Integrating Mobile Banking and Mobile Money with

Transcript:Integrating Mobile Banking and Mobile Money with:
Integrating Mobile Banking and Mobile Money with Islamic Microfinance. A product structure to consider. Khalfan Abdallah-MBA, AFIIBI, CIFE. Manager Product Development and Shari’ah Compliance –Gulf African Bank. Main Points. Mobile Banking and Mobile Money-An Outlook. Fundamentals of the Structure. Sources of Funding. Challenges and Way Forward. CONTENT Mobile Banking Mobile Money Mobile is already the largest banking channel Mobile banking functionality is quite varied. The mid- to late-thirties is currently the key demographic for mobile banking. Banks are increasingly shifting to a 'mobile first' approach. Sound mobile strategies, with effective execution, leads to significant financial benefits for those banks. Global mobile banking user base of some 1.8 billion people by 2019 (source: Juniper Research, KPMG analysis). Customers are using mobile money more than ever—in December 2015, there 411 million mobile money accounts globally. At least in 19 markets have more mobile money accounts than bank accounts. The industry is expanding to serve the needs of cross-border trade and regional economies. In 2015, by volume, international remittances was the fasting growing product. A limited number of products. More products and services should be launched and driven to make mobile money more sustainable, profitable, and relevant to customers in the long term. Mobile Banking and Mobile Money-An Outlook. Micro-finance services will keep on growing with mobile money operators increasing their focus on micro-loans, micro-insurance and group savings. The other significant area will be merchant payments. Mobile money providers will liaise with MasterCard and Visa to issue companion cards facilitating merchant payments. We will see mobile money operators, in neighboring countries, come together on a common platform for facilitating international direct money transfers. Bank and mobile money interoperability is increasingly important. For deployments with functionality already in place, bank-to-mobile (B2M) transactions represent 4.5% of the total value entering the ecosystem. Good trend on offering B2M and M2B (mobile-to-bank) capabilities. The number of banks connected to mobile money schemes increased by 66% between 2013 and 2015, growing to more than 520 banks in 2015. Future Forecast Bank and Mobile Money Interoperability. Ujrah Based Islamic Microfinance Facility. Ujrah is a fee charged to customer in consideration of services rendered by one party. Under this concept, the bank shall provide micro credit facility on the basis of Qardh (interest free loan). The fee shall be charged in consideration of actual services offered by the bank in relation to the credit facility such as: Application fee-lump sum