This document discusses expanding the use of mobile phone banking through e-money resellers in rural areas of the Philippines. It notes that branchless banking using technologies like mobile phones can provide cheaper access to financial services. Mobile phone banking allows banking functions through mobile phones and e-money, which in the Philippines is primarily provided by GCASH. There are over 3,000 rural bank partners and 4,000 Globe partners for GCASH. It outlines the potential of over 700,000 sari-sari stores as e-money resellers to expand financial access given mobile phone penetration and literacy rates.

1. Nixon P. Mahilum MABS Mobile Phone Banking Specialist [email_address] www.mobilephonebanking.rbapmabs.org Expanding E-Money Resellers in rural areas for Mobile Phone Banking

5. GCASH Partners and Outlets in the Philippines: 3,000+ Rural Bank partners Small Merchant 4,000+ Globe Partners 650+ Rural Bank outlets

7. Worldwide points of presence Western Union Bank Branches Post Offices ATMs POS Mobile Phone

10. Mobile Phone

12. In the Philippines Mobile Phone Outreach High (68 Million; penetrated to more than 50% of the total population) Mobile Network Coverage 99% Level of Literacy among Clients and users High Platform Existence Yes (through mobile phone networks) and GCASH Platform Features Safe, secure, easy to use, fast-built on existing habit, AMLA compliant and BSP recognized Device to use for Banking Cellphone (or mobile phone) (existing cellphone and SIM) Registration and Entry requirements Not Much (very easy) (registration through OTA + 1 valid ID + Bank Account with accredited rural bank) Transaction Limits Basic 40K per day and 100K per month (but can be increased to 500K on a case to case basis) Number of Potential E-Money Resellers 700,000+ sari-sari stores nationwide (1 store:130 Flipinos) Regulators Open-minded and supportive to the use of technology for banking

13. POS (with or w/o card) Mobile Phone Agents Retail Shops (linked to the bank, authorized) Retail Shops (independent, authorized) Device Cost P15,000 to P50,000 Starts @ P500 to high-end models Card ATM, Cash, Debit and Credit Cards (and maybe cardless) 100% Cardless Target Market Cardholders (mostly urban) Mobile Phone subscribers (nationwide) Transactions Deposit, Withdraw, Balance, micro payment, fund transfer, purchase, Reload airtime Deposit, Withdraw, Balance, micro payment, fund transfer, purchase, P2P, Reload airtime Receipt/Statement Printed (with serial no.) Electronic (thru text with unique reference number) Speed for volume at the retailer High (face-to-face) Low (upon loading face-to-face); High (remote and individual) Back Office Platform Cost Millions of Peso Almost Zero

14. Source: CGAP Country No. of Agents Provider Model Brazil 95,000+ Caixa Economica Federal (bank) Banco Bradesco (bank) POS and Card-based South Africa 6,500+ FNB, MTN, ABSA, Wizzit Mixed (POS, Card and M-Banking) Kenya 2,600+ Safaricom(mobile operator) Equity Bank (bank) M-Banking

20. Sample ID

23. E-money Merchants and Resellers Increase walk-in traffic (cross selling opportunities) Decrease cash-on hand, minimize fraud/risks Revenue from fees Remote Purchase + Delivery Service Client Convenient & more secure than cash Comfort of dealing with corner merchant or reseller-neighbors Access to financial services from the bank remotely with reduced time and transportation costs Bank Leverage Merchants, Resellers and Mobile Phone subscribers to expand client base Increase efficiency and save on transaction costs Increase deposit levels Cross selling opportunities Significant image building opportunity with major partner Bank keeping up with new technologies

25. Microenterprise Access to Banking Services Program www.rbapmabs.org With Mobile Phone, you can now…