Inclusive Mobile Financial Services: Are Barriers Coming Down

1. Review of Digicel’s Mobile Money service in Haiti Inclusive Mobile Financial Services: Are Barriers Coming Down

2. Haiti Market snapshot • Issues that plague society – • At least 6 hurricanes since 2008 • 2010 Earthquake, plus Cholera outbreak amongst other diseases • Rainy season - major rain storms pass daily during shopping busy hours (5-7pm) • Riots/turmoil that slows economy • Theft comes in many forms and affects all businesses and people • Fraud is common and many times against the poor • Liquidity in the rural areas not sufficient; limited to Bank branches • Long lines at Banks and Remittance branches; typically 1-2 hour waits • Reliable Power not accessible to more than half of the population • More than half the population does not have a valid ID • Most Domestic Transfer happens informally through trucks/taxis and other forms; theft or loss risks estimated at more than 15% Population – 10.17m (World Bank ‘12) % of Bank accts – 16% (inclusive of MFI, Credit Union and Bank accts) GDP (nominal, per capita) - $758/yr (3/4 of population live under $2/day) Intl Remittance inflows – $2b/yr Domestic Transfers - ~ $968m/yr Literacy Rate – ~ 50% Mobile Penetration – 6m (2 carriers) 60% Digicel market share – 75% Bank License – partnered with Scotiabank; expanding to other banks in ‘13 • Positive influences for Mobile Money - • HMMI – Gates Foundation kick starting Mobile Money during 2010 • Largest concentration of NGO activities per capita worldwide • USAID/World Bank/IADB/others – funding programs aimed at Inclusion • Digicel’s National Distribution network providing liquidity for daily airtime sales

3. Platform overview - • Tchotcho means “money” in Creole • Started in Dec 2010; migrated to Utiba technology in May ’13 • Total Agents - ~ 800 (500 active) • Total Subs - ~ 305k (50k active) • Total Transactions - > 6m • Float - $1.5m (agents/customers) • Acct types - • Tiered Agent structure including Withdrawal-only agents • 3 Merchant profiles including Mobile Payment; to introduce informal merchant profile ‘14 • Full KYC accts ($250 limit, expanding to $1000 in ‘13) • Light KYC accts ($100 limit) • Services available today – • Deposit/Withdrawals • Domestic Transfer • Payroll/Disbursement services • Merchant services • Mobile/Bill Payment services • Airtime purchases for self and gift • API integration for 3rd parties • Future Services – • Int’l Remittance direct to phone • BOOM and other MM exchanges • Agriculture Financial services • Savings programs • NGO customized initiatives targeting different affected peoples • Mobile Banking (for Banked pop)

4. Lessons learned – • Sustainable business model is extremely important, where Agents earn enough and customers save enough versus other comparable services • Education campaigns for both merchants, agents, and a highly publicized consumer campaign • Market research and Customer surveys done in advance of launch are key to determining if a model will work, giving time to make adjustments • It is better to have an abundance of agents than a shortage; network grooming is better off done after maturity; bad agents can be identified through performance • Mobile Money Agents need constant monitoring; liquidity levels, customer satisfaction, and fraudulent activities need to be properly controlled • Have enough qualified staff to cater for all the activities; the more services being targeted, the more staff required to deliver all aspects (do not under staff in the beginning) • Comprehensive Marketing campaign that draws customers into the service; advertise the quick-win benefits (i.e. purchase airtime anytime, anywhere) • Reach out to NGOs and Corporates and educate them on how to customize services to expand the ecosystem • Use promotions on key services to entice customers

5. Gracias! Buenos Dias! Thank you!