Leveraging Mobile M neyLeveraging Mobile M neyto Increaseto Increase

Financial Inclusion in the Financial Inclusion in the PhilippinesPhilippines

Enhancing the Potential of Inclusion-Friendly Electronic G2P PaymentEnhancing the Potential of Inclusion-Friendly Electronic G2P PaymentBangko Sentral ng Pilipinas, ManilaBangko Sentral ng Pilipinas, ManilaMay 2, 2012May 2, 2012

John V. OwensJohn V. OwensChief of PartyChief of Party

RBAP-MABS Program, USAIDRBAP-MABS Program, USAID

Mobile MoneyMobile MoneyMobile MoneyMobile MoneyMobile MoneyMobile MoneyRuralBank

Pay-Out Counter

Pay-Out Counter

Pay-Out Counter

CCT Disbursement via the Rural BanksCCT Disbursement via the Rural Banks

CCT Recipient

CCT Recipient

CCT Recipient

One of the channels for providing CCT has been under a partnership between Land Bank, Globe GCASH, rural banks & other partners using mobile money to enable transfers in hard to reach communities.

Step 1 – Grouping beneficiaries by barangay and lining them up based on the order of their names in the

DSWD-provided “payroll” list.

Actual CCT Disbursement Through GCASH RemitActual CCT Disbursement Through GCASH Remit

Step 2 – GCASH Remit numbers & ID confirmed by bank employees

Actual CCT Disbursement Through GCASH RemitActual CCT Disbursement Through GCASH Remit

Step 3 – Cash disbursement by bank teller

Actual CCT Disbursement Through GCASH RemitActual CCT Disbursement Through GCASH Remit

CCT Recipients in CantilanCCT Recipients in Cantilan

Opening Up Savings Accounts for Opening Up Savings Accounts for Children of CCT RecipientsChildren of CCT Recipients

Low Levels of Financial InclusionLow Levels of Financial Inclusion

Philippines ranked 12 out of 15 countries in the East Asia & Pacific Region with only 26.6% of the population

(age 15 years and above) having an account with a formal financial institution.

Women top Men in Financial Inclusion Women top Men in Financial Inclusion

In the Philippines, the number of women with an account in a formal financial institution was almost

1.8 times higher than men (33.7% vs 19%)

Mobile Money enabled accounts increasing financial inclusion in countries such as Kenya & the Philippines with the advent of MPESA mobile money in Kenya and

and in the

Philippines.

Mobile Money – Bright Spot in Financial Inclusion Study

Mobile Money Now Accessible Via Mobile Money Now Accessible Via Multiple PlatformsMultiple Platforms

ATM

Bank Account

Debit Card

Mobile Phone

The BSP issued circular 706 which allows third party outsourcing of KYC, making it easier to

open bank accounts.

MOBILE MONEY ECOSYSTEM DEVELOPMENTMOBILE MONEY ECOSYSTEM DEVELOPMENT

BANKMarket vendor,

tricycle driver, gas station, restaurant,

suppliers and repair shops deposit daily sales thru Text-A-

Deposit

Individual pays Utility company,

school etc. tru bill-pay facility offered

by rural bank Bank credits utility company's and school’s

accounts with the corresponding amount

paid by individuals through electronic money

Individual receives electronic money by

way of Text-A-Remittance or Text-A-

Sweldo

Individual buys food, pays tricycle fare, fuel and even buy from the market using

electronic money

Market vendor, tricycle driver, gas station owner and restaurant pays suppliers, repair shops etc. thru

electronic money

Utility Companies

Suppliers

Farmers

Service Centers

Transport

OperatorsGas Station

Restaurants

Market Vendors

Schools

Clients

Bank Account

Disbursing CCT via a Mobile Money Disbursing CCT via a Mobile Money Linked Bank Account with an ATM / Linked Bank Account with an ATM / Debit card would result in a dramatic Debit card would result in a dramatic increase in the number of people with increase in the number of people with access to a formal financial account, access to a formal financial account, especially those at the lowest income especially those at the lowest income levels of society. levels of society.

For theGovernment For theGovernment

Brins down COST and TIME of disbursing CCTs.

Brins down COST and TIME of disbursing CCTs.

Benefits of Offering CCT via a Mobile Money / Benefits of Offering CCT via a Mobile Money / Bank / ATM / Debit Card AccountBank / ATM / Debit Card Account

For the Recipients For the Recipients

While only having cash, an ATM card, a debit card, a bank account or mobile money account might limit what you can do with your benefits, linking all of them together in one account opens up new doors.

While only having cash, an ATM card, a debit card, a bank account or mobile money account might limit what you can do with your benefits, linking all of them together in one account opens up new doors.

For Providers

For Providers

1.Cheaper and easier to manage multiple small accounts and transactions.

1.Cross selling other services.

1.Cheaper and easier to manage multiple small accounts and transactions.

1.Cross selling other services.

Thank Y u!Thank Y u!

Email:

jowens@rbapmabs.org

Websites:

www.rbapmabs.org www.mobilephonebanking.rbap.org

www.youtube.com/RBAPMABS