BUET- Octavian Deliberators : Montasir Mamun Mithu Sheikh Al Amin Samiul Monir Hasan Habibul Latif

Scenario 1 A son from poor family comes to Dhaka from village with his dying mother for medical treatment Treatment goes day after day Suddenly the condition of mother gets serious and urgent operation is necessary But where is the time to get money from village? Son needs to go to village and collects the money after 2 days EMERGENCY MONEY

Scenario 2 My father does business He asks me to pick up 50,000 taka from a bank I take the stated amount from a bank In my way to home I get robbed My eyes are hurt because the robber used a special ointment to block my vision SECURITY

Scenario 3 I am in a remote Island like St. Martin I am not an intelligent spender I realize that my cash is finished Don’t know anyone to ask for some cash INSTANT MONEY

Problem INSECURITY EMERGENCY MONEY INSTANT MONEY Besides Ineffective online payment system. Scarcity of small currencies. Large portion of people are unbanked.

Why mobile ? 1.Whole country coverage 2.40% of the whole population under the facility of mobile use 3.Cheap media of communication, so affordable by grassroots. 4.Instant communication that can be used for money transfer via mobile or SMS

SURVEY & HOUSE OF QUALITY A survey was done among 50 people On the basis of survey QFD(Quality Function Deployment) is made QFD is a tool that transforms customer requirements into technical requirements

QFD

Business Initialization Bank introduces MCash Short term plan: only 1 bank & only 1 mobile operator Long term plan: multiple bank & multiple mobile operator under the surveillance of Bangladesh Bank Agreement between bank & mobile operator Software generation by bank Mobile operator’s content server Special MCash SIM Distributor authorization

Business Model:

Verification: More than 1200 customer cares all over the country

Business Model:

Request Transaction Processing Balance Transferred Balance Received

Business Model:

Software Development

Software Requirements: Effective and efficient software development team. Use of C#, PHP or JAVA SERVLET. Linux server. Database: Powerful database system. Use of Oracle, Mysql, SQL-SERVER.

Data Transfer Model Step 1: Establish a secured connection Provide end-to-end security between servers. Two types of protocol are available. Both ensure point to point data transfer.  VPN (Virtual Private Network)  IPSec (Internet Protocol Security)

Data Transfer Model (Contd.) Step 2: Data push-pull Completed in two phases. Phase 1: between SMS Server and Central Bank Server.  SMS Server will relay the Mcash request to the Central Bank. Phase 2: berween Central and Local Bank servers.  Central Bank will parse the requests  Verifiy required information.  If all information are valid then Central Server will request the specific bank to complete the transaction.  Specific bank will update database  Notify the Central bank server.

Software Functionality Two types of Server Software.  Central Software - will run in the Central Bank Server.  Local Software – will run in any specific Bank Server providing Mcash Service. Central Software:  Registration: o Receive request and gather all information from Mobile operator. o Create user accounts. o Send notification to local Bank Server.

Software Functionality (Contd.)  Money Transaction: o Receive request and gather all information. o Check and update both of the user. o Send notification to the specific banks.  Loan system: o Receive request and gather all information. o Check maximum limit and allow loan. o Update database of both deposit and loan account. o Send notification to specific bank.

Software Functionality (Contd.) Local Software:  Registration: o Receive request and gather all information from Central Bank Server. o Create user accounts. o Send notification to Central Bank Server.

Software Functionality (Contd.)  Money Transaction: o Receive request and gather all information. o Check and update both of the account. o Send notification to the Central Bank.  Loan system: o Receive request and gather all information. o Check maximum limit and allow loan. o Update database of both deposit and loan account. o Send notification to Central Bank.

Sender’s account no. Receiver’s account no. Pin code Retype Pin code Amount N N abcd1234 ******** abcd1234 ******** 500 Send to: 5000 Message Sent

Software Demonstration

Business Analysis

SWOT Analysis

Huge Potential Range of Customer Automatic Software Strict Rules to Acquire Mcash SIM Two Level of Protection. - Password - Pin Code

Weakness Security Mass People are illiterate Loan takers may not repay the loan.

Opportunities Bank can attract huge client Involvement of rural people will be increased Normal bank account can be transferred to Mcash account The problems with bank note will be minimized

Threats Hacking may become a threat Illegal money transaction may be increased

Business Risk RiskProbabilityEffectStrategy False Bank AccountHighTolerable 1. Proper verification of national ID card no will be done. 2. finger print will also be taken by scanner. Agreement with mobile company LowDisastrous1. Convince mobile company that they will get financial benefits from the project. \ 2. They will also get other intangible benefits like reputation and advertisement. Financial risksLowSerious1. Analyze the same categories of financial projects. 2. Taking opinions from experts. 3. Appoint specialist people. Mobile TerrorismHighSerious1. All transaction data with amount will be recorded. 2. All transaction will be monitored by Bangladesh Bank. Illiterate PeopleModerate 1. Use of voice call. 2. English & Bangla both interface will be used.

RiskProbabilityEffectStrategy APILowTolerable 1. Convincing mobile company to use API with object code which can be used without any recompilation. DatabaseModerateTolerable 1. During database choosing, it must be calculated the amount of data need to stored in the database and the database capability. 2. The database should be smart enough to hold a large amount of data. Computer ThreatModerateSerious1.Using antivirus. 2. Efficient Technical Person imply Inefficient PeopleLowTolerable1. Agreement with employees that cannot leave from running project. 2. While assigning pick the best employees or at least well trained. Time EstimationModerateSerious1. Appointing experienced people capable of submit project in time. Network SecurityModerateDisastrous1.SSL Encryption. 2. IPSec or VPN Connection. Technical Risk

Market Analysis 4 ‘P’s of Marketing

Product Our product is easy to operate Brings dynamism in overall financial system Grass root people will be facilitated

Price Low cost to operate Initial invest is low Distributors will get benefits on transaction No extra hidden cost in money transaction except SMS charge

Promotion Lower operating cost than ATM banking Huge exchange place by distributors Mobility is excellent Easier & safer transaction

Place All over the Bangladesh will come under the network easily Place to place money transaction will be easier Although staying at home, people can conduct business

Cost Analysis

Cost Analysis for Bank Assuming 1 million customers each having 5000 TK in Average. Total Income …………………… m Variable Cost………………… m Contribution Margin…………. 556 m Fixed Cost……………………… m Net Operating Income……… m

Break-even Analysis for Bank 1010Q = 454Q , 00,000  Q = 1, 79,857

Cost Analysis for Mobile Operator Assuming 1 million customers doing 400 million SMS transaction per year. Total Income …………………… m Variable Cost………………… m Contribution Margin…………. 616 m Fixed Cost……………………….. 80 m Net Operating Income……… m

Why Invest on MCash System 40% of whole population under mobile possession. So potential customer is huge. Breakeven point is too low Idle money will be lessened Instant banking Continuously software will be updated & monitored. New features will be added so that ROI will be accelerated

Question & Answer

Cost Analysis for Bank

Cost Analysis for Mobile Operator

Mcash Registration Loan Loan repayment Money transaction user bank Registration, transaction and loan system mobile operator user

Mcash recharge Recharge through distributor Recharge through Bank Update bank account > user bank distributor Mcash Recharge Subsystem mobile operator

Cash-out Cash-out through distributor Cash-out through bank Update bank account > user bank distributor Cash-out Subsystem Mobile operator