Leveraging Mobile Money to Increase Financial Inclusion

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This presentation was given during the Asian Development Bank session on "Enhancing the Potential for Inclusion-Friendly Electronic G2P Payments" held at the Bangko Sentral ng Pilipinas (BSP) on May 2, 2012.

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Leveraging Mobile Money to Increase Financial Inclusion

  1. 1. Leveraging Mobile M ney to Increase Financial Inclusion in the Philippines John V. Owens Chief of Party RBAP-MABS Program, USAIDEnhancing the Potential of Inclusion-Friendly Electronic G2P PaymentBangko Sentral ng Pilipinas, ManilaMay 2, 2012
  2. 2. CCT Disbursement via the Rural Banks Pay-Out Counter CCT Recipient Rural Mobile Mobile Bank Money Money Pay-Out Counter CCT Recipient Pay-Out Counter CCT RecipientOne of the channels for providing CCT has been under a partnership between LandBank, Globe GCASH, rural banks & other partners using mobile money to enabletransfers in hard to reach communities.
  3. 3. Actual CCT Disbursement Through GCASH RemitStep 1 – Grouping beneficiaries by barangay and lining them up based on the order of their names in the DSWD-provided “payroll” list.
  4. 4. Actual CCT Disbursement Through GCASH RemitStep 2 – GCASH Remit numbers & ID confirmed by bank employees
  5. 5. Actual CCT Disbursement Through GCASH RemitStep 3 – Cash disbursement by bank teller
  6. 6. CCT Recipients in Cantilan
  7. 7. Opening Up Savings Accounts for Children of CCT Recipients
  8. 8. Low Levels of Financial Inclusion Philippines ranked 12 out of 15 countries in the EastAsia & Pacific Region with only 26.6% of the population (age 15 years and above) having an account with a formal financial institution.
  9. 9. Women top Men in Financial Inclusion In the Philippines, the number of women with anaccount in a formal financial institution was almost 1.8 times higher than men (33.7% vs 19%)
  10. 10. Mobile Money – Bright Spot in Financial Inclusion StudyMobile Money enabled accounts increasingfinancial inclusion in countries such asKenya & the Philippines with the advent ofMPESA mobile money in Kenya and and in the Philippines.
  11. 11. Mobile Money Now Accessible Via Multiple Platforms ATM Debit Card Bank Account Mobile PhoneThe BSP issued circular 706 which allows third party outsourcing of KYC, making it easier to open bank accounts.
  12. 12. MOBILE MONEY ECOSYSTEM DEVELOPMENT Clients Individual buys food, pays tricycle fare, fuel and even buy from the market using Individual receives electronic money electronic money by way of Text-A- Market Remittance or Text-A- Vendors Sweldo Utility Restaurants Individual pays Companies Utility company, school etc. tru bill- pay facility offered by rural bank Bank credits utility companys and school’s accounts with the corresponding amount paid by individuals through electronic money BANK Market vendor, tricycle driver, gas station, restaurant, suppliers and repairTransport shops deposit daily Schools sales thru Text-A- Deposit Operators Gas Station Market vendor, tricycle driver, gas station owner and restaurant pays suppliers, repair shops etc. thru Suppliers electronic money Service Centers Farmers
  13. 13. Disbursing CCT via a Mobile MoneyLinked Bank Account with an ATM /Debit card would result in a dramaticincrease in the number of people withaccess to a formal financial account,especially those at the lowest incomelevels of society. Bank Account
  14. 14. Benefits of Offering CCT via a Mobile Money / Bank / ATM / Debit Card Account For the For the ForGovernment Recipients Providers While only having cash, an ATM card, a debit card, a bank 4.Cheaper and easier to account or mobile manage multiple small Brins down COST and money account might accounts and transactions. TIME of disbursing limit what you can do CCTs. with your benefits, 6.Cross selling other linking all of them services. together in one account opens up new doors.
  15. 15. Email: jowens@rbapmabs.org Websites: www.rbapmabs.org www.mobilephonebanking.rbap.org www.youtube.com/RBAPMABSThank Y u!

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