This document discusses how rural banks in the Philippines have partnered with mobile money platforms like GCash and Smart Padala to increase access to banking services. It notes that mobile phone subscriptions now greatly outnumber bank accounts. Rural banks have registered over 380,000 clients and facilitated over $350 million in mobile banking transactions via GCash. The document outlines the mobile money ecosystem and how rural banks can offer services like deposits, withdrawals, remittances and bill payments through third-party agents using platforms like GCash. It also discusses challenges and solutions to scaling up branchless banking services.

1. Leveraging New Partners &
Platforms to Increase
Access to Banking Services

2. Microenterprise Access to Banking Services
www.rbapmabs.org
Bank Accounts vs. Mobile Phone
Subscriptions
Philippines (in Millions)
90
80
70
60
50 GCASH and
Smart Padala
40
was launched
30
20
10
0
19981999
2000 2001
2002 2003
2004 2005
2006 2007
Bank Accounts Mobile Phone Subscriptions 2008 2009
2010 2011

3. Mobile Money Platforms
•Card-less Mobile Money Platform •Card-based Mobile Money Platform
•EMI - G-Xchange Inc (GXI) •EMI – Banco de Oro (manages float)
•Float held in multiple banks •EMNSP – Smart Communications
•Payments •Payments
•Money Transfer •Money Transfer
•Mobile Banking •Mobile Banking

4. The Rise of MPESA
Mobile Money solution launched in March 2007
14 million subscribers vs 7 million bank accounts
More transactions daily than ATM,
debit & credit cards combined

5. Today, Rural Banks Can Offer the Following Mobile
Phone Banking Services…

6. Banks partnering with Mobile Money
Issuers & Third Parties
• Rural Banks, Commercial Banks, & ATM networks
now linked to GCASH & Smart Money in the
Philippines
• Multiple Banks in Kenya now linked to MPESA

7. Rural Banks using GCASH to
Expand Outreach
 RBs registered over 380,000 clients
Over PhP 15 Billion ($350 million) in mobile phone
banking transactions via GCASH

8. Rural Bank Mobile Money Ecosystem via GCash
Text-a-Payment /
Int’l & Domestic Remco’s P
GCash2Load P2P
(Airtime Credit Purchase) (Domestic Remittance)
Text-A-Withdrawal Text-A-Sweldo
(Withdrawal from Bank (Salary
Account to GCash Wallet) Disbursement)
RURAL
Rural Bank
BANKS
Text-A-Credit Text-A-Remittance
(Loan / Credit Cash-in/Cash-out
Disbursement) (Face-to-Face Wallet Funding)
Text-a-BillPay
Text-A-Deposit P2P
(Bills Payment) (Deposit to Bank Account) (Purchase of Goods/Services)

9. Branchless Banking via
Third-Party Agents
Partnering with third-party agents to expand
access to banking services, challenging but
getting easier

10. Third party agents – key to providing access
CUSTOMER
BANK Third party
Support Facilitating
Services Banking Services

11. Integrating with existing POS/ATM systems
Trend in linking mobile money with ATM/POS
enabled cards – good opportunity for banks
– GCASH wallet ATM/Debit Card
– Smart Money MasterCard/ATM Card
– MPESA – PesaPoint System card-less ATM access

12. Scaling up of Branchless Banking
Services
Challenges Solutions
1) Regulators & Regulations 1) Get regulators on board
early & get them to the field
2) Leverage existing networks
2) Building an agent network
of mobile money / others
3) Integrate mobile money &
3) Bank legacy systems branchless banking with
existing payment/ATM
systems

13. Scaling up of Branchless Banking
Services
Challenges Solutions
4) How to promote 4) Make sure to address real
branchless banking services need/use cases
5) Working with Banks - 5) Partnerships take time but
Mobile Money Issuers & leveraging each others core
Other Third Parties competencies
6) Business proposition for all 6) Proper Market Research &
parties Business Planning – There is a
Business Case!

14. Thank You
Email:
jowens@chemonics.com
Twitter:
Jvowens
Websites:
http://www.mobilephonebanking.rbap.org/
http://blog.mobilephonebanking.rbap.org/