Maalipay Crossborder Cash Remittances

Robert has over 22 years of experience in business development research and business management. He has been involved in the formulation and design of ground-breaking business initiatives  that were  aimed building linkages with people in the lower end of the pyramid since 1998.  He is Known as an  Idea Motivator,  good at conceptual designs  in the areas of Market Information Services and Systems,  Financial Inclusion and the  Sustainable Market  Linkages . Robert is a key architect in the design of INFOTRADE – Market information platform and also more recently the “ Infotrade MaaliCard”  an inclusive financial payment platform in Uganda.   

The Maali business incorporates the following;

1.   Branchless banking for the financially excluded through  free online wallet , that is backed up by  pre-paid debit cards called MAALICARD  giving uses a access to cash via collaborating banks, and existing  bank agents  integrated using  APIs to cover the all country. 

2. It offers unique Multi-currency aspect of MaaliCards  enables a cardholder to hold more than one currency on their card account enabling transactions to draw on the currency account of the country the card is being used in saving on currency exchange fees. Thus cross border payments for traders within East Africa through a combination of Online and card payments will reduce the time, cost and security risk of cross border trading.

3.  International Payments for larger businesses through Online Accounts reducing the cost of transacting and managing currency accounts and support migrants cashless movement back home.

The Maali programme for financial transactions essentially targets the 3.5 billion adults worldwide who are currently ‘unbanked’ and therefore have no payment cards.   The Maali does away with this need for a cardholder to have a separate bank account, opens the market to all, and so is truly inclusive. Maali’s technology enables low-cost transactions and is designed to make MaaliCard affordable for all

It seeks to increase effective utilization of mobile internet by the end users while generating share revenue gains for the parties. 

1.  Maali Ecosystem, is paperless and promotes cashless payment that means that less of wood for making paper money. 
2.  It provides the B2B client a new channel of penetration to the rural communities and support their marketing efforts in new nontraditional clientele
3. Access to financial instruments for the B2C clients. The Maalicard makes entry for the members into the financial realm to access multiple bundled services on the platform.

4.  Need for social distancing and changes in the behavior requirement for humanity safety

5.   For the APEX bodies, MAALI offers a solution to manual management of cash collection and can be used by SACCOS /CLUBS. 

6. Foreign Cash  remitting ( from USA, Europe and India to Uganda) dropping cash  card accounts

FIT Insights is a business development and financial Solutions. It has  Platform  developed and branded as "Maali" which means " Money"  in Swahili. The system enables  practical business integration of services that leverage the use of technologies to link people in lower base of pyramid to sustainable business relations /markets while promoting inclusive financial services.  

Maali is a new low-cost global interchange network that links existing international banking networks with a new retail network. It is establishing a new era in banking and is beginning to transform the lives of even the most disadvantaged people.

Created through the establishment of an alliance of individuals and companies who recognise the need for lower cost financial solutions and have the expertise and the technology to deliver those services, Maali works with Governments, Central Banks and multi-national corporations to draw together common interests in the financial development of people and countries

Overall, MaaliCard will help to reduce widespread poverty by enabling individuals to receive more cash from relatives, both those abroad and those ‘in-country’ and by using this increased revenue give them access to formal banking channels within their own community

Currently it support domestic remittances, service payments, savings and microcash loans. 

1. The project targets the  individuals that live on less 2 dollars a day,  transact in small amounts  and receive remittance from relative either locally or international arrange of $50 to $ 150 per month as support and domestic facilitation.  It targets  enable the individuals to have a traceable, cost effective, and affordable remittance chanel among friends, relatives and trade partners. 

2.  The seeks to promote cost sharing the utilisation of exiting financial infrastructure by enabling inteprobility of technologies and the use of share facilities to allow for lowering of cost of transaction and building share revenue option all involved stakeholders.

3. Support the offtakers buying produce within rural parts of the country in Uganda to have cashless transaction with farmers while enabling them to low risk of bulk cash movements.

The project is based on the concepts developed from understanding the value chain supply gaps associated with commodity purchase and interviews with farmers that are living hand to mouth. It gives them opportunity to receive cash online and save on source and  redeamble e- food voucher in times of need. 

Address of Stakeholders : 

For Merchants : the Maali offers alterative channel for payment, traceability, accountability of funds

Maali is  based on the principle of communicability of people and need to meet their desires; it is premised on a design that enables low cost global interchange of services within banks, creating a paradigm shift into ethical banking, while harnessing the energy, the ideas and the talents of financial and technology sector to deliver better value and achieve real change to the transformation of lives, for those individuals that are most disadvantaged.

It is an enable and opportunity finder, allowing thirty service providers in financial sector to use the channel to reachout to new market.

The project idea was  conceptualised around 2010, after a several studies in agribusiness supply chains. I was involved in a lot of evaluations with commodity buyers and farmers, i realised the need for  information (KYC) about the farmers , market information  enable fair trade and financial services that could use the  information as way of enabling traceble payment for the farmers and also reducing amount of bulk cash movements.  This allowed us to start programs in profiling of farmers, developing platforms for the sharing of market information and also looking for alteratives to make payment and collect cash in the rural areas.  A round 2016 the Infotrade Maalicard  was founded as brand that was to enable payments of offtakers. We had a proof of concept implemented with support some private partners and worked  with 1500 farmers ( cardholders) and 3 Merchants ( commodity off takers). The program was then supported by INTERSWITCH EA  payment integrater, FSD Uganda that support INTERSWITCH and other development partners like VECO Uganda.

I am driven by the desire to create solutions,  during my MBA studies in 1998 in UK at the University of Dundee i studied the behaviour of buyers of coffee and the importers. I realised that Africa as a continent had no advantage  in the instruments that would help individuals in rural areas  to safeguard their income or save the little that was paid from the sale of commodities.  A lot of the cash was lost in transactions and lack of appropriate information about the market.  I was then driven to come up with services and business ideas that promoted access to information , dissemination of trade information and collection of production .  But this was no satisfising the need to support the poor farmers. I made a decision start investing my saving from the consultancies in design of ICT platforms that can enable inclusive services that i would monitor from one position as enteprises to support traders and farmers - thus the development INFOTRADE  - connecting farmers and traders. Our dream is to cover Africa but with also opportunities to support remittance to and from africa.

We have already developed a platform locally that can enable banking for the rural people.  The Maali Host is an application that manages client data and accounts in a banking environment to provide a full backend ledger operation for automated electronic payment transacting. It is the nerve centre where all transactions emanating from the various client facing terminals like ATMs and POS machines are referred to by the Host Switch, after authentification at the HSM, for authorisation of the transaction for availability of funds. The is is working and can enable both local and international payment.

We have a growing database of farmers of about 47,000 and Card population of 300 users and wallet subscribers now at 2350.  We are pivot for the financial inclusive and the current COVID -1 Pandemic create yet other opportunity. This prompts for change of behavior and accelerates the adoption of new technologies. FIT with its “Maali” wishes to stimulate access and utilize the Mobile handsets ( Smartphones & Feature phones) .Maali as system  is  virtually enabled by the “Maalipot wallet” that is linked to an internationally registered pre-debit card (verve). It allows the user to receive, get deposits, transfer, save and make payment for goods and services as if it was cash. Also enable movement of cash to and from banks, mobile and over virtual wallet making it easy for the account holder to registered for third party services such Micro health, Personal Accident, Saving or obtain rescue loans and organize emergency e-food vouchers.

Developing technology systems or platforms is an areas that is not normally funded during the startup or idea phrase. The start of Maali was not easy,   we start a service when the enabling environment and regulator framework was not available. I had to be involved in consultancy to support the set up  better regulating environment . By doing this i lost time for the growth but i had to now get on understaking consultancy to build the capital i need to support the design and development of the system .  Worked added hours to pay for a team to work with me.  

I had to do self study in programming and systems to match up with the speed technology was changing. 

Banks were not very willing to partner or give ecrow accounts , more so if had not back deposit over 60000 USD. I tried with several banks for over two years and unitl i was able to conceive one of the banks to partner with me with a projected share on income and business development. 

I have lost personal cash and also investment with several partners, i have learn to select partners and build wining partners for my growth.

As a Conceptual and idea motivator, Robert has been involved in the architect design of an integrated ICT platform that is branded as “Infotrade” and also registered as tradename /business name for FIT Insights. It purpose of the services was to create system and services that offers interactive “information for trade” while linking businesses and financial Services to small and medium size farmers and traders. Hence the tagline of “connecting services to farmers and traders”.The service offers a heavy data collection and analysis platform creating one of the fastest growing digital cloud based farmers and traders database since 2010.  Other acheivements

• Created a network o 35 data collector and disseminate market information to over 1.3 million farmers and traders
• Has created and profiled a total of 56,000 farmers in Uganda,  Kenya and Tanzania 
• He has linked a number of companies in international for trading , raising income for the companies like African Organic   and support communities to set up trading cooperatives. 
• Inclusive Payment Solutions: Working with MTN Uganda, linked  150 Rural Farmers to Mobile financial Services 
• Maali  he  offers financial services for cash deposit, saving, transfer and payment for farmers and traders for 1500 cardhodlers

Maalipay Cross border Cash Remittance services is owned by FIT Insights Limited that registered the brand and serive.FIT Insights is a business development and financial Solutions. It offers practical business integration of services that leverage the use of technologies to link people in lower base of pyramid to sustainable business relations /markets while promoting inclusive financial services. It is classified as a FINTECH , that rebrand in 2017, from FIT Uganda  after 23 years of trading.  We are a team of 9  people.  60% owned by Robert Kintu and  15% by Dr Betty Nsangi

The objective of introducing the Maali programme into Africa with local Merchants , Banks and communities  is to address the needs and opportunities of unbanked people through development and deeper penetration of consumer finance products. It mission is to: 

Maalicard aims to become the preferred  model of virtual payment by offering a cost effective  financial  inclusive services, supported by a network of business oriented merchants and agents , complying with the requirements / regulations of the financial sectors to meet  and exceed customers needs and expectations  by sharing inclusive benefits.

This will be achieved by the use of technology to deliver value for money services to those who are currently financially excluded. The Maali strategy facilitates an increase in the penetration of existing financial services, makes new services available, extends the catchment areas of banks and contributes to the profits of merchants and businesses through the Maali revenue share model working existing bank agents Maali agent  network  which is designed to be sustainable.

The prepaid MaaliCard  which is linked to the virtual wallet called maalipot provides unbanked people with the opportunity to keep their money safely, and provides the advantages of an ‘international bank account’ in a pre-paid card through which additional low cost services can be made available to improve their ability to manage their money. Over time a financial history can be built which will enable further financial products to be sold to a large captive audience.

Card holders can withdraw any participating bank or financial organisations. 

Maali ecosystem designed on the  on the principle of communicability of people and need to meet their desires; it is premised on a design that enables low cost global interchange of services within banks, creating a paradigm shift into ethical banking, while harnessing the energy, the ideas and the talents of financial and technology sector to deliver better value and achieve real change to the transformation of lives, for those individuals that are most disadvantaged.

It seek to offer affordable payment options for the card users and convenient and cost effective transaction platform for merchants.

The marketing strategy is  driven by three interrelated aspect of safe and convenient, affordability and can be connected to multiple third-party users.

 

·         The first Strategy based on the principle of Safe and convenient payment options for merchants” thus to enroll the off takers, employers and merchants and cooperative  to power the card with funds and drive the penetration to Mass by enabling the payments via the MaaliCard to the people employed or  cooperative for produce purchases or direct debit collection for loads.

·         Second Marketing Strategy is “affordable financial services” to the card users and maalipot. the User benefit from low price over 50+ cheaper in other market actors. The farmers to use card and platform as alterative means of payment.

·         Third Marketing Strategy is aimed at creating a medium of Service connection via the MaaliCard enabling retail of insurance, loans, bill payments, and other service like hotels and transport. This proposal create an opportunity to full develop this module with some capital.

Type of Business targeted 

•   Working with APEX bodies to enroll savers as the user of MAALICARD for  cash management and Saving monitoring
•  Off takers :  Buying agencies or private companies 
•   Banks and insurance to provide third party services like loans and insurance to the members.

Only 12 % of the adult in Uganda are formally banked, that is with 380 (approx.) bank branches serving a population of 45 million people. We are target 8% of the people that earning less than two dollars per day

The technology is ready to go, we completed the proof of concept in December 2017 with controlled group of 1500 card users. The platforms has since then developed and integrated with MTN and AIRTEL mobile money, linked to Interswitch for payment via the over 500 ATMs in the Uganda , and the card holders have access to cashless transaction via mobile many 1500 bank agents in the country. 

FIT Insights has signed up with Housing Finance Bank as the supervising bank, it holders the public trust account (escrow) which is already integrated and in linked to the platform.  Currently the “ Infotrade Maalicard” has recruited

• 5 –Saving Groups that are using the platform to collect group savings  and also it will be enabling payment for their short term loans. The memberships for the groups is about 634 members all combined. 
• Signed up 2 Investment clubs that are collecting monthly fees to accumulate investments from 165 users
• Has a total of 302 individual card holders using the Maalicard 
•  2800 maalipot ( wallet ) users that using the platforms other services like payment of utility bills , TV and internal payment.
• Target :

We are target to
cover at least 15% of the take market in Uganda that is around 2.7 million
Users over the next five years.  

Product Development Aims and goals

 FIT will use the Maali has tool and  model will promote behavior change in the financial sector offering mass cost effective financial inclusive services, supported by socially committed and motivated professions, working with network of businesses and persons connected with benefits.

The roll out plan is  to have  Inclusive financial services to increased enable traceable  trade and marketable linkages and value exchange among traders and farmers or consumers and merchants. 

Working in partnership with third-party service providers like banks and insurance the are our growth plans  in next five years:

a)    Undertake a drive to recruit over 2.7million Card Users through off traders, contractors and employers over a period of seven years

b)    Build a network of 5400 Maalipay agents across the country each pay agent covering at least 500 users within their catchment areas.

c)     Enable service connection with third service providers to all access to other financial with at least 4 valued added services (e.g. Micro health Insurance, Personnel Accident insurance, Motor Insurance and Micro Rescue loan

d)    Enroll 500 Saving and Investment clubs on the Maalicard service over the next five years.

e)    Enable Microloans using Maali Financial Services

f)      Increase circulation of funds on the maalipot at tune of 135bn by the end of five year of operations 

g) Build a channel for cross border  remittances from USA, India and United Kingdom, Kenya and Tanzania

FIT Insights has working  revenue sharing agreements with  established partners as  business alliance  these are  Housing Finance Bank, MTN Uganda, AIRTEL and INTERSWITCH.

Currently, we have integrated with both MTN and AIRTEL for e- Bulk payment and collection. The Infotrade Maalicard is in position to collect and make payments to and from the two operators. 

MAALICARD is doing a second level integration with AIRTEL and MTN that will enable feature phone users to complete transaction using USSD via the MENU under Financial Services Menu. This will allow more people in the low end of pyramid to access our services. 

 The partners with Bank - housing Finance Bank , enable the safe and consolidated management of all the physical  cash and settlement of the merchants.

INTERSWITCH enables the linkage with other banks via a switch .

We shall continue to leverage on the existing networks also plan to join ABC agency network.  That will our card access over 4000 Agency Banking Agents countrywide.

FIT Insights would like to drive the business model with a lean structure at the top of Maali Financial Services having one physical head office, growing into a NEOBANK with an ICT aided penetration in the market that is supported by properly trained, support and reward youth agents business  owners and drivers dotted in the over  35 business township in the districts.

The model is aimed at driving ownership :

1.  We are recruit  SACCOS /VLSA for loan management 
2. Onboarding of the youth as agents  a)    “own, manage and operate “Maalipay Financial Agency, or  b)    “ to lease , manage and operate” Maalipay financial  Agency

The model will result in to the following

a)   Rural Financial Inclusion at the grassroot level: allowing the youth take lead in the chain. Total of 5 Regional Support Centres(15 youths with direct employment) , 35 Franchises Business (105 youth partners in business) , Network of 210 youth trained FIA at district and village level.

b)   Formalised Franchised, Branded and Structured business/enterprise ownership for youth with potential in financial services sector

c)    Creation of Alterative or passive Income for the youth in mature market

d)   Increased access to value added services  from third bundle on the MaaliCard like rural solar, microloans, micro health and pension services.

e)   Branded youth professionals, with continuous educations.

f)     330 youth estimated to be trained and selected though the certification programmes.

g)   Total of 35 Franchise banking Agencies developed.

 

The source of funding for the FIT Insights has been 

1.  Saving and re-investment from Consultancy Services undertaken by the shareholders
2. Fees and Subscription from the services offered 
3. Private Investor Memorandum ; we have developed invest opportunity for individuals to fund some of the MaaliCard technology development using Maalibrick allowing individuals to buy minimum of 8 bricks each at cost of  2500 USD. The cash is used for two years and it can be convertible in to share after two years. So far we have obtained about 3 brick investors. 
4. the users of the cards pay transaction fees that are shared with the third parties. For all the transaction on the card  users is billed at use. 
5. The card cost is about 7 dollars which the card users pay on entry
6.  Annually card management fee is about 15 dollars that is billed on a quarterly basis or for some of the client on use basis.

With  user base of about 50,000 card users the business will be in position to cover all it operating costs . We are target active base of 25,000 cards users and 25,000 Maalipot users in the short run and then move to cover 2.7 users for domestic and international remittances. 

The company has not received any grants as yet. We have start funding rasing and we are looking for  venture capital and angel funding agencies. 

1.   Mobilization of Funds using the " Maalibrick - Private investment memorandum. With this model directors are talking to individuals that are willing to investment at least 20,000 by buying 8 maalibricks at 2500 USD per brick to take the opportunity and earn interest of about 8% . The funds are held for a period of 24 months. So far three private investors (two from Uganda and One from the US) have  embraced this call and contributed  USD 30,000. 
2. Second source is from Directors' family Saving;  
3. Consultancy fees which is re-invested. About  USD 280,000 over a period of 4 years has been used to for technology  development and service promotion.

Cash Generation : 

We are charging fees for all the services,  although not breaking even: Using 12 months of Maalipay services : 

a) card sales:  $ 1369  each card is sold at  8 dollars 

b) Transactions fees $  2630 based on the number of transaction. Most of the transaction now are deposits and saving less of payouts.

c) Monthly Card Management Fees:  $3,698  from the active card users.

d) Maalipot ( wallet ) are still free for now to promote usage .  The project charge per transaction will be  US 0.16 

Note the calculation are based on only the active card users not  total FIT Insights Business  operation. This focusing on the domestic cash remittance.

We are looking for a combination of  Grant and Debt   to the development.

For the Grant of  USD 200,000 to cover the expansion, product standardisation across the region and borders, and front loading of the licensing fees the different which would like to entry.

Secondly,, we are interest in obtaining a debt of USD 100,000 to support some of the services that we doing in workcapital like starting the microloan  scheme . We believe this will be recovered in a period of 24 months.   We shall be lending to cash to user with secured saving on the platform as short term rescure loans  with an interest of not more than 14 %  p.a 

The cost indicated in the estimate are  based on Maalipay as service  unit :

Cloud Services  :  $580  p

Hosting Services  $ 240

Rent $ 540

Domains $ 4

Communication : $ 82 

Sales   $ 340

Contribution to Salaries $ 2890

Monthly total about $ 4370 , around 52,440 dollars a years  ( this does not include marketing costs )

We are interested  in obtaining at least $300,000 ( Grant) to support the launch of the Foreign Cash Remittance

• Licensing 
•  Branding 
• Franchise modeling 
•  Set up of the operations 
• Marketing  
• Technology standardization and associated services 

 and  other  funds in form of debt to support operation in Uganda  about $ 100,000.

•  Working capital 
• Seed capital for short term loans  to savers 
• Business development and marketing 

1. As we expand we need to be support with working capital to grow the business
2.  Identifying  talented individuals to promote the growth in the different countries of entry
3.  Board advisory aimed at structuring the company for growth and appropriate ownership
4. Innovative ways of marketing the company globally.

OPEN

I am  interest to partner with  companies that are share revenue models, linking the collection or payment to each out in Africa . We can form strategic business alliance and join Africa growth plans.

Secondly, organisation that are in supporting  specific groups of communicates in Africa , we can be a channel for expansion and growth.