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Microfinance -- Moving Forward for Rural Banks


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A presentation by Atty. John V. Owens that discuss market, competition, and branchless banking trends

Published in: Business, Economy & Finance
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Microfinance -- Moving Forward for Rural Banks

  1. 1. Microfinance Moving Forward for Rural Banks  John V. Owens  RBAP‐MABS     2011 RBAP‐MABS Regional Roundtable Conference  Hya= Hotel  Casino, Manila  November 9, 2011  
  2. 2. Factors Affecting Banks Increasing New competition technologiesChanging Inclusive markets regulations Rural Banks
  3. 3. Wider Consumer Choices
  4. 4. Multiple Borrowings Over-indebtedness
  5. 5. More Discriminating Borrowers SaversATM Cards Microinsurance
  6. 6. Increased Competition Commercial Banks Finance Rural Credit Companies Banks Cooperatives NGOs
  7. 7. New Technologies Channels
  8. 8. Widespread Mobile Banking Technologies SMS Banking
  9. 9. Mobile Money Platforms
  10. 10. Use of Card-based Banking
  11. 11. Lower Cost of Technology
  12. 12. Use of Third-Party Networks
  13. 13. Are you using ! Social Networking Crowdsourcing !to expand your market outreach?!
  14. 14. Inclusive Regulations  Expansion of MBOs  Introduction of Micro-Savings  Reduced KYC  Change in Effective Interest Rate Calculations Promotion of Consumer Protection Practices
  15. 15. Rural Bank Responses  Market trend responses o  Product diversification and improved customer retention programs o  Introduce payment services  Competitive responses o  Use MBOs to reach new/underserved areas o  Introduce micro-deposits mobile money transfer as entry level product, up-sell other products/services o  Use third-party networks to outsource KYC, expand reach, and offer new services
  16. 16. Rural Bank Response   New Technology Adoption   Deploy Cash/Debit Card, Mobile Phone Banking, and Agent Channels!   Upgrade Core Banking Solutions!   Utilize the Power of Social Networks!  Inclusive Regulation Adaptation   Review and Share Pricing Structure!   Incorporate Consumer Protection Principles !
  17. 17. Things to watch out ...1. Pricing Transparency – Tiered Pricing   2. Credit Bureaus   3. Leverage Technology  1. Outreach 2. Competition 3. Efficiency 4.  Social Networks ‐ Crowdsourcing 
  18. 18. • Regular  Branches  Branches   Offices  • OBOs  • MBOs  • MIS  Technology  • ATMs  Interfaces  • Mobile Phones  • Social Networks  • POS   Third‐ • Cash/Debit/ATM  party Networks  cards   • Agents 
  19. 19. Thank You Email: Websites: Facebook: LinkedIn: Twitter: johnvowens John Owens jvowens