Digital Disruption Readiness: Mobile Technology driving Financial Inclusion May 25, 2016
1. Mobile technology for financial inclusion 2. Innovation to ‘bank’ the next billion
1. Mobile technology for financial inclusion 2. Innovation to ‘bank’ the next billion
2.5B 200M Businesses 1 in every 2 35% Financial Exclusion is a Global phenomenon that impacts both consumers and businesses 2.5B Do not have formal financial services 200M Businesses lack access to credit. 1 in every 2 Adults worldwide does not have a formal financial service 35% of small firms report access to finance as a major obstacle to their operations Source: Global Findex Database World Bank 2014
40% 3 out of 4 95% 90% No Physical Access to Banks No Bank Accounts In the Philippines alone, there is an urgent call to drive financial inclusion – tens of millions of Filipinos still lack basic access to financial services 40% No Physical Access to Banks 3 out of 4 No Bank Accounts 95% No credit card 90% No credit score Lack of ACCESS to Financial Services
Mobile penetration in SEA region presents itself as an opportunity to equalize access to Financial Services by leveraging on mobile technology Opportunity 150% Mobile is the key to open financial services to every single Filipino Banking Penetration Mobile Penetration Source: Global Findex Database World Bank 2014
Mobile is the key enabler to provide access to the unbanked / underserved segment – through Globe’s Mynt, we serve as a one stop shop for financial services through everyone’s mobile phone Opportunity 31% Financial services penetration 113% Mobile phone SIM penetration 50M Million points of access to Filipinos through Globe Mynt as a FinTech Incubator
Our vision is to become the next billion’s ‘bank’ by enabling everyone’s mobile phone to facilitate financial transactions – without having to build physical banks to enable this The world’s largest taxi company, owns no vehicles The world’s most popular media owner, creates no content Can you be the world’s largest ‘bank’, without owning a single physical branch? The world’s largest accommodation provider, owns no real estate The world’s most valuable retailer, has no inventory
As a business, Mynt aims to be an integrated, all-in-one, financial services company that provides multiple points of access to the underserved / unserved market Investment Strategic Partnerships Insurance Platform Lending/Access to credit: Consumer + Commercial Send Money/Remittance + Electronic payment Secure Wallet
Imagine a world where consumers, merchants, and retailers benefit from mobile wallet capabilities, partnered with innovative loan constructs to further drive the cashless ecosystem Cashless Ecosystem MRT via Beep, Grab car via MC P2P, Buy airtime load, Pay bills via App/USSD E-commerce with GCash MC card Mass/Nano loans using alternative scoring models Cashless purchases Customer Mobile load to mobile money MPOS to drive credit card transactions IPG to enable e-commerce for SMEs SME Loans to further grow the business Salary disbursements + Loans Merchant Airtime load sales 24/7 Retailer as Financial Community Center Closed loop loans to grow the business Cashless distribution Retailer
We also target students and employees through use cases that build cashless ecosystem solutions in schools and companies Target Market To card and introduce mobile money Build ecosystem to drive immediate use case Introduce to other use case P2P, Buy airtime load, Pay bills E-commerce with GCash MC card Cards for Salary Disbursements BPO Employees Consumer loans using alternative scoring models Book a Grab to commute Cashless Cafeteria IDs powered by GCash Students
Through Mynt, we have scaled to close to 2 million customers doing 1 billion transaction value weekly, serviced through more than 10,000 partners, and with more than 10,000 Loan borrowers Easy access to mobile money services Transactions on a massive scale Extensive partner outlet network Fully digitized loan constructs ~2,000,000 mobile money customers Php 1 Bn in weekly transactions 10,000+ GCash Outlets 10,000+ Loan Borrowers
1. Mobile technology for financial inclusion 2. Innovation to ‘bank’ the next billion
We transform establishments into ‘Financial Community Centers’ to cater to the emerging market of the financially underserved The Opportunity The Idea TRANSFORM EVERY SARI-SARI STORE INTO FINANCIAL COMMUNITY CENTERS Our goal is to enable every neighborhood retailer to facilitate financial transactions for their customers No Access to Banks 40% of total cities & municipalities have no access to physical banks Previously, the nearest bank to Culion was a 2-hour boat ride away Provided almost 900+ accounts, effectively banking ~18% of the addressable population in just 2 months Millions of Sari-Sari Stores There is one Sari-Sari store for every 100 Filipinos
Fully Automated; doesn’t touch human hands We provide first in world loan constructs that leverages on big data, social network and telco activity The Opportunity The Idea TO BATTLE 5-6 LENDING WITH ALTERNATIVE CREDIT SCORING MODELS A product to fight Loan Sharks in the Philippines using Facebook and Telco Data No documents needed! A Lack of access to formal lending institutions Fully Automated; doesn’t touch human hands B Limited Credit Bureau C Approval within 1 hour! No National ID Informal Lenders at 20% interest per month Recognized by Wall Street Journal as one of the 4 Fintech companies that empowers Filipinos “Financial services built around smartphones is promising to broaden access to finance for millions of Filipinos” – The Wall Street Journal
We also enable wholesalers’ membership base to grow their retail businesses through additional capital The Opportunity The Idea PROVIDE CLOSED LOOP LOANS FOR ALING PURING MEMBERS A closed loop loan that benefits both Puregold and its member retailers to grow as a business No documents needed! A Scored using commerce data B 300K Aling Puring Members Lack of additional capital to grow the business 155M total credit disbursed/used by borrowers since launch 15K as the average credit line issued to a Puhunan Plus customer 2K no. of active borrowers within first two months
Opportunity to get this out in the region and quickly scale Emerging markets throughout the region look just like the Philippines, and there is an opportunity to help end poverty by providing them access to financial services through mobile ~1 billion No. of the adults in the region with no access to formal financial services Opportunity to get this out in the region and quickly scale
Digital Disruption Readiness: Mobile Technology driving Financial Inclusion May 25, 2016