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Mondato Global MVT Index Overview
Mondato LLC, Feb 2009, Pages: 23
The Mondato MVT Index is a measure of the readiness of a country for success with Mobile Value Transfer. Focused on what makes a country’s market equipped for international, inbound transfer, the Index is:
Global – scoring over 170 countries
Relevant and Responsive – updated quarterly or more often for this rapidly changing field
Oriented towards helping businesses better understand their opportunities and the barriers they may face in entering a market
Objective and unbiased
Index Composition
There are many indicators used in the creation of the Mondato MVT Index. Grouped into factors, they represent the following signs of readiness or potential for MVT:
1. Market size – economics and volume measures
2. Money flows – such as FDI and remittance
3. Infrastructure – e.g.,
a. Existing availability of utilities and adoption both traditional and mobile
b. Supporting payment structures such as ATMs or POS
4. Stability and safety
Implementing the Index in the Business Context
Use the Index to understand where a country you are targeting fits in the context of other countries’ scores and to gain a perspective on MVT globally. There are individual country reports for key countries that are also available for purchase as a supplement to the Index. These go into depth in explaining the conditions relevant to MVT in the country, and can be used to assist your organization plan for addressing the particular circumstances in that country, including undertaking further research to crystallize an action plan.
An excerpt from the report explaining the index interpretation in more detail:
- As an example, Egypt obtains an Index score of 1.46, with a global rank of 23. This score reflects Egypt’s relatively large population of over 75 million people and growing, as well as the fact that $101 was received in remittance in 2007 for each person in the country.
- Egypt has a competitive mobile market with 3 main operators, and mobile costs relative to incomes are fairly low. This also contributes to understanding potential for MVT, for, where there is still room for growth in mobile penetration, price as the barrier to that growth is not as significant as in many other countries.
- Also in Egypt’s favour is the above average access to financial services compared to the rest of the region. Having a more advanced financial services structure in place can be both positive and negative for MVT, but below a certain threshold it makes the prospects better for the alternatives to traditional banking that MVT can provide.
Conditions in Egypt relative to stability and security are far less than ideal and this works against this country’s Index score. In addition, infrastructural elements conducive to MVT are under par and would need to be dealt with in any business implementation plan.
The Mondato Global MVT Index Overview Report is 24 pages in length, and includes over 15 charts and tables of relevant data and results.
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