FINTECH

Nov 2020
Money=Trust!!!
Some Facts and Ideas
• Estimated that 8 percent of the world's money exists as physical
cash.
• 21 countries have replaced their currency after bouts of
hyperinflation, knocking off 3, 6 or even 9 zeroes from the currency
denomination. Trust broke down on the old currency, which became
virtually worthless.
• Money can be expensive. Printing a $1 bill costs the US central bank
4.9 cents – almost 5% of the bill´s value.

• Monetary transactions, and money itself, are based on trust.

• Money needs to perform as expected, reliably
• Money is about social conventions.
• Key drivers of payments systems are: risk minimization and
network effects (in addition to trust).
• Most varieties of digital money are promises made by various
institutions
• For each provider, maintaining trust in the institution is
essential.
• The usefulness of each type of digital money also depends on
how widely it is used and accepted.
• In a digital environment, the notion of money is intimately
linked with the notion of identity – proving that you are the
rightful owner of the money

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17 Sustainable Development Goals (SDGs)
Why Financial Inclusion?

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Payments Chain – Mobile Money
Key Concepts and the Fitting of Mobile Money

• Mobile Money System combines, store of

value, Payment Instrument and Payment
channels
• Mobile Money system leverage existing
infrastructure and relationship to vastly
reduce fixed unit cost

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Mobile Money - Some Figures 2019

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 Innovating for Our Customers
• Attitudes towards money are shaped by perception about the convenience,
usefulness and limitation of specific money instruments and broader tension
around people financial lives
• People financial priorities and practices differ based on their social economic
condition
• With digital financial services there is special opportunity to have ongoing
relationship with customers
• Network business (MoMo Agents, Merchants, Consumers) are generally premised
on scale
• Disruptors can come from no where (Normally dismissed off but keep watch...e.g
WhatsApp Pay)
• Disruptors start with narrow service proposition target narrow market segment
and diversify with growth (From MoMo P2P to Full Fintech)
• Innovation happens in Product, Process, Models

Product Process
Model
innovation Innovation
Innovation

•Mokash •Open API •Banktech

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FinTech Terminology – Rich of Jargon

• USSD, SMS, data/internet

• SIM ToolKit (STK)
• Identity, KYC, CDD
• Authentication factors, tokens, credentials
• PIN, OTP
• Anonymity vs. pseudonymity
• Near-field communications (NFC)
• Push vs. pull
• NFC, barcode stickers
• Application Programming Interfaces (APIs)
• Developer communities

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FinTech Security and Compliance
Understand AML, CFT, Fraud Management

KYC

CDD

Monitoring

Keep
Records

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The Fintech Stack
Applies to Digital Payment Ecosystems that include MTN MoMo, Alipay, WeChat (Source Digital Frontier Partners)

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MTN FINTECH
 …let’s be BOLD!

B O L D
MoMo has reached significant scale. Over the last 7 years, we have delivered X10
active users and X10 revenues and is now and industry leader
MTN Fintech current outlook
2007
2007 2009
2009 2011
2011
42m active users (12% of WW
3m active active Fintech users), 85m wallets
P2P & Airtime Bill Payment
Launch users R 10.1b revenue in 2019
Launch Launch
14% of MTN Group cash flow
26% YoY growth
2012
2013 R 0.7b airtime commission saving
Launch 540k active agents
9m active users 5Pillars & Redbull 5m active users
(OPCO team & budget 240k active merchants
allocated)
2016
2016 2013
2014 4,7m active insurance policies

International & Regional remittance Group Fintech team start 16 countries , #1 in 10 markets
Launch Ericsson migration start
10k transaction /minute
2016
Lending & Saving Fintech innovation leader
aYo insurance
15m active users 25m active users 35m active users

2017
2017 2017
2018 2019 BOLD
(Next level Fintech)
MoMo Bright
(Group team exp. & MoMoPay Homeland
MoMoApi
OPCO CEO focus) mowali Launch

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to secure MTN rightful share of Africa’s Fintech business, we need to
simultaneously continue scaling and evolve MoMo in a full fintech platform
MoMoPay & MoMoMarket
MoMoBusiness • Ecommerce
• Merchant acquisition
• Logistic partnership
• Business sells • API platform
• API platform
Payments m-commerce
MoMoGo
Homeland & remittance • Mass transport
Remittance Transport
• API partnership Tech • Ride hailing
• Europe license
• Mowali MoMoCoin
Lifestyle
Nano reward • Everyday loyalty
aYo Insurance driving eco-system
usages
• Device insurance
• Nano insurance
Money P2P & Airtime
Nano transfer
MoMoney
investment & airtime • Cash in & Cash out
• Datatech
• Airtime prepaid and
• API hybrid
• Bank partnership Nano Mobile
Lending wallet
MoMoKash &
MoMoAdvance FINTECH VERTICALS Wallet

• Datatech & Scoring • Agents

• Bank partnership • Banking integration

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let’s be BOLD and build one of Africa’s most valuable and powerful businesses

B o L D
Biggest Operating Lifting Delivering 5 unicorns
Fintech platform like a and transforming in 1 business
in Africa Fintech MTN Core valued R 70b – 90b

New markets Operating model Airtime sales Banktech

digitization
RGS30 Technology aYo
Distribution
MoMoPay OTT play MoMoMarket &
transformation
MoMoGo
MoMoBusiness Platform (API)
Xtratime & OD
Homeland
Agent network Fraud & Risk Tech
Device insurance
MoMo
Compliance & security Reinvesting profits

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How does MTN MoMo work
MoMo facilitates mobile based money transfers between consumers/business enabling digitization of payments

MNOs
Agents Airtime purchase International
Cash-in Consumers P2P
Entry

P2P transfers Salaries

Govt.,
Cash-out On-net / Off-net NGOs,
corporates
Aids

Bank Payments for Payments

Cash goods Utilities
Phase 2 wallet suppliers
mgmt. transfers & services +
e-commerce
Salaries

Banks ATM
M2M transfers
Phase 3 Merchants

Financial services
Insurance Loan Deposit Pension Other services
Phase 4
(Tickets, transports, etc.)
MTN MoMo is a catalyst to economic and social growth
through financial inclusion and payment digitization MoMo is enabler for growth

• 90 m customers registered • 52k Micro loans disbursed /day • Interoperability with various Telco’s
• 42 m active monthly users • 12 million mobile saving users • Real time, low cost intra Africa
• #1 Fintech provider in 9 /14 countries • 4.2 m policies issued with aYo remittance with 18 corridors live

Be at the Brighten the financial well Accelerate trade and

forefront of being remittance
Financial Inclusion of millions in Africa

Empower Governments empower young talents and Unlock

through digitization enable digital disruption, the potential of
create jobs SMEs

• Tax collection for governments and local • 1k developers on our API Portal
• 80,000 merchants accepting MoMoPay
councils • 400k Jobs created with MoMo agents
• Plan to empowering merchants with
• Disburse emergency social funds for the • Enable digital distribution & Sustainable
loans and ecommerce
World Food Programme and other Aid Energy (eg: 500k prepaid solar Kit through
programs MoMo)
• Facilitate school/university tuition fee
MoMo enable solutions that change the life of millions in Africa
Across our footprint businesses are leveraging our platform to solve real problem faced by our population

In Ghana, a prepaid In most of our In Uganda the Red In most markets our
Financial institutions In all our markets
water company countries prepaid Cross uses our platform is also used
leverage our our platform is used
leverages MoMo to energy providers use platform to digitize to facilitate social
platform to digitize by merchants to
deliver potable our platform to the collection and and emergency
their loan process digitize their
water in remote deliver their allocation of response
and payments businesses
areas products donations disbursements
MoMo is at the forefront of driving financial inclusion

It is free to open an account and deposit, we establish MoMo agents in the most
Ease of Use
remote area to make our product accessible to all. MoMo can be use from the most
& Accessible
01 basic mobile phone

Ease and Costs of national and international remittances are

Lower cost of
substantially reduced. Funds are received real-time and directly into the
02 remittances
recipient’s account

Be at the
forefront of Access to New MoMo creates a financial history for customers with none,
03 Data Points enabling access to more advanced financial services such as
Financial Inclusion loan in future

Enhanced Ease of use and the wide agent network increase usage of the wallet
04 Economic Activity due to its convenience and reduced cost to transact, thereby enhancing
economic activity

05 Mobile Money funds held within banks to build a wider deposit base to lend to
Deposit
consumers, this is beneficial to the overall financial industry in each country where we
Mobilisation
operate
MoMo also helps governments

Reduce the businesses collect their payments through mobile money in real-time, at extremely low
risk and cost of costs. This enables business owners to substantially reduce costs, losses, minimize the
cash risk of using cash while increasing ability to receive and make remote payments
01
Facilitate Through our Government to Customer interfaces, government can digitize
tax tax collections making it cheaper to collect tax while expanding their tax
02 collection base. Our solution also makes tax collection transparent
Empower
Governments
through digitization Reduced cash in Users transact digitally on the ecosystem, reducing
03 the economy the burden of printing and distributing bank notes

More accurate financial information is made available, about a big part

04 Enhanced Economic of the population, to government agencies responsible for national
Indicators planning
MoMo empower SMEs, create investments opportunities and jobs

Investment The establishment of our agent network creates investment opportunities especially
Opportunities for youth as the start up capital for an agent outlet is affordable, with good returns
01

Employment Our agent outlets offer sustainable employment opportunities to

02 Opportunities unemployed people, especially youth

Our open API program enables innovative highly educated

Unlock
youth to deliver new services on the mobile money
the potential of Enhances
03 Innovation
ecosystem, creating further investment and employment
SMEs opportunities, while offering cheap services to the populace

Deposit Our merchant proposition enables businesses to deposit funds into the
04 Mobilization ecosystem at no cost to the depositor, further enhancing deposit
mobilization.

05 Business Financial Businesses with no banking/financial transaction history are afforded access to
History financing from financial institutions once we credit rate them through transactions
they perform on our system, enabling them to expand their businesses
The MoMo Platform
Actors

Bill Providers & 3rd Party Financial Organizations & MTOs

Bill aggregators Service Provider Enterprises
- Upload Bills - Saving Accounts - Salary Payment - Send Money
- Settlement - Insurance Policy - Donations - Receive Money
- Transaction History - Micro Loan
- Activate - Fee Management
Consumer - Transfer - Commission Management
- Transaction History - Loyalty Management
- Airtime Purchase - Product Packaging
- Payment
Marketing
Manager

Ericsson Wallet Platform - Registration & Approval

- Account Holder Management
- Account Management
- Register Consumer - Hierarchy Management
- Transaction History
Agents - Cash-in
- Cash-out Customer Care
-System Config.
- Voucher redemption - Profile Management
- Notification Config.

- Settlement & Reconciliation - Compliancy Reports - Payment Instructions System Admin

- Reversal Transaction - AML Profile - Deposit Requests
- Transaction History - Adjustment
- Payment
Merchants

Financial Controller Compliance Officer Partner Banks

 Some Highlights
#1 Channels
MoMo apps to deliver OTT capabilities
with requisite security features
1
7 #2 Reporting
Adoption of EVA to provide more real-
time data and advanced analytics
#3 RDS
Reporting database that will allow near
real-time alert generation with world-
2 class data replication technology used

6 4 #4 AML
3 Deploy new transaction monitoring
solution with additional AI-enabled
Fraud and analytics capability

#5 Gateway
Provision of secure and simplified
partner integration (strengthened)
5 #6 M3 (Core AML rules Dow Jones Screening)
Improved on-boarding screening through
automated list updating process
(enhancements)

#7 GSM Platforms
8 Integral for onboarding, KYC

#8 Charing System
Integral for rating
The MoMo OPEN API – Task
Onboarding
Sandbox Gateway…
Portal

MoMo Open API

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 Products
Improve existing products, create new products

Existing products New products

Collection +
Collection + disbursement +
Remittance
Collection MoMoPay Deposit Authentication Channel + channel +
Inbound
authentication authentication +
KYC

• API • API • MoMo UX • API

improvements

improvemen improvemen improvemen improvemen

t with t with ts t with
messages messages • API messages
• Add KYC • Add KYC improvemen • Add batch
• Add GSMA • Add GSMA t with method
Option Option messages

TASK
Explore Open API and Be Its Ambassadors
Q&A