M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
PROMOTING MOBILE BANKING AND MOBILE
MONEY DEVELOPMENT IN UEMOA REGION
By :
Mr. Boukary ZONGO
Director Of Opération and
Electronic Banking Standards
GIM-UEMOA
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
SHORT PROFIL
Mr. Boukary ZONGO
: boukary.zongo@gmail.com
or boukary.zongo@gim-uemoa.org
: +221 77 446 06 65
ou +221 77 377 80 43
Mr. Boukary ZONGO is currently the Director Of Operations and Electronic
Banking Standards of GIM-UEMOA, the regional regulator body and
guardianship of electronic banking for West Africa Economic and Monetary
Union federating 8 countries, 104 banks and Central Bank. Previously, he has
worked a long term as an electronic bank expert in private banks and with
Central Bank to define regional rules and standards before the creation of GIMUEMOA in 2003. He has also worked before in a biggest Research Center and
Private society in Luxembourg, Europe.
ZONGO trains students in master 1 and master 2 electronic banking. He
animate many West Africa regional seminars federating 50 to 300 people
coming from different countries.
ZONGO has degrees from Ouagadougou University BURKINA FASO, Henri
Poincaré University, Nancy 2 University FRANCE.
2
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
CONTENTS

UEMOA IN BRIEF

GIM-UEMOA IN BRIEF

BACKGROUND AND OBJECTIVES

GIM-MOBILE CHARACTERISTICS

DEPLOYMENT AND PROMOTION

CONCLUSION
3
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
4
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
UEMOA IN BRIEF
UEMOA, THE WEST AFRICAN ECONOMIC AND
MONETARY UNION IS AN EXPERIENCE WHICH
BASIC FEATURES ARE :
 the pooling of the foreign exchange reserves of
the member countries
 the adoption by the 8 countries of a CFA franc, a
common currency issued by a single central bank
 the application of a uniform banking and financial
legislation throughout the Union.
5
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
UEMOA IN BRIEF
BANKS AND FINANCIAL INTITUTIONS
NUMBER OF
INHABITANTS
ORDER
1
2
3
4
5
6
7
8
BENIN
BURKINA FASO
COTE D'IVOIRE
GUINEE BISSAU
MALI
NIGER
SENEGAL
TOGO
TOTAL
NUMBER OF INSTITUTIONS
FINANCIAL
BANKS
TOTAL
INSTITUTIONS
NOMBER OF
AGENCIES
NUMBER OF
ACCOUNTS
9 100 000
15 000 000
20 800 000
13
12
21
0
5
1
13
17
22
158
188
499
576 294
671 131
1 768 868
1 400 000
12 400 000
14 300 000
11 700 000
5 700 000
90 400 000
4
13
10
19
12
104
0
3
1
2
2
14
4
16
11
21
14
118
17
291
78
305
157
1 693
41 583
822 924
232 491
853 859
583 543
5 550 693
Source : « Banking Committee Report 2010 »
6
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
UEMOA PAYMENT SYSTEMS REFORM
UEMOA HAVE THREE MAJOR SYSTEMS REFORMS AT THE
REGIONAL LEVEL :

A real time gross settlement system (RTGS) for large value payments
called STAR-UEMOA.

An interbank electronic clearing system called SICA-UEMOA

An interbank card/ mobile-based payment system managed by GIMUEMOA
The real time gross settlement system (STAR-UEMOA) and the
interbank electronic clearing system (SICA-UEMOA) are
directly managed by the Central Bank BCEAO.
GIM-UEMOA is in charge of the interbank card/ mobile-based
payment system.
8
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
INTERBANK SERVICES
GIM ISSUER
GIM ACQUIRER
ATM
POS
CARDHOLDER
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
GIM IN BRIEF
82
Institutions
interconnected
104
Institutions
members of
GIM
GIMUEMOA
2
millions
cards
3 000
Services points
(2 000 ATM and
1 000 POS)
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
TRANSACTIONS FROM 2007 TO 2011
90,000
81,067
80,000
70,000
60,000
50,000
44,027
40,000
30,000
20,000
11,079
10,000
-
692
9
1
2
3
4
5
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
SECURE ENVIRONMENT
GIM-UEMOA :
EMV and
MAGSTRIPE
EMV
PCI-DSS L2
VISA : EMV and
MAGSTRIPE
MASTERCARD :
EMV and
MAGSTRIPE
PCI-DSS Level 1 certification will be completed in 2012.
12
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
PROSPECTS
MULTI
INSTITUTIONS
CFA and
foreign currency
French, English,
Portuguese and
Local Langages
Banks, Financial Institutions,
Postal Facility, Microfinance Institution,
Ectronic Money Institution , etc..
MULTI
MULTI
CURRENCY
COUNTRY
MULTI
MULTI
LINGUAL
CHANNEL
MULTI
MEDIA
UEMOA
countries and
others countries
ATM
POS
Internet
Mobile
Cards (debit, prepaid, credit/ GIM, VISA, MCI)
Mobiles (bank accounts, prepaid)
Fingerprints (bank accounts, prepaid)
13
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
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M. Boukary ZONGO.
•Observation:
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
BACKGROUND
 About 90 million people
 Banking rate < 10% of the workforce
 GIM-UEMOA members : 104 institutions
 Institution interconnected : 82
 Electronic banking Park: 2,000,000 cards, 2,000 ATMs and
a 1,000 POS.
 Detention card rate < 3%.
•The cost of cards, ATM / ATM and POS as well as the
quality of telecom infrastructure in parts of the Union
cause the GIM and its members to seek additional
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means of payment.
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
BACKGROUND
• Mobile telephony:
 Penetration rate : 60%
 Sustained growth over several years.
• The mobile phone therefore becomes an
indispensable complement to the development of
electronic banking channel (cards, ATM, POS, Internet,
etc..)
• This is the purpose of GIM-MOBILE, a project
initiated in January 2011. The official launch was
made on December 8, 2011.
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
OBJECTIVES
• Expanding the network GIM-UEMOA to rural areas as
well as town in UEMOA Region.
• Offer available products and services for a larger
number of people, including those with low income
and unbanked.
• Significantly increase the rate of electronic payment
means in UEMOA region.
• Contribute actively to the increase of banking.
• Significantly expand the share of electronic
transactions in financial flows.
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
REGULATORY FRAMEWORK
Two documents define the conditions for issuing
electronic money by UEMOA institutions :
• REGULATION No. 15/2002/CM/UEMOA ON PAYMENT
SYSTEMS IN THE MEMBER STATES OF UEMOA REGION.
• 01/2006/SP OF EDUCATION July 31, 2006
REGARDING THE ISSUANCE OF ELECTRONIC MONEY
AND ELECTRONIC MONEY INSTITUTIONS.
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
REGULATORY FRAMEWORK
In UEMOA region, can issue electronic money :
 Banks
 The electronic money institutions (EME): any financial
institution, postal facility, service provider company
approved as EME by the Central Bank BCEAO.
A telecom operator as any institution can issue electronic
money in coordination with a bank or EME. In this case,
the bank or EME shall guarantee all transactions made by
the telecom operator and the project must be validated.
We note as well the development of mobile payment
solutions in the UEMOA.
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
MOBILE SOLUTION SAMPLES
Find below mobile banking/ payment solutions
deploy in UEMOA Region :
 BENIN : MTN MONEY, LA POSTE, MOOV.
 BURKINA : INOVA PAY, MONEY ZAP, FERLO
 COTE D’IVOIRE : ORANGE MONEY, CELPAID, eTRANZACT, SCASH, PME
CASH
 GUINEE BISSAU : ORANGE MONEY
 MALI : ORANGE MONEY, FERLO
 NIGER : AIRTEL MONEY, ORANGE MONEY
 SENEGAL : ORANGE MONEY, YOBANTEL, FERLO
 TOGO : TOGOCEL, MOOV.
A dozen of local developed mobile solutions are
being implemented.
21
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
REGULATORY FRAMEWORK
We note an important number of mobile solutions in
UEMOA region. In addition, key market players (banks,
mobile network operators, providers of payment
services, etc.) are unable to agree on a viable business
model for interoperable payment solutions, "hence a risk
of fragmentation by the adoption of proprietary
solutions.
 The stated objective by the GIM-UEMOA is to increase
transparency and security of payments, to stimulate
competition and innovation within the single market: the
eight UEMOA countries. An update of the regulatory
framework will be done this years.
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
GIM-MOBILE IN BRIEF
This new regulatory framework will be accompanied
by a technical foundation for accelerating a rapid and
coherent development of mobile banking in the
UEMOA. Capitalization will be performed on the world
of banking cards with:
 A interbank component to interconnect the various
mobile banking solutions in the region according to
predefined rules and standards. Which allows
customers and merchants to perform operations in an
"open loop".
 Delegated component to pool and make mobile
solutions accessible to all institution regardless of its
size and financial capacity.
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
GIM-MOBILE
GIM CLEARING
BANK ACCOUNT
PREPAID MOBILE
DEBIT/CREDIT CARD
PREPAID CARD
SWITCH
BANKs
TELECOM
OPERATORS
ORANGE
TIGO
…
BANK1
MOOV
…
MTN
BANKn
CENTRAL BANK
SETTLEMENT
MONEY TRANSFER
COMPANY
ACCEPTEORS AND
MERCHANTS
WESTERN UNION
BILLERS
MONEY EXPRESS
WARI
TAXES AND
CUSTOMS
…
RIA
…
MONEY GRAM
ORGANIZATION
24
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
GIM-MOBILE IN BRIEF
GIM-MOBILE integrates on a single platform:
 Interbank Mobile
 Mobile banking,
 Mobile payment,
 SMS Banking,
 Branchless/ Rural banking.
It offer various banking products and services on the mobile
phone. He brings a real answer to the problem of the proximity of
banking products and services and increasing the banking rate.
25
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
GIM-MOBILE IN BRIEF
GIM-MOBILE is addressed both : banked and unbanked
population. Customer can access to bank account, credit card, a
virtual account pre-loaded or a combination thereof.
PREPAID ACCOUNT
BANK ACCOUNT
DEBIT / CREDIT CARD
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
Money Transfer
Bills
payment
Taxes and
customs
Etc.
SMS, Base I, Base MDS, CIS, IPM
II
GIM-CARD
BANK1
Card
POS
holder
Version : 1.2
BANK2
ATM
…
GIM-MOBILE
BANK1
BANKn
Card
Holder
POS
ATM
BANK2
Mobile
customer
…
BANKn
Mobile merchant
Legend :
Online
Offline
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
GIM-MOBILE IN BRIEF
With the lack of quality of telecom infrastructure,
GIM-MOBILE use differents types of connections:
 GPRS,
 WIFI,
 Encrypted SMS,
 Clear SMS
 USSD
INSTITUTION
TELECOM
OPERATOR
GIM-MOBILE
28
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
DEPLOYMENT PLAN
 2011: Project initiation and Official Launch
 2012: Pilot with different types of actors (banks,
telecom operators, acceptors, money transfer
company, etc.)
 2012-2014: Developing the network of service
points:
 Using the network of banks, financials
institutions, postal facility branches in UEMA
Region
 Using the network of ATMs / ATM and POS
WAEMU
 Recruitment of mobile and business
30
correspondent (job creation)
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
NETWORK DEVELOPMENT
• strategy:
– Promoting services that interest people
– Proceed a mesh of UEMOA 8 countries through:
• With the approval of mobile agents;
• Recruitment of small traders trained to promote the service
• The use of the network GIM-UEMOA (104 members including 13
banks in Mali and their business customers);
• The use of automatic teller machines (ATM) operating 24h/24 and
7/7.
– Promote the network
– Branding & Merchandising service points
– Securing the Network
• Service points at hand:
– Geo-location of residential areas, attendance billers
subscribers, etc.
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
PROMOTIING OF CROSS BORDER TRANSACTIONS
REGIONAL: CENTRAL BANK BCEAO AND GIM-UEMOA
 Creating a dedicated structure: ok with the GIMUEMOA
 Defining an electronic payment rules: ok.
 Reform of systems and methods of payment:
technologies and innovations are changing very
quickly. Need to adjust regulations on a regular basis.
 Establishment of a technical platform: ok with the
GIM-UEMOA
 A framework for consultation and decision: OK with
the regional conferences and national electronic
banking committees.
32
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
PROMOTING CROSS BORDER TRANSACTIONS
REGIONAL: CENTRAL BANK BCEAO AND GIM-UEMOA
• Improvements:
 greater involvement of states and telecoms
operators.
 Transactions limits control define for reducing
systemic risk but sometimes value inappropriate
to the needs of the population.
 Promotion initiated but insufficient
 Statutory instruments little known even lawyers.
33
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
PROMOTING CROSS BORDER TRANSACTIONS
• NATIONAL:
– STATES: PROMOTION POLICY OF ELECTRONIC
PAYMENT MEANS. EACH STATE CAN :
• mandate domiciliation of salary in an account (banking,
prepaid, etc.).
• mandate the payment by electronic payment means of
any amount above a threshold .
• sensitize and educate the public.
All these provisions must be accompanied by an
information policy, education and awareness.
34
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
PROMOTING CROSS BORDER TRANSACTIONS
• NATIONAL :
– PUBLIC AND PRIVATE COMPANIES
• Public organization: customs, taxes, ministries,
etc..
• Private organization : water, electricity, phone
companies, others private structures
• Regional and international organization : thus,
for example ASECNA through a collaboration
with the GIM-UEMOA has made ​it mandatory
from 30 november 2011, payments by
electronic means rights and airport taxes.
35
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
HOW TO BOOST MOBILE BANKING IN UEMOA
BOOSTING MOBILE BANKING IN UEMOA REGION CAN
BE DONE :
 THE DEPLOYMENT OF INTERBANK AND
OUTSOURCING MOBILE BANKING PLATEFORM,
 THE DEVELOPMENT OF MOBILE BANK POINTS OF
SERVICE ACCESSIBILITY,
 PROMOTION OF MOBILE BANKING PRODUCTS
AND SERVICES.
36
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
HOW TO BOOST MOBILE BANKING IN UEMOA
DEPLOYMENT OF INTERBANK AND OUTSOURCING
PLATEFORM
o Interbank will allow interoperability between
different mobile solutions.
o Outsourcing is dedicated for institution with
low income but a potential development .
o Define rules, quality charter mandatory for the
different mobile banking solution in UEMOA
Region.
o Customize the solution taking care of what
people really need.
37
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
HOW TO BOOST MOBILE BANKING IN UEMOA
POINT OF SERVICE ACCESSIBILITY
o Mesh
network
from
banks,
financial
institutions and postal, telecom operators,
o Recruitment of master partners, wholesalers,
retailers.
o Adequacy
of
service
quality,
cost
of service for low-income population.
o Usability of the product by customers, whatever
their level of education
o The customer service (availability of an access
point and support 24/24, 7/7)
38
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
HOW TO BOOST MOBILE BANKING IN UEMOA
 PROMOTION AND AWARENESS
Educational: use relay (schools, universities, etc.). I
n association with different regional schools
,integrate
training
modules
on
mobile
banking (marketing, legal, computer, electronic
banking, financial, etc.).
Informational: organizing meetings, forum,
seminars, etc. Participate in strategic meetings in
the region.
 Advertising:
advertising
media
and
non media (television, radio, newspapers,
posters, etc.)
39
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
CONTRIBUTION OF DEVELOPMENT PARTNERS
 PROGRAM FUNDING
EDUCATION PROGRAMS. This is introduced
mobile
banking(IT,marketing,legal,accounting,etc.) in the educational
system of schools and universities training modules
TRAINING PROGRAM. This is to train actors in the chain
of
mobile
banking
transactions (technicians, distributors, coordinators, etc.).
 CAMPAIGNS AND PROMOTION. The use of fiat money is
rooted in the habits of the population. Changing habits and
reverse can be done through campaigns.
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
CONTRIBUTION OF DEVELOPMENT PARTNERS
 ACCOMPANYING
MODERNIZATION
PROGRAM
Support
acceptors
wishing
to
modernize their chain of acceptance
of payment by electronic means of
payment above the informal sector.
Support the development of technical
infrastructure
(electricity,
phone,
telecoms, etc.), especially in rural areas.
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M. Boukary ZONGO.
The
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
RISK CONTROL
risk control is a very important issue.
 Control measures against money laundering
and terrorist financing will be systematically integrated
into
the
framework
of
this
project.
 Thus,
regional
cooperation
with
structures specialized in the fight against money
laundering
and
terrorist
financing
is
necessary. The GIM-UEMOA working within this
framework with GIABA, Intergovernmental Action
Group against Money Silver.
42
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
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M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
• GIM-UEMOA promote Mobile Banking and Mobile
Money for banked and unbanked people in UEMOA
Region.
• We include in our strategy people with low income
and rural areas taking care about the cost and
identifing all services that real interest these people.
• UEMOA Region, with the high population numbers,
lack of access to financial institutions and significant
mobile penetration rates, is an ideal region for mobile
banking and payments deployment. Providing an
interoperable solution to the unbanked population will
help the region continue to grow and evolve both
economically and socially.
44
M. Boukary ZONGO.
PROMOTING MOBILE BANKING AND MOBILE MONEY DEVELOPMENT IN UEMOA REGION
45