The document summarizes banking in the Philippines. It discusses the country's central banking model, types of traditional banks, gaps in banking access, and the growth of mobile connectivity and its potential to help the unbanked. Mobile banking can provide convenient access to savings and payments for many Filipinos who currently lack formal banking by targeting government payments, incentives, and partnerships to build out services and interoperability across different providers.

1. Banking in Philippines

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
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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 invest
Universal Banks in non-allied activities.
Source: Business Wiki
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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 invest
Savings 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
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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
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6. Mobile Connectivity
• Total Subscribers: 9 million in 2011.
• 90 to 97 have SIM cards in every 100 people.
• Population Penetration:- 100%
Mobile Users’ Growth
Source: Digital Media Asia
Budde
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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
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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
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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 Effect
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10. Thank You
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