The document discusses mobile banking in the Philippines, focusing on rural banks and their partnership with regulators and MFIs through the USAID-supported MABS program. It summarizes the successes of the program in establishing mobile phone banking services at rural banks and increasing financial inclusion. The document emphasizes that partnerships between rural banks, MFIs, mobile operators, and regulators have been key to jumpstarting mobile banking and that the Philippines has progressive regulations and good working relationships between industries and regulators.
Mobile Financial Services for the Next Billion Customers - Mobile Payments Se...Menekse Gencer
Mobile Payments Series Kickoff by mPayConnect. Co-hosted by Wharton MBA and HBS Tech Alumni Clubs in the San Francisco/Bay Area on Sept. 3, 2009. Author: Menekse Gencer
Mobile Payments: What global lessons can we bring back to the U.S.?Menekse Gencer
This presentation was given by Menekse Gencer at the Commonwealth Club of San Francisco on July 23, 2012 as part of the Mobile Payments Series Initiative(TM) produced by mPay Connect. There were approximately 90+ attendees. For more information regarding the consulting services of mPay Connect, please visit: www.mpayconnect.com or contact us at: info@mpayconnect.com The audio recording of this presentation can be found here: http://soundcloud.com/mpayconnect/sounds-from-monday-evening
Mobile Financial Services for the Next Billion Customers - Mobile Payments Se...Menekse Gencer
Mobile Payments Series Kickoff by mPayConnect. Co-hosted by Wharton MBA and HBS Tech Alumni Clubs in the San Francisco/Bay Area on Sept. 3, 2009. Author: Menekse Gencer
Mobile Payments: What global lessons can we bring back to the U.S.?Menekse Gencer
This presentation was given by Menekse Gencer at the Commonwealth Club of San Francisco on July 23, 2012 as part of the Mobile Payments Series Initiative(TM) produced by mPay Connect. There were approximately 90+ attendees. For more information regarding the consulting services of mPay Connect, please visit: www.mpayconnect.com or contact us at: info@mpayconnect.com The audio recording of this presentation can be found here: http://soundcloud.com/mpayconnect/sounds-from-monday-evening
We, at Tribalnets,
- Build communities through offering a range of international and national money transfer and virtual banking services to users.
- Secure electronic transaction systems for use via mobile and web.
- Alternative, affordable and innovative payment method that uses the existing mobile networks.
About Us
Tribalnets is run by Didier Marissal, experienced CEO & Chairman of business service and consulting. Its employees comprise of Experienced, multinational team from the banking and telecoms world, Developers with banking background –Fortis, Swift, Mastercard, Visa and a network of mobile financial service specialists.
Mobile Banking in 2020 - Mobile World Congress ReportNadejda Tatarciuc
Present report was presented at Mobile World Congress this year, showing the outlook for mobile banking by 2020! - how a younger world, more internet, crime, and activist governments will affect mobile banking penetration.
Presentation on mobile payments and mobile money at the June 2013 SmarterCommerce Global Summit in Monaco. Includes description of relevant IBM product families that support mobile money and mobile payments.
Will Mobile Payments Ever Replace Cash in the Last Mile? Where, when, and how?Menekse Gencer
This presentation was given by mPay Connect at the 3rd event of the Mobile Payments Series (TM) produced by mPay Connect and co-hosted by the Wharton Club of Northern California and Harvard Business School Tech Club. The event was held at Google HQ on January 7, 2010. The first hour of the event was videotaped and may be offered for a fee. For those interested, please visit: http://www.mpayconnect.com/content/mpay-connect-resources for more details.
Mobile Money for the Unbanked in Developed MarketsMenekse Gencer
This presentation was given by Menekse Gencer of mPay Connect at the Dubai Mobile Money Transfer Conference October 28, 2009. To learn more about mPay Connect, visit: www.mpayconnect.com
The mobile money movement: jumpstart to emerging marketsMenekse Gencer
This presentation will be used for an upcoming webinar where the author of the publication "The Mobile Money Movement: Catalyst to Jumpstart Emerging Markets" will present the findings. This article was published by The Innovations Magazine in June 2011. To register for the event, go to: www.mpayconnectseries6.eventbrite.com
Sarah Rotman of CGAP was kind enough to present on the basics of branchless banking to NetHope's Payment Innovations Working Group in March 2012, which is open to all NetHope members. Please contact hamilton.mcnutt@nethope.org for more information.
Mobile Money: Catalyst to Jumpstart Emerging MarketsMenekse Gencer
This presentation was given by mPay Connect at Columbia University for the summit on "Macroeconomics of Mobile Money" by the Columbia Institute for Tele-Information on April 2, 2010. Special thank you to contributors to the discussion on the LinkedIn Group: Mobile Payments Series - mPay Connect.
The mobile money movement by mpay connect dec 2010 innovations publication ...Menekse Gencer
The genesis of this publication came from a presentation I gave at Columbia University during spring 2010. This publication was written by Menekse Gencer of mPay Connect, a mobile money consulting firm, and will come out in hard copy with MIT Press Innovations Magazine in 2011. To contact the author: http://www.mpayconnect.com/contact
Intersection of Microfinance, Agent Banking & Mobile Money in Africa for Fina...mFino Inc
mFino talks about the intersection of Microfinance, Agent Banking & Mobile Money for Financial Inclusion in Africa at the 4th Mobile Money Expo, Nigeria.
The presentation was given on September 13, 2010 as part of the Mobile Payments Series (TM) led by mPay Connect. This was the 4th event in the Mobile Payments Series in the Bay Area. For more information, join LinkedIn Group: Mobile Payments Series - mPay Connect
Mobile Money As An Enabler For MicrofinanceJohn Owens
This presentation is an updated version of our experience in the Philippines working with more than 800 rural bank branches to utilize mobile money platforms to facilitate banking and microfinance services.
The presentation outlines the factors that influence the financial behaviour of the poor across different regions. The presentation also discusses third generation MFIs and usage of No-frills accounts. The topic of e/m-banking is also covered at the end.
We, at Tribalnets,
- Build communities through offering a range of international and national money transfer and virtual banking services to users.
- Secure electronic transaction systems for use via mobile and web.
- Alternative, affordable and innovative payment method that uses the existing mobile networks.
About Us
Tribalnets is run by Didier Marissal, experienced CEO & Chairman of business service and consulting. Its employees comprise of Experienced, multinational team from the banking and telecoms world, Developers with banking background –Fortis, Swift, Mastercard, Visa and a network of mobile financial service specialists.
Mobile Banking in 2020 - Mobile World Congress ReportNadejda Tatarciuc
Present report was presented at Mobile World Congress this year, showing the outlook for mobile banking by 2020! - how a younger world, more internet, crime, and activist governments will affect mobile banking penetration.
Presentation on mobile payments and mobile money at the June 2013 SmarterCommerce Global Summit in Monaco. Includes description of relevant IBM product families that support mobile money and mobile payments.
Will Mobile Payments Ever Replace Cash in the Last Mile? Where, when, and how?Menekse Gencer
This presentation was given by mPay Connect at the 3rd event of the Mobile Payments Series (TM) produced by mPay Connect and co-hosted by the Wharton Club of Northern California and Harvard Business School Tech Club. The event was held at Google HQ on January 7, 2010. The first hour of the event was videotaped and may be offered for a fee. For those interested, please visit: http://www.mpayconnect.com/content/mpay-connect-resources for more details.
Mobile Money for the Unbanked in Developed MarketsMenekse Gencer
This presentation was given by Menekse Gencer of mPay Connect at the Dubai Mobile Money Transfer Conference October 28, 2009. To learn more about mPay Connect, visit: www.mpayconnect.com
The mobile money movement: jumpstart to emerging marketsMenekse Gencer
This presentation will be used for an upcoming webinar where the author of the publication "The Mobile Money Movement: Catalyst to Jumpstart Emerging Markets" will present the findings. This article was published by The Innovations Magazine in June 2011. To register for the event, go to: www.mpayconnectseries6.eventbrite.com
Sarah Rotman of CGAP was kind enough to present on the basics of branchless banking to NetHope's Payment Innovations Working Group in March 2012, which is open to all NetHope members. Please contact hamilton.mcnutt@nethope.org for more information.
Mobile Money: Catalyst to Jumpstart Emerging MarketsMenekse Gencer
This presentation was given by mPay Connect at Columbia University for the summit on "Macroeconomics of Mobile Money" by the Columbia Institute for Tele-Information on April 2, 2010. Special thank you to contributors to the discussion on the LinkedIn Group: Mobile Payments Series - mPay Connect.
The mobile money movement by mpay connect dec 2010 innovations publication ...Menekse Gencer
The genesis of this publication came from a presentation I gave at Columbia University during spring 2010. This publication was written by Menekse Gencer of mPay Connect, a mobile money consulting firm, and will come out in hard copy with MIT Press Innovations Magazine in 2011. To contact the author: http://www.mpayconnect.com/contact
Intersection of Microfinance, Agent Banking & Mobile Money in Africa for Fina...mFino Inc
mFino talks about the intersection of Microfinance, Agent Banking & Mobile Money for Financial Inclusion in Africa at the 4th Mobile Money Expo, Nigeria.
The presentation was given on September 13, 2010 as part of the Mobile Payments Series (TM) led by mPay Connect. This was the 4th event in the Mobile Payments Series in the Bay Area. For more information, join LinkedIn Group: Mobile Payments Series - mPay Connect
Mobile Money As An Enabler For MicrofinanceJohn Owens
This presentation is an updated version of our experience in the Philippines working with more than 800 rural bank branches to utilize mobile money platforms to facilitate banking and microfinance services.
The presentation outlines the factors that influence the financial behaviour of the poor across different regions. The presentation also discusses third generation MFIs and usage of No-frills accounts. The topic of e/m-banking is also covered at the end.
PowerPoint presentations from Fundación Capital's South-South Knowledge Exchange Forum, organized with support from IFAD "Leveraging Opportunities to Encourage Financial Inclusion"
Mobile Phone Banking Presentation at ChemonicsJohn Owens
This slideshow on private partnerships to facilitate mobile phone banking services for low-income households in the Philippines was presented at Chemonics International on January 30, 2009.
2. Mobile Banking:
Working with
Regulators and MFIs
• About Rural Banks and USAID-
assisted MABS project
• Mobile Phone banking
• Working with Partners and Regulators
• Lessons Learned
• Opportunities
MOBILE BANKING & PAYMENTS FOR
EMERGING ASIA SUMMIT 2012
8-9 October, Conrad Bali, Indonesia
2
3. Rural Banks in the Philippines
• Rural Bank Act of 1952
• Single-unit banks with limited products
serving small farmers, and rural enterprises
• Private and Family-owned
• Regulated by Bangko Sentral ng Pilipinas (BSP)
& Philippine Deposit Insurance Corp. (PDIC)
• Technically insolvent in late 70’s/early 80’s due
to failed directed government lending to agri
3
7. Rural Banks Today
• 3% of total Philippine Banking Assets
• 5.9 mn small deposit accts (Jun 2010, PDIC)
• $ 2.9 billion
• 1 of 4 deposit accts outside Metro Manila
• Ave deposit Balance: $ 480.00
• 88% of accounts < $ 360.00 balance
• 82% of accounts < $ 120.00 balance
7
8. What is the MABS Program?
Microenterprise Access to Banking Services
• USAID-supported program of the Rural Bankers
Association of the Philippines (RBAP); 1997-2012
• Technical assistance and training to rural banks in
microfinance.
• Developed capability of rural banks to profitably
provide financial services (loans, deposits, insurance,
money transfers) for micro-entrepreneurs
8
9. MABS Program Milestones
• 322 Rural Banks receiving technical assistance
• 1.02 mn new micro loan clients served (cumulative)
• $ 1.05 bn in loans disbursed (cumulative)
• 896,000 new micro depositors served
• Development housing & agri microfinance, and
microinsurance products
• Development of Mobile phone banking
9
11. Mobile Banking Milestones
• Developed around 2004 when G-Cash (Globe Telecom)
• Partnership RBAP, MABS, Globe, and regulators
• 77 Rural Banks accredited, 1,171 banking offices
• RBs registered over 390,000 clients
• $ 17.7 mn value mobile banking transactions (Jun 2012)
• 3.0 + mn mobile banking transactions
• $ 400.0 + mn in mobile banking transactions (cum.)
11
12. Mobile Money Platforms
•Card-less Mobile Money Platform •Card-based Mobile Money Platform
•EMI - G-Xchange Inc (GXI) •EMI – BDO Unibank (manages float)
•Float held in multiple banks •EMNSP – Smart Communications
•Payments •Payments
•Money Transfer •Money Transfer
•Mobile Banking •Mobile Banking
12
13. Mobile Money Now Accessible Via
Multiple Platforms
ATM Debit Card
Bank Account Mobile Phone
The BSP issued circular 706 which allows
third party outsourcing of KYC,
making it easier to open bank accounts.
13
14. Mobile Money in the Philippines
• 21 E-Money Issuers - Banks
• 3 E-Money Issuers - Non Banks
These EMIs currently have
an agent network of 25,000
and continuously expand
In 2010, there were nearly 150
million e-money transactions
amounting to $ 10.5 billion
• 77 rural banks with electronic banking (mostly mobile
banking using e-money) from none in 2005
• BPI-Globe BanKo - a 3 year old mobile phone/
agent network-based bank. 200k deposit accts
14
16. Thoughts on Working with
Regulators (It can be fun!)
Rural Bankers Association
Of the Philippines
• Provide input and influence regulation
(even specifics)
• Even Telcos say the same thing
• It is still a process-oriented organization
and may take time
• EIU Microfinance Survey: Philippines
ranked 1st in Regulation
16
17. Thoughts on Working with
Regulators
Rural Bankers Association
Of the Philippines
• A Microfinance Committee headed by a
member of the Monetary Board
• An Inclusive Finance Advocacy Unit under
the Dep Gov for Bank Supervision
• Formal Consultation Meetings with RBAP
every other month
• Industry Associations matter
17
18. Thoughts on Working with
Regulators
Rural Bankers Association
Of the Philippines
• Easy to set meetings on specific issues
• Exposure draft for comment on regulatory
issuances
• Pull aside meeting during events/functions
• Occasional text messages
• Developing personal & professional
relationships over time help
18
20. Importance of timing in Partnerships
• Partners should understand time and
investments required
• Commit to this upfront with key partner
officers
• Execution requires all partners to work
together
20
21. Important to bring
regulators on board early
• Understand and help shape regulatory
environment
• Facilitate regulatory approval process
• Regulators can be good advisers
21
23. Opportunities
• 96 million
Population • 3 out of 4 do not
have a bank account
• 98%+ (94 mn) are
mobile phone
subscribers •74% NO access to
formalchannels
• 99% geographic
mobile phone • 37% (610 of 1635)
coverage towns have no
bank offices
• 2 Billion SMS
messages/day • 10 mn send remittances
regularly ($ 20 bn / yr)
23
24. Bank Accounts vs. Mobile Phone Subscriptions
90
Philippines (in Millions)
80
70 GCASH
60
& SMART
Padala
50
Launched
40
30
20
10
0
1998 1999
2000 2001
2002 2003
2004 2005
2006 2007
2008 2009 2010
Bank Accounts Mobile Phone Subscriptions
24
25. Low Levels of Financial Inclusion
Philippines ranked 12 out of 15 countries in the East
Asia & Pacific Region with only 26.6% of the population
having an account with a formal financial institution.
120
100
80
60
40
26.56
20
0
25
26. Women top Men in Financial Inclusion
Philippines: number of women with an account in a
formal financial institution was almost 1.8 times
higher than men (33.7% vs 19%)
120
100
80
60
40
33.71
19
20
0
26
27. Opportunity for Banks
• Banks can develop linkages with e-money
issuers.
– Increase value of service to clients
– Increase efficiency
– Lower costs
– Reach new clients
• With existing clients an e-money
ecosystem in the local community can be
developed
27
28. Opportunity for Banks
Banks can now become an E-Money Issuer without
investing in the entire network infrastructure
Outsourcing to EMNSP, banks will be able to:
Use the wide agent network established by the EMIs
Convert E-money
Use E-money for the payment for goods/ services
Transfer funds from one electronic wallet to another
28
29. Mobile Banking:
Working with
Regulators and MFIs
In Summary….
• RBAP-MABS program successes
• Partnerships have really worked well
to jumpstart mobile banking
• Regulations are progressive and
working relationships very good.
• Much remains to be done, we’ve barely
scratched the surface.
MOBILE BANKING & PAYMENTS FOR
EMERGING ASIA SUMMIT 2012
8-9 October, Conrad Bali, Indonesia
29
30. Mobile Banking:
Working with
Regulators and MFIs
Thank you!
Tomas “Mitch” Gomez IV
GM Bank
tg4@gmbank.com.ph
http://rbapmabstoolkit.wordpress.com/
http://www.mobilephonebanking.rbap.org/
http://mabs4finalreport.wordpress.com/
http://www.bsp.gov.ph/
MOBILE BANKING & PAYMENTS FOR
EMERGING ASIA SUMMIT 2012
8-9 October, Conrad Bali, Indonesia
30