Posts filed under 'Obopay in the news'
Obopay’s CEO and Founder, Carol Realini is featured participant at the Global Saving Forum which is taking place today under the sponsorship of the Bill and Melinda Gates Foundation. You can view Carol’s presentation from the event and a white paper that Obopay is publishing in conjunction with the event at the links below:
Global Savings Forum Obopay White paper:
http://slidesha.re/d81QMA
Carol Realini’s Presentation from the Global Savings Forum:
http://slidesha.re/8ZZ68h
November 17th, 2010
This week I have been invited to share my views on how to expand global financial inclusion in a Global Savings Summit www.gatesfoundation.org/financialservicesforthepoor/Pages/global-savings-forum-2010.aspx which is being sponsored by the Gates Foundation. Bill Gates will be participating, listening and probing, to see how his organization can accelerate the efforts to create global financial inclusion. In this blog post I have summarized the points I intend to make at the Summit. In subsequent posts I will tell you how these ideas were received and, later, go into each point in more detail.
As you know, our quest at Obopay is to use the ubiquity of mobile phones to deliver financial services to those who have traditionally been underserved. We do this in partnership with mobile carrier, banks, mobile phone providers, and retailers. Interestingly, our partnership with each of these players has given us a unique insight which is that Collaboration is critical. An open, trusted, scalable and interoperable model is essential to maximize reach and deliver the broadest range of financial service offerings. Also that UDI and disbursements will ensure key cost elements are reduced and drive larger adoption – accelerating the “network effect” for those with the greatest need.
I have always believed that an Open Collaborative Model will achieve the benefit of more financial offerings and more choice when branchless banking scales. It is certainly where I have seen the most success:
- Interoperable multiple mobile banking/payment providers. It is essential to have multiple providers which include both bank and non-bank participants. If they interoperate (allow payments between their respective participants) this will drive greater adoption and usage, much like carrier-based text messaging (SMS) enjoyed when it became interoperable. It is essential that these players recognize the tangible benefits that accrue to the market as a whole, while benefiting each of them individually.
- Broadbased Agent Networks with connections to traditional banking and payment infrastructure. Agent networks need to reach people where they live and work and connect to the traditional banking and payment infrastructure. Financial solutions are not silos. Much like the internet, the value increases with the number of participants and contributors. Agent networks are critical to reach the underserved; traditional connections are key to the participation of the traditionally served community.
- Open Access. It is important to offer choice and encourage innovation in financial services. An open “marketplace” or “appstore” for Mobile Financial Services that gives the users choice. All people deserve access to quality and choice in their financial services. Open approaches will encourage innovation.
- Merchant acceptance interoperability. Building enough places to pay is essential for the growth of mobile financial services. Small and micro business adoption is essential to usefulness. Those businesses benefit more if they are able to serve more of their customers – therefore merchant acceptance of multiple mobile bank solutions will increase value to the SME and value for users.
Such a model empowers life and work by making financial services more accessible and affordable while providing a full range of offerings that are user focused even in the most challenging market scenarios. Users can start with simpler, immediate needs and graduate to savings, micro loans and micro-insurance products.
Once a network is established (critical mass of agents, merchants, consumers, financial offerings), the Open Collaborative Model will encourage highest value, more choice, more innovation and more utility.
There is great interest from the private sector in investment for mobile financial services. Yet these investments, absent an open collaborative approach will achieve only a fraction of their potential. In a world where half the adult population lacks affordable and convenient access to simple banking, we owe it to the underserved to move quickly to this model. What is at stake is inclusive growth and empowerment of the poor.
I look forward to exploring these ideas with you in the days and weeks ahead, and I welcome your comments and thoughts in the comments section below.
November 17th, 2010
Obopay’s CEO, Carol Realini, spent this week at the World Economic Forum’s India Economic Summit, which was held in New Delhi 14-16 November. She has been a featured guest blogger covering the event. You can see her blog posts on the WEF site at the links below:
http://www.forumblog.org/blog/2010/11/more-with-less-for-more-indias-global-leadership.html
http://www.forumblog.org/blog/2010/11/implementing-india-the-financial-inclusion-opportunity.html
November 16th, 2010
This week we announced new functionality for our Mobile Money for Banks offering. The announcement broadens the scope of mobile transaction capabilities for banks and their customers. The new capabilities are based on the feedback and requests that we have received from the most active mobile money users of our service, and from the bank partners that we have been working with. We have continued to get great feedback on the new capabilities since they have become generally available, and we welcome your feedback regarding what you would like to see from our service and how you would like to use it.
The new capability for Mobile Money for Banks include first-of-its-kind instant mobile transfer capabilities between accounts at different banks, get paid tools including text-to-donate and text-to-pay and features that make it easier for small businesses or even individuals to accept electronic payments.
The new functions empower users with the ability to transfer money between banks instantly, and accept card payments and electronic checks. This is especially important for bank customers that represent small businesses or organizations, or who need to get paid as individuals and who have been unable to accept electronic payments due to high fees, start-up costs, or denial of card services by their banks. The number one request we have gotten from users interested in our service has been for solution that enable users to accept card payments for personal and small business payments, followed by the need to get instant access to the money the are sent. This is what our new capabilities address. There are currently 24 million individuals just like the users who have asked us for this functionality who need to get paid for goods and services, but who have not been able to accept electronic payments according to the Philadelphia Federal Reserve. While less than 30% of all small businesses accept any form of electronic payment, the new functionalities of Mobile Money for Banks allow any small business or individual to get paid electronically via theirs and their clients mobile phones. This latest addition to our Mobile Money for Banks offering allows the banks that service these users to work with Obopay to bring this capability to market quickly and easily.
Read the full release here.
September 29th, 2010
Earlier this week Obopay announced its partnership with the STAR Network, offering an instant and easily integrated offering. This will enable banks or credit unions to easily bring their own branded mobile money service to market and offer it to their customers. The partnership enables banks to leverage their existing connections and back office processes that they already have established with the STAR Network. Read about it here.
1. What is the significance of this announcement?
a. As you might expect, Obopay is very bullish about this announcement. We have a long history of firsts in the United States – first to launch mobile money transfer, first to deliver a smart phone application for mobile money, first to form a major partnership with a global financial leader – MasterCard – to name a few. Now we are the first to deliver the mobile money solution that allows people and businesses to instantly receive money directly into their bank account.
2. Is this different than what others are offering?
a. Our instant transfer to over 80 million STAR debit accounts (at over 4800 banks and credit unions) in the US is unique in the market – and the sender need not be in the same bank as the receiver. Instant is expectation in mobile. Many of us have been conditioned to waiting for transfers into a bank account – like if I use PayPal it could take days to show up in my bank account. But in mobile everything is instant – calls, texts, application downloads – no one waits. So for this mobile generation they want things to happen as fast as a text message. We deliver this. No more waiting to have you money where you want it.
3. What is the long term role of the debit networks in mobile financial services?
a. Debit networks help consumers and businesses get access to their funds from anywhere and right away – but have traditionally been tied to branch banking. Now, with our solution, that same infrastructure becomes relevant, and even more valuable, in the new world of mobile. This will allow new mobile functionality based on powerful existing infrastructure. And everyone wins – especially the consumers.
4. Will debit networks be important globally or just in the US?
a. Yes, in fact we are already rolling out similar capabilities in other markets.
5. What do you see being the next critical step for Mobile Money adoption in the U.S.?
a. US consumers want mobile money, we see that everyday. The next critical step is distribution. That is why we are focused on offering our services through companies that have reach to all the consumers that need and want mobile money. The next critical step is marketing and distribution.
September 10th, 2010
Today we announced our partnership with the STAR Network. STAR is a First Data company and a leading debit card network. Our partnership with STAR will enable over 4800 banks and credit unions that already use the STAR network to easily bring their own branded mobile money service to market, leveraging their existing connections and back office processes that they already have established with STAR.
This new offering is instant, making it unique in the market. The feedback that we get from users is that instant is expected in mobile and our work with STAR is designed to deliver on that expectation. It is exciting for us to be the first to offer this. Now, 80 million plus account holders that have a STAR debit card have instant capabilities that are connected.
This new offering enables banks to give their customers the ability to send and transfer money to anyone who can get instant access to the funds, even if they bank at different banks. This is great for families in different parts of the country who may have accounts at different financial institutions. It will also enable customers to get paid for goods or services and receive those payments right into their own bank account with instant access to the funds.
September 8th, 2010
The State Department had a half day event for employees and guests about Mobile Money. Well attended and great interest in mobile money for “development” (improving political, economic, and human conditions around the world).
The group was diverse in experience – which is a challenge for a presenter. Since I co-presented the first session my goal was to create a common understanding of mobile money, how it is successfully implemented, and what are the benefits. I wanted to make sure the audience came up to speed quickly and got beyond the simplistic view. The feedback was overwhelmingly positive about the opening session (partial credit goes to Jan Chipchase my co-presenter who started the session with a look at the needs of under-served people around the world) .
What is the role of State in Mobile Money
In conversations I learned that although State is enthusiastic about mobile money for development, their engagement model is still to be determined. They want to see these solutions go to places like Haiti as well as large markets like India. Yet I don’t think they yet know exactly what their role should be in helping make that happen. I was able to give them some initial input and plan to follow up in the coming weeks. Here are some of my thoughts on how they should get involved:
- Encouraging financial services regulatory certainty for mobile money. As they “encourage” they have vast resources of knowledge and experience on regulations. Obopay operates in diverse regulatory environments – which is one of our great strengths. Yet it is prohibitive to launch mobile money in markets where regulation is uncertain. State has the influence and resources to accelerate this in some cases.
- Discourage anti-competitive and anti-innovative practices. We have seen around the world financial and telecom actors take action to inhibit new entrants and innovation. The State Department can encourage mobile network operators and financial actors to adopt open access practices. This will encourage innovation and create a vibrant market. And this will in turn translate into more services reaching more people that need them.
- Help trusted actors connect. Especially important in challenging markets. We have passed the test and demonstrated we are trusted to US regulators as well as regulators and partners around the world and, as a result, we get inquiries from many developing countries (for example Nigeria, Pakistan). We would like the State Department to help local actors know about us, since we have the trust of US regulators. And we would like their help in understanding which local actors are good partners – especially in challenging countries. Of course, we would want this for the industry – not just for Obopay.
Tell us about your other meetings in Washington DC.
I have to confess that although I have been to DC many times, I have never reached out to talk with law makers. I met with staff from 6 Congressmen and 1 Senator. I was impressed with how accessible their offices were and how open they were to discussing important topics with me. I wanted to focus on legislators who were involved in foreign affairs, and banking regulations—two areas where we have a great deal of experience to share.
All were keenly interested in mobile money – learning more, understanding how it works, asking how they can be helpful. Most meetings were primarily initial discussions but clearly there is opportunity to engage government in the dialogue and policy setting to ensure we maximize the opportunity to create growth and jobs.
One surprise was the lack of cross government coordination. I ended up educating people about what activities were going on in other agencies – treasury, state. Although we are a collaborative government in spirit, our size and complexity makes cross functional sharing difficult.
This administration is young and clearly tech enthusiasts. I am hoping that it will help build more communication between the Legislative and Executive branches. While most offices where watching CNN or CNBC – maybe in the future they will be reading blogs and watching tweets from each other. No question that social media should have a strong impact on intra agency communications
Do you expect follow up and results from your visit?
Hard to say. I know it was worthwhile to make the connections. I will keep in touch with many of the groups and individuals I connected with and we shall see what comes out of it. I have to admit it made me a little patriotic coming to Washington and meeting with different organizations. Despite all our challenges, we have many great qualities. One is the number of smart, passionate, hardworking people working on the “Hill”.
August 5th, 2010
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