functions on prepaid accounts from low cost intermediation
channels
1-Development of e-money regulation:
•Europe : The e-money Directive of 2000
•USA: The emergence of the SVC industry under the MSB regulation
2-Development of agents regulation:
•Review of banking correspondents regulation in Perú, Brazil and Colombia
2-Support the emergence of economies of scale for developing common
platforms for Microfinance Institutions (Bansefi-Mexico)
5-Adapting the regulatory framework to the needs of the poor
Solutions proposed for increasing access to finance
1-Support the development of prepaid instruments and low cost
intermediation channels by developing e.money regulations that allow all
basic payment functions on prepaid accounts from low cost intermediation
channels
1-Development of e-money regulation:
•Europe : The e-money Directive of 2000
•USA: The emergence of the SVC industry under the MSB regulation
2-Development of agents regulation:
•Review of banking correspondents regulation in Perú, Brazil and Colombia
2-Support the emergence of economies of scale for developing common
platforms for Microfinance Institutions (Bansefi-Mexico)
27
Banking the unbanked
1. Introduction: Access to finance and economic
development
3. Solutions proposed for increasing access to finance
4. Conclusions
2. Review of access to financial services
Banking the unbanked
1. Introduction: Access to finance and economic
development
3. Solutions proposed for increasing access to finance
4. Conclusions
2. Review of access to financial services
28
Banking access in developing nations is very lowdue not only to
demand and regulation, but mostly due to supply inefficiencies
Conclusions
1-Price of financial services
2-Density of banking networks
3-Credit risk methodologies
4-Non optimization of
remittances
5-Regulatory framework
1-Prepaid instruments
2-Low cost distribution networks
3-Alternative credit risk analysis
methodologies
4-Banking remittances
5-Adapted regulation on e-money,
agents and common platforms
Supply side factors can be resolved using existing banking
techniques and the optimization of remittances
THE SOLUTION IS TECHNICALLY FEASIBLE AND FINANCIALLY SOUND
Banking access in developing nations is very lowdue not only to
demand and regulation, but mostly due to supply inefficiencies
Conclusions
1-Price of financial services
2-Density of banking networks
3-Credit risk methodologies
4-Non optimization of
remittances
5-Regulatory framework
1-Prepaid instruments
2-Low cost distribution networks
3-Alternative credit risk analysis
methodologies
4-Banking remittances
5-Adapted regulation on e-money,
agents and common platforms
Supply side factors can be resolved using existing banking
techniques and the optimization of remittances
THE SOLUTION IS TECHNICALLY FEASIBLE AND FINANCIALLY SOUND
29
Mobile bankingis the most adapted value proposition for
banking the poor using prepaid platforms and low cost
distribution channels
ConclusionsModel name
Bank-centric
models
Collaborative
models
Independent
service
providers
Operator
centric
models
1-Who holds accounts/deposits? Bank Bank Bank
Telco/ Non
bank
2-Whose brand is dominant? Bank
Joint- Non
Bank or Telco
Usually non
bank or telco
dominant
Telco/ Non
bank
3-Where can cash be accessed? Bank
Bank+
alternative
agents
Bank+
alternative
agent network
Telco
network+
other
4-Who carries the payment instruction
Any telco
(sometimes
3rd party
payment
gateway)
Usually
specific to one
telco
Usually many
telcos
Specific to
offering telco
Examples in developing nations
Additive
models Smart/ MTNWizzit
Globe/
MPesa
Examples in developed nations
Additive
models Mobipay
PayPal
Mobile/
Paybox NTT DoCoMo
Classification of emerging m-banking models
Mobile bankingis the most adapted value proposition for
banking the poor using prepaid platforms and low cost
distribution channels
ConclusionsModel name
Bank-centric
models
Collaborative
models
Independent
service
providers
Operator
centric
models
1-Who holds accounts/deposits? Bank Bank Bank
Telco/ Non
bank
2-Whose brand is dominant? Bank
Joint- Non
Bank or Telco
Usually non
bank or telco
dominant
Telco/ Non
bank
3-Where can cash be accessed? Bank
Bank+
alternative
agents
Bank+
alternative
agent network
Telco
network+
other
4-Who carries the payment instruction
Any telco
(sometimes
3rd party
payment
gateway)
Usually
specific to one
telco
Usually many
telcos
Specific to
offering telco
Examples in developing nations
Additive
models Smart/ MTNWizzit
Globe/
MPesa
Examples in developed nations
Additive
models Mobipay
PayPal
Mobile/
Paybox NTT DoCoMo
Classification of emerging m-banking models
Download
Download Slideshow Get the original presentation fileQuick Actions
Statistics
- Views 16
- Slides 29
- Age 516 days
Related Slideshows
1
DTI BPI Pivot Small Business - BUSINESS START UP PLAN
MeljunCortes
33 views
1
CATHOLIC EDUCATIONAL Corporate Responsibilities
MeljunCortes
36 views
11
Karin Schaupp – Evocation; lançamento: 2000
alfeuRIO
33 views
10
Pillars of Biblical Oneness in the Book of Acts
JanParon
30 views
31
7-10. STP + Branding and Product & Services Strategies.pptx
itsyash298
31 views
44
Business Legislation PPT - UNIT 1 jimllpkggg
slogeshk98
34 views