The Mobile Money for the Unbanked,
Date Posted: Monday, May 28, 2012
One of the key objectives of the Global mobile money Adoption Survey was to give managers of mobile money deployments better insight into the performance of their service relative to others. This is why we prepared a confidential, customised benchmarking report for each of the participants to this survey to allow them to gauge their performance relative to other services regionally and globally.
In the mobile industry, operators are able to use tools like Wireless Intelligence to benchmark their performance in terms of customer adoption, but, until now, no such resources have existed for mobile money.
A few months ago, Paul Leishman wrote a blog post about what KPIs mobile money service providers should track. The Survey results revealed that there were eight fast-growing services among the 52 that participated in the Survey. Today, we are able to tell you how this group of fast-growing services performs on these key KPIs compared to the rest. So, ready to benchmark with the best?
Number of active customers relative to mobile base
These 8 services have in common the fact that they have been able to grow their number of active customers very quickly. 2.6% of their mobile base had become active mobile money users six months after launch, and 5.6% were active mobile money users twelve months after launch. The averages for other services were 0.2% and 0.3%, respectively.
Active rate for customers
The average active rate for customers (i.e., the ratio of the number of active accounts to registered accounts) of fast-growing services is somewhat higher than the average for other services surveyed: 23.2% compared to 13.6% in June 2011. However, we observe significant variations within that group with active rates ranging from 13.4% to 80.0%. In large part, this is because these services have employed different registration strategies. This demonstrates that different strategies can be equally successful and that the customer active rate is not in itself a good measure of success.
Customers of fast-growing services are more engaged. On average, active customers of these fast-growing services perform 3.7 functional transactions ( p2p transfers, bill payments, bulk payments and airtime top ups) per month, whereas the average for other services is 2.5. In particular, the number of P2P transfer per active customer per month is 1.2 for fast-growing services compared to 0.5 for other services.
Agents of fast-growing mobile money services are far busier than those of other services. On average, they do 28.5 cash-ins and cash-outs per day whereas agents of other services perform only 3.8 transactions a day. There is actually a strong statistical relationship between the average number of transactions that agents of a given mobile money service perform each day and the performance of the service. This is not a tautology: in theory, successful services could spread a large number of agent transactions across many agents, while a service registering a relatively small number of transactions could have few, but busy, agents. But we find that, deliberately or not, the most successful services have calibrated the growth of their agent networks to ensure that agents, on average are able to perform a meaningful volume of transactions.
Customer and agent balance
We can draw the same conclusion if we look at the numbers of active customers per active agent: with a ratio of 161, fast-growing services are far from other services whose active agents serve on average 37 active customers.
Finally on product mix, the percentage of functional transactions that are airtime top ups is smaller for fast-growing services (63%) than for other services (78%). For 4 of the 8 fast-growing services, airtime top ups represent less than 50% of the transactions performed by mobile money users.