RMHernandez - 2011 Mobile Commerce Summit Asia

7/31/2019 RMHernandez - 2011 Mobile Commerce Summit Asia

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The MABS Program

The Microenterprise Access toBanking Services (MABS) Program is

an RBAP program supported by USAIDthat provides technical assistance andtraining to rural banks in microfinance

best practices.

It is designed to develop the capabilityof rural banks to profitably providefinancial services - loans, deposits,

insurance, money transfers andmobile banking - for microenterprise

clients.

IndicatorsStatus:

Dec 2011

# Banks & Branches 100/1,300

# Micro-Loans Disbursed 3M

# Micro-Borrowers 950,000

Amt. Loans Disbursed $900M

# Micro-Depositorsmanaged

1.4M

# Microinsurance clients 450,000


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The Rural Banks

LUZON

VISAYAS

MINDANAO

Most rural areas have limited accessto financial services.

Rural banks are ideal Financial

Institutions to facilitate access tobanking services for rural and lowerincome individuals.

There are 600 rural andcooperative banks throughoutthe Philippines with over 2,700 branches/units serving more

than 85% of all municipalities.


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Mobile Phone Subscribers

(World Projections)

2011 (ITU):

4.6 Billion2012 (ITU):

5.6 Billion

Mobile Phone Subscribers(Philippines)

> 90% penetrationrate

> 90 millionsubscriptions

Mobile Phone Subscribersvs. Bank Accts (Philippines)

Philippines: Text Capital of the World

1998 2011Bank Accts >23 M > 34 M

Mobile Subs > 1.7 M > 90 M


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MobilePhone Industry

Growing subscriber

Stiff competitionreducing costs

Affordable handsets

Growing mobilemoney platforms(GCASH/SmartMoney)

Opportunities for the use of Mobile Moneythrough Rural Banks

RemittanceBusiness

Growing internationalremittance at PhP 20Bfor 2011

Domestic remittances

Transfer methodsincreasingly usingMobile Money(GCASH/Smart Money)

RuralBanks

> 40% of population in therural areas

Rural banks have 2,700branches & other bankingoffices

Motivated as an industry togrow to scale


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Preparing Rural Banks & MFIs to Promote

Mobile Money & Mobile Financial Services


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Mobile Phone is more than just a Phone

Client

Loan andBills Payment

Deposit

Withdraw

ReloadAirtime

Receive LoanRelease

Send Money(Remittance)

Purchasegoods and

services

PayrollServicingthroughGCash

With MobilePhone, youcan now


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ReduceCost GreaterEfficiency

ImprovingOutreach

IncreaseDeposits

The Business Model for Rural Banksto offer and use Mobile Money


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Pilot Tests:Issues and Lessons Learnt

Acceptance and fearof the use of

technology especiallyamong elderly clients

Lack of Mobile MoneyOutlets or source

especially in the ruralareas

How to reach clientsin remote

communities -awareness and

information campaign

Value Proposition forClients, Merchants &

Customers

Working withNetworks of MFIs

(Rural Banks) canbe key to outreach

Increasing of volume and usage

of mobile money inthe rural areas.


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Overcoming Cash-in/Cash-out Constraintsin Rural Community

Larry Bat-ao, Cantilan Bank Merchant-Depositand provider of GCASH

Bank identified LocalMerchants and

assisted them tobecome MNO

licensed MobileMoney Agents in

rural communities


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Rural Bank Guidelines for SelectingMerchants as Mobile Money Agents

DepositorActive Globe SIMRegistered to GCASH

Stable business with sufficient cash flowWilling to serve bank clients within thearea and to follow KYC requirements

Willing to follow standard procedure &transaction feesWilling to comply with Mobile Money

Issuer accreditation process


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Overcoming Cash-in/Cash-out Constraintsin Rural Community

Bank established

kiosks, sub-offices,and other business

offices (OBOs) to

provide Cash-In andCash-Out


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Overcoming Cash-in/Cash-out Constraints inRural Community

Bank coordinates with GXIfor Sub-Dealers to provideCash-Out functions

Banks also provide neededliquidity in ruralcommunities


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Know-Your-Customer (KYC) Challenge

Challenge:Need to simplify KYC in ruralareas

FACECARD

Proposed Solutions:Standardized ID/ATM Cardissued by the rural banks inpartnership with GXI

FaceCardFaceCard used for KYCFaceCard may also be used fordiscounts, perks, promos,

loyalty, etc.


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Developing Mobile Money Ecosystems

Commitment of Bank ManagementDevelopment of Mobile Money Ecosystem

Sufficient Cash-In/Cash-Out Agents/ResellersCreating Awareness of the use of Mobile Money

Promote the value proposition for businesses, clients, and customers


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Thank Y u!5 th Mobile Commerce Summit 2012

Fullerton Hotel, Singapore03.21.2012

Email:[email protected]

Websites:

www.rbapmabs.org www.mobilephonebanking.rbap.org www.youtube.com/RBAPMABS
http://www.rbapmabs.org/http://www.mobilephonebanking.rbap.org/http://www.youtube.com/RBAPMABShttp://www.youtube.com/RBAPMABShttp://www.mobilephonebanking.rbap.org/http://www.rbapmabs.org/

Documents

RMHernandez - 2011 Mobile Commerce Summit Asia