We’ve had a superb first day at the 5th MMU Working Group here in Kuala Lumpur. Here are some of the highlights from the presentations and discussions:-
Is there money in mobile money? Yes there is. MMU unveiled some of its latest research, drawing heavily on data sourced from MTN Uganda (one the grantees from the MMU Fund). The data shows that this mobile money deployment turned cash-flow positive on a month-to-month basis just 14 months after launch. Also, MTN Uganda’s experience has been that mobile money has had a dramatic effect on customer churn, and this has been a significant profit driver; the service has reduced customer churn from around 5% to as little as 0.2%. There will be a series of blog posts issued about mobile money profitability over the next fortnight, revealing more insights on this hot topic (the first of the series was posted here yesterday).
The importance of being … data driven. MMU’s work with grantees highlighted that many operators sometimes struggle to get hold of the right operational data to appropriately manage their deployment – and sometimes, the data that they track may actually hide some significant underlying issues . Getting the right management information reports set up, with appropriate drill-down, is essential for allowing operators to adequately monitor the health of a mobile money service and diagnose any issues. MMU has also developed a reporting framework, and has signed agreements with key vendors to incorporate these reports free of charge into their mobile money offering – more details on the reports, and the vendor agreements, will be available soon.
Typically, operators’ satisfaction level with their technology vendor is low … because expectations are too high? MMU shared its research into what operators look for in a technology partner, and how satisfied they have been with their engagement. The research showed that only 1 in 3 operators are satisfied with their technology vendor – the speed of implementation being the biggest driver for dissatisfaction. However, there was an interesting discussion around why this is – we’ll be posting more on this topic when we’re back in London
It took one bank, one operator, and one very strong shared vision to launch M-Kesho …. Waceke Mbugua from Safaricom and John Staley from Equity Bank talked about their partnership which was created in order to offer the M-Kesho service. The partnership took a long time to set up, but one of the key success factors was that each CEO, from either side of the partnership, was committed to the vision of launching such a service. The partnership was developed in excruciating detail – and will be described as one of the case studies in MMU’s upcoming report on how to develop effective operator-bank relationships. Even the M-Kesho logo is a visual representation of how precise the balance is between the two parties in the deal.
KYC – how low can you go? The final session of the day explored KYC – explaining why it is important, and also describing ways that this can be done without creating a barrier towards financial inclusion. Maybelle Santos from SMART Money shared interesting insights from how they have developed and rolled out their KYC processes. In summary, close engagement with their regulator was essential; and certain barriers had to be overcome in order to comply, particularly in rural areas… such as the lack of photocopiers and also the fact that a customers’ eyesight can actually be a greater barrier than financial literacy itself (some of the barriers were simpler than others to overcome than others). This was followed by an interactive training session for operators.
Today was packed with content, and we’ll be sharing a series of posts over the coming weeks, which will go into more detail on these topics. In tomorrow’s session, one of the key themes will be how to successfully market mobile money. We will also be discussing bill payments, international remittances and e-money.
Also, MMU is tweeting live from the Working Group – so make sure you follow us on twitter (gsmammu) if you want to hear some of the key insights as they come up, wherever you are in the world. And keep an eye on the blog over the coming weeks for more in-depth accounts from some of the sessions.