Microenterprise Access to Banking Services Program
Introduction to Mobile Phone Banking Services
Mobile Phone Banking
Branchless Banking is the cheaper alternative delivery of financial
services outside the conventional bank branches using Information and Communication Technology
(such as mobile phone and electronic money). –Source: CGAP
Mobile phone Banking is a variation of Branchless Banking
wherein mobile phone and E-Money are used to perform banking
functions.
Mobile PhonebankingIndicators
Status: Apr 2012
# Banks Accredited 76
# of Banking Unit 1168
# of M-Banking Trans 2.9M
Total Amt. of Trans (PhP) 16 B
Ave Monthly Trans (PhP) 743.6 M
# of Clients 390,035
The Rural Banks…
LUZON
VISAYAS
MINDANAO
Most rural areas have limited access to financial services.
Rural banks are ideal Financial Institutions to facilitate access to banking services for rural and lower income individuals.
There are 600 rural and cooperative banks throughout the Philippines with over 2,700 branches/units serving more than 85% of all municipalities.
Mobile Phone Subscribers (World Projections)
2008 (ITU): 4 Billion
2040 (World Bank): 6 Billion
Mobile Phone Subscribers (World Projections)
2008 (ITU): 4 Billion
2040 (World Bank): 6 Billion
2011 (ITU): 4.6 Billion
2012 (ITU): 5.6 Billion
2011 (ITU): 4.6 Billion
2012 (ITU): 5.6 Billion
Mobile Phone Subscribers (Philippines)
> 68 million subscribers> Projections 76 M (2010)
Mobile Phone Subscribers (Philippines)
> 68 million subscribers> Projections 76 M (2010)
> 90% penetration rate
> 90 million subscriptions
> 90% penetration rate
> 90 million subscriptions
Mobile Phone Subscribers vs. Bank Accts (Philippines)
1998Bank Acct: > 23 MMphone: > 1.7 M
2008:Bank Acct: > 32 MMphone: > 68 M
Mobile Phone Subscribers 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
2011:Bank Acct: > 34 MMobile sub: > 90 M
1998Bank Acct: > 23 MMobile sub: > 1.7 M
2011:Bank Acct: > 34 MMobile sub: > 90 M
Philippines: “Text Capital of the World”
Mobile Phone Industry Mobile Phone Industry
Growing subscriber
Stiff competition reducing costs
Affordable handsets
Growing mobile money platforms (GCASH/Smart Money)
Growing subscriber
Stiff competition reducing costs
Affordable handsets
Growing mobile money platforms (GCASH/Smart Money)
Opportunities for the use of Mobile Money through Rural Banks
Remittance Business Remittance Business
Growing ($20 B in 2011 & expected to grow $21 B in 2012)
Domestic remittances are also a key market
Transfer methods increasingly using Mobile Money (GCASH/Smart Money)
Growing ($20 B in 2011 & expected to grow $21 B in 2012)
Domestic remittances are also a key market
Transfer methods increasingly using Mobile Money (GCASH/Smart Money)
Rural Banks
Rural Banks
> 50% of population is located in the rural areas
Rural banks have 2,700 branches & other banking offices in rural areas
> 6 million deposit accounts1.5 million borrowers
Motivated as an industry to grow to scale
> 50% of population is located in the rural areas
Rural banks have 2,700 branches & other banking offices in rural areas
> 6 million deposit accounts1.5 million borrowers
Motivated as an industry to grow to scale
Breakthroughs & Milestones
- MOA signed with Globe- BSP approved TAP pilot
BSP approved TAP
- Roadshow (17 regions)- Accreditation training- BSP approved TAD, TAR
- TAW approved- TAS Implemented- MPB Specialist Program
- MPB Marketers’ Program- 400+ RB units accredited- MOA (RBAP/Nokia) signed
•830 RB Units accredited•MPB Transactions > P4.9B
• 1,168 RB Units accredited
Cumulative MPB Transactions > P14 B
Why Partner with Globe Telecom?
One of the leading mobile phone operators in the Philippines Over 25 million subscribers Over PhP50B annual revenue Globe handles over 2 billion messages/day Developed G-Cash platform in 2004
More than 2 Million registered Gcash users More than 5,000 G-Cash partners (local and
abroad) plus the 18 thousand Sub-Distributors of prepaid airtime load in the Philippines. Transactions per month approximately
PhP 5 Billion
Today, Rural Banks Can Offer Following Mobile Phone Banking Services…
Benefits of Branchless Banking (Along the Value Chain)
E-money Merchants and
Resellers
Increase walk-in traffic (cross selling opportunities)
Decrease cash-on hand, minimize fraud/risks
Revenue from fees
Client
Convenient & more secure than cash
Comfort of dealing with corner merchant or reseller-neighbors
Access to financial services from the bank remotely with reduced time and transportation costs
BankLeverage Merchants, Resellers and Mobile Phone subscribers to expand client base
Increase efficiency and save on transaction costs
Increase deposit levels
Cross selling opportunities
Significant image building opportunity with major partner
Bank keeping up with new technologies
Website:www.mobilephonebanking.rbap.org
Mobile Phone Banking installations Nationwide
End of Presentation