Expanding Mobile Expanding Mobile Money MarketMoney Market

September 13, 2011September 13, 2011RBAP Conference RoomRBAP Conference Room

RBAP Building Intramuros, ManilaRBAP Building Intramuros, Manilahttp://www.mobilephonebanking.rbap.org

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Mobile Phone Banking Services

Text-A-Remittance (Cash-in/ Cash-out)

Text-A-Withdrawal

(debit system)

Text-A-Payment

(loan collection)

Text-A-Deposit

Text-A-Sweldo Text-A-Credit

Text-A-Bills Payment

SystemAutomation

“Text-A-Payment”Loan Collection

Transactions clients can do without leaving their businesses

“Text-A-Deposit”(Deposit

Taking Service)

Bills Payment--------------------

Money Transfer

(Remittance)

“Text-a-Withdrawal”-----------------------------

“Text-A-Credit”

Savings WithdrawalLoan Disbursement

Pay BillsDeposit Money

Loan Payment

Payroll Services

“Text-a-Sweldo”Payroll

Offer Payroll services to staff and and business clients

WIREWIRE

Text-A-Withdrawal

Text-A-Payment

Text-A-Deposit

Facilitating Mobile Commerce for Micro and Small Businesses

Text-A-Credit

Expanding Mobile Money MarketExpanding Mobile Money MarketProduct Matrix

Potential Segment 1: Rural households seeking practical financial solutions

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Potential Group Description Customer Need Relevant Products Benefits Positioning/ Strategy

1. Out-of-town workers

•Rural household with bread winner working in a major city

•Remit money regularly from major city to family located in rural area

1. Text-a-deposit2. Text-a-remittance

•Cheapest ways to send cash home, especially for those with deposit account

•“Send hard-earned money safely to your family bank”

•Increase GCash registration with help from GCash

2. Family with dependents out-

of-town

•Rural household with dependents in other towns and need to send cash to them regularly

•Remit money regularly from home town to location of dependents

1. Text-a-remittance •Cheapest and fast means to send cash from home town

•“Affordable and fast cash transfer”

•Promote product during GCash registrations

3. Clients of utility companies

•Households in rural areas who miss infrequent collector visits, or who can’t spend half day in queue at local covered courts to pay utility bills

•Flexibility in paying bills•Convenience

1. Text-a-bill pmt •Avoid service disconnection if they miss collector visit•Avoid hassle of waiting for half day in quiue•Pay on client’s time of choosing

•“Pay bills conveniently”

•Arrangement with stakeholders to create value

Potential Segment 2: Customer groups in under-banked regions

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Potential Group Description Customer Need Relevant Products Benefits Positioning/ Strategy

4. Households in towns with limited

bank presence

•Households in rural regions where bank offices are extremely limited•Regions with Globe signal and CICOs

•Basic financial services

1. Text-a-remittance2. Text-a-deposit3. Text-a-Pmt4. Text-a-Bill Pmt5. Text-a-wthdrwl6. Text-a-credit

•Avoid paying high transportation cost to reach banks in far-away places

•“Banking solutions to every household”•Expand client reach of Cantilan, PR and 1st Valley banks

5a.Companies with large head count

•Companies with many employees in its payroll, which makes manual salary distribution costly and risky

•Employers need to disburse salary in an efficient way•Employees need to receive salary on time with least possible transaction cost

1. Text-a-Sweldo •Companies release salary in most practical way with high security•Employees receive salary on time

•“Cost-effective and safe payroll solution”•Encourage Cantilan, PR and 1st Valley to sign-up more companies

5b. Employees receiving Text-a-

Sweldo

•Employees of large-headcount corporations located in under-banked regions

•Spend salary in the most cost-effective way given the form of salary received from employer

1. Text-a-remittance2. Text-a-deposit3. Text-a-Pmt4. Text-a-Bill Pmt

•Financial services become affordable with GCash already available without cash-in fee

•“Harness the benefits of GCash”

•Encourage banks to cross-sell mobile banking products

Potential Segment 3: Businesses that can benefit from mobile banking

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Potential Group Description Customer Need Relevant Products Benefits Positioning/ Strategy

6a. Merchants accepting GCash

• Wholesalers, grocery stores, sari-sari stores that receive sales proceeds in GCash

•Unload excess GCash from their wallets before they reach wallet size limit

1. Text-a-deposit2. Text-a-Pmt3. Text-a-Bill Pmt

•Deposit sales proceeds cost-effectively

•Pay bills or loan conveniently and cheaply

•“Deposit daily sales without leaving the store”•Sign-up more merchants with GCash

6b. CICO Outlets

•Globe Cash-In Cash-Out outlets supporting GCash

•Manage wallet size to meet customer demand for Gcash

1. Text-a-Deposit2. Text-a-Credit3. Text-a-Pmt4. Text-a-Bill Pmt

•Unload excess GCash during heavy cash-outs•Receive loans without paying cash-out fee

•“Manage GCash wallet through mobile banking”•Sign-up CICOs with GCash

6c. Globe Autoload Max resellers

•Resellers of Globe airtime through Autoload Max

•Meet heavy customer demand effectively

1. Text-a-Withdrwl2. Text-a-Credit3. Text-a-Pmt

•Reseller meets unexpected demand volume•GCash converts to load efficiently

•“All clients served”

•Sign-up Globe resellers to GCash

7. Microcredit borrowers in good standing

•Repeat micro-credit borrowers with good track record of debt repayment

•Savings in loan servicing fee

1. Text-a-Pmt •For borrower, reduction in interest rate•For bank, increase in business volume

•“Better financng deal through GCash”

•Offer product to good micro borrowers

MYCLICK’S SMS SOLUTIONS

Customer Relationship Management (CRM)for Rural Banks using SMS

Deposit Related SMS Service

ACCOUNT OPENING Welcome SMS for newly opened accounts

TIME/SPECIAL SAVINGS DEPOSITSReminder for Maturing TDsRoll over SMS on the day of maturity

CURRENT/DEMAND DEPOSITSReminder to cover insufficient fundsSMS for returned checks (client)SMS for returned checks deposited to the client accounts

Loan Related SMS ServiceACCOUNT OPENING

Welcome SMS when banks received loan application

LOAN APPLICATIONThank you SMS for applying loanLoan status inquiry (client initiated)Loan approval status (positive)Loan approval status (negative)

LOANS MONITORINGRepayment reminders (positive)Missed payment reminders (negative)Maturing loan reminders (+/-)Thank you SMS for fully payment of loans

Non-Financial Services Provided via SMS

PERSONALIZED REMINDERSBirthdayAnniversaryCongratulatoryBereavement

NON-PERSONALIZED REMINDERSNew products and servicesNew branch and OBOs announcementsBank activities e.g anniversaries, events, marketing blitz

OTHERSHoliday remindersRBAP and other related announcements

Plans & Future Developments• Support Financial Education for

mobile phone banking.• Incentive programs to drive active

usage of mobile phone banking services.

• Continue support and promotion of SMS Alerts service for rural banks.

• Provide technical support to rural banks in their application as electronic money issuer (EMI).

• Recent Circulars in 2010:c649

Allows banks to become EMIs (Electronic Money Issuer)c704

Guidelnes in outsourcing services by EMIs to EMNSPs (Electronic Money Network Service Providers)

Thank You