1. Rural Banks Leveraging
Mobile M ney to Increase
Access to Banking Services
Roselle M. Hernandez
Mobile Phone Banking Specialist
RBAP-MABS Program, USAID
5th Mobile Commerce Summit 2012
Fullerton Hotel, Singapore
03.21.2012

2. The MABS Program
The Microenterprise Access to Status:
Banking Services (MABS) Program is Indicators Dec 2011
an RBAP program supported by USAID # Banks & Branches 100/1,300
that provides technical assistance and
# Micro‐Loans Disbursed 3M
training to rural banks in microfinance
best pracCces. # Micro‐Borrowers 950,000
It is designed to develop the capability Amt. Loans Disbursed $900M
of rural banks to profitably provide
financial services ‐ loans, deposits, # Micro‐Depositors 1.4M
managed
insurance, money transfers and
mobile banking ‐ for microenterprise # Microinsurance clients 450,000
clients.

3. The Rural Banks…
Most rural areas have limited access
LUZON to financial services.
Rural banks are ideal Financial
Institutions to facilitate access to
banking services for rural and lower
income individuals.
VISAYAS There are 600 rural and
cooperative banks throughout
the Philippines with over 2,700
branches/units serving more
MINDANAO than 85% of all municipalities.

4. Philippines: “Text Capital of the World”
Mobile Phone
Subscribers vs. Bank
Mobile Phone Accts (Philippines)
Subscribers
Mobile Phone (Philippines)
Subscribers 1998 2011
(World ProjecCons)
> 90% penetraCon
Bank Accts >23 M > 34 M
rate
Mobile Subs > 1.7 M > 90 M
2011 (ITU):
> 90 million
4.6 Billion
subscripCons
2012 (ITU):
5.6 Billion

5. OpportuniCes for the use of Mobile Money
through Rural Banks
Mobile Remiiance Rural
Phone Industry Business Banks
Growing subscriber Growing internaConal
remiiance at PhP 20B
> 40% of populaCon in the
SCff compeCCon for 2011 rural areas
reducing costs
DomesCc remiiances Rural banks have 2,700
Affordable handsets
branches & other banking
Transfer methods offices
Growing mobile
money plaforms
increasingly using
MoCvated as an industry to
(GCASH/Smart Mobile Money grow to scale
Money) (GCASH/Smart Money)

6. Preparing Rural Banks & MFIs to Promote
Mobile Money & Mobile Financial Services

7. Mobile Phone is more than just a Phone…
With Mobile
Phone, you
can now…

8. The Business Model for Rural Banks
to offer and use Mobile Money
Reduce Greater
Cost Efficiency
Increase Improving
Deposits Outreach

9. Pilot Tests:
Issues and Lessons Learnt
Acceptance and fear
Value ProposiCon for
of the use of
Clients, Merchants &
technology especially
Customers
among elderly clients
Lack of Mobile Money Working with
Outlets or source Networks of MFIs
especially in the rural (Rural Banks) – can
areas be key to outreach
How to reach clients
in remote Increasing of
volume and usage
communiCes ‐
awareness and of mobile money in
the rural areas.
informaCon campaign

10. Overcoming Cash‐in/Cash‐out Constraints
in Rural Community
Bank idenCfied Local
Merchants and
assisted them to
become MNO
licensed Mobile
Money Agents in
rural communiCes
Larry Bat‐ao, CanClan Bank Merchant‐Deposit
and provider of GCASH

11. Rural Bank Guidelines for SelecCng
Merchants as Mobile Money Agents
 Depositor
 AcCve Globe SIM
 Registered to GCASH
 Stable business with sufficient cash flow
 Willing to serve bank clients within the
area and to follow KYC requirements
 Willing to follow standard procedure &
transacCon fees
 Willing to comply with Mobile Money
Issuer accreditaCon process

12. Overcoming Cash‐in/Cash‐out Constraints
in Rural Community
Bank established
kiosks, sub‐offices,
and other business
offices (OBOs) to
provide Cash‐In and
Cash‐Out

13. Overcoming Cash‐in/Cash‐out Constraints in
Rural Community

14. Know‐Your‐Customer (KYC) Challenge
Challenge:
 Need to simplify KYC in rural
areas
Proposed SoluMons:
 Standardized ID/ATM Card
issued by the rural banks in
partnership with GXI –
FaceCard
 FaceCard used for KYC
 FaceCard may also be used for
discounts, perks, promos,
loyalty, etc.

15. Developing Mobile Money Ecosystems
Commitment of Bank Management
Development of Mobile Money Ecosystem
Sufficient Cash‐In/Cash‐Out Agents/Resellers
CreaCng Awareness of the use of Mobile Money
Promote the value proposiCon for businesses, clients, and customers

16. Email:
rhernandez@rbapmabs.org
Websites:
www.rbapmabs.org
www.mobilephonebanking.rbap.org
www.youtube.com/RBAPMABS
5th Mobile Commerce Summit 2012
Fullerton Hotel, Singapore
Thank Y u!
03.21.2012