RRT 2010 - Branchless Banking

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RRT 2010 - Branchless Banking

  1. 1. Expanding
Outreach
through
 
 Branchless
Banking
 John
Owens 
 RBAP‐MABS
 2010
RBAP‐MABS
Regional
Roundtable
Conference
 Pan
Pacific
Hotel,
Malate,
Manila
 November
23,
2010

  2. 2. Branchless
banking
is
a
distribu<on
channel 
strategy
used
for
delivering
financial 
services
without
relying
on
bank
branches. 
While
the
strategy
may
complement
an 
exis<ng
bank
branch
network
for
giving 
customers
a
broader
range
of
channels 
through
which
they
can
access
financial 
services,
branchless
banking
can
also
be 
used
as
a
separate
channel
strategy
that 
en<rely
forgoes
bank
branches.

  3. 3. Branchless
Banking
Some
examples
of
branchless
banking
technologies
include:
•  Automated
teller
machines
(ATMs)
•  Third‐Party
Merchants
with
Point
of
Sale 
(POS)
devices
•  Mobile
Phones
(M‐Banking)
•  Mobile
Money
PlaOorms
linked
to
banks


  4. 4. Bill Gates on Mobile Technology to FacilitateBanking for the Poor
  5. 5. FINO
–
Branchless
Banking
in
India

  6. 6. Mobile
Payments
in
the
Philippines
via
GCASH

  7. 7. Developing
Merchant
Partners
 
 for
Mobile
Phone
Banking
 
 Key
Lessons
Learned
in
the
RBAP‐MABS 
Channel
Management
IniWaWve 

  8. 8. ‘Channel management’ supports third parties (Merchants/CICOs) that are providing financial facilitation services to end customers. Bank Examples
 •  Market
research
and
development

 •  Sign‐up,
accreditaWon
 Support
Services

 •  Training
of
third
party
staff
 •  InformaWon,
MIS
 •  Liquidity
 Third party (Merchant-CICO) partner •  Payment
acceptance

 Financial
Facilita<on
 •  Sales
and
referral
 •  MarkeWng
support
 •  Customer
support
 Customer
  9. 9. Benefits to Rural Banks• What are the benefits to Rural Banks? • By working with merchant partners (CICOs), Rural Banks can offer m-banking services • This reduces transaction costs for the clients and the banks • Allows banks to serve more clients in more areas • Merchant-Partners can also be provided with liquidity services and credit opportunities • Word-of-mouth marketing support• What do Rural Banks need to do to get these benefits? • Train existing Merchant-Partners (CICOs) how to market the bank’s m-banking services • Process requests for cash and e-money liquidity • Manage the cross-sell – via relationship management
  10. 10. General Benefits of Mobile Phone Banking (along the Value Chain) Client Merchant Bank -Partners Leverage Merchants-Partners and Mobile Phone subscribers toConvenient & more secure Increase walk-in traffic expand client base and maximizethan cash (cross-selling opportunities) revenue. Decrease cash-on hand, Increase efficiency and save onComfort of dealing with transaction costscorner merchant or minimize fraud/risksMerchant-Partner neighbors Increase deposit levels Revenue from fees,Reduced transaction costs for commissions and incentives Cross selling opportunities throughaccessing banking services (no Merchant- Partners’ referralslines, no travel time/costs) Significant image building opportunity
  11. 11. What benefits can Merchant-Partners provide to banks ? •  Expand geographic coverage without building additional infrastructure •  Decongest branches •  Refer new customer segmentsSESSION
6

  12. 12. Business Proposition and Model Design Phases • What
is
the
business
 Determines
how
the
bank
 Bank model
for
management
of
 should
operate
internally
 the
channel
management
 and
with
its
partners


 staff
and
merchants?

 • What
are
the
 Determines
the
skills
 responsibili<es
through
the
 required
and
the
allocaWon
 value‐chain?

 of
tasks
in
the
bank

 Third party partner • Which
merchants
are
 Determines
how
many
staff
 priori<es
to
be
CICOs?
 are
needed
and
how
they
 should
work

 • Which
‘use
cases’
are
 Defines
the
demand
level
 highest
priority
for
Rural
 and
nature
of
the
end‐user
 Customer Banks?
 training
needed

  13. 13. Determine MPB “Use Cases”•  Kapitbahay Banking (“village banking”) –  Access to ENCASH and other Banking ATMs (Text-A-Credit) –  Human ATM (Text-A-Withdrawal) –  Remote Deposit Taking (Text-A-Deposit)•  Make Loan payments•  Pay Employees Salaries•  Pay Utility Bills via Mobile Phone•  Pay Suppliers via GCASH (not Checks or Cash)•  Send Money to Relatives (Remittance Services)•  Provide Info for a fee (balance inquiry)
  14. 14. Business Design of MPB DevelopmentPre‐Sales
MarkeWng
 Sales
and
Set‐up
 Servicing
 Training
of
Partners
 Liquidity
 AVer
Sales
 Market
Research
&
 Merchant‐Partner
 on
MPB
and
Bank’s
 Management
 Support
 Product
Dev’t.
 Products
 Acquisi<on
 ProposiWon
Dev’t
 Channel
Management
 Telco’
Support
 Mobile Channel Officers (MCO) are engaged from the beginning of the process (Pre-Sales Marketing activities) up to ‘Sales and Set-up’ and then to servicing Merchants and Clients (such as Liquidity Management and After Sales Support).
  15. 15. How to succeed in MPB implementation through partners•  Development of Strong ‘Use Case’ Proposition: •  Use and implement the right ‘use cases’ (priority case) •  Marketing must be consistent with the ‘use cases’ •  Offer package of services as fee-based income for Merchant-Partners (CICO, bills payment, MPB services, referral incentives, remittance services, and loading business—if not offered yet)•  Incorporate MPB into Bank’s Products and Services that will address the following: –  Identify how MPB can help achieve bank’s goals –  Design products with MPB components –  Build partnerships and develop internal skills in handling the services –  Implement quality standards in processing transactions –  Design a good marketing plan for MPB
  16. 16. Merchant-Partner Selection Criteria
  17. 17. NEW:
RURAL
BANK
ATM
 FACECARD

  18. 18. ense
Driver ’s
Lic Vote r ’s
ID 
 NBI
Clearance

  19. 19. Rural
Banks
 FACECARD ATM Powered by GCASH GXI
  20. 20. Maraming Salamat!!! Email: jowens@rbapmabs.org Websites: www.rbapmabs.org www.mobilephonebanking.rbap.org www.youtube.com/RBAPMABS Facebook: MABS Phil

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