leveraging existing mobile money servics for vas adoption_naveed choudhury

Leveraging existing Mobile Money services for VAS

adoption

Naveed Ahmed ChoudhuryHead of M-Commerce, Citycell

(a JV of SingTel & Pacific Telecom Bangladesh)January 31,2013

www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved

Outline•Bangladesh overview•M-Commerce industry•Citycell in M-Commerce•Mobile payments•Current technologies•Segment without mobile•Way forward

Outline of presentation• Bangladesh overview• M-Commerce industry• Citycell in M-Commerce• M-Commerce Service & VAS adoption• Maximising revenue in current

business model• New Marketing strategies, Loyalty &

rewards


Bangladesh: country overview

•Population>160 million.

•GDP : US $ 282 billion (PPP)

•Growth rate: 6%(approx.)

•GDP/capita: US$1970 (PPP)

•Bank access: only 13%. But mobile subscribers>90 mln*

So there is a huge opportunity to provide access to banking services through Mobile phones.


Remittance

Source: worldbank

2005 2006 2007 2008 2009 20100

2,000

4,000

6,000

8,000

10,000

12,000

Migrant remittance inflows to Bangladesh

Migrant remittance Inflows (US$ million)

– International remittance accounts for 10% of national GDP.

– Channels:• Formal: Banks, Money transfer

organizations, Postal services etc.• Informal: Hundi or hawala, hand

delivery, travel agencies etc.

– Existing channels are • Costly• Time consuming• Bureaucratic etc.M-Commerce can simplify remittance receiving.


M-Commerce landscapeM-Commerce landscape• Bank-driven model: 22 Banks

given approval.• Only 14 banks able to launch

service.• DBBL, partnering with Citycell

first to launch M-Commerce in March 2011.

• Citycell as an MNO provides retailer footprint and network connectivity.

• Citycell pioneered launch of Mobile Banking partnering with a local Bank.

• As per regulatory frame work, Banks have ownership of product, pricing, campaigns etc. MNO provides retailers and network.

• Citycell has introduced innovative uses of M-Commerce e.g. retailer commission payment(partnering with DBBL).


A growing market• Main players:Bkash(2.2) &

DBBL(1) million accounts. Total 3.3 million(approx.) accounts.

• Total number of M-Banking accounts was 0.7 million(approx.) in May 2012.

• So > 400% growth in eight months.

• New player Bank entering landscape.

• New services e.g. international remittance, deposit schemes to be introduced soon.


M-Commerce & VAS adoptionMaturing and upgrading the Telecom customer

Mobile voice

SMS

Various VAS e.g. SMS based, IVR based, USSD based VAS

Internet access & services

A large part of the unbanked segment is in this part. As they are exposed more & more to SMS,IVR & USSD for using M-Commerce services , it will be easier for them to adopt new VAS services.M-Commerce services is helping technology

adoption.


Maximising revenue

•Launch various services for growth in transactions e.g. Mobile payment.

•Target the unbanked who do not have mobile phones.


Marketing strategy,Loyalty & rewards

•Set up a reward & loyalty program for high-value users.

•Tie up M-Commerce with Telecom services.

leveraging existing mobile money servics for vas adoption_naveed choudhury

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