TRANSFORMING TRANSFORMING TRANSFORMING TRANSFORMING FINANCIAL - - PDF document

TRANSFORMING TRANSFORMING TRANSFORMING TRANSFORMING FINANCIAL SERVICES FINANCIAL SERVICES FOR UNDER FOR UNDER-

• SERVED MARKETS

SERVED MARKETS

The Macroeconomics of Mobile Money Securing MobileMoney: The Ugandan Experience g p Friday, April 2, 2010 Columbia University

Table of Contents Table of Contents

• About MAP
• Case Study: Uganda
• MAP in the News

2

Our Technology and Executive Leadership Helped Pioneer the Mobile Banking Space

• Our Chief Technology Officer and

Technology History MAP’s Information Technology Group

gy Chief Information Officer were both members of the original architect team

• f Fundamo – one of the first mobile

banking technology firms:

• Based in Cape Town, the Group

boasts 20+ full time team members, including a full staffing of:

Solution Architects

g gy

Led comprehensive implementations throughout Africa and the MidEast Developed the Mobile Security Solution, the industry’s first pin-based Business Analysts Project Managers Developers Graphic Designers Solution, the industry s first pin based system still utilized throughout the Fundamo network

• Our CTO went on to build a technology

development house to create and

p g DBAs & Networking Specialists

• The Group can manage the full

spectrum of MAP’s product offering including: de e op e

• use o c ea e a d

deploy the next generation of mobile financial services

• MAP acquired the group, technology,

and IP in early 2009 including:

Biometric ID systems ATM switching and management POS switching and processing Mobile banking

3

and IP in early 2009

Mobile banking Partner integration and maintenance

The Technological Backbone to MAP is Provided by a The Technological Backbone to MAP is Provided by a Proprietary HUB Mobile Banking System Proprietary HUB Mobile Banking System

• The MAP HUB Intelligently routes

multiple transaction types that originate from multiple communication devices: Point of Sale Terminals ATM’s Mobile

FINANCIAL PLATFORM FINANCIAL PLATFORM

Point of Sale Terminals, ATM s, Mobile Phones, and PC’s),

• The HUB also integrates between

multiple Companies, Banks or Financial Institutions, Databases & Application Modules to return a desired transaction type to the originating device

• The HUB enables multi channel layer

The HUB enables multi channel layer communication and multi tiered architecture

• The HUB can transact: Person to Person

(P2P), Business to Person (B2P), Person to Business (P2B), and Business to Business (B2B)

• The system is agnostic to mobile player

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The system is agnostic to mobile player and financial institution

The MAP Systems Also Offers a Unique Product The MAP Systems Also Offers a Unique Product Distribution Platform Distribution Platform

• The platform provides

for the creation of multiple franchises and products distributed products, distributed through a pre-registered vendor network

• Franchisees operate

Franchisees operate independently from one another and in turn are responsible for the setup

• f their entire down-line
• It enables the selling of

multiple virtual products, ff with different discount structures

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Table of Contents Table of Contents

• About MAP
• Case Study: Uganda
• MAP in the News

6

Executive Sponsorship Secured Uganda as the Executive Sponsorship Secured Uganda as the Launch Market for MAP Launch Market for MAP

Th MAP t fi t i it d t U d b th P id t

The MAP team was first invited to Uganda by the President,

Yoweri Museveni, to explore areas for partnership

MAP was asked to focus on his two key concerns:

#1All governmental salaries as well as most other salary payments #1All governmental salaries, as well as most other salary payments, were paid in cash

– This led to rampant abuse, ghost workers, fraud, shrinkage, and loss

#2 A network of rural unregulated banks, SACCOs, were the weak backbone of the Ugandan rural economy backbone of the Ugandan rural economy

– SACCOs lacked the financial stability and trust of the people to properly offer modern financial services

The MAP offering has evolved to meet the immediate needs of

Uganda

Country Profile: P l ti 32 4 illi

• Population: 32.4 million
• Pop. Growth Rate: 3.2%
• GDP: $15.04B (2008 estimate)
• GDP Growth Rate: 6.4%

GDP it $465

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• GDP per capita: $465 per year
• Mobile Phones: 8 Million (2009)

The Nature of the Ugandan Initiative is a Public Private The Nature of the Ugandan Initiative is a Public Private Partnership Partnership

Key Competitive Building Blocks (Uganda):

Three way, exclusive contract and subsequent agreements with the Government of Uganda and the government-owned PostBank to: Government of Uganda and the government-owned PostBank to:

Convert 100% of PostBank current and new customers to MAP cardholders (currently 300k active account holders with an ambitious growth plan to 1M customers) Process all federal salaries and pension payments Process all federal salaries and pension payments Rollout ATM’s at all PostBank branches Rollout a country-wide network of POS units Incorporate the 800+ unregulated SACCO’s (micro-finance institutions) into the regulated environment under the PostBank umbrella regulated environment under the PostBank umbrella Provide ATM, POS, and mobile switching capabilities Rollout a linked mobile banking platform

Exclusive contract with one of the country’s largest agent-based airtime distribution network, X-Tel Partnership and distribution agreements with the national mobile network

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Partnership and distribution agreements with the national mobile network

• perators

Review of MAP Progress to Date Review of MAP Progress to Date

Card approved by Central Bank for International KYC standards

All 350 000

Card approved by Central Bank for International KYC standards Proprietary MAP Data Capture Stations deployed at PBU branches Cards produced in MAP’s Kampala office and distributed by PBU branches 75,000 cards have already been deployed; additional 35,000 accounts enrolled at mobile biometric events Bio Card

All 350,000 PBU customers will have cards by 12/2010

cts cts

26 ATMs currently deployed at all PostBank branches MAP processes all ATM switching with its own propitiatory switch Average transaction volume:

P Produ P Produ

73/day/ATM 165 POS

MAP MAP

Agreements achieved with Shell, Total, Haas Gas Stations, representing

• ver 300 service stations

Three-year goal of 3000+ POS access points devices deployed at leading retail points First mobile program launched in early December (Uganda Telecom) Full functionality currently available Can be accessed through any Java-enabled mobile phone PBU Market Launch: Q1 2010 9 Q1 2010

In August of 2009, MAP Signed an Agreement with Wazalendo, the Country’s Largest SACCO

Wazalendo Military SACCO

50,000 members (80,000 expected by 2011)

MAP Revenue Streams

MAP receives an enrollment fee for all t h ld ($3 USD) y ) 14 branches across the country Members include Ministry of Defense workers, UPDF personnel and retired officers and their families account holders ($3 USD) Wazalendo contractually provides a monthly subscription fee for each account holder to MAP ($.50 USD)

Wazalendo has signed a contract with MAP for MAP to provide all branches a core

Basic Agreement

Wazalendo has signed a contract with MAP for MAP to provide all branches a core

• perating system, biometric card system, ATMs, POS devices and mobile banking

The solution will automate all SACCO transactions and create a full audit trail All SACCO funds will be held at PostBank affording regulatory oversight All SACCO funds will be held at PostBank affording regulatory oversight Wazalendo account holders will be able to access their accounts from any MAP access point across the country, as well as from their mobile phones

Enrollment began on November 23rd, and 34,000 account holders have been

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Enrollment began on November 23 , and 34,000 account holders have been enrolled

LAP Green, a Multi-Market African Mobile Phone Operator has Selected MAP as its Mobile Banking Partner

• MAP’s proprietary technology will power
• MAP s proprietary technology will power

LAP Green mobile money and mobile banking products

• MAP will be an ongoing operational

LAP Green’s LAP Green’s Operator Portfolio Operator Portfolio

g g p partner, and the two partners will share product revenues

• Lap Green will use MAP’s nation-wide

network of commercial access points

• MAP will assist in direct-to-consumer

mass marketing efforts and its logo will be included on all collateral be included on all collateral

• MAP and LAP will soft launch with

Uganda Telecom in December of 2009:

Five year expected profit contribution of e yea e pected p o t co t but o

• $20+ million
• MAP and LAP will launch with Rwandatel in

Q2 of 2010

Five year expected profit contribution of $17+ With over 5 million subscribers, and additional licenses in two new countries (Togo & Sierra L ) L G i f Af i ’ l di

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Five year expected profit contribution of $17+ million Leone) Lap Green is one of Africa’s leading mobile phone operators

Table of Contents Table of Contents

• About MAP
• Case Study: Uganda
• MAP in the News

12

Presidential Visit to Office Presidential Visit to Office

MAP’s launch was met with palpable regional excitement 13

MAP Launches ATMs MAP Launches ATMs

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MAP Partners with Military SACCO

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MAP Launches Linkage Banking

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Two United Nations Publications Featured MAP Over the Last Year

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MAP was also invited to address the UN and the European Parliament

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MAP’s Growing Profile Led to its Nomination for a GSM Association Global Mobile Award

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