Kumari Bank – Mobile Cash
Description
On August 17, 2010, Kumari Bank launched a revolutionary service “Kumari Mobile Cash”, which uses mobile phones to provide access to financial services. The first of its kind in Nepal, this service pioneers the “mobile wallet” concept, which allows users to store cash balances in their mobile phones. Users are then able to deposit and withdraw cash from their mobile phones, and use the stored cash value to remit to anyone, anytime, anywhere, with the push of a few buttons. In addition, we have also added (and continue to add) various utility bill payment services through this service, enabling people to make payments from the comfort of their homes rather than stand in line for hours. At present, this service is available through all of Kumari Bank’s 29 branches and 189 authorized agent locations nationwide. We are currently working to rapidly increase the number of authorized agents to cover the most remote areas of Nepal, because we see a potential in the bottom of the pyramid (BoP) population as one of the key market segments. It is our belief that mobile phone is not only a medium of connectivity, but also can spur various entrepreneurial activities, which contributes directly to the socio-economic development of the nation. Thus, Kumari Mobile Cash plans to leverage the proliferation of mobile phones to bring financial services within the reach of every mobile user.
What we deliver
• Mobile to mobile remittance service • Deposits using mobile phones • Withdrawals using mobile phones • Mobile to bank account transfer & vice versa • Merchant payment service at the largest supermarket chain (Bhatbhateni Stores) in Nepal • Telephone bills (landline & mobile) • Pre-paid airtime top-up • Airline ticket purchase (being developed) • Internet bill payment (being developed) • Dish TV bill payment (being developed)
Whom we deliver
Retail users, authorized agents, and utility providers with microfinance institutes and rural population segment currently being added
Why is the project unique?
The first of its kind in Nepal, this service pioneers the “mobile wallet” concept, which allows users to store cash balances in their mobile phones. Users are then able to deposit and withdraw cash from their mobile phones, and use the stored cash value to remit to anyone, anytime, anywhere, with the push of a few buttons. Other users are mostly providing SMS banking services through mobile phones, allowing users to only query for account balances and recent activities.
Roadmap
With the global commerce today heavily reliant on the effects of globalization, we believe, mobile commerce too can achieve a global scale. The mobile technology the world over is not significantly different from country to country. In other words, it is not technology, but rather than the overall ecosystem that has proved to be vital in the mobile platform based delivery channel. The ecosystem includes clear definition of each stakeholder and their share of responsibilities and profits, crisp and robust regulation, and awareness campaign especially targeting the BOP population. While the technology is already being installed in millions of phones worldwide, wide adoption is yet to take place. Mobile phone carriers, banks and payment networks are all vying for their share, but first they all will need to sort out what role each will play, and how each will get paid. We have held several discussions with a number of multilateral organizations such as The World Bank, IFC, ADB, and DFID and have asked them to take a lead role in making mobile based financial services the most widely used service across the world. Our primary intension here is to make them realize that individual banks and/or telecom providers from individual countries neither possess enough resources nor the expertise to make mobile technology a global phenomenon. What we do have is the passion and dedication to make sure that the service achieves irreversible success in our representative countries. Credit card and technology companies have talked about mobile wallets for more than a decade, but not until recently have we seen a wave of mobile set manufacturers, telecom carriers (providers), and banks also focusing on the promise of this service. There is a need of a global body such as a multilateral organization that can develop a framework keeping in mind all the stakeholders. The types of services that a global platform could support would be: 1. Global remittances 2. Global Payment Network (Similar to Amex, Visa, MC) 3. Payment services for numerous smart phone applications 4. Payment for taxis, plane tickets, vending machines, bus tickets The idea is to be able to replace cash as the most dominant medium.
Contact
Suresh K. Karna / Sanjay Poudyal
Kumari Bank Limited
P.O.Box 21128
Kathmandu, Nepal
URL/Website – www.kumaribank.com
