Presentation on theme: "FINANCIAL SERVICES FOR THE POOR Digital Financial Services Platform Kosta Peric March, 2015 12 345 67."— Presentation transcript:
FINANCIAL SERVICES FOR THE POOR Digital Financial Services Platform Kosta Peric March,
Regulatory and Governance Framework Establish Legal and Regulatory Framework to initiate and sustain digital financial services scheme and platform Interventions: Create and guide mechanisms for rule setting, stakeholder collaboration, governing and operating the DFS scheme, participants and performance Infrastructure for Connectivity & Interoperability Define requirements, buy/build National DFS Utility Interventions: Requirements and build/buy National DFS Utility, API library, vendor, provider, operator SLAs Digital Accounts & Transactions Enable account opening and manage accounts for consumers, agents, merchants and payees Interventions: APIs and software library for National DFS Utility integration, vendor certification, selection, SLAs Accounts Rails Rules Innovation Market for Value Added Services & Products Enable market ecosystem innovation that delivers affordable, effective pro-poor services and products Interventions: APIs and software library for developers to build, offer and deploy applications Apps Roadmap
Big Payers Government Employers NGOs Big Payees Merchants Utilities Hospitals Retail and Commercial Banks Agents Consumers Small Payees Merchants Big Payers Government Employers NGOs Big Payees Merchants Utilities Hospitals Card Networks ACH RTGS Retail, Commercial and Settlement Banks National DFS Utility Provider Fraud and Risk Management Inter operability DFS Service Provider Consumer & Agent Account Mgmt Account Opening Merchant Account Mgmt DFS System Reference Model Agents Consumer s Small Payees Merchants DFS Service Provider Consumer & Agent Account Mgmt Merchant Account Mgmt Central Bank ID & Mapping Account Opening ID & Mapping
Big Payers Government Employers NGOs Big Payees Merchants Utilities Hospitals Retail and Commercial Banks Agents Consumers Small Payees Merchants Big Payers Government Employers NGOs Big Payees Merchants Utilities Hospitals Card Networks ACH RTGS Retail, Commercial and Settlement Banks National Utility DFS Service Provider Fraud and Risk Management Inter operability DFS Service Provider Consumer & Agent Account Mgmt Merchant Account Mgmt DFS System Reference Model Agents Consumer s Small Payees Merchants DFS Service Provider Consumer & Agent Account Mgmt Merchant Account Mgmt Central Bank Account Opening ID & Mapping
Use Cases NGO/GO Portal Make bulk payment NGO/GO Portal: Generate Report Observe Pending status for Bolajy Observe successful payments status Review detailed errors SMS: Bolajy’s phone Receive SMS saying he has a pending payment and needs to open an account using the attached short code USSD Emulator of Bolajy’s Phone Bolajy opens account with national ID, sets PIN Observe alt ID Observe limits SMS: Bolajy’s Phone Receive SMS indicating a payment has been received, amount and payer USSD Emulator of Bolajy’s Phone P2P to Dupe for 135 using phone number Observe fee transparency SMS: Dupe’s Phone Receive SMS to confirm payment amount and payer USSD Emulator of Patience’s Phone or Smart Phone Patience (Merchant) requests payment from Bolajy for 75 using alt id USSD Emulator of Bolajy’s Phone Check pending and approves transaction with PIN Observe fee transparency SMS: Patience’s Phone Patience gets SMS to confirm payment Buy Things from Any Merchant Send Money to Anyone Self-Issue Make Bulk Payments to Anyone USSD Emulator of Bolajy’s Phone Run mini statement for balance and summary of all transactions& fees Keep Money Secure. Check Balance. Account Issue With Biometrics Government sends subsidy voucher USSD Emulator of Bolajy’s Phone Bolajy opens account with national ID and biometric. Sets PIN Observe alt ID & limits SMS: Bolajy’s Phone Receive SMS indicating a payment has been received, amount and payer Government Portal Make bulk payment Receive reports SMS: Bolajy’s phone Receive SMS saying he has a pending voucher USSD Emulator of Patience’s Smart Phone Patience (Merchant) requests payment from Bolajy USSD Emulator of Bolaji Phone Bolaji uses a voucher to pay New in Nov 2014
Implementation Model Indonesia Tanzania UgandaIndia Nigeria Kenya Global Co-Sponsors WBG, USAID, DFID Global Deployment Partners USAID, WFP, UNICEF, BRAC / VocaLink, MCW, ACI, BankServ Global Standards & Practices WBG, ITU, BIS, GSMA, ISO, TC68, FATF, IPFA SADC: 14 Additional Countries Country Support Cross-Cutting Work Application Incubator Global Advocacy Strategic Partnerships Bangladesh DFS Platform Program Coordination Pakistan
Make Bulk Payments 7 Delivery attempts continue until expiration date Data match criteria would be determined by payer Send one bulk payment file through IST that can go to all recipients Recipients who do not have an account will be prompted to open one Specific error codes to guide follow up data cleansing Informative Texts to Users to Notify them of New Payments and to suggest account Opening You have received 3,578 from WFP You have pending transaction of 3,578 from WFP. Dial *105# to open mobile account and receive the money.
Self-Issue Account 8 Remote account opening based on KYC already done by WFP & MNO, no additional ID required Immediate PIN creation, no need to wait for SMS or enter activation codes Tiered accounts with locally appropriate limits to manage financial risk to the system
Keep Money Secure – Balance Check 9 Account balances are tracked by mobile money provider and the switch to ensure accuracy Fraud checks are done as part of each transaction to manage system risk Free user mini-statement shows current balance and recent transactions Is my money REALLY safe?
Send money to anyone 10 System keeps names of most frequent recipients to reduce data entry and potential errors IST keeps customer names across mobile money providers allowing name to be shown after phone number entered to reduce errors Transparency of fees on each transaction builds trust in the system
Buy goods with mobile money 11 Merchant Consumer IST Issues unique alternate ID’s to enable culturally appropriate transactions IST returns customer name to reduce data entry errors Merchant does most of the data entry to reduce errors Pending transactions show merchant initiated sales Fee transparency to keep confidence in the system You have pending transaction of 57 from Robert Thompson Bolagi Mwanyika confirmed your transaction for 57
Keep Money Secure – Biometric Enroll 12 A fee may or may not be charged, consumer must approve enrollment with PIN from their device Consumer Agent Agent with Smart Phone gets phone number and checks ID to ensure proper identity Consumer reviews transaction Approves with PIN XXXX Agent captures photograph of consumer and process is complete Fingerprints are scanned Send to consumer for approval
Consumer 4 Buy Goods with Digital Voucher 13 Merchant You have pending transaction of 100 from Tariq Barr Hasan Jat confirmed your transaction for 100 Optional Appendix #4: FSP Semi-Annual Check-in DFS Platform Use Cases and Prototype Overview Merchant does the data entry to reduce errors System recognizes eligible voucher and presents option to merchant Pay balance and any fee with M- Wallet or cash Select pending transaction and voucher