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MICROFINANCE GOING CASHLESS:
Results And Lessons Learned from
Payments to Asset-Building
Lessons from piloting mobile fina...
CARD Bank Mobile Financial Services Pilot
1) Objective 1: Improving operational efficiency
2) Objective 2: Improving acces...
Delivery Model
CASH-IN

Nanay Violy

CASH-OUT

CARD Bank Agent
Time and cost to client of making a
withdrawal
Travel & transaction
cost (Php)
Withdrawal cost

Withdrawal time in Peso

M...
Transactions on Weekends
by Income Type
Average number of transactions
on a weekend

PPI ($2.5/day)

38.3%

48.7%

49.6%

...
Key Pilot Results
• Improving operational efficiency
– Time-saving for AOs: center meeting time could be cut by at
least 5...
THANK YOU

Julie Peachey
Country Director, Philippines
Grameen Foundation
jpeachey@grameenfoundation.org
Sample
average

CARD Bank MFS Member Profile
Main source of personal income

PPI: Likelihood below
$2.5/day

42.3%

PPI: L...
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Microfinance going cashless results and lessons learned from payments to asset-building julie-peachey

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Microfinance going cashless results and lessons learned from payments to asset-building julie-peachey

  1. 1. MICROFINANCE GOING CASHLESS: Results And Lessons Learned from Payments to Asset-Building Lessons from piloting mobile financial services at CARD Bank in the Philippines October 10, 2013
  2. 2. CARD Bank Mobile Financial Services Pilot 1) Objective 1: Improving operational efficiency 2) Objective 2: Improving access and convenience 3) Objective 3: Demonstrate sustainable account and transaction volume
  3. 3. Delivery Model CASH-IN Nanay Violy CASH-OUT CARD Bank Agent
  4. 4. Time and cost to client of making a withdrawal Travel & transaction cost (Php) Withdrawal cost Withdrawal time in Peso MFS saves time: 103 min (116 minus 13) 140 Declined aggregate cost 120 100 80 Member’s earning capacity: P300/day = P37.5/hr = P0.63/min Opportunity cost saving: P0.63 x 103min = P65 60 40 20 Financial cost decrease: P22 0 Control Treatment Total Cost Saving: P65 + P22 = P87 per withdrawal
  5. 5. Transactions on Weekends by Income Type Average number of transactions on a weekend PPI ($2.5/day) 38.3% 48.7% 49.6% Proportion of transactions made on weekends 26.4% • Casual laborers use MFS over weekends – Potential to improve financial inclusion – 55 out of 254 members surveyed (20%) are casual laborers
  6. 6. Key Pilot Results • Improving operational efficiency – Time-saving for AOs: center meeting time could be cut by at least 50% • Improving access and convenience – Successful adoption of MFS in general – MFS reduces time & financial cost of making transactions – Casual laborers use MFS more frequently over weekends • Sustainable account & transaction volume – No change in loan volume – Slight increase in missed installments – Training attendance and customer satisfaction are correlated
  7. 7. THANK YOU Julie Peachey Country Director, Philippines Grameen Foundation jpeachey@grameenfoundation.org
  8. 8. Sample average CARD Bank MFS Member Profile Main source of personal income PPI: Likelihood below $2.5/day 42.3% PPI: Likelihood below national poverty line 24.9% Own a mobile phone 81.8% Mobile phone in the house 95.5% Have used mobile money services 24.81% Comfortable with SMS 94.0% Satisfied with savings 44.6%

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