12th World Telecommunication/ICT Indicators Symposium
(WTIS-14)
Tbilisi, Georgia, 24-26 November 2014
Document C/12-E
25 November 2014
Presentation
English
SOURCE:
Uganda Communications Commission, Uganda
TITLE:
Measuring m-Banking services in Uganda
11/25/2014
MEASURING M-BANKING
SERVICES IN UGANDA
PRESENTED BY WILFRED OJOK
MARKET & INDUSTRY ANALYST
Department of Competition & Consumer Affairs
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WHAT ARE MOBILE FINANCIAL SERVICES(MFS)?
• MFS : Banking related services (payments, receipts, deposits etc)
accessed using a Mobile telephony platform / network
• Mobile Banking: Internet based & tied to actual bank account and
accessed using a mobile internet enabled device.
• Mobile Money (MM) – Unstructured Supplementary Service Data
(USSD) & SMS based service using a SIM as the repository of eValue or as the e-Wallet. (Technical definition)
• MM most popular service in Uganda & focus of this presentation
• MM begun as a Value Added Service (VAS) & Customer Retention
service; now further transformed into a tool of Financial Inclusion.
MEASUREMENT OF M-BANKING SERVICES IN UGANDA
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11/25/2014
what is mobile money?
What is mobile money transaction?
• Mobile money is e-money available to a user to
conduct transactions through a mobile phone.
• Mobile money transaction is a mobile phone
initiated person-to-person, or person-to- business
money transfer service.
MEASUREMENT OF M-BANKING SERVICES IN UGANDA
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Mobile money agents; Who are they?
•Retail outlets operators having direct interaction
with customers in providing all MM services;
appointed & authorized by the MNO
OR
•A manned retail outlet that Facilitates and provides
mobile money services
MEASUREMENT OF M-BANKING SERVICES IN UGANDA
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Roles of An Agent:
•Facilitates SIM card upgrade for customers
wishing to register for Mobile Money
•Registers customers on Mobile Money
service
•Educates customers on Mobile Money issues
•Provides cash-in (deposits) & cash-out
(withdrawal) transactions
MEASUREMENT OF M-BANKING SERVICES IN UGANDA
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Agents accounts versus customers accounts
AGENTS
• Maximum balance and
transaction limit are
much higher than
customer’s
• MM accounts are
created by MNOs to
serve customers;
CUSTOMERS
• Maximum balance and
transaction limits lower
than that of agents
• Customers’ Mobile
Money accounts are
created by agents using
the agent tills/phones
MEASUREMENT OF M-BANKING SERVICES IN UGANDA
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Withdrawing Mobile Money
This happens when users, both registered and nonregistered need to convert their e-money into cash
Registered users
Non-registered users
Will be required to present some form of Will be required to present some form
identification (mm registered number)
of identification, have a Token ID as well
a Secret Code.
Have a phone as well as know his/her
He/she may or may not have a phone,
MM PIN
has no PIN
Pay a charge for withdrawing, which
Does not incur any withdrawal charge
varies depending on the amount they
since the charges are catered for by the
are withdrawing.
sender, thus He/she receives all his/her
money sent.
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How Mobile Money Works:
REGISTERED USERS
Have mobile money accounts
Can send and receive money
Can buy airtime + other
services from the mobile
money platform
Can withdraw varied amounts
from their accounts
UNREGISTERED USERS
Do not have mobile money
accounts
Can not send but can receive
money
Can not buy airtime or any
service from the mobile money
platform
Must withdraw all the money
received
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Deposit - Buying Mobile Money
This occurs when a registered user wants to purchase
e-money.
• He/she will give physical cash to the agent and obtain an
equivalent e-amount of Mobile Money on his/her phone
• Only registered users can buy Mobile Money,
• There are no charges for this transaction
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MNOs providing MMS in Uganda
MNOs
YEAR OF LAUNCH
COMMERCIAL BANKS IN
PARTNERSHIP
MTN
2009
Crane Bank, Centenary Bank,
United Bank of Africa
AIRTEL
2009/2012
Standard Chartered Bank,
United Bank of Africa
UTL
ORANGE
2010
2013
SERVICES OFFERED
Paying utility bills
Paying tuitions
Pay TV
Post Bank, Posta Uganda, Pride
Micro Finance, Uganda Finance
Trust
Insurance Premium
Post Bank, Pride Microfinance
Air ticket payments
Street parking fees
Buying general goods and
services
Former Zain launched the service in 2009 but was later acquired by Airtel. Mobile services of both companies were
merged in 2013. Warid Telecom also had mms but was as well acquired by Airtel
MEASUREMENT OF M-BANKING SERVICES IN UGANDA
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DEVELOPMENTS & INNOVATIONS
• Two new MFS providers in the last two years;
EZEEMONEY and MCASH-both are MNOs platform
independent
EZEEMONEY
MCASH
Incorporated in June 2012
Provides
Mobile
financial
services to individuals and
businesses.
Network platform independent
Users
transact
with/using
EzeeMoney e-Wallet at the
various EzeeMoney Service
Centers countrywide.
The MCash account is a virtual
account
Offered by Housing Finance Bank.
Electronic wallet and e-Value
accessible using biometrics, mobile
phones, charge cards and online at
www.mcash.ug
MCash account tied to Housing
Finance
Bank
but
MNO
independent
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MEASUREMENT OF M-BANKING SERVICES IN UGANDA
SUBSCRIPTIONS: MOBILE TELEPHONY Vs MOBILE
MONEY
25'000'000
(June 2014)
(June 2012)
(June 2013)
19,244,359
91.7% of
Mobile
subs
20'000'000
17,644,162
16'665'310
15'535'989
15'000'000
12'117'821
10'000'000
5'662'871
5'000'000
-
2011/12
2012/13
No of mobile subscribers
2013/14
Mobile Money Registered subscribers
MEASUREMENT OF M-BANKING SERVICES IN UGANDA
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SUBSCRIPTION GROWTH: MOBILE TELEPHONY Vs MOBILE MONEY
6'000'000
Faster growth rate
in the number of
5'526'341
5'000'000
mobile money
46.5%
4'000'000
subscriptions than
3'000'000
2'579'049
growth rate in
mobile
15.5%
2'000'000
subscriptions
1'000'000
MMS
GROWTH
M SUB
GROWTH
recorded as of
-
June 2014
New subscribers
Mobile subscription
Mobile Money subscription
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(BANK BRANCHES & ATMS) Vs (MM SERVICE POINTS & AGENTS)
60'000
53'560
50'000
131.5%
40'000
30'000
23'136
10.9
20'000
10'000
1'206
1'337
0
2012
NUMBER OF BANK BRANCHES+ATM OUTLETS
2013
NUMBER OF MM AGENTS
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BANK ACCOUNTS versus MM ACCOUNTS
2012
16'000'000
2013
14'243'379
14'000'000
60.6%
12'000'000
10'000'000
8'887'087
8'000'000
6'000'000
5'008'305
4'000'000
5'367'512
7.2%
2'000'000
0
NUMBER OF BANK ACCOUNTS
NUMBER OF MM ACCOUNTS
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Access and usage indicators
ACCESS INDICATORS
USAGE INDICATORS
Number of mobile money
Value of transactions
agents
Balance on customer accounts
Number of banks partnering
Value of outstanding
with MNOs
remittances
Number of registered mobile
Number of transactions
phones
*Data on the above indicators are compiled monthly
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MMS STATISTICS IN UGANDA; THE
CHALLENGES
• NO Regulator visibility into the MMS technology &
platforms.
• UCC has NO DIRECT access to MMS data
• Regulatory framework for MMS being developed to fill gap
in UCC & BOU regulatory roles
• BOU & UCC lack independent verification of submitted
data on MMS
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Instead of paying with cash, cheque, or credit cards, a consumer can
use a mobile phone to pay for a wide range of services.
END
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THANK YOU
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