SEM.100316.Anthony Panal Petalcorin
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Transcript of SEM.100316.Anthony Panal Petalcorin
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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How Mobile Money Can beHow Mobile Money Can be
Used to Support Microfinance:Used to Support Microfinance:
M-Commerce World Summit 2010M-Commerce World Summit 2010
March 17-18, 2010March 17-18, 2010Shangri-La, SingaporeShangri-La, Singapore
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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MABS Program
The Microenterprise Access toBanking Services or MABSProgram provides technical
assistance and training to rural banksin microfinance best practices.
The program is designed to developthe capability of rural banks to
profitably provide financial services
(loans, deposits, insurance, moneytransfer, micropayments) tomicroenterprises.
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Very rapid expansion over the last 10 years More than 50% of Filipinos are mobile phone subscribers
Mobile Phone BankingPenetration
Mobile PhoneSubscribers
(WorldProjections)
2008 (ITU):4 Billion
2040 (World
Bank):6 Billion
2009 (ITU):4 Billion
2012 (GSMA):5 Billion
Mobile Phone
Subscribers(Philippines)
> 68 millionsubscribers> Projections 76 M(2010)
> 60% penetrationrate> 70 millionsubscribers
> Projections 76 M(2010)
Mobile PhoneSubscribers vs.
Bank Accts(Philippines)
1998Bank Acct: > 23 MMphone: > 1.7 M
2008:Bank Acct: > 32 MMphone: > 68 M
1998Bank Acct: > 23 MMobile sub: > 1.7 M
2009:Bank Acct: > 32 MMobile sub: > 70 M
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Breakthroughs & Milestones:Mobile Phone Banking for Rural Bank & their
Clients
RBAP signed an MOA with Globe (GXI) for LoanPayment using Gcash
BSP approved pilot of Text-A-Payment to selected
rural banks
Autoloadmax retailers as Gcash outlets was launched
Study on Cost Savings conducted in selected ruralbanks on the use of G-Cash for loan payment
2004
-
2005
Some RBs started paying employees salaries orallowances with Gcash
M-commerce was used by local merchants
BSP approved Cash-in/Out (Text-A-Remittance)services for rural banks
BSP approved Text-A-Deposit service for rural banks
Strategic Planning was conducted with 5 pilot banks
2006
Salary disbursements (Text-A-Sweldo) expandedto other businesses in the community
Text-A-Bill Payment was initiated by a rural bankwith local utility cooperative
Text-A-Withdrawal was approved by BSP
Mobile Phone Banking Specialist Program was
launched
2007
Mobile phone banking specialist programgenerated more than 60,000 new users; morethan 3,400 signed up as local merchants
Mobile Phone Marketing program launched
More than 40 rural banks with more than 400branches are Gcash accredited outlets
RBAP and Globe (GXI) partnership renewed(Gcash)
RBAP signed an agreement with NokiaPhilippines (Nokia phone financing andeducational materials for mobile phone
RBAP Signed an agreement with SmartCommunications (Smart Money)
2008
BSP approved Smart Money Pilot in 2Rural Banks in July.
55 Accredited Rural Banks with 830branches and other banking offices
44% increase in M-Banking Transactionsin 2009
Cumulative Mobile BankingTransactions via the GCASH platformexceed $100 million
2009
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Mobile Phone is more than just aPhone
Microenterprise Access to Banking Services Programwww.rbapmabs.org
With Mobil
ePhone, you
can now
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Mobile Phone BankingAccredited Rural Banks
61accreditedRural Banks
886branches &other
bankingoffices
Nationwide
coverage
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Launch
Services
Customer
Adoption
Regulatory
Issues
Preparing Rural Banks & MFIs toPromote Mobile Money and Mobile
Financial Services
Customer
Perspectiv
e
Product
Developm
ent
Environme
nt
Institutiona
l
Perspectiv
e
Product
Testing
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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The Business Model for RuralBanks to offer and use Mobile
Money:
Reduce
Costs
Greater
Efficienc
y
ImprovingOutreachIncreaseDeposits
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Reducing Costs:
Text-A-PaymentTransactionsdrastically reduce
costs of field basedtransactions
Green Bank reduced
effective interestrates by more than25% for Micro LoansClients paying viaMobile Money
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Greater Efficiency:
Banks are able toserve more Clients
Reduce TransactionCosts
GM Bank able to useGCASH to offer
deposits/withdrawal
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Improving Outreach:
Reaching remote
areas with bankingservices via mobilemoney
Cantilan Bankserving clients inremote areas via
mobile phone
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Increase Deposits:
Payroll servicing viamobile money hasallowed rural banks todramatically increasedeposits
PR Bank increased depositsby more than PhP 10million serving one largecompany in a rural area
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Issues and Lessons Learnt fromPilot Tests
Understand yourmarket
Importance ofregistration,training, andadoption of servicebyclients/merchants
EcosystemDevelopment multiple sources
and uses m-
Acceptance and fearof the use
oftechnologyespecially
amongelderlyclients
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Issues and Lessons Learnt fromPilot Tests
Convenience
Reduces
transaction
Reduces risks
Increases
sales
Value
Propositionfor Clients,Merchants
&
Customers
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Issues and Lessons Learnt fromPilot Tests
Lack ofMobileMoney
Outlets orsource
especially
in theruralareas
Effective training andeducating LoanOfficers and Front-line staff
Release ofemployees payroll/allowances via
mobile money
Plan for sufficientcash-in/cash-outpoints
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Issues and Lessons Learnt fromPilot Tests
How toreach
clients inremote
communities -
awareness and
information
campaign
Information and ProductAwareness Campaigns throughmedia print, radio, TV, online
Mobile Phone Banking websitehttp://mobilephonebanking.rbap.
64 videos on YouTubehttp://www.youtube.com/rbapm
Promote Mobile Money bybanks in key locations/events
(such as local festivals)
http://mobilephonebanking.rbap.org/http://www.youtube.com/rbapmabshttp://www.youtube.com/rbapmabshttp://mobilephonebanking.rbap.org/http://www.youtube.com/rbapmabshttp://mobilephonebanking.rbap.org/ -
8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Issues and Lessons Learnt fromPilot Tests
Increasing of
volume
andusage ofmobile
money inthe rural
areas
Incentiveprograms for
Rural Banks
MobilePhone
Bankingconferences& workshopdialogueevents
Rural Bank
MarketersPro ram
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Issues and Lessons Learnt fromPilot Tests
Workingwith
RuralBanks
Networksare key
tooutreach
Creating a sense ofownership among bankpartners
Regular Accreditationtraining
Rural Bankers Membership
Meetings
Testimonials fromaccredited rural banks
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Overcoming Cash-in/Cash-outConstraints in Rural Community
Larry Bat-ao, Cantilan BankMerchant-Deposit and provider of
GCASH
Bank partneredwith LocalMerchants to actas E-MoneyResellers in rural
communities
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Partner Merchants as E-MoneyResellers
E-Money Reseller is aretail outlet or merchantaccredited by the Bank &
GXI
E-Money Resellersfacilitate cash-in & cash-
out and are not directbanking agents
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Know-Your-Customer (KYC)Challenge
Challenge:Need to simplify KYC in rural
areas
Proposed Solutions:Standardized ID/ATM Card that
will be issued by the ruralbanks in partnership with GXI
This ID/ATM Card will bepresented to E-Money Resellerfor every financial transaction.
ID Card may also be used fordiscounts, perks, promos,loyalty, etc.
Sample ID/ATM card
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Overcoming Cash-in/Cash-outConstraints in Rural Community
Bank establishedkiosks, sub-offices,and other businessoffices (OBOs) to
provide Cash-In andCash-Out
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Overcoming Cash-in/Cash-outConstraints in Rural Community
Bank coordinates withGXI for Sub-Dealers toprovide Cash-Outfunctions
Banks also provideneeded liquidity inrural communities
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8/8/2019 SEM.100316.Anthony Panal Petalcorin
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Ecosystem Development
RuralBank
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Developing Mobile Money
EcosystemsCommitment of Bank ManagementDevelopment of Mobile Money EcosystemSufficient Cash-In/Cash-Out Agents/Resellers
Creating Awareness of the use of Mobile Money in the Rural Community
Promote the value proposition for businesses, clients, and customers