Directeur de L'Exploitation et des Normes Mon

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PROMOTING MOBILE BANKING AND MOBILE MONEY
DEVELOPMENT IN UEMOA REGION
By Mr. Boukary ZONGO Director Of Opération and
Electronic Banking Standards GIM-UEMOA
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SHORT PROFIL

• Mr. Boukary ZONGO
• boukary.zongo_at_gmail.com
• or boukary.zongo_at_gim-uemoa.org
• 221 77 446 06 65
• ou 221 77 377 80 43

Mr. Boukary ZONGO is currently the Director Of
Operations and Electronic Banking Standards of
GIM-UEMOA, the regional regulator body and
guardianship of electronic banking for West
Africa Economic and Monetary Union federating 8
countries, 104 banks and Central Bank.
Previously, he has worked a long term as an
electronic bank expert in private banks and with
Central Bank to define regional rules and
standards before the creation of GIM-UEMOA in
2003. He has also worked before in a biggest
Research Center and Private society in
Luxembourg, Europe.   ZONGO trains students in
master 1 and master 2 electronic banking. He
animate many West Africa regional seminars
federating 50 to 300 people coming from different
countries.   ZONGO has degrees from Ouagadougou
University Burkina Faso, Henri Poincaré
University, Nancy 2 University FRANCE.
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CONTENTS

• UEMOA IN BRIEF
• GIM-UEMOA IN BRIEF
• BACKGROUND AND OBJECTIVES 
• GIM-MOBILE CHARACTERISTICS
• DEPLOYMENT AND PROMOTION
• CONCLUSION

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UEMOA EN BRIEF
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UEMOA IN BRIEF

• UEMOA, THE WEST AFRICAN ECONOMIC AND MONETARY
  UNION IS AN EXPERIENCE WHICH BASIC FEATURES
  ARE
• the pooling of the foreign exchange reserves of
  the member countries
• the adoption by the 8 countries of a CFA franc,
  a common currency issued by a single central bank
• the application of a uniform banking and
  financial legislation throughout the Union.

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UEMOA IN BRIEF
BANKS AND FINANCIAL INTITUTIONS
ORDER ORDER NUMBER OF INHABITANTS NUMBER OF INSTITUTIONS NUMBER OF INSTITUTIONS NUMBER OF INSTITUTIONS NOMBER OF AGENCIES NUMBER OF ACCOUNTS
ORDER ORDER NUMBER OF INHABITANTS BANKS FINANCIAL INSTITUTIONS TOTAL NOMBER OF AGENCIES NUMBER OF ACCOUNTS
1 BENIN 9 100 000 13 0 13 158 576 294
2 BURKINA FASO 15 000 000 12 5 17 188 671 131
3 COTE D'IVOIRE 20 800 000 21 1 22 499 1 768 868
4 GUINEE BISSAU 1 400 000 4 0 4 17 41 583
5 MALI 12 400 000 13 3 16 291 822 924
6 NIGER 14 300 000 10 1 11 78 232 491
7 SENEGAL 11 700 000 19 2 21 305 853 859
8 TOGO 5 700 000 12 2 14 157 583 543
  TOTAL 90 400 000 104 14 118 1 693 5 550 693
Source  Banking Committee Report 2010 
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GIM-UEMOA IN BRIEF
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UEMOA PAYMENT SYSTEMS REFORM

• UEMOA HAVE THREE MAJOR SYSTEMS REFORMS AT THE
  REGIONAL LEVEL
• A real time gross settlement system (RTGS) for
  large value payments called STAR-UEMOA.
• An interbank electronic clearing system called
  SICA-UEMOA
• An interbank card/ mobile-based payment system
  managed by GIM-UEMOA
• The real time gross settlement system
  (STAR-UEMOA) and the interbank electronic
  clearing system (SICA-UEMOA) are directly managed
  by the Central Bank BCEAO.
• GIM-UEMOA is in charge of the interbank card/
  mobile-based payment system.

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INTERBANK SERVICES
POS
CARDHOLDER
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GIM IN BRIEF
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TRANSACTIONS FROM 2007 TO 2011
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SECURE ENVIRONMENT
GIM-UEMOA EMV and MAGSTRIPE
VISA EMV and MAGSTRIPE
EMV PCI-DSS L2
MASTERCARD EMV and MAGSTRIPE
PCI-DSS Level 1 certification will be completed
in 2012.
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PROSPECTS
Banks, Financial Institutions, Postal Facility,
Microfinance  Institution, Ectronic Money
Institution , etc..
UEMOA countries and others countries
CFA and foreign currency
ATM POS Internet Mobile
French, English, Portuguese and Local Langages
Cards (debit, prepaid, credit/ GIM, VISA, MCI)
Mobiles (bank accounts, prepaid) Fingerprints
(bank accounts, prepaid)
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BACKGROUND AND OBJECTIVES
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BACKGROUND

• Observation
• About 90 million people
• Banking rate lt 10 of the workforce
• GIM-UEMOA members 104 institutions
• Institution interconnected 82
• Electronic banking Park 2,000,000 cards,
  2,000 ATMs and a 1,000 POS.
• Detention card rate lt 3.
• The cost of cards, ATM / ATM and POS as well as
  the quality of telecom infrastructure in parts of
  the Union cause the GIM and its members to seek
  additional means of payment.

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BACKGROUND

• Mobile telephony
• Penetration rate 60
• Sustained growth over several years.
• The mobile phone therefore becomes an
  indispensable complement to the development of
  electronic banking channel (cards, ATM, POS,
  Internet, etc..)
• This is the purpose of GIM-MOBILE, a project
  initiated in January 2011. The official launch
  was made on December 8, 2011.

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OBJECTIVES

• Expanding the network GIM-UEMOA to rural areas as
  well as town in UEMOA Region.
• Offer available products and services for a
  larger number of people, including those with low
  income and unbanked.
• Significantly increase the rate of electronic
  payment means in UEMOA region.
• Contribute actively to the increase of banking.
• Significantly expand the share of electronic
  transactions in financial flows.

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GIM-MOBILE CHARACTERISTICS
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REGULATORY FRAMEWORK

• Two documents define the conditions for issuing
  electronic money by UEMOA institutions
• REGULATION No. 15/2002/CM/UEMOA ON PAYMENT
  SYSTEMS IN THE MEMBER STATES OF UEMOA REGION.
• 01/2006/SP OF EDUCATION July 31, 2006 REGARDING
  THE ISSUANCE OF ELECTRONIC MONEY AND ELECTRONIC
  MONEY INSTITUTIONS.

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REGULATORY FRAMEWORK

• In UEMOA region, can issue electronic money
• Banks
• The electronic money institutions (EME) any
  financial institution, postal facility, service
  provider company approved as EME by the Central
  Bank BCEAO.
• A telecom operator as any institution can issue
  electronic money in coordination with a bank or
  EME. In this case, the bank or EME shall
  guarantee all transactions made by the telecom
  operator and the project must be validated.
• We note as well the development of mobile
  payment solutions in the UEMOA.

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MOBILE SOLUTION SAMPLES

• Find below mobile banking/ payment solutions
  deploy in UEMOA Region
• BENIN MTN MONEY, LA POSTE, MOOV.
• BURKINA INOVA PAY, MONEY ZAP, FERLO
• COTE DIVOIRE ORANGE MONEY, CELPAID,
  eTRANZACT, SCASH, PME CASH
• GUINEE BISSAU ORANGE MONEY
• MALI ORANGE MONEY, FERLO
• NIGER AIRTEL MONEY, ORANGE MONEY
• SENEGAL ORANGE MONEY, YOBANTEL, FERLO
• TOGO TOGOCEL, MOOV.
• A dozen of local developed mobile solutions are
  being implemented.

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REGULATORY FRAMEWORK

• We note an important number of mobile solutions
  in UEMOA region. In addition, key market players
  (banks, mobile network operators, providers of
  payment services, etc.) are unable to agree on a
  viable business model for interoperable payment
  solutions, "hence a risk of fragmentation by the
  adoption of proprietary solutions.
• The stated objective by the GIM-UEMOA is to
  increase transparency and security of payments,
  to stimulate competition and innovation within
  the single market the eight UEMOA countries. An
  update of the regulatory framework will be done
  this years.

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GIM-MOBILE IN BRIEF

• This new regulatory framework will be accompanied
  by a technical foundation for accelerating a
  rapid and coherent development of mobile banking
  in the UEMOA. Capitalization will be performed on
  the world of banking cards with
• A interbank component to interconnect the
  various mobile banking solutions in the region
  according to predefined rules and standards.
  Which allows customers and merchants to perform
  operations in an "open loop".
• Delegated component to pool and make mobile
  solutions accessible to all institution
  regardless of its size and financial capacity.

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GIM-MOBILE
GIM CLEARING
PREPAID MOBILE
BANK ACCOUNT
DEBIT/CREDIT CARD
PREPAID CARD
SWITCH
CENTRAL BANK SETTLEMENT
BANKs
TELECOM OPERATORS
MONEY TRANSFER COMPANY
ACCEPTEORS AND MERCHANTS
WESTERN UNION
BILLERS
ORANGE
MONEY EXPRESS
TAXES AND CUSTOMS
TIGO
WARI

MOOV


RIA

MTN
BANK1
MONEY GRAM
ORGANIZATION
BANKn
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GIM-MOBILE IN BRIEF

• GIM-MOBILE integrates on a single platform
• Interbank Mobile
• Mobile banking,
• Mobile payment,
• SMS Banking,
• Branchless/ Rural banking.
• It offer various banking products and services
  on the mobile phone. He brings a real answer to
  the problem of the proximity of banking products
  and services and increasing the banking rate.

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GIM-MOBILE IN BRIEF
GIM-MOBILE is addressed both banked and
unbanked population. Customer can access to bank
account, credit card, a virtual account
pre-loaded or a combination thereof.
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GIM-MOBILE IN BRIEF

• With the lack of quality of telecom
  infrastructure, GIM-MOBILE use differents types
  of connections
• GPRS,
• WIFI,
• Encrypted SMS,
• Clear SMS
• USSD

INSTITUTION
TELECOM OPERATOR
GIM-MOBILE
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DEPLOYMENT AND PROMOTION
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DEPLOYMENT PLAN

• 2011 Project initiation and Official Launch
• 2012 Pilot with different types of actors
  (banks, telecom operators, acceptors, money
  transfer company, etc.)
• 2012-2014 Developing the network of service
  points
• Using the network of banks, financials
  institutions, postal facility branches in UEMA
  Region
• Using the network of ATMs / ATM and POS WAEMU
• Recruitment of mobile and business
  correspondent (job creation)

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NETWORK DEVELOPMENT

• strategy
• Promoting services that interest people
• Proceed a mesh of UEMOA 8 countries through
• With the approval of mobile agents
• Recruitment of small traders trained to promote
  the service
• The use of the network GIM-UEMOA (104 members
  including 13 banks in Mali and their business
  customers)
• The use of automatic teller machines (ATM)
  operating 24h/24 and 7/7.
• Promote the network
• Branding Merchandising service points
• Securing the Network
• Service points at hand
• Geo-location of residential areas, attendance
  billers subscribers, etc.

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PROMOTIING OF CROSS BORDER TRANSACTIONS

• REGIONAL CENTRAL BANK BCEAO AND GIM-UEMOA
• Creating a dedicated structure ok with the
  GIM-UEMOA
• Defining an electronic payment rules ok.
• Reform of systems and methods of payment
  technologies and innovations are changing very
  quickly. Need to adjust regulations on a regular
  basis.
• Establishment of a technical platform ok with
  the GIM-UEMOA
• A framework for consultation and decision OK
  with the regional conferences and national
  electronic banking committees.

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PROMOTING CROSS BORDER TRANSACTIONS

• REGIONAL CENTRAL BANK BCEAO AND GIM-UEMOA
• Improvements
• greater involvement of states and telecoms
  operators.
• Transactions limits control define for reducing
  systemic risk but sometimes value inappropriate
  to the needs of the population.
• Promotion initiated but insufficient
• Statutory instruments little known even lawyers.

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PROMOTING CROSS BORDER TRANSACTIONS

• NATIONAL
• STATES PROMOTION POLICY OF ELECTRONIC PAYMENT
  MEANS. EACH STATE CAN
• mandate domiciliation of salary in an account
  (banking, prepaid, etc.).
• mandate the payment by electronic payment means
  of any amount above a threshold .
• sensitize and educate the public.
• All these provisions must be accompanied by an
  information policy, education and awareness.

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PROMOTING CROSS BORDER TRANSACTIONS

• NATIONAL
• PUBLIC AND PRIVATE COMPANIES
• Public organization customs, taxes, ministries,
  etc..
• Private organization water, electricity, phone
  companies, others private structures
• Regional and international organization thus,
  for example ASECNA through a collaboration with
  the GIM-UEMOA has made ??it mandatory from 30
  november 2011, payments by electronic means
  rights and airport taxes.

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HOW TO BOOST MOBILE BANKING IN UEMOA

• BOOSTING MOBILE BANKING IN UEMOA REGION CAN BE
  DONE
• THE DEPLOYMENT OF INTERBANK AND OUTSOURCING
  MOBILE BANKING PLATEFORM,
• THE DEVELOPMENT OF MOBILE BANK POINTS OF SERVICE
  ACCESSIBILITY,
• PROMOTION OF MOBILE BANKING PRODUCTS AND
  SERVICES.

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HOW TO BOOST MOBILE BANKING IN UEMOA

• DEPLOYMENT OF INTERBANK AND OUTSOURCING PLATEFORM
• Interbank will allow interoperability between
  different mobile solutions.
• Outsourcing is dedicated for institution with
  low income but a potential development .
• Define rules, quality charter mandatory for the
  different mobile banking solution in UEMOA
  Region.
• Customize the solution taking care of what
  people really need.

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HOW TO BOOST MOBILE BANKING IN UEMOA

• POINT OF SERVICE ACCESSIBILITY
• Mesh network from banks, financial
  institutions and postal, telecom operators,
• Recruitment of master partners, wholesalers,
  retailers.
• Adequacy of service quality, cost
  of service for low-income population.
• Usability of the product by customers, whatever
  their level of education
• The customer service (availability of an access
  point and support 24/24, 7/7)

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HOW TO BOOST MOBILE BANKING IN UEMOA

• PROMOTION AND AWARENESS
• Educational use relay (schools, universities, etc
  .). In association with different regional
  schools ,integrate training modules on mobile
  banking (marketing, legal, computer, electronic
  banking, financial, etc.).
• Informational organizing meetings, forum,
  seminars, etc. Participate in strategic meetings 
  in the region.
• Advertising advertising media and
  non media (television, radio, newspapers,
  posters, etc.)

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CONTRIBUTION OF DEVELOPMENT PARTNERS

• PROGRAM FUNDING
• EDUCATION PROGRAMS. This is introduced  mobile
  banking(IT,marketing,legal,accounting,etc.) in
  the educational system of schools and
  universities training modules
• TRAINING PROGRAM. This is to train actors in the
  chain of mobile banking transactions (technicians,
   distributors, coordinators, etc.).
• CAMPAIGNS AND PROMOTION. The use of fiat
  money is rooted in the habits of the
  population. Changing habits and reverse can be
  done through campaigns.

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CONTRIBUTION OF DEVELOPMENT PARTNERS

• ACCOMPANYING MODERNIZATION PROGRAM
• Support acceptors wishing to modernize their
  chain of acceptance of payment by electronic
  means of payment above the informal sector.
• Support the development of technical
  infrastructure (electricity, phone,
  telecoms, etc.), especially in rural areas.

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RISK CONTROL

• The risk control is a very important issue.
• Control measures against money laundering
  and terrorist financing will be
  systematically integrated into the framework of
  this project.
• Thus, regional cooperation with
  structures specialized in the fight against money
  laundering and terrorist financing is
  necessary. The GIM-UEMOA working within this
  framework with GIABA, Intergovernmental Action
  Group against Money Silver.

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CONCLUSION
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• GIM-UEMOA promote Mobile Banking and Mobile
  Money for banked and unbanked people in UEMOA
  Region.
• We include in our strategy people with low
  income and rural areas taking care about the cost
  and identifing all services that real interest
  these people.
• UEMOA Region, with the high population numbers,
  lack of access to financial institutions and
  significant mobile penetration rates, is an ideal
  region for mobile banking and payments
  deployment. Providing an interoperable solution
  to the unbanked population will help the region
  continue to grow and evolve both economically and
  socially.

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END