Mobile Banking:Working withRegulators and MFIs               MOBILE BANKING & PAYMENTS FOR                      EMERGING A...
Mobile Banking:Working withRegulators and MFIs      • About Rural Banks and USAID-         assisted MABS project      • Mo...
Rural Banks in the Philippines• Rural Bank Act of 1952• Single-unit banks with limited products   serving small farmers, a...
4
5
Rural Banks Today• 2,700+ banking offices; 97% outside   Metro Manila• Diversified services:   • Agriculture, Microfinance...
Rural Banks Today• 3% of total Philippine Banking Assets• 5.9 mn small deposit accts (Jun 2010, PDIC)   • $ 2.9 billion   ...
What is the MABS Program?Microenterprise Access to Banking Services• USAID-supported program of the Rural Bankers  Associa...
MABS Program Milestones• 322 Rural Banks receiving technical assistance• 1.02 mn new micro loan clients served (cumulative...
Today, Rural Banks Offer range ofMobile Phone Banking Services…                                    10
Mobile Banking Milestones• Developed around 2004 when G-Cash (Globe Telecom)• Partnership RBAP, MABS, Globe, and regulator...
Mobile Money Platforms•Card-less Mobile Money Platform   •Card-based Mobile Money Platform•EMI - G-Xchange Inc (GXI)      ...
Mobile Money Now Accessible Via       Multiple Platforms             ATM           Debit Card          Bank Account    Mob...
Mobile Money in the Philippines• 21 E-Money Issuers - Banks• 3 E-Money Issuers - Non Banks         These EMIs currently ha...
Working with PartnersRural Bankers Association   Of the Philippines                                      15
Thoughts on Working with                Regulators (It can be fun!)Rural Bankers Association   Of the Philippines         ...
Thoughts on Working with                RegulatorsRural Bankers Association   Of the Philippines     • A Microfinance Comm...
Thoughts on Working with                RegulatorsRural Bankers Association   Of the Philippines     • Easy to set meeting...
Lessons learned fromPartnership structures                         19
Importance of timing in Partnerships• Partners should understand time and  investments required• Commit to this upfront wi...
Important to bring      regulators on board early• Understand and help shape regulatory  environment• Facilitate regulator...
Opportunities for thePhilippines                        22
Opportunities                 • 96 million                 Population        • 3 out of 4 do not                          ...
Bank Accounts vs. Mobile Phone Subscriptions90                                       Philippines (in Millions)8070        ...
Low Levels of Financial Inclusion   Philippines ranked 12 out of 15 countries in the East  Asia & Pacific Region with only...
Women top Men in Financial Inclusion      Philippines: number of women with an account in a       formal financial institu...
Opportunity for Banks• Banks can develop linkages with e-money  issuers.   – Increase value of service to clients  – Incre...
Opportunity for BanksBanks can now become an E-Money Issuer without investing in the entire network infrastructureOutsourc...
Mobile Banking:Working withRegulators and MFIs   In Summary….   • RBAP-MABS program successes   • Partnerships have really...
Mobile Banking:Working withRegulators and MFIs                     Thank you!         Tomas “Mitch” Gomez IV              ...
Upcoming SlideShare
Loading in …5
×

121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Mobile Banking: Working with Regulators and MFIs

232
-1

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
232
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Mobile Banking: Working with Regulators and MFIs

  1. 1. Mobile Banking:Working withRegulators and MFIs MOBILE BANKING & PAYMENTS FOR EMERGING ASIA SUMMIT 2012 8-9 October, Conrad Bali, Indonesia 1
  2. 2. Mobile Banking:Working withRegulators and MFIs • About Rural Banks and USAID- assisted MABS project • Mobile Phone banking • Working with Partners and Regulators • Lessons Learned • Opportunities MOBILE BANKING & PAYMENTS FOR EMERGING ASIA SUMMIT 2012 8-9 October, Conrad Bali, Indonesia 2
  3. 3. Rural Banks in the Philippines• Rural Bank Act of 1952• Single-unit banks with limited products serving small farmers, and rural enterprises• Private and Family-owned• Regulated by Bangko Sentral ng Pilipinas (BSP)& Philippine Deposit Insurance Corp. (PDIC)• Technically insolvent in late 70’s/early 80’s dueto failed directed government lending to agri 3
  4. 4. 4
  5. 5. 5
  6. 6. Rural Banks Today• 2,700+ banking offices; 97% outside Metro Manila• Diversified services: • Agriculture, Microfinance, Salary/ Consumer loans, SMEs, Remittance, Payments, Insurance, Mobile Banking, ATMs• Profitable, CAR of 18% (modified Basel 2)• 1.6 mn Loan Accts (incl 900k MF clients) ave o/s balance: $ 1,700.00 6
  7. 7. Rural Banks Today• 3% of total Philippine Banking Assets• 5.9 mn small deposit accts (Jun 2010, PDIC) • $ 2.9 billion • 1 of 4 deposit accts outside Metro Manila • Ave deposit Balance: $ 480.00 • 88% of accounts < $ 360.00 balance • 82% of accounts < $ 120.00 balance 7
  8. 8. What is the MABS Program?Microenterprise Access to Banking Services• USAID-supported program of the Rural Bankers Association of the Philippines (RBAP); 1997-2012• Technical assistance and training to rural banks in microfinance.• Developed capability of rural banks to profitably provide financial services (loans, deposits, insurance, money transfers) for micro-entrepreneurs 8
  9. 9. MABS Program Milestones• 322 Rural Banks receiving technical assistance• 1.02 mn new micro loan clients served (cumulative)• $ 1.05 bn in loans disbursed (cumulative)• 896,000 new micro depositors served• Development housing & agri microfinance, and microinsurance products• Development of Mobile phone banking 9
  10. 10. Today, Rural Banks Offer range ofMobile Phone Banking Services… 10
  11. 11. Mobile Banking Milestones• Developed around 2004 when G-Cash (Globe Telecom)• Partnership RBAP, MABS, Globe, and regulators• 77 Rural Banks accredited, 1,171 banking offices• RBs registered over 390,000 clients• $ 17.7 mn value mobile banking transactions (Jun 2012)• 3.0 + mn mobile banking transactions• $ 400.0 + mn in mobile banking transactions (cum.) 11
  12. 12. Mobile Money Platforms•Card-less Mobile Money Platform •Card-based Mobile Money Platform•EMI - G-Xchange Inc (GXI) •EMI – BDO Unibank (manages float)•Float held in multiple banks •EMNSP – Smart Communications•Payments •Payments•Money Transfer •Money Transfer•Mobile Banking •Mobile Banking 12
  13. 13. Mobile Money Now Accessible Via Multiple Platforms ATM Debit Card Bank Account Mobile Phone The BSP issued circular 706 which allows third party outsourcing of KYC, making it easier to open bank accounts. 13
  14. 14. Mobile Money in the Philippines• 21 E-Money Issuers - Banks• 3 E-Money Issuers - Non Banks These EMIs currently have an agent network of 25,000 and continuously expand In 2010, there were nearly 150 million e-money transactions amounting to $ 10.5 billion• 77 rural banks with electronic banking (mostly mobile banking using e-money) from none in 2005• BPI-Globe BanKo - a 3 year old mobile phone/ agent network-based bank. 200k deposit accts 14
  15. 15. Working with PartnersRural Bankers Association Of the Philippines 15
  16. 16. Thoughts on Working with Regulators (It can be fun!)Rural Bankers Association Of the Philippines • Provide input and influence regulation (even specifics) • Even Telcos say the same thing • It is still a process-oriented organization and may take time • EIU Microfinance Survey: Philippines ranked 1st in Regulation 16
  17. 17. Thoughts on Working with RegulatorsRural Bankers Association Of the Philippines • A Microfinance Committee headed by a member of the Monetary Board • An Inclusive Finance Advocacy Unit under the Dep Gov for Bank Supervision • Formal Consultation Meetings with RBAP every other month • Industry Associations matter 17
  18. 18. Thoughts on Working with RegulatorsRural Bankers Association Of the Philippines • Easy to set meetings on specific issues • Exposure draft for comment on regulatory issuances • Pull aside meeting during events/functions • Occasional text messages • Developing personal & professional relationships over time help 18
  19. 19. Lessons learned fromPartnership structures 19
  20. 20. Importance of timing in Partnerships• Partners should understand time and investments required• Commit to this upfront with key partner officers• Execution requires all partners to work together 20
  21. 21. Important to bring regulators on board early• Understand and help shape regulatory environment• Facilitate regulatory approval process• Regulators can be good advisers 21
  22. 22. Opportunities for thePhilippines 22
  23. 23. Opportunities • 96 million Population • 3 out of 4 do not have a bank account• 98%+ (94 mn) aremobile phonesubscribers •74% NO access to formalchannels • 99% geographic mobile phone • 37% (610 of 1635) coverage towns have no bank offices • 2 Billion SMS messages/day • 10 mn send remittances regularly ($ 20 bn / yr) 23
  24. 24. Bank Accounts vs. Mobile Phone Subscriptions90 Philippines (in Millions)8070 GCASH60 & SMART Padala50 Launched403020 10 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Bank Accounts Mobile Phone Subscriptions 24
  25. 25. Low Levels of Financial Inclusion Philippines ranked 12 out of 15 countries in the East Asia & Pacific Region with only 26.6% of the population having an account with a formal financial institution.120100 80 60 40 26.56 20 0 25
  26. 26. Women top Men in Financial Inclusion Philippines: number of women with an account in a formal financial institution was almost 1.8 times higher than men (33.7% vs 19%)120100 80 60 40 33.71 19 20 0 26
  27. 27. Opportunity for Banks• Banks can develop linkages with e-money issuers. – Increase value of service to clients – Increase efficiency – Lower costs – Reach new clients• With existing clients an e-money ecosystem in the local community can be developed 27
  28. 28. Opportunity for BanksBanks can now become an E-Money Issuer without investing in the entire network infrastructureOutsourcing to EMNSP, banks will be able to: Use the wide agent network established by the EMIs Convert E-money Use E-money for the payment for goods/ services Transfer funds from one electronic wallet to another 28
  29. 29. Mobile Banking:Working withRegulators and MFIs In Summary…. • RBAP-MABS program successes • Partnerships have really worked well to jumpstart mobile banking • Regulations are progressive and working relationships very good. • Much remains to be done, we’ve barely scratched the surface. MOBILE BANKING & PAYMENTS FOR EMERGING ASIA SUMMIT 2012 8-9 October, Conrad Bali, Indonesia 29
  30. 30. Mobile Banking:Working withRegulators and MFIs Thank you! Tomas “Mitch” Gomez IV GM Bank tg4@gmbank.com.ph http://rbapmabstoolkit.wordpress.com/ http://www.mobilephonebanking.rbap.org/ http://mabs4finalreport.wordpress.com/ http://www.bsp.gov.ph/ MOBILE BANKING & PAYMENTS FOR EMERGING ASIA SUMMIT 2012 8-9 October, Conrad Bali, Indonesia 30

×