1. Rabo Development Retail Distribution Case
Study: Mobile Banking and Payments
How Rabo Development is Using Mobile, Branchless Banking Formulas to Change Access to
Financial Services in Africa
A few slides on mobile banking and payments developments
within Rabo Development partner banks.
Dan Armstrong, 10 May 2012

2. Some Popular Banking Channels
Physical Banking Channels Virtual Service Channels
 Branch Networks  IVR Banking and Call-Centre
 Self-Service Machines (ATMs, teller Support / Banking
machines)  Internet Banking (incl. Internet
 Partnership Models & Agency Banking Kiosks)
Banking  Mobile Banking
 “Branchless” Banking with Bank-  SMS Banking and Information
Owned Channels/Personnel Services for Consumers, Farmers,
 Vehicle Banks Business
 Container Banking  Merchant and Retail Payments,
Support for the Supply-Chain
 Flash and Capacity-Management
Service Channels  Email Banking
 Physical Mail
 Television Banking
 Other Value-Added Services

3. Distribution as a Customer Acquisition
Tool
Banked Customers
Time

4. Distribution : Banking and Banking Usage
Trends
Alternative
Traditional
Physical Virtual

5. Distribution: No Channel is Independent of Other Issues
Personnel
Capacity &
Bank
Priorities
ATM Internet
Branch
Switching Banking
Locations
Strategy
Automation
Other
Regulatory & Core
Distribution
Environment Banking
Channels
System
Agency Mobile
Cards Banking Banking
Existing
Bank Inter-Bank Agent
Competition Switching Partnerships
Mobile
VISA & Branch POS Operator
MasterCard Strategy Competition
Merchant Segmentatio
Acquiring n Goals
Strategy

6. Mobile Payments & NFC
IVR Banking & Payments SMS Alerts Basic Banking, Info.
Mobile Banking & Remote Payments & Mobile Contactless /
Payments Electronic Wallets Proximity Payments
“Mobile Money” Mobile Remittances Advertising-led Models
= banks deploy = bank-led models = cooperative models = public transportation-led models
= mobile operator-led models = mobile operators deploy = third-parties deploy

7. First of all, what do we expect from a wallet?
 A place to store cash?
 A place to store payment
tokens?
 A place to store other tokens?
 A personal object?
 A private object?
 Something small enough to be
portable/mobile?
 … but … do we need a physical
object?

8. Then, what do we expect from a transaction device?
 Identification of myself, my
rights and capabilities,
memberships.
 Identification of myself, an
authentication tool for payment.
 Secure, multi-factor
 Tamper-resistant/evident
 Personal and private
 Easy to use
 … but … do we need a physical
object?

9. Mobile phones accepting cards, leverages existing card
bases
And of course, allowing traditional credit
card payments, without a card present ..

10. NFC stickers can be a bridging technology
But the Secure
Element (SE)
standardisation
discussions have
led to stalling the
ubiquity of Single
Wire Protocol-
enabled phones
and NFC
acceptance
devices world-
wide since 2007.

11. Some MFS Rabobank has launched in NL 2003-2012

12. Other Rabobank and Partner MFS Apps, Trials,
Products

13. 4 of NFC trails/pilots Rabobank has carried out ..

14. Rabobank World-Wide
Key
Rabobank Group Rabo Development
 48 countries, 59.000 employees Rabo International – Retail & Wholesale  Partner Banks: Brazil, Paraguay, Zambia,
Tanzania, Rwanda, Mozambique, China
 Robeco, Sarasin, Orbay, Obvion, Interpolis, Rabo International - Wholesale
Lage Landen, Athlon , etc.  Projects: Egypt, Malaysia, Vietnam,
RIAS & Rabo Development Kazakhstan, Pakistan, Ukraine, Malawi, etc.
 Main focus on food and agri-banking,
cooperative banking, and retail Rabobank Foundation

18. Generating Successful Formulas
Currently has /
uses another
financial product Too poor
Target / Does not have Excluded by
Addressable access to the design
Market product
Excluded by
default
Does not have /
use a financial
product
Does not want
the product
Has access to
the product, but
does not use it Potential users
Based on: http://www.bankablefrontier.com/assets/pdfs/access-frontier-as-tool.pdf

19. Zanaco
 40+ years of success, growth and
stability, successful expansions,
privatisation and IPO
 650.000 customers, 1.200
employees, 50 branches
 Year-on-year profitability, K3 bln
in assets, mature risk
management regime. Healthy
account portfolio including:
• Retail: account services, personal
loans, e-banking, Xapit, remittances,
cash services
• Corporate: credit facilities, e-banking,
cash services, treasury and
investments, trade services
 Transformation to modern
banking tools: 100+ ATMs,
internet banking, mobile banking

20. Xapit Instant Banking
 Mobile Banking: Launched in
late 2008, USSD mobile
banking
• 250.000+ customers to-date
• 20+ bill payment partners,
prepaid airtime, etc., 21
transactions per month
 Light Account: Also, Xapit
„account‟ = welcome pack +
mobile banking + ATM card
 DSA: Sign-up for an account *444#
and get mobile banking and
a VISA debit card in 5
minutes.
 Agency Banking: 123
ZamPost & 9 independent
agency locations
 Truck Banking: Zanaco
mobile banking vehicles

21. FMB Fast Account
 First Merchant Bank (Malawi)
• 19 branches, corporate and retail
banking, 600 employees,
growing strongly
• 1/11 commercial banks in Malawi
 FMB Mobile / FMB Fast
Account
• Launched summer of 2010,
50.000+ customers to-date
• Successful to-date – packaging
of ATM card, bank account and
mobile banking functionality
• *** Includes immediate (small)
balance on customers’ account,
facilitating usage of the new
product

22. Case Study: NMB Tanzania
 NMB: National
Microfinance Bank Ltd.
• Also by-far the largest bank in
Tanzania
• 1.8 mln customers: regular
Tanzanians, all teachers,
army, etc.
• ATMs in place (400+), most
customers have ATM cards
• 150 connected branches
(100%)
 However, as a former
government bank:
• Must handle bill payments,
salary dispersal and non-
customer transactions
• Major queue problems

26. NMB mobile – mobile banking
 Dial *155*66# to access
 Features:
• Balance Inquiry
• Mini-Statement NMB mobile
1. Balance Enquiry
• Money transfers to any NMB account 2. Mini-Statement
3. Money Transfer
• Tanesco Luku Prepaid Electricity Purchase 4. Prepaid Services
5. Other Services
• Vodacom and ZAIN Prepaid Airtime Top-Up 6. Help
• NMB Services like ATM card block, settings
 No need to fill-in forms or visit an NMB
branch to sign-up, simply dial
*155*66*123#
 NMB mobile:
• Launched in August 2009
• 550.000+ active customers to-date
• All mobile networks, 100% nation-wide
coverage
• SMS Alerts to 220.000 customers monthly

27. BPR Rwanda
 BPR (Banque Populaire du
Rwanda) is by far the largest
bank in Rwanda
• “Bank of the people” with roots in
cooperative and food/agri-banking
(>85% of Rwandans are farmers)
• 1,3 mln accounts (8x larger than the
second largest bank)
 In 2011, 47/191 BPR branch
banks were automated:
• Around 150 locations use paper-
and-pencil ledgers
• Staff may have no previous
experience with computers
• Fraud and information integrity are
problems.
• Customers can only bank at one
bank location.

28. Bank Branch: Rwanda
No power, internet connectivity

29. Bank Branch: Rwanda
Waiting for teller cash withdrawals

30. Bank Branch: Rwanda
Teller

31. Bank Branch: Rwanda
Teller

32. BPR Mobile Banking
 “Project Columbus”
• Automated all 191 branches in 11
months
• Mobile internet (incl. USB modems,
laptops)
• Data migration, training of staff and
customers, card distribution
 New BPR E-Channels
• BPR Mobile Banking
(launched 09/2010, 125.000+
customers to-date)
• BPR SMS Alerts
• BPR ATM Cards
• BPR QuickCash ATMs
• BPR Call Centre

33. BPR “Quickcash” ATMs
 Quickcash and ATM Cards
• 100 BPR ATMs online in 2011
throughout Rwanda (donated by
local Rabobanks)
• Increased ATM usage through new
marketing and promotions, usability
campaigns and POS roll-out
 New E-Banking Call Centre
• BPR call centre successful
operating, incl. ACD/call queue
system
• Inbound and outbound calling to
improve usage, sign-ups and
customer satisfaction
• 650-1.000 calls per day, service
level is 85%+

34. BPR Mobile Banking
Mobile Banking
1. Balance Inquiry
2. Mini-Statement
3. Money Transfer (BPR Accounts)
4. Prepaid Airtime
• MTN
• Tigo (pending)
5. Bill Payments
• RECO Prepaid Electricity
• StarTimes Africa TV
• DStv
• MTN Postpaid Bill
• Tigo Postpaid Bill (pending)
6. Bank Services
• Change BPR Mobile Banking PIN
• Change Language
• Order Cheque Book
7. Help

35. BPR Mobile Road Shows & Sign-up
Success

36. BPR Mobile Road Shows & Sign-up
Success

37. BPR: Simbuka

38. Banco Regional (Paraguay) – mobile strategy

39. Paraguayan Socio-Economic Distribution & MB
Data Source: PRESENTACION - TARJETAS DE CREDITO AGOSTO 10 - FINAL.pptx
High-value customers and enterprise businesses
4 % (ALTO) need to be targeted in other ways. Traditionally
expensive to attract these customers.
Massive potential to expand in middle, middle-
26 % (MEDIO) lower and lower income customer base with MB.
This is the area where Paraguayans are under-
served, but still can be profitable, long-term
Banco Regional customers.
Bajo alto 10 %
Massive potential to expand in low-income
56 %
Bajo medio 16 % (BAJO)
customer base with MB. Traditionally these
are un-banked Paraguayans and not
automatically attractive to Banco Regional.
Bajo bajo 30 % However, with a limited product set, and cost-
effective support & maintenance, these could
also be profitable for the bank.
14 %
(MUY BAJO)
Question: What are the segments applicable to a Banco Regional MB product? Likely this is upper-middle,
middle, lower-middle and lower segments. Is Banco Regional interested in trying to expand successfully in
these segments?

40. Business Case Drivers
Primary: Secondary:
1. Customer Acquisition Tool 4. Loyalty
• New customers in current regions • Service addition in bundles for
• New customers in un-served existing customers
regions • New 24/7 channel, bank in your
• New customers to banking pocket
2. Cost-Savings 5. Innovation
• Innovative “virtual” (alternative) • Supports Banco Regional’s
channel position in Paraguay
• Helps lower branch queues • Leverages lessons learned from
partner banks
3. New Revenues
6. Enterprise Customers
• Deposits and loans from new • Supports business account
customers
management with new consumer
• Bundle revenues payment product in Paraguay
• Direct transaction revenues • Supports payroll strategy

41. Concepts Introduced: Channel Management
Concepts,
Market
Analysis,
Marketing
Actions, Bus.
Development
In-Life
Feasibility,
Product
Business
Channel Management,
Case, Project
Changes &
Planning,
Strategy Improvement,
Pricing
New Features
Channel
Management
KPIs,
Channel Channel Profitability Development,
Analysis, Design,
Development Marketing Improvement, Testing, Trial,
Management Launch
Reporting

42. Thank You!
Dan Armstrong, +31652085071 www.rabobank.nl
dan.armstrong@takashimobile.com www.rabobank.com