1. Mobile Financial Services in Telenor
Tine Wollebekk
Global Head of Telenor Financial Service
September 21st 2015

2. With 246 mobile money services in 89 countries
Mobile money is now expanding to more regions
Number of live mobile money services for the unbanked by region (year end)

3. Countries have more mobile money accounts than bank accounts
Yet very successful operations are still too few 9
Countries have more mobile money accounts than bank accounts 21
services have more
than one million
active customers

4. Mobile Financial Services for the unbanked
P2P payments
Government & aid disbursement
Lending &
Savings
The lifeblood of local economies in the developed world are well functioning payment systems, easy access to credit and safe saving schemes. Access to better financial infrastructure can give economic growth and boost activity levels.
People to people payments: Trusting a truck driver with your hard earned money if you want to send it back to your familiy when working in the city used to be the only way of sending money for we introduced Easypaisa in Pakistan. Now we have 6 million monthly customers using our money transfer service in Pakistan.
Aid dispursment and government payouts can be done in a transparent and efficient way.
Lending and saving :
In high risk societies with no social security systems, access to insurance can truly change
Insurance

5. A strategy to serve everyone
Telenor is uniquely positioned to deliver Financial Services
# of customers
Nationwide
distribution
Accessible
technology
Mobile Financial Services (MFS) can act as a catalyst for financial inclusion and bring significant progress for consumers in terms of access to services and financing.
Mobile operators and Telenor in particular are very well positioned to deliver financial services based on our mobile operations:
Customers: We have large customer groups and our customers trust our brand and use our services every day. Conventional banks are in many geographies mistrusted and seen as a services only for the affluent. But the masses all have a direct relationship with their mobile operator.
Distribution: Telenor has existing infrastructure and distribution network. Telenor has several million shops in Asia only selling SIM cards and phone credit. This network is professional and localized in cash handling and customer service. Very few players have the same capability to sell and distribute services as the telecom operators.
Technology: We have local technical infrastructure that can be the backbone of new services. We know how to solve complex, local technical challenges.
A strategy to serve everyone
A pragmatic approach

6. 4 basic building blocks in Mobile Financial Services Higher value services can be built from Agent or Online positions
Balance sheet
E.g. Savings, Credit
3rd party
E.g. Insurance, Credit, Savings
Agent driven services
E.g. Cash-in/out, bill payment, P2P, airtime
Digital payment
E.g. Payment Service Provider, Wallet

7. Financial Services – industry development and our position
Current positions
Mobile Money services taking off
57 markets have 2+ mobile money services
Over 200m mobile money accounts globally
Within Telenor footprint mobile money customers exp. to increase ~34% annually
Many mobile operators offering financial services
Industry conversion as financial players and technology companies entering the mobile money space
Regulations and increased competition drive need for partnerships and interoperability
Telenor FS Revenue of 0,5 bn NOK in 2014
19 m FS customers in 2015
FS established in 6 Asian and 3 European markets
Pioneer in branchless banking in Pakistan and leading player. Currently 17 mill active customers
One of the largest online payment service providers (PSPs) in Thailand. And wallet position launched in 2014
MobiCash enables MFS for 6 bank partners; OTC P2P and Bill Pay. Currently 1 mill customers
Digi and Telenor Myanmar have established FS organizations – launch planned for 2015 in Myanmar and International remittance in Malaysia
Launch Payment Bank in India in 2016 with Indian partner
Telenor Banka launched first mobile and online bank in Serbia Sept customers in 11 monhs
Valyou, a JV with DnB in Norway, offering contact less (NFC based) payment launched in 2014
* OTC = Over the Counter, P2P= Peer to peer

8. 2020 vision: Telenor will enable everyone to transact conveniently on their mobile phones
We will enable everyone to digitize money
Leveraging cash-in/-out at our points of sale
Enabling salary/fund disbursements
Facilitating P2P and international remittance
We will enable payment everywhere
Digital payment online through app and PSP position
Digital payment at physical point of sale
Based on open wallet with various sources of fund
We will enable financial services when they need it
Convenient micro-savings services
Micro-credit and installments based on credit scoring
Inspiration and relevant offers throughout the customer journey based on insight
Financial Services shall have a significant stand-alone value for Telenor

9. The financial services opportunity is attractive
Telenor’s Asian markets 2018:
Total mobile money market value est. USD 4.5 billion

10. Thank you