Smart Axiata presents its views on Strategic Thrust number two, aims at empowering people by harnessing the potential arising from ICT. Taking cognizance of Cambodia's telecom and financial industries, I highlighted a new growth area where mobile operators should be permitted to launch a telco-led mobile money project in Cambodia. This, however, requires a revamp in existing financial industry rules and regulations.

1. Smart Axiata Confidential

2. MOBILE OPERATORS CAN PLAY IMPORTANT ROLES IN
THE DIGITAL EMPOWERMENT OF SOCIETIES AND PEOPLE.
FLEET MANAGEMENT AND
TRANSPORT – manage fleet in
real time
POINT OF SALE– Quick and easy
payment method
SECURITY AND SURVEILLANCE
– Remotely monitor security
systems
M-Health – Wireless products for
the medical markets covering
Bluetooth, WLAN and 3G plus a
complete web portal platform.
TELEMATICS – Access and
transfer information to vehicles
VENDING AND RETAILS –
Monitor vending machines in real
time
METERING AND MONITORING –
Industrial automation and
monitoring solutions
DIGITAL SIGNS– Manage digital
signs and public information
displays to keep them relevant and
up-to-date
PUBLIC TRAFFIC SYSTEM –
Monitor major roadways, public
transport systems and cities
EMERGENCY SERVICES – Voice
and data communications when
every second counts
“Leading
mobile
operators are
venturing into
vertical
markets
beyond voice,
SMS/MMS
and Internet”
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Smart Axiata Confidential
11/26/2013

3. LEVERAGING ON ITS UNIQUE ASSETS, MOBILE
OPERATORS CAN PROVIDE SEAMLESS AND SECURE
MOBILE MONEY EXPERIENCE.
Ubiquitous mobile
coverage.
High penetration of feature
phone and growing adoption
of smartphones.
Extensive networks of
distributors and dealers
available beyond typical
business hours.
We have the
consumer
trust.
Inter
operability
– proven
deployment
Traditional financial services providers in Cambodia, NBC (2013)
Secured.
Locally relevant, userfriendly interface and
Khmer unicode.
Lower
transaction fee.
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Smart Axiata Confidential
11/26/2013

4. ALTHOUGH THERE ARE 123 DEPLOYMENTS LED BY MOBILE
OPERATORS, MOBILE MONEY DEPLOYMENT IN CAMBODIA
IS BEING LED BY THE BANKS, REDUCING ITS REAL
POTENTIAL.
Global
188
MNO
123
Cambodia
Banking and Finance
52
Source: GSMA (2013)
Products Offering
P2P Transfer (Domestic)
Airtime
Bill Payment
Other bulk payment
Merchant Payment
Link to Other banking products
International Remittance
Loan disbursement or
repayment
G2P
Mobile Micro Insurance
Total Deployments
Global
MNO Led
Banking & Finance
Led
172
161
132
69
67
31
25
91%
86%
70%
37%
36%
16%
13%
116
113
95
53
47
12
16
94%
92%
77%
43%
38%
10%
13%
45
38
30
13
16
16
7
87%
73%
58%
25%
31%
31%
13%
14
7%
8
7%
4
8%
8
6
188
4%
3%
5
2
123
4%
2%
3
3
52
6%
6%
Mobile Money
deployment in
Cambodia
2 (Acleda and WING)
Smart Axiata Confidential
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11/26/2013

5. TELCO-LED MODEL IS A PROVEN MODEL, HAVING BEEN
IMPLEMENTED IN SRI LANKA BY OUR SISTER CO.
•
Award winning
innovation known as
Ezcash.
•
Operate under Mobile
Payment Guidelines
issued by Sri Lanka’s
Central Bank.
•
Partnership with one of
the domestic banks to
safeguard customer
funds.
•
Leverage extensively
on existing telecom
channels e.g. USSD,
STK, Brand &
Marketing, Distribution,
Platform, and licenses.
•
Proportional KYC,
allows for selfregistration and agent
based registration.
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Smart Axiata Confidential

6. UNFORTUNATELY, CAMBODIA MOBILE MONEY
DEPLOYMENT IS DRIVEN BY TRADITIONAL BANKS.
Saving
Fixed
Current
Access Channels
Home
Deposit
Small
Cr/Dr
Card
Cards
Loan
Branches
Agents
Large
ATM
ATM
Emergency
Financial
Services
Online
Domestic
PaymentCommerce
Internet
Banking
M - Banking
(USSD)
Remittance
Offline
Int’l
Bank
Bill Payment
Monthly
Payment
Insurance
POS
MFI
Third Party Processor (WING)
Others (Post Office, Bus Transportation,
Money Exchange Shop, etc.
Down
Payment
Smart Axiata Confidential

7. WE NEED TO ACCELERATE THE REFORM INITIATIVES TO
ENABLE TELCO-LED MOBILE MONEY DEPLOYMENT.
Areas
Key highlights of Prakas on Third Party Processors, August 2010
Scope
•
•
•
•
•
•
Additional
scope
• Payment transactions and cash withdrawals service
• Clearing and settlement for instruments of domestic and foreign payment in Cambodia
• To be read together with Prakas on Payment Clearing Systems, Prakas on Control of
Systematic Risk and Prakas on Operations of Settlement Account
License term
• Application fee Riel 2ml (USD500)
• Annual license fee Riel 10ml (USD2,500)
• 3 years
Obligations
• Onerous and mandatory to partner with a Bank – act as a partner to the bank
•
Introduce new
retail payment
instrument i.e. EWallet / E-cash.
A communication facility
Inter-bank clearing facility
Managing / operating Bank’s customers account
Supporting sending/receiving payment orders
Mobile money remittance or other means
Clearing and settlement of debit and credit payment
•
•
Other potential legal/regulatory
issues
Additional remarks
Specific regulation on m-payment
or electronic transfer is needed
• E Commerce Law, Law on National Payment System, Prakas on
Standards for mobile phone messages, e Cash and e Wallet is still
pending (Financial Sector Development Strategy 2011-2020)
Obligations imposed by existing
legal instruments are not
proportionate with size of the
business
• Current obligations as per above is similar to the Bank, creating a
barrier to entry for new entrant.
• Forcing new entrant to collaborate with Banks rather than building
new platform.
Promulgate E –
Commerce Law
to facility online
and mobile
transaction.
Initiate licensing
process and
guidelines i.e.
AMLA, KYC,
standards for
telco-led mobile
money
deployment.
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Smart Axiata Confidential
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8. > DISCUSSION.
> QUESTIONS?
> ANSWERS.
> NEW PERSPECTIVE?
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9. Smart Axiata Confidential