Extraordinary Endeavors in Turbulent Times: Asian Innovation, Inclusion, and Impact during COVID-19

ASIA BUSINESS COUNCIL HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY 7 8 Yoma Group (Myanmar) Extraordinary Endeavors in Turbulent Times This was a particularly big problem in emergency situations, such as when grandma needs to go to the hospital and pay her medical fees upfront. Without a bank account, and prior to the introduction of mobile money, it would be difficult for relatives living elsewhere to make the necessary payments. In addition, when workers had no way of sending their cash back home in an efficient manner, many of them chose to spend the money, resulting in significant erosion in incomes and social problems such as excessive drinking and gambling. Given the low level of digital literacy and the high percentage of the population in Myanmar that is unbanked, Wave Money launched an over-the-counter money transfer service in which customers could rely on agents instead of having to navigate a mobile app. Agents tend to be small business owners who seek extra income and act as human ATMs: Someone sending money can give it to an agent, who converts it into a secret code and transaction ID, which can then be forwarded to the intended recipient. It is also possible to make deposits and withdrawals through agents. As Jones said, “The agents made a fantastic team on the distribution side, and we were able to build our network very quickly. The larger the network, the larger the transaction volume, because you’re creating network points that people can use to move money around.” With this in place, Wave Money played a critical role in accelerating financial inclusion in Myanmar during the pandemic, not only through enabling digital payments among family and friends but also by facilitating e-commerce and government disbursements and empowering their predominantly female agents to manage their finances through loans and extra income. An Essential Service for E-commerce during the Pandemic In e-commerce, Wave Money proved to be an essential service for both the formal and informal sectors as COVID-19 hit and transportation links were shut down across Myanmar. The burgeoning e-commerce sector in Myanmar includes formal channels like Alibaba or foodpanda, as well as informal channels that are driven by Facebook. It is estimated that there are around 27 million Facebook users in the country, Wave Money agents act as human ATMs