Microenterprise Access to Banking Services Program

Introduction to Mobile Phone Banking Services

Mobile Phone Banking

Branchless Banking is the cheaper alternative delivery of financial

services outside the conventional bank branches using Information and Communication Technology

(such as mobile phone and electronic money). –Source: CGAP

Mobile phone Banking is a variation of Branchless Banking

wherein mobile phone and E-Money are used to perform banking

functions.

Mobile PhonebankingIndicators

Status: Apr 2012

# Banks Accredited 76

# of Banking Unit 1168

# of M-Banking Trans 2.9M

Total Amt. of Trans (PhP) 16 B

Ave Monthly Trans (PhP) 743.6 M

# of Clients 390,035

The Rural Banks…

LUZON

VISAYAS

MINDANAO

Most rural areas have limited access to financial services.

Rural banks are ideal Financial Institutions to facilitate access to banking services for rural and lower income individuals.

There are 600 rural and cooperative banks throughout the Philippines with over 2,700 branches/units serving more than 85% of all municipalities.

Mobile Phone Subscribers (World Projections)

2008 (ITU): 4 Billion

2040 (World Bank): 6 Billion

Mobile Phone Subscribers (World Projections)

2008 (ITU): 4 Billion

2040 (World Bank): 6 Billion

2011 (ITU): 4.6 Billion

2012 (ITU): 5.6 Billion

2011 (ITU): 4.6 Billion

2012 (ITU): 5.6 Billion

Mobile Phone Subscribers (Philippines)

> 68 million subscribers> Projections 76 M (2010)

Mobile Phone Subscribers (Philippines)

> 68 million subscribers> Projections 76 M (2010)

> 90% penetration rate

> 90 million subscriptions

> 90% penetration rate

> 90 million subscriptions

Mobile Phone Subscribers vs. Bank Accts (Philippines)

1998Bank Acct: > 23 MMphone: > 1.7 M

2008:Bank Acct: > 32 MMphone: > 68 M

Mobile Phone Subscribers 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

2011:Bank Acct: > 34 MMobile sub: > 90 M

1998Bank Acct: > 23 MMobile sub: > 1.7 M

2011:Bank Acct: > 34 MMobile sub: > 90 M

Philippines: “Text Capital of the World”

Mobile Phone Industry Mobile Phone Industry

Growing subscriber

Stiff competition reducing costs

Affordable handsets

Growing mobile money platforms (GCASH/Smart Money)

Growing subscriber

Stiff competition reducing costs

Affordable handsets

Growing mobile money platforms (GCASH/Smart Money)

Opportunities for the use of Mobile Money through Rural Banks

Remittance Business Remittance Business

Growing ($20 B in 2011 & expected to grow $21 B in 2012)

Domestic remittances are also a key market

Transfer methods increasingly using Mobile Money (GCASH/Smart Money)

Growing ($20 B in 2011 & expected to grow $21 B in 2012)

Domestic remittances are also a key market

Transfer methods increasingly using Mobile Money (GCASH/Smart Money)

Rural Banks

Rural Banks

> 50% of population is located in the rural areas

Rural banks have 2,700 branches & other banking offices in rural areas

> 6 million deposit accounts1.5 million borrowers

Motivated as an industry to grow to scale

> 50% of population is located in the rural areas

Rural banks have 2,700 branches & other banking offices in rural areas

> 6 million deposit accounts1.5 million borrowers

Motivated as an industry to grow to scale

Breakthroughs & Milestones

- MOA signed with Globe- BSP approved TAP pilot

BSP approved TAP

- Roadshow (17 regions)- Accreditation training- BSP approved TAD, TAR

- TAW approved- TAS Implemented- MPB Specialist Program

- MPB Marketers’ Program- 400+ RB units accredited- MOA (RBAP/Nokia) signed

•830 RB Units accredited•MPB Transactions > P4.9B

• 1,168 RB Units accredited

Cumulative MPB Transactions > P14 B

Why Partner with Globe Telecom?

One of the leading mobile phone operators in the Philippines Over 25 million subscribers Over PhP50B annual revenue Globe handles over 2 billion messages/day Developed G-Cash platform in 2004

More than 2 Million registered Gcash users More than 5,000 G-Cash partners (local and

abroad) plus the 18 thousand Sub-Distributors of prepaid airtime load in the Philippines. Transactions per month approximately

PhP 5 Billion

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

Benefits of Branchless Banking (Along the Value Chain)

E-money Merchants and

Resellers

Increase walk-in traffic (cross selling opportunities)

Decrease cash-on hand, minimize fraud/risks

Revenue from fees

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

BankLeverage 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

Website:www.mobilephonebanking.rbap.org

Mobile Phone Banking installations Nationwide

End of Presentation