Mobile Remittance - A Window for the Financial Empowerment of Global Communities through Mobility

Table of Contents

• E1. Mobile Remittance and m-transaction - Unexpected Adoption and Benefits for Developing Economies
• E2. Reducing costs to help growth
• E3. Providing Favourable Regulatory Frameworks

• 1.1 What Exactly Is Mobile Remittance?
• 1.2 Focus of the Report

• 2.1 The Critical Macroeconomic Role of Remittances
  • Chart 1. Remittances as a Share of National GDP in 2006
• 2.2 Behind Global Growth Trends in Remittance Flows
  • 2.2.1 Growth in Global Migration
    • Chart 2. Growth in Global Migrant Stocks, 1960-2050
    • Chart 3. Average Annual Net Migrants to More Developed Regions
  • 2.2.2 Remittance Flow Growth
    • Chart 4. Growth of Global Remittance Flows 1990-2007
    • Chart 5. Financial Flows into Developing Economies 1990-2007
  • 2.2.3 Analysis of Flows into Recipient Countries
    • Table 1. Top 30 Formal Remittance Receiving Countries 2007
    • Table 2. Top 30 Formal Remitter Countries 2007
• 2.3 Migration Patterns and Remittance Corridors
  • Figure 1. Major Bilateral Remittance Corridors and Estimated Flows, 2007
  • 2.3.1 Growth of the UK-Poland Remittance Corridor
  • 2.3.2 Remittance Corridors and Operator Market Strategy
• 2.4 Remittances as a stable source of external finance
• 2.5 The multiplying effect of remittances: consumption, savings and investment
  • 2.5.1. Enabling additive and transformational approaches to banking

• 3.1 Financial Infrastructure
  • Chart 6. Market Share of P2P Money Transfers 2006
  • 3.1.1 Inadequate Servicing of Remittance by Existing Mechanisms
    • Table 3. Global and UK Remittance Transaction Fees Comparison
  • 3.1.2 Poor financial infrastructure in developing economies
  • 3.1.3 Participation in the formal vs. informal economy
• 3.2 Mobile Infrastructure
  • 3.2.1 Global Mobile Penetration
    • Chart 7. Global Telecoms Subscriber Growth, 1982-2013
    • Chart 8. African Mobile Subscriber Growth 1999-2013
    • Chart 9. Asian Mobile Subscriber Growth 1999-2013
  • 3.2.2 Technological Developments
    • 3.2.2.1 The Development of M-transaction
    • 3.2.2.2 Convergence
    • 3.2.2.3 Convergence Embraces Mobile Transaction
    • 3.2.2.2 Low-cost handsets
    • 3.2.2.3 Mobile Subscriber Growth in Emerging Markets
      • Chart 10. Top Ten Countries for Net Additional Subscribers 2007
    • 3.2.2.4 SMS Banking
      • Figure 2. Basic SMS banking transaction flow
      • 3.2.2.4.1 Prime Disadvantages of SMS banking
      • 3.2.2.5 STK-enabled Mobile Transaction
      • 3.2.2.6 IVR Banking Service Delivery
      • 3.2.2.7 USSD/USSD2
      • 3.2.2.8 WAP Service Delivery
      • 3.2.2.9 Service Delivery via J2ME Apps
      • 3.2.2.10 mWallet

• 4.1 Business Models
  • Figure 4. Mobile Remittance Value Chain
  • 4.1.1 Mobile Operator as Bearer Channel Provider
    • Figure 5. MNO as Bearer-only Business Model
  • 4.1.2 Mobile Operator as Bearer and Banking Application Host
    • Figure 6. MNO Banking Application Host Business Model
  • 4.1.3 Integrating Banks/Financial Institutions into Mobile Operator Hosted Platforms
    • Figure 7. Business Model for an MNO as a Banking Hub
    • Figure 8. Topology of the MNO Banking Hub Model
  • 4.1.4 MNO Adoption of Financial Institution Status
    • Figure 9. Financially-licensed MNO model with MNO positioned as beneficiary
    • Figure 9. Financially-licensed MNO model with MNO positioned as remitter
  • 4.1.5 Summary of MNO Business Model Options
• 4.2 Business Model Options for Financial Institutions
• 4.3 Service Models
  • 4.3.1 mWallet to mWallet
  • 4.3.2 mWallet to Cash
  • 4.3.3 Cash to mWallet

• 5.1 Regulatory
  • 5.1.1 Addressing Boundaries between financial and telecoms regulatory frameworks
  • 5.1.2 Aligning Developing Economy Mobile Remittance Models with KYC and AML/CFT Regulations
  • 5.1.3 Developing Economy Mobile Remittance Models and the Application of Prudential Regulation
  • 5.1.3 Developing Economy Mobile Remittance Models and Access to Clearing Systems
  • 5.1.4 Formalising Remittance Flows
• 5.2 Transaction Processing

• Mobile Remittance Case Studies and Emerging Developments
  • 6.1 Smart Telecom mWallet Services, Philippine
    • 6.1.1 Smart Padala Remittance: 4 years of success
      • Tables 4a and 4b. Smart Padala Remittance Partners and Locations Overseas
  • 6.2 Globe Telecom, Philippines
    • 6.2.1 GXI - Globe' s M-Commerce Subsidiary
  • 6.3 Vodafone' s Strategies
    • 6.3.1 Safaricom and M-PESA: m-transaction as a precursor to wider cross-border mobile remittance
      • 6.3.1.1 M-PESA Adoption Curve
      • 6.3.1.2 M-PESA Adoption Drivers
      • 6.3.1.4 The M-PESA Service Model
      • 6.3.1.5 M-PESA Expansion and International Implementation by Vodafone
        • Figure 10. Advertisement for M-PESA
      • 6.3.1.6 Delays and Barriers for the International Implementation of M-PESA
    • 6.3.2 Vodafone and Citigroup/Citibank global agreement
  • 6.5 Bharti Airtel and Western Union Pilot Project
  • 6.6 The GSM Association Mobile Money Transfer (MMT) Initiative
    • 6.6.1 MMT: Attempt at creating a Multilateral Remittance Framework
      • Table 5. Options for the Implementation of Multilateral MMT Hub Platforms
    • 6.6.2 Partnerships
      • 6.6.2.1 GSMA-Western Union Partnership
      • 6.6.2.2 GSMA-MasterCard Partnership

• 7.1 Utiba
• 7.2 aKos Technology Corporation
• 7.3 Cointel
• 7.4 Monitise
• 7.5 GFG Group

• 8.1 A necessity for economic development equals high consequential take-up
• 8.2 The need for regulatory harmonisation and accommodation
• 8.3 Standardisation as an achievable goal
• 8.4 Which form of mobile remittance will emerge as the most common?
• 8.5 The Danger of the Two Tier Mobile Economy
• 8.6 Forecasts
  • Chart 11. Comparison of Forecasts for Remittance Channels By Value
  • Chart 12. Forecasts for Remittance Channel Volume
  • Table 6. Operator revenues generated from transaction costs
  • Chart 13. Comparative Mobile Remittance Forecast for Recipient Countries
  • Table 7. Forecast for Mobile Remittance Transaction Volumes per Country (US$million)

• aKos Technology
• Aktel
• Alliance & Leicester
• AT&T
• Belgacom
• Bharti Airtel
• Cable & Wireless
• Citigroup
• ClearTalk Wireless
• COAI
• Cointel
• CSL
• Deloitte
• DFID
• Dialog
• Digicel
• Du
• Enitel
• Etisalat
• EU
• Financial Services Authority
• GFG Group
• Globe Telecom
• Grameenphone
• GXI
• HSBC
• Hutchison 3G
• IMF
• Indosat
• Inter-American Development Bank
• LG Electronics
• Life
• Link
• MasterCard
• Maxis
• Mobilink
• MoneyGram
• Monitise
• Motorola
• MTC Bahrain
• MTN
• Nairobi Stock Exchange
• NatWest
• Nokia
• Orange
• Orascom Telecom
• Polkomtel
• Royal Bank of Scotland
• Safaricom
• SingTel
• Smart Communications
• Softbank
• Sony-Ericsson
• Swisscom
• Telefonica
• Telenor
• Tesco Mobile
• TIM
• TMN
• Touch Mobile
• Travelex
• Turkceli
• Ulster Bank
• UNCTAD
• United Nations
• Utiba
• Vigo
• VimpelCom
• Virgin Mobile
• Visa
• Vodacom
• Vodafone
• Western Union
• World Bank
• Zantel