Enabling Mobile Money Policies in CBSL grants a licence to Dialog The Rise of eZ Cash and agrees on proportional risk-based KYC July 2013 requirements VOLUME VALUE (Rs) AVERAGE P2P TRANSFER In June 2012, Dialog launches its 1,000,000 mobile money 330,000 435.5m US$15.5 service, eZ Cash transactions in in May 2013 in May 2013 May 2013 (US$3.3m) registered mobile money users In June 2013, one year after launch, Dialog reaches 1m registered

ez Cash eZ Cash users, 20% of which are active MOBILE MONEY

Payments and CBSL issues Service CBSL issues draft CBSL issues two distinct 200,000 Settlements Systems Act Providers of Payment Mobile Payments guidelines for regulating Cards Regulations Guidelines No. 1 for bank-led and telco-led models active users No.1 of 2009 public review of mobile payment systems: (30 days) POLICY · Mobile Payments Guidelines No. 1 of 2011 for Bank-led Mobile Payment Services · Mobile Payments Guidelines No. 2 of 2011 for Custodian Account Based Mobile Payment Services 15,000 National Development Bank mobile banking and Dialog launch eZ Pay, a users mobile banking product ez Pay ez Pay MOBILE BANKING

2005 2006 2007 2008 2009 2010 2011 2012 2013

Sri Lanka at a glance Telecom market share Financial sector touchpoints The Sri Lankan custodian bank account model

20.9 million Custody of customer funds Population 35% Dialog (Axiata) Regulatory engagement 7% 9.7 million $ Airtel (Bharti Airtel) Unique active GSM subscribers License acquisition and compliance

Other banking outlets Commercial banks’ (i.e., pawn shops and Product and business development 22.1 million branches student savings units) Mobile Money agents ATMs GSM connections 21% 1,669 3,894 15,500 1,876 Marketing Agent network Technology Customer care management Branding Transactional platform

Communications Access to the handset US$2,836 14% Country GDP per capita (Hutchison)

Bank activities Joint engagement Mobile operator activities 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $ US$6.3 billion 22% Remittance flow / inbound Mobitel (Sri Lanka Telecom)

Authors: Simone di Castri and iHub. Sources: Central Bank of Sri Lanka; Dialog; GSMA Intelligence; International Fund for Agriculture and Development, 2013, “Sending Money Home: Asia”; International Monetary Fund, World Economic Outlook Database; MIX Market; The World Bank, World Development Indicators; The World Bank, Financial Inclusion Database; The World Bank, 2010, “Payment Systems Worldwide”