Rural Banks Leveraging Mobile M ney to Increase Access to Banking Services Roselle M. Hernandez Mobile Phone Banking Specialist RBAP-MABS Program, USAID5th Mobile Commerce Summit 2012Fullerton Hotel, Singapore03.21.2012
The MABS Program The Microenterprise Access to Status: Banking Services (MABS) Program is Indicators Dec 2011 an RBAP program supported by USAID # Banks & Branches 100/1,300 that provides technical assistance and # Micro‐Loans Disbursed 3M training to rural banks in microﬁnance best pracCces. # Micro‐Borrowers 950,000 It is designed to develop the capability Amt. Loans Disbursed $900M of rural banks to proﬁtably provide ﬁnancial services ‐ loans, deposits, # Micro‐Depositors 1.4M managed insurance, money transfers and mobile banking ‐ for microenterprise # Microinsurance clients 450,000 clients.
The Rural Banks… Most rural areas have limited accessLUZON to financial services. Rural banks are ideal Financial Institutions to facilitate access to banking services for rural and lower income individuals. VISAYAS There are 600 rural and cooperative banks throughout the Philippines with over 2,700 branches/units serving more MINDANAO than 85% of all municipalities.
Philippines: “Text Capital of the World” Mobile Phone Subscribers vs. Bank Mobile Phone Accts (Philippines) Subscribers Mobile Phone (Philippines) Subscribers 1998 2011 (World ProjecCons) > 90% penetraCon Bank Accts >23 M > 34 M rate Mobile Subs > 1.7 M > 90 M 2011 (ITU): > 90 million 4.6 Billion subscripCons 2012 (ITU): 5.6 Billion
OpportuniCes for the use of Mobile Money through Rural Banks Mobile Remiiance Rural Phone Industry Business Banks Growing subscriber Growing internaConal remiiance at PhP 20B > 40% of populaCon in the SCﬀ compeCCon for 2011 rural areas reducing costs DomesCc remiiances Rural banks have 2,700 Aﬀordable handsets branches & other banking Transfer methods oﬃces Growing mobile money plaforms increasingly using MoCvated as an industry to (GCASH/Smart Mobile Money grow to scale Money) (GCASH/Smart Money)
Preparing Rural Banks & MFIs to Promote Mobile Money & Mobile Financial Services
Mobile Phone is more than just a Phone…With Mobile Phone, you can now…
The Business Model for Rural Banks to oﬀer and use Mobile Money Reduce Greater Cost Eﬃciency Increase Improving Deposits Outreach
Pilot Tests: Issues and Lessons Learnt Acceptance and fear Value ProposiCon for of the use of Clients, Merchants & technology especially Customers among elderly clients Lack of Mobile Money Working with Outlets or source Networks of MFIs especially in the rural (Rural Banks) – can areas be key to outreach How to reach clients in remote Increasing of volume and usage communiCes ‐ awareness and of mobile money in the rural areas. informaCon campaign
Overcoming Cash‐in/Cash‐out Constraints in Rural Community Bank idenCﬁed Local Merchants and assisted them to become MNO licensed Mobile Money Agents in rural communiCes Larry Bat‐ao, CanClan Bank Merchant‐Deposit and provider of GCASH
Rural Bank Guidelines for SelecCng Merchants as Mobile Money Agents Depositor AcCve Globe SIM Registered to GCASH Stable business with suﬃcient cash ﬂow Willing to serve bank clients within the area and to follow KYC requirements Willing to follow standard procedure & transacCon fees Willing to comply with Mobile Money Issuer accreditaCon process
Overcoming Cash‐in/Cash‐out Constraints in Rural Community Bank established kiosks, sub‐oﬃces, and other business oﬃces (OBOs) to provide Cash‐In and Cash‐Out
Overcoming Cash‐in/Cash‐out Constraints in Rural Community
Know‐Your‐Customer (KYC) Challenge Challenge: Need to simplify KYC in rural areas Proposed SoluMons: Standardized ID/ATM Card issued by the rural banks in partnership with GXI – FaceCard FaceCard used for KYC FaceCard may also be used for discounts, perks, promos, loyalty, etc.
Developing Mobile Money Ecosystems Commitment of Bank Management Development of Mobile Money Ecosystem Suﬃcient Cash‐In/Cash‐Out Agents/Resellers CreaCng Awareness of the use of Mobile Money Promote the value proposiCon for businesses, clients, and customers
Email: firstname.lastname@example.org Websites: www.rbapmabs.org www.mobilephonebanking.rbap.org www.youtube.com/RBAPMABS 5th Mobile Commerce Summit 2012 Fullerton Hotel, SingaporeThank Y u! 03.21.2012