INCLUSIVE MOBILE FINANCIAL SERVICES:
ARE BARRIERS COMING DOWN
Review of Digicel’s Mobile Money service in Haiti
Haiti Market snapshot
Population – 10.17m (World Bank ‘12)
% of Bank accts – 16% (inclusive of MFI, Credit
Union and Bank accts)
GDP (nominal, per capita) - $758/yr (3/4 of
population live under $2/day)
Intl Remittance inflows – $2b/yr
Domestic Transfers - ~ $968m/yr
Literacy Rate – ~ 50%
Mobile Penetration – 6m (2 carriers) 60%
Digicel market share – 75%
Bank License – partnered with Scotiabank;
expanding to other banks in ‘13
Positive influences for Mobile Money • HMMI – Gates Foundation kick starting
Mobile Money during 2010
• Largest concentration of NGO activities per
capita worldwide
• USAID/World Bank/IADB/others – funding
programs aimed at Inclusion
• Digicel’s National Distribution network
providing liquidity for daily airtime sales
Issues that plague society –
• At least 6 hurricanes since 2008
• 2010 Earthquake, plus Cholera outbreak
amongst other diseases
• Rainy season - major rain storms pass daily
during shopping busy hours (5-7pm)
• Riots/turmoil that slows economy
• Theft comes in many forms and affects all
businesses and people
• Fraud is common and many times against
the poor
• Liquidity in the rural areas not sufficient;
limited to Bank branches
• Long lines at Banks and Remittance
branches; typically 1-2 hour waits
• Reliable Power not accessible to more than
half of the population
• More than half the population does not
have a valid ID
• Most Domestic Transfer happens informally
through trucks/taxis and other forms; theft
or loss risks estimated at more than 15%
Platform overview • Tchotcho means “money” in Creole
• Started in Dec 2010; migrated to
Utiba technology in May ’13
• Total Agents - ~ 800 (500 active)
• Total Subs - ~ 305k (50k active)
• Total Transactions - > 6m
• Float - $1.5m (agents/customers)
Acct types • Tiered Agent structure including
Withdrawal-only agents
• 3 Merchant profiles including
Mobile Payment; to introduce
informal merchant profile ‘14
• Full KYC accts ($250 limit,
expanding to $1000 in ‘13)
• Light KYC accts ($100 limit)
Services available today –
• Deposit/Withdrawals
• Domestic Transfer
• Payroll/Disbursement services
• Merchant services
• Mobile/Bill Payment services
• Airtime purchases for self and gift
• API integration for 3rd parties
Future Services –
• Int’l Remittance direct to phone
• BOOM and other MM exchanges
• Agriculture Financial services
• Savings programs
• NGO customized initiatives
targeting different affected peoples
• Mobile Banking (for Banked pop)
Lessons learned –
• Sustainable business model is extremely important, where Agents earn enough and
customers save enough versus other comparable services
• Education campaigns for both merchants, agents, and a highly publicized consumer
campaign
• Market research and Customer surveys done in advance of launch are key to
determining if a model will work, giving time to make adjustments
• It is better to have an abundance of agents than a shortage; network grooming is
better off done after maturity; bad agents can be identified through performance
• Mobile Money Agents need constant monitoring; liquidity levels, customer
satisfaction, and fraudulent activities need to be properly controlled
• Have enough qualified staff to cater for all the activities; the more services being
targeted, the more staff required to deliver all aspects (do not under staff in the
beginning)
• Comprehensive Marketing campaign that draws customers into the service;
advertise the quick-win benefits (i.e. purchase airtime anytime, anywhere)
• Reach out to NGOs and Corporates and educate them on how to customize services
to expand the ecosystem
• Use promotions on key services to entice customers
Gracias! Buenos Dias!
Thank you!