Committed to Connecting the World Mobile Money Opportunities & Challenges Regional Regulatory Conference for Europe Towards Mobile Broadband Ubiquity in Europe Budva, Montenegro, 29 September 2014 Telecommunication Standardization Bureau of ITU

Outline  Financial Services  Digital Financial Services  Opportunities  Challenges  ITU-T Study Group 13 - Technology Watch Report -Focus Group: Digital Financial Inclusion  ITU Key Cybersecurity Initiatives 2

Financial Services  Purpose - Save, Borrow, - Make payments, Manage risk  Benefits - the Poor & the Disadvantaged - businesses - socio economic development of a nation  Barriers - high cost - physical distance - lack of proper documentation 3 Regional Regulatory Conference for Europe - Towards Mobile Broadband Ubiquity in Europe Budva, Montenegro, 29 September 2014

4 UNBANKED – No Financial Services

Digital Financial Services – Mobile Money 5 Regional Regulatory Conference for Europe - Towards Mobile Broadband Ubiquity in Europe Budva, Montenegro, 29 September 2014

Financial Inclusion through Mobile Money  Low levels of financial inclusion represent a barrier to socio economic development in developing countries  Globally, more than 2.5 billion adults do not have a formal bank account, most of them in developing economies  59% of adults in the developing countries do not have a formal bank account  But most of them have a mobile phone 6 Regional Regulatory Conference for Europe - Towards Mobile Broadband Ubiquity in Europe Budva, Montenegro, 29 September 2014

7

Source: GSMA World view - trends

World view - interoperability 9 Regional Regulatory Conference for Europe - Towards Mobile Broadband Ubiquity in Europe Budva, Montenegro, 29 September countries have 2 or more mobile money services – there is a need for interoperability. Source: GSMA

Mobile Money - Some Statistics  203 million registered accounts globally in June 2013 compared to 108 million in June 2012  9 countries have more mobile money accounts than bank accounts: Cameroon, the Democratic Republic of Congo, Gabon, Kenya, Madagascar, Tanzania, Uganda, Zambia and Zimbabwe  In 44 countries there are now more mobile money outlets than bank branches 10 Regional Regulatory Conference for Europe - Towards Mobile Broadband Ubiquity in Europe Budva, Montenegro, 29 September 2014 Source: GSMA

Mobile Money Payment in Europe (I)  Orange Cash (France) - Visa prepaid card on a mobile phone - Smartphone with NFC and the orange app  Mobito (Czech Republic ) - Payment through the Mobito service, bank, mobile wallet or credit/debit card - Use any mobile phone -Intra money transfer 11

 Turkcell Mobile Wallet (Turkey) - Turkcell mobile operator and Garanti Bank - integrated public transport card Urfakart  Vodafone M-Pesa(Kenya, Romania) - based on simple text messaging - launched in Kenya in 2007 now has 15 million users in Kenya - April 2014 announced launch for Romania 12 Mobile Money Payment in Europe (II)

Mobile Money Transfer in Europe  MoneyGram (Spain) - Launched in 2013, - MoneyGram & Movistar Remesas - allow consumers to send money using their mobile phones from Spain to any of MoneyGram’s 293,000 agent locations around the world Mobile Banking  Most banks in Europe 13

Two main technologies emerging Cloud-based payments NFC-based payments (Near Field Communications)

Business Models

OPPORTUNITIES  Individual - fast track to financial inclusion  Business - New ventures for mobile operators and financial institutions to tap a global market  National - Accelerated socio-economic development 16

 Interoperability between mobile money service providers  Coordination between regulators from telecom and financial services  Consumer protection against fraud  Access to business critical technology Analyze best practices to develop global standards Challenges

ITU-T Study Group 13 outcomes on financial transactions via Mobile Following proposal to the WTSA-08 and contributions from Member States Recommendation ITU-T Y.2740 (01/2011) “Security requirements for mobile remote financial transactions in next generation networks” andhttp:// Recommendation ITU-T Y.2774 (01/2011) “Architecture of secure mobile financial transactions in next generation networks” Both available for free download in English, French, Spanish, Arabic, Chinese and Russian 18 Regional Regulatory Conference for Europe - Towards Mobile Broadband Ubiquity in Europe Budva, Montenegro, 29 September 2014

Reports on Mobile Money ITU TechWatch 2013 free download at money-standards.aspx

 GOAL: Recommend a standardization roadmap for interoperable digital financial services for financial inclusion.  Established by ITU-T TSAG (June 2014 meeting)  Chaired by Sacha Polverini (Bill & Melinda Gates Foundation)  First meeting: 5 December 2014, ITU, Geneva  Workshop on Digital Financial Services and Financial Inclusion: 4 December 2014, Geneva  Homepage & Mailing List: T/focusgroups/dfs/  Terms of Referencehttp:// T/focusgroups/dfs/ Terms of Reference  For more information contact Mr Vijay Mauree, Programme Coordinator Focus Group on Digital Financial Services (FG DFS)

21 For more information on SG 13 Contact Ms Tatiana KURAKOVA, Counsellor, ITU. We look forward to contributions to ITU-T study groups by ITU members

Key Cybersecurity Initiatives National CIRT Programme Human Capacity Building Global Cybersecurity Index Child Online Protection Least Developing Countries 22

National CIRT Programme Educate / Plan Establish/ Operate Collaborate Assessments conducted for 56 countries Implementation completed for 8 countries Implementation in progress for 6 countries 8 cyberdrills conducted with participation of over 70 countries First African region Cyberdrill taking place today

Human capacity building Cybersecurity training workshops for over 2700 government officials, regulators, and ICT professionals worldwide Timely dissemination of latest reports on cyberthreats from industry partners Symantec and Trend micro to Member States 6 reports, 4 e-guides and Infographics More to come Soon.. courses through the ITU Academy

Objective The Global Cybersecurity Index (GCI) aims to measure and rank each nation state’s level of cybersecurity development in five main areas: Legal Measures Technical Measures Organizational Measures Capacity Building National and International Cooperation Objective The Global Cybersecurity Index (GCI) aims to measure and rank each nation state’s level of cybersecurity development in five main areas: Legal Measures Technical Measures Organizational Measures Capacity Building National and International Cooperation Goal Promote government strategies at a national level Drive implementation efforts across industries and sectors Integrate security into the core of technological progress Foster a global culture of cybersecurity Goal Promote government strategies at a national level Drive implementation efforts across industries and sectors Integrate security into the core of technological progress Foster a global culture of cybersecurity 90 countries have responded Preliminary results : Arab region, Africa region and Asia Pacific region Final Global Results targeted for end of 2014

Child Online Protection Under the GCA umbrella, ITU initiated the Child Online Protection initiative (COP) in November COP has been established as an international collaborative network for promoting the online protection of children and young people worldwide by providing guidance on safe online behavior. Objectives Identify risks and vulnerabilities to children in cyberspace Create awareness Develop practical tools to help minimize risk Share knowledge and experience NEW GUIDELINES : For Industry on Child Online Protection July 2013: H.E. Dame Patience Goodluck Jonathan, First Lady of Nigeria was appointed ITU COP Champion

Enhancing Cybersecurity in Least Developed Countries project Aims at supporting the 49 Least Developed Countries in strengthening their cybersecurity capabilities. How Assessment for selected key government ministries & subsequent solutions provision Capacity building through training of trainers, workshops,.. Customised guidelines on legislation, regulation and technologies Status Implemented in Sierra Leone In progress : Afghanistan, Angola, Bhutan, Burundi, Chad, Comoros, Djibouti, Gambia, Haiti, Kiribati, Lao, Mauritania, Myanmar, Republic of Guinea, Rwanda, Tanzania, Uganda, Vanuatu and Zambia 27 We are only as secure as our weakest link …

28 Let’s work together Respond to the questionnaire for the Global Cyber Security Index Partner with us to ‘Enhance Cybersecurity in Least Developed Countries’ International cooperation to address Child Online Protection Join our study groups National CIRT assessment, implementation or join our cyberdrills Attend our conferences, workshops More information on the above at

Committed to Connecting the World 29 Thank You