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- 1. Robi CashPlus ~Ignitingthe power withinGSMA Mobile Money Summit 2010 Koji Ono, Chief Strategy Officer, Robi, BangladeshDate : May 24, 2010
- 2. Bangladesh at aglanceKey Stats: Area: 1,47,570 sq. km
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- 8. GDP (PPP): $242.4billion
- 9. GDP (Per Capita):$1,600
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- 11. Capital: DhakaSource: CIAWorld Factbook
- 12. Agriculture determines people’slives andlivelihood in Bangladesh Contributing approx. 20% of country's GDP
- 13. Employingaround 50% of the total labor force
- 14. Graduallytransforming from subsistence to commercial Labour force by Occupation (2008 est.)GDP Composition by Sector (2009 est.)Source: CIA World Factbook
- 15. Worker’s Remittance seesrobust growth(contributing 11% to GDP) Ranked among the top 10 remittance earning countries in the world.
- 16. Total NRB = 6.6 million i.e. 4% of total population (as of Sep ’09)
- 17. Avg. permonth international employment = 40K
- 18. Avg. permonth international remittance = BDT 605 million (only 50% of total, since others are from informal channels) Common remittance issues:
- 19. inability tosend money frequently
- 20. delays whilesending
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- 22. inconsistent deliverymethods, etc. India China Mexico Philippines Poland NigeriaRomaniaEgyptBangladesh Vietnam Source: Primary market study by Somra MBL
- 23. Robi’s regional strengthto work as a majorcatalyst for m-RemittanceSource: Survey by Somra MBL Ltd., eBIS, R&I
- 24. Connection with Malaysia– a unique advantage Malaysia – Bangladesh corridor is a growing inward remittance channel
- 25. Celcom’s MobileBanking license – a clear synergy advantage for RobiAbout 4% of the national population live abroad. Out of which: Around 91% of them send remittance
- 26. Around 11%reside in MalaysiaConverting insights into business modelNot beyond conventional wisdomA study on 4,000 sample size suggestsTRADITIONAL MODELHouseholds83% unbanked100%with mobileKey Issues: Travel distance - avg. 1.5 – 3 km (those who use banking channel)
- 27. Service unavailability- Bank booths operational half day & 5 days a week
- 28. Chargeon receiver -Tk.100 for every cash-out
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- 31. incidentalsRemittance receiverFormal/informalchannels60% agro-based activities 4% related to NRBs80% funded by remittanceCash-out (BDT)Solution: Use MNO distribution channel + technical network for fast & easy delivery
- 32. Ensure financialinclusion upto marginal population
- 33. Create opportunitiesfor employment through training and education Migrant households rely heavily on remitted moneyOnly 2 ppl. in earning cycle, rest are dependentsSource: Survey by Somra MBL
- 34. Looking deeper: Twounique challenges arethere for migrant householdsAccess toinformationandfacilityproviders
- 35. Economic use ofthe transferred money is a key concern – both for receivers and Govt.Majority of the remitted money is spent on basic necessities or unproductive usesInefficient spending hardly contributes to the nation’s economic cycleTo leverage this, Robi has identified two major areas, investment in which will help in the country’s developmentRelated to agricultureRelated to human resource Remittance Utilization % Source: Building a future back home, The Economist 2008
- 36. Robi goes onestep ahead to bring in‘first of its kind’ ecosystemConventional MODELKey Benefits: Travel distance – Fast & convenient access to nearest Robi Sheba/POS (420 spread nationally)
- 37. Service unavailability- Robi Sheba/POS operational min 12 hrs, 7 days a week
- 38. Chargeon receiver – No charge on receiver end.Robi ShebaRemittance receiverRobi CashPlus MODELSending money back homeCash-out (BDT)A partnership web to multiply use of remittanceACI AgribusinessG’land Traininglargest integrator in Agriculture and Livestock and Fisheries
- 39. complete solution providerto farmers’ need
- 40. A leading manpoweragency
- 41. Provides entrepreneurship andvocational trainingsSkilled labour/NRBInward Remittance = Incremental economic value
- 42. Success of theframework lies greatly onbuilding strong partnershipsTo facilitate best possible use of remittanceTo facilitate mobile remittance program Partner with 2 non-bank institutions –ACI Agribusiness (largest integrator in agriculture, fisheries etc.)Greenland Group (govt. awarded vocational training & local/foreign placement organisation)Partner with a number of banks (i) DBBL (ii) EBL (iii) BRAC Create basic remittance disbursement service through Robi’s nationwide pay-point network.Robi CashPlus - a highly innovative framework to improve migrant family entrepreneurship and vocational skillCash SendersPayment SystemCashPlus 1CashPlus 2CashPlus 3InstitutionsPrimaryCash-outCash-inFinancing: Partner BanksTraining: ACI Agri.PSPGoodsGoods BuyerBusiness / Govt.ReceiverAgro-productsACI Agri.RobiWage EarnersPSOTraining: GreenlandPlacement InstitutionLaborLocal / ForeignTransferAirtimeCashPaymentUtilityPurchaseBankDBBL / EBL / BRACGreenlandServices
- 43. The Cash-in/Cash-out pointsplay a pivotal rolein the service integration space ACI Agribusiness
- 44. Greenland TrainingCentre
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- 48. MF/SME financingPartnershipscan be extended to caterwider spectrum of facilitiesHealth(Pharmaceuticals)Consumer Goods(ACI, Shopno)Education(English in School)SME(BRAC, NGOs)Utilities(Bill Payment)
- 49. Key challenges likelyto face
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