SEM.100316.Anthony Panal Petalcorin

8/8/2019 SEM.100316.Anthony Panal Petalcorin

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How Mobile Money Can beHow Mobile Money Can be

Used to Support Microfinance:Used to Support Microfinance:

M-Commerce World Summit 2010M-Commerce World Summit 2010

March 17-18, 2010March 17-18, 2010Shangri-La, SingaporeShangri-La, Singapore


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MABS Program

The Microenterprise Access toBanking Services or MABSProgram provides technical

assistance and training to rural banksin microfinance best practices.

The program is designed to developthe capability of rural banks to

profitably provide financial services

(loans, deposits, insurance, moneytransfer, micropayments) tomicroenterprises.


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Very rapid expansion over the last 10 years More than 50% of Filipinos are mobile phone subscribers

Mobile Phone BankingPenetration

Mobile PhoneSubscribers

(WorldProjections)

2008 (ITU):4 Billion

2040 (World

Bank):6 Billion

2009 (ITU):4 Billion

2012 (GSMA):5 Billion

Mobile Phone

Subscribers(Philippines)

> 68 millionsubscribers> Projections 76 M(2010)

> 60% penetrationrate> 70 millionsubscribers

> Projections 76 M(2010)

Mobile PhoneSubscribers vs.

Bank Accts(Philippines)

1998Bank Acct: > 23 MMphone: > 1.7 M

2008:Bank Acct: > 32 MMphone: > 68 M

1998Bank Acct: > 23 MMobile sub: > 1.7 M

2009:Bank Acct: > 32 MMobile sub: > 70 M


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Breakthroughs & Milestones:Mobile Phone Banking for Rural Bank & their

Clients

RBAP signed an MOA with Globe (GXI) for LoanPayment using Gcash

BSP approved pilot of Text-A-Payment to selected

rural banks

Autoloadmax retailers as Gcash outlets was launched

Study on Cost Savings conducted in selected ruralbanks on the use of G-Cash for loan payment

2004

-

2005

Some RBs started paying employees salaries orallowances with Gcash

M-commerce was used by local merchants

BSP approved Cash-in/Out (Text-A-Remittance)services for rural banks

BSP approved Text-A-Deposit service for rural banks

Strategic Planning was conducted with 5 pilot banks

2006

Salary disbursements (Text-A-Sweldo) expandedto other businesses in the community

Text-A-Bill Payment was initiated by a rural bankwith local utility cooperative

Text-A-Withdrawal was approved by BSP

Mobile Phone Banking Specialist Program was

launched

2007

Mobile phone banking specialist programgenerated more than 60,000 new users; morethan 3,400 signed up as local merchants

Mobile Phone Marketing program launched

More than 40 rural banks with more than 400branches are Gcash accredited outlets

RBAP and Globe (GXI) partnership renewed(Gcash)

RBAP signed an agreement with NokiaPhilippines (Nokia phone financing andeducational materials for mobile phone

RBAP Signed an agreement with SmartCommunications (Smart Money)

2008

BSP approved Smart Money Pilot in 2Rural Banks in July.

55 Accredited Rural Banks with 830branches and other banking offices

44% increase in M-Banking Transactionsin 2009

Cumulative Mobile BankingTransactions via the GCASH platformexceed $100 million

2009


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Mobile Phone is more than just aPhone

Microenterprise Access to Banking Services Programwww.rbapmabs.org

With Mobil

ePhone, you

can now


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Mobile Phone BankingAccredited Rural Banks

61accreditedRural Banks

886branches &other

bankingoffices

Nationwide

coverage


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Launch

Services

Customer

Adoption

Regulatory

Issues

Preparing Rural Banks & MFIs toPromote Mobile Money and Mobile

Financial Services

Customer

Perspectiv

e

Product

Developm

ent

Environme

nt

Institutiona

l

Perspectiv

e

Product

Testing


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The Business Model for RuralBanks to offer and use Mobile

Money:

Reduce

Costs

Greater

Efficienc

y

ImprovingOutreachIncreaseDeposits


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Reducing Costs:

Text-A-PaymentTransactionsdrastically reduce

costs of field basedtransactions

Green Bank reduced

effective interestrates by more than25% for Micro LoansClients paying viaMobile Money


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Greater Efficiency:

Banks are able toserve more Clients

Reduce TransactionCosts

GM Bank able to useGCASH to offer

deposits/withdrawal


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Improving Outreach:

Reaching remote

areas with bankingservices via mobilemoney

Cantilan Bankserving clients inremote areas via

mobile phone


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Increase Deposits:

Payroll servicing viamobile money hasallowed rural banks todramatically increasedeposits

PR Bank increased depositsby more than PhP 10million serving one largecompany in a rural area


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Issues and Lessons Learnt fromPilot Tests

Understand yourmarket

Importance ofregistration,training, andadoption of servicebyclients/merchants

EcosystemDevelopment multiple sources

and uses m-

Acceptance and fearof the use

oftechnologyespecially

amongelderlyclients


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Convenience

Reduces

transaction

Reduces risks

Increases

sales

Value

Propositionfor Clients,Merchants

&

Customers


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Lack ofMobileMoney

Outlets orsource

especially

in theruralareas

Effective training andeducating LoanOfficers and Front-line staff

Release ofemployees payroll/allowances via

mobile money

Plan for sufficientcash-in/cash-outpoints


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How toreach

clients inremote

communities -

awareness and

information

campaign

Information and ProductAwareness Campaigns throughmedia print, radio, TV, online

Mobile Phone Banking websitehttp://mobilephonebanking.rbap.

64 videos on YouTubehttp://www.youtube.com/rbapm

Promote Mobile Money bybanks in key locations/events

(such as local festivals)
http://mobilephonebanking.rbap.org/http://www.youtube.com/rbapmabshttp://www.youtube.com/rbapmabshttp://mobilephonebanking.rbap.org/http://www.youtube.com/rbapmabshttp://mobilephonebanking.rbap.org/


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Increasing of

volume

andusage ofmobile

money inthe rural

areas

Incentiveprograms for

Rural Banks

MobilePhone

Bankingconferences& workshopdialogueevents

Rural Bank

MarketersPro ram


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Workingwith

RuralBanks

Networksare key

tooutreach

Creating a sense ofownership among bankpartners

Regular Accreditationtraining

Rural Bankers Membership

Meetings

Testimonials fromaccredited rural banks


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Overcoming Cash-in/Cash-outConstraints in Rural Community

Larry Bat-ao, Cantilan BankMerchant-Deposit and provider of

GCASH

Bank partneredwith LocalMerchants to actas E-MoneyResellers in rural

communities


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Partner Merchants as E-MoneyResellers

E-Money Reseller is aretail outlet or merchantaccredited by the Bank &

GXI

E-Money Resellersfacilitate cash-in & cash-

out and are not directbanking agents


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Know-Your-Customer (KYC)Challenge

Challenge:Need to simplify KYC in rural

areas

Proposed Solutions:Standardized ID/ATM Card that

will be issued by the ruralbanks in partnership with GXI

This ID/ATM Card will bepresented to E-Money Resellerfor every financial transaction.

ID Card may also be used fordiscounts, perks, promos,loyalty, etc.

Sample ID/ATM card


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Bank establishedkiosks, sub-offices,and other businessoffices (OBOs) to

provide Cash-In andCash-Out


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Bank coordinates withGXI for Sub-Dealers toprovide Cash-Outfunctions

Banks also provideneeded liquidity inrural communities


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Ecosystem Development

RuralBank


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Developing Mobile Money

EcosystemsCommitment of Bank ManagementDevelopment of Mobile Money EcosystemSufficient Cash-In/Cash-Out Agents/Resellers

Creating Awareness of the use of Mobile Money in the Rural Community

Promote the value proposition for businesses, clients, and customers

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SEM.100316.Anthony Panal Petalcorin

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