Telkomsel s E-Money Innovation for Boosting Indonesia s Digital Economy and Financial Inclusion. Danu Wicaksana Yogyakarta, 16 November 2017

Transcription

1 Telkomsel s E-Money Innovation for Boosting Indonesia s Digital Economy and Financial Inclusion Danu Wicaksana Yogyakarta, 16 November 2017

2 Fintech-based services has a huge potential in Indonesia, whereby ~60% of its population is still unbanked and ~83% of transactions is still done by cash 60% Fraction of Indonesia s population that is unbanked compared to 39% 1 in similar countries Indonesia remains one of the largest growing economy in the world. 10th largest economy in terms of PPP >250M population 36% People over 15 years old with formal bank account compared to ~70% in similar countries % Fraction of cash transactions by no of transactions compared to 53% 2 in similar countries Number of ATMs per 1,000 people compared to in similar countries Number of banks branches per 1,000 people compared to in similar countries in the region 1 Developing countries include Kenya, Mexico, India, Brazil and South Africa 2 Developed countries include China, Poland, Singapore and South Korea 2

3 Telco company has important role in driving financial inclusion and cashless society, given low banking penetration at ~40% and ultra-high mobile phone penetration at ~130% 60% of 170mn adult Indonesian population is still unbanked Cost of banking is high Micro traders 55 Productive poor 33 Farmer 26 Handyman 22 Informal Workers 13 Students 13 Civil Servant Pensioner 5 3 Supply side 60% unbanked population Branch cost setup is high Perceived as non profitable market Inadequate IT infrastructure Operational complexity 40% banked population G2P recipients Demand side Long distance to do banking Unaffordable administration cost Small balance of saving 3

4 3G 4G Telkomsel has great network and distribution channels that can be used to provide a more effective and efficient Financial Inclusion to every Indonesian Cover ~99% of Indonesian population 4G 3G 2G Best network coverage & quality Widest distribution channel across Indonesia 4G 3G 2G Largest #BTS 147K 12% 94K 53% 15% 45% 34% 40% Telkomsel Competitor Source: Infomemo H K 9% 50% 41% Competitor Best Broadband Experience (Mbps) Telkomsel Competitor Competitor Telkomsel Competitor Competitor Source: JPMorgan Aug 2017 Report, National Result Channel Partners # Dealer 61 ~400K registered outlet & ~800K reseller Bank 56 ~100,000 ATMs Retail 75 ~30,000 stores Devices stores Direct - 1,000 Grapari and MOGIs Online 17 T-Cash Merchant ~40,000 outlets 4

5 In Telkomsel, we have T-CASH as our mobile financial services product that aims to help driving financial inclusion and cashless society in Indonesia T-CASH vision is to be the #1 mobile payment for every Indonesian Serving ~20m Indonesians by 2020 and ~50m by 2025, both urban and rural population P2P transfer Cashin G2P disbursement Lifestyle Micro Micro saving Micro Loan Micro Insurance Driving financial inclusion and cashless society in alignment with Indonesian government agenda Tap to Pay Cashless transaction Transportation Retail/micro payment 5

6 T-CASH has two major customer segments: Lifestyle and Micro Segments 1. Lifestyle Mostly Banked Segments, with following characteristics: Prefer fast and convenient payment method for daily low value cash transactions Demand highly safe payment method Require great customer experience and look & feel 2. Micro Mostly Unbanked/ Underbanked Segments, with following characteristics: Live in rural areas with no access of financial service, or live in urban areas but hesitant to go to financial institutions Tend to keep money in their house, high risk of theft Many are targeted recipients of government aids (e.g. noncash Rastra program, UMI and other programs) 6

7 Dengan menekan tombol proses, saya telah menyetujui syaratdan ketentuan T-CASH is one of the leading players in the Indonesian e-money space, with more than ~60,000 cash-in points, 5 mio users and ~40,000 merchant footprints CASH IN T-CASH Cash-in Channels: ATM, modern retails, agents, Grapari, etc ACCESS T-CASH Access Points: Mobile App, NFC Sticker, USSD, and Web-Check Out USAGES T-CASH Use Cases: Offline Tap Payment, Mobile Payment, P2P transfer, Online Purchase T A P TO- PAY ATM Bersama Grapari Merchant NFC Sticker Mobile App USSD *800# *800# 1. Cek Saldo Multi purposes use cases P A Y ON- M O B I L E Indomaret Agents 2. Token 3. Kirim Uang 4. Isi Pulsa 5. Pembelian - Corporates - Government - Remittance linked account 5. Pembayaran 6. Info Web Check-out (online/web payment) T R A N S F E R M O N E Y P U R C H A S E O N L I N E 7

8 T-CASH is using two modern payment technologies in its offline merchants: TAP (using NFC sticker) and SNAP (using QR code) 1. TAP (NFC sticker) Require EDCs or NFCenabled phones to accept payment 2. SNAP (QR Code) Only require printed QR code (lower Capex and Opex) vs. EDCs 8

9 As of today, T-CASH has created good tractions in the Indonesian market, with >5 mio registered users in all Indonesian provinces with >90% customer satisfaction level 5+ mio T-CASH registered users >60 mio # of Annual Transactions (run-rate) 34 Number of Indonesian provinces with active T-CASH users Most consumers are happy with the service, which can trigger viral marketing in their communities T-CASH has a solid presence in Social media, which is very important to engage its customers 92% 71% 62% have good experience on last purchase will definitely keep using TCASH TAP likely to recommend to their friends ~1.1 million views ~45k followers ~450k fans ~30k followers Source: customer survey, N=184 9

10 In driving financial inclusion, we have initiated partnership with BTPN, BTN and BNI to provide financial inclusion services for millions of customers across Indonesia. ~200K Agents across Indonesia covering all provinces ~2 Mn Customers acquired to date Channel Integration Goyang Kampung Desa Nabung Nabung Sekolah Ekstra Blusukan G2P Rastra 10

11 T-CASH has also worked with the Indonesian government to support its non-cash food social assistance program in Successful pre-pilot 1 with 2x disbursement for 2,022 beneficiaries based in 8 locations in Dec 15-Jan 16 Preparation IT System, Methodology, Communication, Agent Acquisition, Training 2 Locations 12 Dec Dec Location 5 Locations 4 Dec Dec Nov Nov Dec Dec Locations 14 Jan Jan 2016 Cities Villages Beneficiaries Bendungan Hilir 216 Jakarta Karet Tengsin 368 Cileduk Tengah 412 Leuweung Gajah 375 Cirebon Lemah Abang Kulon 233 Sendangmulyo 290 Tembalang 78 Semarang Kedungmundu and 2nd Trial for Rastra (Beras Sejahtera) distribution on Aug-Sep Beneficiary data Sending invitations to beneficiaries Beneficiaries register at the nearest agent Distribution of noncash (e-money) funds Funds cash-out and exchange of food aid at the agent City Beneficiaries Jakarta 621 Solo 257 Bogor 246 Medan 387 1,521 Registration of beneficiaries is based on KTP and PKH/mail invitation Activation of T-CASH dan TCASH TAP IDR 100k as food assistance Rp 100k as social assistance Pick-up Rastra Social aid cash withdrawal 11

12 Moving forward, T-CASH will further strengthen partnership with banks and become the platform that channels various financial products (e.g., micro loan, micro insurance) Rp MICRO G2P MICRO SAVING MICRO INVESTMENT MICRO LOAN MICRO INSURANCE 12

13 REGISTRATION /KYC CASHIN /SAVINGS CASHOUT/WITHDRAW REMITTANCE LOAN INSURANCE INVESTMENT LINKED ACCOUNT TCASH financial access for unbanked

14 for better Indonesia