Nigeria Mobile Marketing
News and development about Mobile Marketing in Nigeria
Thursday 14 May 2009, 12:32 PM
MobileMoney:Africa's 11 - Interviews Barry Coetzee of Iveri Payments
Emmanuel Okoegwale of MobileMoneyAfrica, Interviews the CEO of iVeri Payment technologies, Mr Barry Coetzee.
Over View.
iVeri creates technology for banks and businesses to facilitate
multiple-channel transaction acceptance. Our goal is to help our customers
create a profitable and sustainable business by enabling them to implement
the right transactional channels for their market environment.
We have been developing electronic payment technology since 1998. Today, we
process millions of transactions and have customers in several countries.
iVeri is a proven provider of best-of-breed multiple channel transaction
technology.
MMA: Iveri's platform works on a combo of channels and what are your experiences so far on the mobile channel?
Coetzee : Channels for transactions are determined by the infrastructure being used. So for the “mobile channel” we would include transactions by SMS, USSD, WAP and IVR. Each of these channels have their own unique characteristics which affect how they are used for financial transactions. SMS is by far the most widely used. This is because it is well established and well understood. However for financial transactions it is probably the worst channel from a reliability and security point of view. USSD is probably going to be the channel of choice going forward. However, the mobile operators are slow in deploying this channel. They seem to prefer rolling out the much more expensive 3G technology, which although it is great, unfortunately is not available on the majority of handsets in most countries. iVeri’s attitude to channels is simple. We will support all possible channels. In this way each financial business using our technology is able to choose their preferred channel based on the infrastructure available to them.
MMA: African Financial Institutions are still attached to the old norm of 'p2p personal Banking'.How is Iveri changing the pattern.
Coetzee: Banking has survived many technology waves. Mobile is another technology wave. Banks are risk averse and as such will naturally not be leaders in innovation. iVeri, with its established record of reliability is a known factor to banks and as such reduces their risk in using new technologies.
MMA: What are the key differentiators of your solutions to competition's.
Coetzee: Mobile transacting is already a commoditised product. All vendors generally offer the same product set. Transfer, Bill Payment, Wallet, Top Up. Vendors really only compete on price and service. iVeri is always aggressive on pricing. Probably our biggest differentiator is our experience. When you deploy new technology, you want to be sure the party you are working with is reliable. iVeri has a reliable track record.
MMA:With your focus on Africa,is time ripe to use technology extensively as a mean of customer engagement in Africa.
Coetzee: Developing markets are moving away from developed markets because the mobile handset is our technology of choice, whereas in developed markets it is the PC. We are committed to driving this move. We are only focused on providing customer centric solutions to African financial institutions. Only when we have exhausted this avenue will we look elsewhere. You have to look after your home and family before you try to look after others.
MMA:With widespread footprints in Africa,what are your views on regulations.Is it catching up with Innovations.
Coetzee: African regulators are generally re-active as opposed to pro-active. They allow the innovators to enter and create a market and then they decide how to regulate this. Although this sounds like a good way of doing things, the results are actually mostly not advantageous to the country. Re-active regulation always has to incorporate the incumbents even though they might not be good for the country. An example of this is in Kenya where any new regulation would have to incorporate MPesa, regardless of whether that was good for the country or not. India, on the other hand has a pro-active regulator who decides on what rules best for the country up front. This creates a level playing field where all players (not just the big ones) are playing to known set of rules. I would like to see African regulators being a lot more pro-active with their regulation.
MMA:What does the future hold for Africa using innovative platforms like Iveri
Coetzee:The future is just starting for electronic payments in Africa. iVeri is a dedicated payment solution provider that is made in Africa for Africa. I think the future is very bright.
MMA:In coming years,what should Africans watch out for in the Mobile money landscape.
Coetzee: Security. At the moment convenience is driving the Mobile Money wave. However, sooner or later the crooks are going to move in. The emphasis will then quickly shift to security. This is going to be very tough as the technology currently being used is not easy to secure while maintaining all the convenience. There will be a clash between increasing security and reducing convenience.
MMA: How do you intend to engage millions of Unbanked
Africans?
Coetzee:The example to follow here is the huge success in the deployment of mobile
networks and handsets. In reality the technology is very advanced and
complex. However, it has been packaged and marketed in such a way that most
people use it without a second thought. We strive to make our products and
services follow this example. Our success will be measured by our footprint.
To contact iVeri:
Barry Coetzee
www.iveri.com
info@iveri.com
http://twitter.com/iveri
http://www.facebook.com/pages/iVeri/59310882690
http://www.linkedin.com/companies/242993
Emmanuel Okoegwale
Nettel@africa Telecommunications policy and Regulation scholar.
www.Linkedin.com/in/emmanuelok
emmanuel@mobilemoneyafrica.com
Over View.
iVeri creates technology for banks and businesses to facilitate
multiple-channel transaction acceptance. Our goal is to help our customers
create a profitable and sustainable business by enabling them to implement
the right transactional channels for their market environment.
We have been developing electronic payment technology since 1998. Today, we
process millions of transactions and have customers in several countries.
iVeri is a proven provider of best-of-breed multiple channel transaction
technology.
MMA: Iveri's platform works on a combo of channels and what are your experiences so far on the mobile channel?
Coetzee : Channels for transactions are determined by the infrastructure being used. So for the “mobile channel” we would include transactions by SMS, USSD, WAP and IVR. Each of these channels have their own unique characteristics which affect how they are used for financial transactions. SMS is by far the most widely used. This is because it is well established and well understood. However for financial transactions it is probably the worst channel from a reliability and security point of view. USSD is probably going to be the channel of choice going forward. However, the mobile operators are slow in deploying this channel. They seem to prefer rolling out the much more expensive 3G technology, which although it is great, unfortunately is not available on the majority of handsets in most countries. iVeri’s attitude to channels is simple. We will support all possible channels. In this way each financial business using our technology is able to choose their preferred channel based on the infrastructure available to them.
MMA: African Financial Institutions are still attached to the old norm of 'p2p personal Banking'.How is Iveri changing the pattern.
Coetzee: Banking has survived many technology waves. Mobile is another technology wave. Banks are risk averse and as such will naturally not be leaders in innovation. iVeri, with its established record of reliability is a known factor to banks and as such reduces their risk in using new technologies.
MMA: What are the key differentiators of your solutions to competition's.
Coetzee: Mobile transacting is already a commoditised product. All vendors generally offer the same product set. Transfer, Bill Payment, Wallet, Top Up. Vendors really only compete on price and service. iVeri is always aggressive on pricing. Probably our biggest differentiator is our experience. When you deploy new technology, you want to be sure the party you are working with is reliable. iVeri has a reliable track record.
MMA:With your focus on Africa,is time ripe to use technology extensively as a mean of customer engagement in Africa.
Coetzee: Developing markets are moving away from developed markets because the mobile handset is our technology of choice, whereas in developed markets it is the PC. We are committed to driving this move. We are only focused on providing customer centric solutions to African financial institutions. Only when we have exhausted this avenue will we look elsewhere. You have to look after your home and family before you try to look after others.
MMA:With widespread footprints in Africa,what are your views on regulations.Is it catching up with Innovations.
Coetzee: African regulators are generally re-active as opposed to pro-active. They allow the innovators to enter and create a market and then they decide how to regulate this. Although this sounds like a good way of doing things, the results are actually mostly not advantageous to the country. Re-active regulation always has to incorporate the incumbents even though they might not be good for the country. An example of this is in Kenya where any new regulation would have to incorporate MPesa, regardless of whether that was good for the country or not. India, on the other hand has a pro-active regulator who decides on what rules best for the country up front. This creates a level playing field where all players (not just the big ones) are playing to known set of rules. I would like to see African regulators being a lot more pro-active with their regulation.
MMA:What does the future hold for Africa using innovative platforms like Iveri
Coetzee:The future is just starting for electronic payments in Africa. iVeri is a dedicated payment solution provider that is made in Africa for Africa. I think the future is very bright.
MMA:In coming years,what should Africans watch out for in the Mobile money landscape.
Coetzee: Security. At the moment convenience is driving the Mobile Money wave. However, sooner or later the crooks are going to move in. The emphasis will then quickly shift to security. This is going to be very tough as the technology currently being used is not easy to secure while maintaining all the convenience. There will be a clash between increasing security and reducing convenience.
MMA: How do you intend to engage millions of Unbanked
Africans?
Coetzee:The example to follow here is the huge success in the deployment of mobile
networks and handsets. In reality the technology is very advanced and
complex. However, it has been packaged and marketed in such a way that most
people use it without a second thought. We strive to make our products and
services follow this example. Our success will be measured by our footprint.
To contact iVeri:
Barry Coetzee
www.iveri.com
info@iveri.com
http://twitter.com/iveri
http://www.facebook.com/pages/iVeri/59310882690
http://www.linkedin.com/companies/242993
Emmanuel Okoegwale
Nettel@africa Telecommunications policy and Regulation scholar.
www.Linkedin.com/in/emmanuelok
emmanuel@mobilemoneyafrica.com
Wednesday 13 May 2009, 8:23 AM
Can Mobiles Benefit Nigerian Micro Finance Banks?
Micro Finance Institutions in Nigeria though still struggling to get a piece of the pie from stronger and more capitalized commercial Banks, but still coming up with impressive returns in the last few years. More than 840 MFI’s are currently operating in the Nigerian market space while many others are getting ready to open to public in the next few months.
Some viable MFI’s are posting results that are close to what established commercial Banks with over 50 Branch networks were earning before the pre – consolidation era when they had to increase their capital Base.
Virtual Banking and Mobile banking will give massive leverage to the commercial Banks in the next few months and this will massively differentiate them further from the MFI’s and widen the gap. In the evolving scenario, what opportunities are open to the MFI’s? Can they take on the Mobile channel as a strategic channel to play catch up? Will the Banks just use them as a cash in / cash out points for their Mobile money roll out plans?
From the regulatory point of view, MFI’s are allowed to play in mobile landscape but Infrastructurally, they are limited by their access to technology platforms like the financial switches. They still not directly connected and will have to get connection via a third party Bank.
Mobile Banking and mobile money is the easiest route to go for any growth oriented MFI in Nigeria with wide disparate demographics and prohibitive cost for Brick and mortar Branch roll outs. Mobile presents a strong compelling advantage for the MFI’s.
Though the Mobile is an unfamiliar terrain for most operators in the financial services sector but opportunities abound. The question is, what is out there.
64 million mobiles subscribers is a significant and potential customers base that can be engaged using the mobile channel.Network coverage is nearing 70 percent of total landmass in Nigeria, an extensive reach is what the Mobile channel offers. Mobile Phones is also what they already have with negative acquisition cost to enable potential customers use the service.
Using Mobile Phones, the MFI’s can develop independent collection points, therefore cash in / cash points using the Human Atm models across areas of operations and in concentrated commercial areas like the Major markets without a need to physically have a Brick and Mortar presence.
Increase the market penetration by serving the currently unbanked population leveraging on their Mobile and Network coverage to bring services to these group of financially excluded at a significantly lower cost to the customer and less paper work which is always a barrier for many semi Illiterate and illiterate citizens which mostly constitute the majority of the financially excluded.
Getting more products to the existing customers is a way to retain and keep customers. Many other products can be bundled into the mobile service provisioning of the MFI’s to make it more attractive to existing customers.
Remittance business which has been the cash cow of commercial banks are areas where the MFI’s can change the business models. Online remittance gives them the reach to the potential senders; worldwide while the Mobile Phone of the local receiver is the connection point of engage for the MFI’s.
To save cost and achieve competitiveness in the face of biting Global Cash crunch and in local operating environments in Nigeria, Virtual and Mobile Banking is not a question when for the MFI’s, It is a question of How.
Emmanuel Okoegwale
Nettel@africa telecommunications regulations and Policy scholar
emmanuel@mobilemoneyafrica.com
Some viable MFI’s are posting results that are close to what established commercial Banks with over 50 Branch networks were earning before the pre – consolidation era when they had to increase their capital Base.
Virtual Banking and Mobile banking will give massive leverage to the commercial Banks in the next few months and this will massively differentiate them further from the MFI’s and widen the gap. In the evolving scenario, what opportunities are open to the MFI’s? Can they take on the Mobile channel as a strategic channel to play catch up? Will the Banks just use them as a cash in / cash out points for their Mobile money roll out plans?
From the regulatory point of view, MFI’s are allowed to play in mobile landscape but Infrastructurally, they are limited by their access to technology platforms like the financial switches. They still not directly connected and will have to get connection via a third party Bank.
Mobile Banking and mobile money is the easiest route to go for any growth oriented MFI in Nigeria with wide disparate demographics and prohibitive cost for Brick and mortar Branch roll outs. Mobile presents a strong compelling advantage for the MFI’s.
Though the Mobile is an unfamiliar terrain for most operators in the financial services sector but opportunities abound. The question is, what is out there.
64 million mobiles subscribers is a significant and potential customers base that can be engaged using the mobile channel.Network coverage is nearing 70 percent of total landmass in Nigeria, an extensive reach is what the Mobile channel offers. Mobile Phones is also what they already have with negative acquisition cost to enable potential customers use the service.
Using Mobile Phones, the MFI’s can develop independent collection points, therefore cash in / cash points using the Human Atm models across areas of operations and in concentrated commercial areas like the Major markets without a need to physically have a Brick and Mortar presence.
Increase the market penetration by serving the currently unbanked population leveraging on their Mobile and Network coverage to bring services to these group of financially excluded at a significantly lower cost to the customer and less paper work which is always a barrier for many semi Illiterate and illiterate citizens which mostly constitute the majority of the financially excluded.
Getting more products to the existing customers is a way to retain and keep customers. Many other products can be bundled into the mobile service provisioning of the MFI’s to make it more attractive to existing customers.
Remittance business which has been the cash cow of commercial banks are areas where the MFI’s can change the business models. Online remittance gives them the reach to the potential senders; worldwide while the Mobile Phone of the local receiver is the connection point of engage for the MFI’s.
To save cost and achieve competitiveness in the face of biting Global Cash crunch and in local operating environments in Nigeria, Virtual and Mobile Banking is not a question when for the MFI’s, It is a question of How.
Emmanuel Okoegwale
Nettel@africa telecommunications regulations and Policy scholar
emmanuel@mobilemoneyafrica.com
Monday 4 May 2009, 10:03 AM
Africans:Mobile but yet left Behind.
According to the Dfid and other world economic organizations, significant numbers of Africans are still not enjoying formal Financial services of any form or at any level. This lack of access can significantly hold back progress on the Millennium Development Goals and restricts the degree to which poor people can benefit from the economic growth currently being enjoyed by many developing countries and in these challenging times of Global Financial crunch, it will help deepen the numbers and not improve it.
The major focus of Financial Institutions across Africa is to get out of the quagmire and they are not focusing, intentionally on the unbanked which still hold a significant chunk of the cash in the economy underneath their Bed pillows.In Nigeria and Ghana, less than 30 percent of the population are Banked.
Is it that they don’t want to engage them? Of course the do want to but they do not have a clear cut strategy to engage them. Mobile is the easiest and cheapest channel to engage, these millions of people.
The Mobile penetration in Africa is a success all across countries in Africa and more than 90 percent of phone users are mobile by technology while growth rate is predicted to continue as more Cities, towns and villages are covered by Mobile operators in the next few years.
The huge disconnection with the mass financially excluded Africans and Financial services can be bridged within a reasonable turn around time using the Mobile phone which in some cases, is the first technology tool that some Africans ever owned and a trusted means of conducting Businesses and reaching out to loved ones.
To make it work, International funding organizations will have to look beyond the financial institutions which in most cases, do not have a clear cut strategy for Mobile money, Mobile Operators with limited knowledge of Finances. The Ecosystem should be geared towards a creating local enabling environment, country by country that will tackle the obstacles to independent Mobile Money providers, educating regulators on the know-how, promoting entrepreneurs that are ready to take the risk to open up the sector and lay a sustainable foundation that will help it strive and achieve the dream of Financial inclusion for the Masses in Africa.
Without the directions of such knowledgeable bodies, most African operators and Banks will opt for what they had seen worked elsewhere, like MPesa but the reality is that, despite the success in Local Kenyan Market, the conditions that made it happen may be absent in other countries. In Mobile Money,there is no one size fits all technology.
While some technology may be Operator dependent or stand alone,likes of Fundamo, some others like NSDT of Tagattitude are Bank and Operator Independent, Txtnpay in West Africa, works with Banks and also, stand alone.
Africans deserve the best, having waited for so long. All stakeholders’ agenda setting should be the next focus and It is my sincere believe that some of these will be raised at the upcoming, MMT 09 conference at South Africa.
Emmanuel Okoegwale
emmanuel@MobileMoneyAfrica.com
Sunday 3 May 2009, 1:31 PM
Can Mobiles benefit Nigerian Micro Finance Banks?
Micro Finance Institutions in Nigeria though still struggling to get a piece of the pie from stronger and more capitalized commercial Banks, but still coming up with impressive returns in the last few years. More than 840 MFI’s are currently operating in the Nigerian market space while many others are getting ready to open to public in the next few months.
Some viable MFI’s are posting results that are close to what established commercial Banks with over 50 Branch networks were earning before the pre – consolidation era when they had to increase their capital Base.
Virtual Banking and Mobile banking will give massive leverage to the commercial Banks in the next few months and this will massively differentiate them further from the MFI’s and widen the gap. In the evolving scenario, what opportunities are open to the MFI’s? Can they take on the Mobile channel as a strategic channel to play catch up? Will the Banks just use them as a cash in / cash out points for their Mobile money roll out plans?
From the regulatory point of view, MFI’s are allowed to play in mobile landscape but Infrastructurally, they are limited by their access to technology platforms like the financial switches. They still not directly connected and will have to get connection via a third party Bank.
Mobile Banking and mobile money is the easiest route to go for any growth oriented MFI in Nigeria with wide disparate demographics and prohibitive cost for Brick and mortar Branch roll outs. Mobile presents a strong compelling advantage for the MFI’s.
Though the Mobile is an unfamiliar terrain for most operators in the financial services sector but opportunities abound. The question is, what is out there.
64 million mobiles subscribers is a significant and potential customers base that can be engaged using the mobile channel.Network coverage is nearing 70 percent of total landmass in Nigeria, an extensive reach is what the Mobile channel offers. Mobile Phones is also what they already have with negative acquisition cost to enable potential customers use the service.
Using Mobile Phones, the MFI’s can develop independent collection points, therefore cash in / cash points using the Human Atm models across areas of operations and in concentrated commercial areas like the Major markets without a need to physically have a Brick and Mortar presence.
Increase the market penetration by serving the currently unbanked population leveraging on their Mobile and Network coverage to bring services to these group of financially excluded at a significantly lower cost to the customer and less paper work which is always a barrier for many semi Illiterate and illiterate citizens which mostly constitute the majority of the financially excluded.
Getting more products to the existing customers is a way to retain and keep customers. Many other products can be bundled into the mobile service provisioning of the MFI’s to make it more attractive to existing customers.
Remittance business which has been the cash cow of commercial banks are areas where the MFI’s can change the business models. Online remittance gives them the reach to the potential senders; worldwide while the Mobile Phone of the local receiver is the connection point of engage for the MFI’s.
To save cost and achieve competitiveness in the face of biting Global Cash crunch and in local operating environments in Nigeria, Virtual and Mobile Banking is not a question of when for the MFI’s, It is a question of How.
Emmanuel Okoegwale
emmanuel@mobilemoneyafrica.com
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