Presented as part of the Mobile Money Inclusion Summit in Dar es Salaam, Tanzania, November 10, 2011.

1. Lisa Kienzle
Operations &
Strategy Manager
Mobile Financial
Services,
Grameen
Foundation’s
AppLab
November 10,
2011
Mobile Money Product Innovation
Driving financial inclusion through product development

2. There is incredible untapped potential in mobile money
Safaricom’s M-PESA …yet outside
has proven that the Kenya, few services
mobile channel can have realized the
reach poor same customer
consumers… uptake
M-PESA in Kenya is a “Fewer than 1 in 10 mobile
“resounding phone banking customers
technological innovation.” are poor, new to banking,
and doing anything more
-IMF,
regional economic outlook
than payments and
for Sub-Saharan Africa transfers.”
-Consultative Group
Assisting the Poor (CGAP)

3. When it comes to product, the industry is facing a
crisis of innovation
~100% Few providers have
offer standard
payments moved beyond
120
38% payments in their
# operators offering the
100 provide other
payment types
product offering
29%
product type
80
enable interaction
with financial
60
institutions 11%
facilitate
40
loans
4%
offer
20 insurance
0
Traditional Other Bank Credit Insuran
Payments Payments Linkage ce
(Transfer, Bill
Pay, and/or
Airtime)
Payments Beyond
Payments
Source: GSMA deployment tracker.

4. So why aren’t we seeing more innovation?
Time Resources
Not a sudden “stroke of Requires an institutional
genius” – but the result of investment – both financial
significant time and effort and human capital
R&D Process
Appetite for Risk Must have capacity for
research, development and
Must be prepared to
design that involves a deep
celebrate failure
engagement with the
consumer

5. How do we drive innovation?
Successful ideas are
derived from an analysis
of consumers’ current
practices
• Must fit into existing
behaviors rather than
changing or displacing
them
• Requires an
understanding unmet
needs, which yields key
insights that drive

6. Insights arise from close studies of the end-user
QUESTION INSIGHT
“If I have
money in my “I save in a box,
Q1: How do you pocket I I want it locked
use informal spend.” away.”
financial services
today?
“I make a little “I’m paid
money each when I
Q2: What are your day – but not sell crops –
cash enough to a few times a
inflows/outflows? save.” year.”
“When I’m not
working, I like to
Q3: What do you do play [games] with
in your free time? friends.”

7. Example 1: Culling insights from current practices - savings
1 3 5
2 4 6

8. Example 1: Informal practices yield product ideas
INSIGHTS: PRODUCT:
Savings “Goal” Accounts
Set up multiple
Need an
sub-wallets
illiquid
You have
device deposited
Each named for a 2,000 UGX in
Want to goal (“School;” your “School
Fees”
“Emergency,” etc.)
partition account Your
balance is
money to 78,000 UGX.
Deposit to or
save for
different withdraw from a
specific
goals
e-wallet as desired

9. Example 2: Following the money

10. Example 2: Cash flow patterns can drive product ideas
INSIGHTS: PRODUCT:
Automatic Savings Sub-
Wallet
Create a primary
Small wallet and a sub-
increments – wallet You have
barely saved 34,000
UGX this
noticeable At each transaction month with
AutoSave.
(e.g., airtime top-up) Your savings
An already cash diverted to balance is
embedded sub-wallet 64,000 UGX.
cash flow
behavior Small amounts
saved, almost
without knowing

11. Example 3: Building on what people want with what they
need
People love
gaming…
…but they need
protection from “shocks”

12. Example 3: Juxtaposition of wants/needs yields new ideas
INSIGHTS: PRODUCT:
Lottery Health Insurance
Each month, small
Want the amount deducted
sensation You have enrolled
from wallet as into MM lottery
of premium insurance and are
gambling covered for 2
million UGX for
Insurance protects illness and eligible
Need for the 100M UGX
against health grand prize.
protection issues
from
shocks Lottery pays cash
prizes via mobile
money

13. Conclusion
Successful innovation requires a deep
understanding of the consumer
New product ideas tailored to specific needs
can increase financial inclusion
These new products will help operators
identify the next “resounding technological
innovation”

14. Thank You.