MABS: Branchless Banking Updates


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MABS: Branchless Banking Updates

  1. 1. Branchless Banking Developments for Rural Banks 2010 RBAP-MABS National Roundtable Conference Hyatt Hotel and Casino, Manila June 2-3, 2010 John Owens MABS
  2. 2. <ul><li>Approval received for rural banks to provide money-in/money-out services for their depositors and borrowers. </li></ul><ul><li>RBs can collect and distribute Smart Money cards. </li></ul><ul><li>Proposing no name card distribution by RBs in order to avoid delays in card distribution process. </li></ul><ul><li>Final plans with Smart to be presented by June. </li></ul>
  3. 3. <ul><li>Major expansion in services planned for 2010 </li></ul><ul><ul><li>Java application being developed by Ateneo University Company Blue Blade to be offered to RBs under a shared standard agreement </li></ul></ul><ul><ul><li>Customization of Java app for additional fees still being negotiated </li></ul></ul><ul><ul><li>RBAP/RBRDFI via MABS is finalist in Branchless Banking Financial Education grant from Microfinance Opportunities and Master Card Foundation </li></ul></ul><ul><ul><li>Negotiating with Mercy Corps (Bill & Melinda Gates Foundation) for support in managing cash-in/cash-out network </li></ul></ul>
  4. 4. Goal - Increase rural bank client outreach by utilizing the mobile phone banking services through their merchant-partner clients.
  5. 5. <ul><li>Support “virtual human” teller network thru cash in/cash out merchant-partners 1 of rural banks. </li></ul><ul><li>Promote client education and referral services. </li></ul><ul><li>Support “liquidity” requirements of sub-distributors’ cash in/cash out agents by providing reasonable & competitive rates. </li></ul>1 Merchant-Partners = sub-distributors
  6. 6. <ul><li>Merchant-Partners will act as virtual cash-in and cash-out network for rural banks and their clients </li></ul><ul><li>Merchant-Partners should have a deposit accounts with the rural banks. </li></ul><ul><li>These Merchant-Partners should: </li></ul><ul><ul><li>sign a merchant – partner agreement with the bank, </li></ul></ul><ul><ul><li>offer to refer clients to the rural bank, </li></ul></ul><ul><ul><li>help train current and potential bank clients about the mobile phone banking services . </li></ul></ul><ul><li>In order to promote this nationwide and capture this market, rural banks will agree on a standard cash-in and cash-out fee which banks may opt to waive under certain circumstances. </li></ul>
  7. 7. <ul><li>Two (2) commercial banks allow sub-distributors a flat rate of P50 regardless of amount </li></ul><ul><li>A major pawnshop currently charges P20 for every P10,000 cash-in/cash-out transaction for sub-distributors </li></ul><ul><li>All GCash accredited rural banks are charging P10 or 1% of the amount which ever is higher for clients and bank customers but need to adopt a standard bulk fee for sub-distributors. </li></ul>
  8. 8. <ul><li>P20 up to P10,000 </li></ul><ul><li>P40 for P10,001 – P20,000 </li></ul><ul><li>P50 for transactions of P20,001 and above </li></ul><ul><li>Banks may waive the cash in/cash out fee for those who provide large volume of services to their clients (i.e. payroll servicing, loan disbursements/payments) </li></ul>Condition: a) merchant-partner supports cash in/cash out services for rural bank clients, and b) provides referrals to the bank. Proposed pricing schedule: