Mr. Jun Perez of SEEDFINANCE explains how their partnership with SMART in the Island Activation Program supports empowerment through mobile banking during the 2012 RBAP-MABS National Roundtable
Mr. Jun Perez of SEEDFINANCE explains how their partnership with SMART in the Island Activation Program supports empowerment through mobile banking during the 2012 RBAP-MABS National Roundtable Conference on June 8.
Session 8: Island Ac0va0on Program: Empowerment Through Mobile Banking Jun Perez SEEDFinance 2012 RBAP-MABS National Roundtable Conference June 7-8, 2012 Hyatt Hotel & Manila
The SMART Islands Activation Program Empowerment through Mobile Banking
Islands Ac0va0on Program (IAP) • an ini;a;ve of Smart Communica-ons, Inc ., which aims to provide mobile based ﬁnancial services to remote communi;es. • designed to target Microﬁnance Ins;tu;ons in remote areas where access to ﬁnancial services is limited. • a partnership of SMART-‐MFI-‐SEEDFINANCE • enabling island residents to perform mobile remiEances, e-‐load purchases, bill and u;lity payments and other micro purchases, all via mobile. • launched in October 22, 2008
Islands Ac0va0on Program (IAP) Aspira0ons • To provide communi;es in far ﬂung areas aﬀordable access to mobile-‐enabled ﬁnancial services. • To present clients/members of the Ins;tu;on with a sustainable business opportunity that may augment their present livelihood ac;vi;es
Role of SMART on IAP SMART • provides the technology and access devices (SIM, Smart Money Account) that makes mobile money possible • enables the plaPorm and services while engaging with partners who are willing and able to run the technology
Role of Partner MFI on IAP Partner MFI • promotes and encourages the use of SMART Money services among members of the community using merchandising collaterals and promo;onal materials provided by SMART • loyalty and usage programs are designed and implemented by the Ins;tu;on to further promote SMART Money reloading and encashment services
Ac;vated Smart Money Centers in 71 remote rural communi;es. Released 7,624 Smart Money Cards in partners’ areas, as of 3-‐31-‐12
SEEDFINANCE Support MOBILE BEAT : Mobile Banking Educa;on And Training (MBEAT) • designed to educate Microﬁnance Ins;tu;ons, as well as microﬁnance clients, the technical and prac;cal use of mobile banking in their day to day ﬁnancial transac;ons. • modules for MFIs are designed for Product Planning and Development, Computer Literacy & MIS Management, Liquidity & Fund Management and Marke;ng & Customer Service.
Clients’ experiences BRANCHLESS BANKING ATTRIBUTES PHYSICAL BRANCH (THRU SMART MONEY) NEARBY 1 HABAL-‐HABAL RIDE AT FINGERTIPS AWAY SAFE NEED FOR MAINTAINING NO MINIMUM BALANCE BALANCE LOW COST AFFORDABLE CLIENT PAYS FOR CHARGES NO HIDDEN CHARGES FOR BELOW-‐MAINTAINING OR DORMANCY CHARGES, ETC. FREQUENT CANNOT TRANSACT 2 TO 3 ANY NUMBER OF TIMES OPPORTUNITY TIMES A DAY OR MORE WITHIN THE DAY TO TRANSACT USER FRIENDLY CANNOT UNDERSTAND A CAN UNDERSTAND A BANK STATEMENT OR THE SIMPLE TEXT TCS (TRANSACTION CODES CONFIRMATION IN THE PASSBOOK) HIGH VARIETY OF CAN PAY LOANS BASED ON IF AVAILABLE, C AN TEXT VALUE VALUES, FIXED AMORTIZATION THE PAYMENT ANYTIME, TERMS, SCHEDULE EVEN IN ADVANCE OF DUE SCHEDULES DATE MULTIPLE, SEPARATE DEPOSIT CAN TRANSACT CONNECTED PASSBOOK, LOAN LEDGER, EVERYTHING THROUGH PRODUCTS ETC. MOBILE PHONE ADAPTED TO CONFINED TO DEPOSIT CAN PAY BILLS, LOANS, UNIQUE NEEDS AND LOANS AND DEPOSIT, REMIT, ETC. OF THE POOR REMITTANCE
Lessons Learned • INSTITUTIONAL PREPARATION IS A CRUCIAL FACTOR TO SUCCESS • CLIENTS NEED TO BE EDUCATED, TOO, ON BUSINESS POTENTIALS • LIQUIDITY HAS TO BE MANAGED CAREFULLY • NOVELTY NEEDS TO BE REINFORCED BY INTEGRATING MOBILE BANKING WITH CORE SAVINGS & CREDIT OPERATIONS
The Vision for the FutureSMARTowns Cashless, Branchless ATMs SMART Mobile Banking money tellers • BRINGING MOBILE BANKING TO ISLAND COMMUNITIES THROUGH AN ECOSYSTEM OF MOBILE/E-‐MONEY, ATM MACHINES, POS MACHINES, MOBILE TELLER MACHINES, THROUGH COOPERATION OF TELCOs, KBs, ATM SOLUTIONS, SYSTEMS PROVIDERS, & MFIs • CUSTOMERS LINKED TO ELECTRONIC CASH PLATFORMS, TRANSACTING & REALIZING TRANSACTIONS AT THEIR OWN TIME, AT THEIR CONVENIENT PLACE
In 2010 and 2011 we ini;ally worked with savings and credit coopera;ves In 2012, we partnered with RBAP-‐MABS to assist in the SMART Money Program for rural banks
We ﬁrmly believe... MOBILE BANKING IS THE WAY TO GO FOR MICROFINANCE THAT IS ... ACCESSIBLE, RELIABLE, & AFFORDABLE!