Banking in Philippines


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An insightful presentation by Obopay on banking and mobile scenario in Philippines.

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Banking in Philippines

  1. 1. Banking in Philippines
  2. 2. Understanding the Basics Traditional Banks Mobile Users Mobile Banking• Banking Model • No of Mobile Users • Banking for the Unbanked• Gaps in the Model • Mobile Penetration. • User-friendly• Banked percentage Technology of the Population • Reducing Expenses Like us on
  3. 3. Banking Model: Simplified • The Bangko Sentralng Pilipinas (BSP) located in Manila, is the central bank of the Philippines. • BSP is given the power to maintain price stability as well as “fiscal and administrative autonomy”.Central Banking • Universal banks are the most powerful and have the broadest scope of services available. • They have the ability to practice the functions of an investment house. This includes underwriting. Universal banks can also investUniversal Banks in non-allied activities. Source: Business Wiki Follow us on
  4. 4. Banking Model: Simplified • Thrift banks focus their services on smaller enterprises and individuals. • There are a variety of banks that fall under this category, including, savings and mortgage banks and private development banks. Thrift and • Their main function is to accrue savings from customers and investSavings Banks them. • These banks are most popular in rural areas. The purpose of these banks is to assist local farmers and merchants. • They are authorized to provide loans, take savings deposits, offer Rural and negotiable order of withdrawal accounts.Cooperative Banks Source: Business Wiki Read our
  5. 5. Unbanked Philippines •Three out of four Filipinos are unbanked. •One-half (1.6 million) of the active mobile users in the Philippines are unbanked. •1 in 10 unbanked users saves an average of US$31 (one-quarter of their family savings) in a mobile wallet. An average Filipino has no means •Currently, the most popular means of saving of access to formal banking are hiding cash at home (52%) and giving it to a friend or family member to keep (35%).Source: CGAP Join us on
  6. 6. Mobile Connectivity • Total Subscribers: 9 million in 2011. • 90 to 97 have SIM cards in every 100 people. • Population Penetration:- 100% Mobile Users’ GrowthSource: Digital Media Asia Budde Like us on
  7. 7. Mobile Banking: The Solution The mobile phone industry should also look at how mobile money competes against the informal options already used by the unbanked. Targeting influential consumers and offering incentives to try the service must be a part of the marketing mix. Family and friends are also a critical reference group. For mobile money to be convenient, it must offer easy ways to convert cash to electronic value and back again.Source: CGAP Read our
  8. 8. Mobile Banking: The Solution Targeting recipients of government-to- person (G2P) welfare payments is worth exploring. Lack of diverse products and services for every section of the society. Unbanked users are most enthusiastic about incentives that reduce the cost and risk of trying mobile money.Source: CGAP Join us on
  9. 9. Bringing it all Together Consumer Linkages • Universal • Eco-system approach • Ubiquitous • Direct integrations • UI • Inter-operable Platform • High Performing GTM • Efficient • Investment in branding, distribution • Global and operations • Strategic partnerships • Appetite to stay the course Mass Market Offerings Drive Volume/Profitability Create Largest/Network EffectCorporate Website Like us on
  10. 10. Thank You