Presentation made during the Mobile Money Transfer Asia Pacific Conference (MMT APAC) held in Manila from January 17-20, 2011.

1. Mobile Microfinance: A Tool for Financial Inclusion & Economic Growth John V Owens MMT APAC January 17-20, 2011

2. What is the MABS Program? The Microenterprise Access to Banking Services (MABS) Program is an RBAP program supported by USAID that provides technical assistance and training to rural banks in microfinance best practices. The program is designed to develop the capability of rural banks to profitably provide financial services (loans, deposits, insurance, and money transfers) for microenterprise clients.

3. GCASH & SMART Padala Launch

5. Reduce time

6. Fast and convenient

7. Secure no cash in transitE-Money  E-Money 

8. Today, Rural Banks Can Offer the Following Mobile Phone Banking Services…

9. Rural Bank M-Banking & M-Commerce Ecosystem via GCash P Text-a-Payment / Int’l & Domestic Remco’s P2P (Domestic Remittance) GCash2Load (Airtime Credit Purchase) Text-A-Sweldo (Salary Disbursement) Text-A-Withdrawal (Withdrawal from Bank Account to GCashWallet) RURAL BANKS Rural Bank Text-A-Remittance Cash-in/Cash-out (Face-to-Face Wallet Funding) Text-A-Credit (Loan / Credit Disbursement) Text-A-Deposit (Deposit to Bank Account) P2P (Purchase of Goods/Services) Text-a-BillPay (Bills Payment)

12. Channel management supports third parties (Merchants/CICOs) that are providing financial facilitation services to end customers. CUSTOMER Support Services Financial Facilitation

14. Decongest branches

15. Refer new customer segmentsSESSION 6

17. Make loan payments

18. Pay employees’ salaries

19. Pay utility bills via mobile phone

23. Smart Money provides access to ATMs as well as POS Systems via tie-up with MasterCard

25. Driver’s License Voter’s ID NBI Clearance Identification Cards/KYC

26. ATMs

27. Rural Banks Face Card ATM Powered by GCASH GXI

29. Launch Services – Customer Adoption Product Development Regulatory Issues Customer Perspective Product Testing Institutional Perspective Environment Preparing Rural Banks to Promote Mobile Money and Mobile Financial Services

30. The Business Model for Rural Banks to offer and use Mobile Money Reduce Costs Improving Outreach Greater Efficiency Increase Deposits

31. Acceptance and fear of the use of technology especially among elderly clients Focus on Value Proposition for Clients, Merchants & Customers Issues and Lessons Learnt from Pilot Tests Lack of Mobile Money Outlets or source especially in the rural areas Working with Rural Banks – Networks are key to outreach How to reach clients in remote communities - awareness and information campaign Increasing of volume and usage of mobile money in the rural areas.

32. Market Research Findings: What clients like Speed of transactions “Money can be sent and received fast.” Security or safety “Account is protected by PIN.” “No need to carry cash which might be lost or stolen.” “You are assured because there is confirmation.” Convenience “Can send money any time.” “Can do transaction without leaving one’s home.” “I do not need to fall in to get my salary.” “I can easily get the money at cash-in/cash-out outlets.” “I can transact even at midnight.” Cost “Low charges.” “Can save on transportation cost.” “Can save on time.”

33. Market Research Findings: Clients Concerns Risk “If you lose your cell phone or if your SIM is blocked, you will lose access to your e-money as well.” Reliability “Technical glitches” “Technical support for problems” “Sending the e-money to the wrong recipient” Misconceptions Misconceptions on time limits of e-money vs. airtime load

34. An Effective Financial Education Program can: PROMOTE the benefits of shifting from traditional banking to mobile phone banking ADDRESS the misconceptions that hinder uptake and usage BE ANCHORED on merchants and re-sellers to teach clients and recruit potential clients

36. Build a system that is flexible for multiple business use cases – think Apple iTunes

37. Make registration process simple and easy – little or no cost & instant

38. Consider issuing/linking an optional debit/ATM card to your Mobile Money Wallet

39. Listen to your customers and get out in the fieldUr comfort

40. Additional Materials http://www.rbapmabs.org/blog/wp-content/uploads/2009/02 BN-68-Strategic-Partnerships-for-M-banking.pdf http://www.rbapmabs.org/blog/wp-content/uploads/2009/02/BN-69-Incentivising-3rd-Party-Agents-for-M-banking.pdf http://www.rbapmabs.org/blog/wp-content/uploads/2009/02/BN-70-Pilot-Rollout-Strategies-for-M-banking.pdf http://www.rbapmabs.org/blog/wp-content/uploads/2009/02/BN-71-Creating-a-Tipping-Point-for-M-banking.pdf

41. Thank You Email:jowens@rbapmabs.comWebsites:http://www.mobilephonebanking.rbap.org/http://blog.mobilephonebanking.rbap.org/ LinkedIn: Twitter: John Owens jvowens