Mobile Banking (DINUBE)

México

Executive Summary

Jonathan Hayes, MIT

Oscar Howell, MIT
Adrian Rodriguez, MIT
Armando Valdes, MIT
Mark Younger, HBS/KSG

February 2009

5 Slides - 5 minutes
 The Business Idea
• A mobile transaction platform for
transfers and payments = cloud
banking.
• Provide access to financial services for
under-banked cell-phone users in
Mexico
• No need for a debit/credit card or a
previous banking relationship
• Anonymous, ubiquitous, cash-like
• Offer adequate fees in a segment that is
currently heavily overcharged
5 Slides - 5 minutes
 What is the Service?
• Transform any basic cell-phone into a
payment point
• Electronic value (i.e. virtual money) that
can be stored, exchanged for goods or
cash, or transferred between users.
• Powerful substitute for checks, cash and
credit/debit card
– Fraud prevention, security
– Availability, branch-less banking.
• Real time data acquisition from spending
and economic activity
5 Slides - 5 minutes
 The Market
• Mexico
– Pop. 109 million, only 35% has a bank
account
– Cell-phone penetration: 55 million
– Average age of user: 25
• M-Pesa (Kenya): launched 2007, 2.5 million
users
• G-Cash (Philippines): launched 2008, 1.9
million use
• Obopay (United States): launched 2005

5 Slides - 5 minutes
 Why are we Different?
• We are not dependent on a mobile carrier
• We are not providing so-called mobile
banking
• No downloads required, no software to
install
• Our solution is SMS based – compatible with
all phones in the market and encrypted for
security
• Java 'cloud' back-end to process requests
and transactions
• Unique, one-time use certificates for
secure transactions between parties
5 Slides - 5 minutes
 Business Model
• Investment
– Beta Prototype Development: $380,000
– Will seek VC funding
• Revenue streams
– P2P transaction fees
– B2B transaction fees (Corporations, NGO,
Government)
– Expect to capture 10% of the cell-phone
user market
• Exit Strategy
– IPO
– Sale to Partner (Carrier or Bank)

5 Slides - 5 minutes