Download b2bPriceNow - IFPRI 2020 conferences

Enabler of Financial Services
For the World’s Poor
Edgardo Herbosa
Founder, Managing Director
The Absence of Financial Services for the Poor
inhibits their Economic Development

4.5B poor , mostly farmers and fisherfolks , the
largest body of workers in developing countries

cannot establish bank accounts

cannot borrow money from banks

are “penalized” to move money
b2b Mission
Address the banking needs of the world’s
poor by providing a holistic financial
services platform.
REMITTANCE BANK
MFI Network
AGRI-BANK
E-MARKETPLACE
CO-OP
MFI
MEMBERS
BORROWERS
B2BCENTERS
Agriculture sector
Remittance sector
Microfinance sector
with CA/SA
e-commerce
cash card
m-commerce
PART 1: E-COMMERCE
b2bpricenow.com empowers cooperatives to secure the best
prices for their products by selling through an e-marketplace with
an on-line account-to-account payment system.
E-Commerce Value Proposition
Before
Decision Making
Standpoint
After
• Production-driven planting
• Market-driven planting
Marketing
Standpoint
• Vulnerable to Middlemen
• Low margin and traders enjoy mark-up
• Passive
• Direct to Buyers
• Only 1% transaction cost
• Active
Banking
Standpoint
• Checks bounces
• Costly to send and receive payments
• Payments are secured by the bank
• Convenient and cost effective
PART 2: M-COMMERCE
b2bpricenow.com empowers cooperatives to transfer funds
efficiently through mobile phones and cash cards:
1. cooperatives  members
2. members  members
3. Diaspora  members
M-Commerce Value Proposition
Before
Cooperatives
High Administrative Costs
•distributing dividends & collecting dues
Members
No Access to Financial Services
Members
Logistical Hardships
Diaspora
• Due to minimum requirements, many are “unbanked.”
• Penalized when moving money.
• Cost commuting and waiting in lines to
collect dividends and pay dues
High Transactional Cost &Logistics
• Spend $12 to remit money to the
unbanked.
• Long delivery time.
After
Lower Costs
They are now
Banked
Ease in sending
and receiving
money
Lower Transactional
costs and Real Time
delivery on Cash Card
Fund Transfer: Cooperatives to Members
Broadcast of Payroll and Dividends
B2BPRICENOW.COM
Current Acct /Savings Acct


Cash Card
 Fund Transfer
CO-OP

On-line Spreadsheet
 SMS

MEMBER

MEMBER

MEMBER
1. Cooperative logs onto b2bpricenow.com website to “Broadcast Dividends” and to
transfer the respective funds from its CA/SA.
2. Cooperative uploads to b2bpricenow.com website a spreadsheet of dividend breakdown.
3.
b2bpricenow.com simultaneously broadcasts dividends to each member’s cash card
account. Each member receives an SMS confirmation.
Interface to Broadcast Payments
Authenticate
, check
balance,
transfer
funds
Confirmation
Confirmation
B2bpricenow.com
Server
Confirmation
Submit Transfer
Request
Confirmation
Landbank Host
Server
Send confirmation
details
Send SMS notification
Internet User
InfoTXT Server
Fund Transfer
Recipient’s
Cellphone
Broadcast Payments Display
Sep 11 1530: Your cash
card account no
0035-5555-0005 has
SMSP2,500.00
Message
received
Received!
Your current
balance is
P6,750.00. Ref: 123456
Sample Mobile Commands
TO PAY BILLS/PURCHASE
FROM MERCHANTS
TO TRANSFER FUNDS
TO OTHER CASH CARD HOLDERS
Type:
PAY (space) <amount>
(space) <recipient userid> (space) <mpin>
Type:
Trans (space) <amount>
(space) <recipient userid> (space) <mpin>
PAY 1500 PLDT 2005
TRANS 15 Juan 2005
Send to +639178108983
Send to +639178108983
PART 3 : b2bcenters
b2bpricenow.com empowers cooperatives to earn from income
diversification through the sale of ICT products and services
Secret Sauce
Expansion with Agriculture Banks in Developing Countries
“ APRACA endorses the replication b2bpricenow.comLandbank E-COMMERCE FOR FARMERS PROGRAM
Philippine model to its other member banks in the Asia –
Pacific region and further endorses b2bpricenow.com as a
strategic partner “
Mr. Benedicto S. Bayaua
Secretary General
APRACA *
•APRACA is a 30 year old association of 22 Asia Pacific countries with
53 member banks and institutions which mission is for the sustainable
rural development to uplift the rural poor
APRACA is …
USD 500 billion dollar agriculture trade with 650,000 cooperatives
o
MANTRA :
E-commerce
for Farmers
Program
M-commerce
for the poor
Platform
Enabler of
Financial Services
for the Unbanked
MICRO
INSURANCE
Vietnam
84M
MFI Network
Indonesia
243M
REMITTANCE
India
1.1 B
China
1.3 B
Thailand
64M
CONTENT
e-Commerce
m-Commerce
CONECTIVITY
Philippines
89M
b2bcenter
June ‘07
December ‘07
Capabilities vs Per Country Roll-out Schedule
March ‘08
Double
Bottom
Line
Technology
Silicon Valley
Financial
Metrics
b2b
BARA, UofA
Applied Anthropology
Social
Metrics
APRACA
Banks
World’s Poor
Thank you!