1. Introduction to Mobile Phone Banking Services
Microenterprise Access to Banking Services Program
Introduction to Mobile Phone Banking Services
As you saw from the video
Introduction to MPB Services

2. 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 Phonebanking
Indicators
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
Introduction to MPB Services

3. The Rural Banks…
Most rural areas have limited access to financial services.
LUZON
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 than 85% of all municipalities.
MINDANAO
Introduction to MPB Services

4. Philippines: “Text Capital of the World”
Mobile Phone Subscribers vs. Bank Accts (Philippines)
1998
Bank Acct: > 23 M
Mphone: > 1.7 M
2008:
Bank Acct: > 32 M
Mphone: > 68 M
Mobile sub: > 1.7 M
2011:
Bank Acct: > 34 M
Mobile sub: > 90 M
Mobile Phone Subscribers (Philippines)
> 68 million subscribers
> Projections 76 M (2010)
> 90% penetration rate
> 90 million subscriptions
Mobile Phone Subscribers
(World Projections)
2008 (ITU):
4 Billion
2040 (World Bank):
6 Billion
2011 (ITU):
4.6 Billion
2012 (ITU):
5.6 Billion
Introduction to MPB Services

5. Opportunities for the use of Mobile Money through Rural Banks
Phone Industry
Growing subscriber
Stiff competition reducing costs
Affordable handsets
Growing mobile money platforms (GCASH/Smart Money)
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)
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 accounts
1.5 million borrowers
Motivated as an industry to grow to scale
Introduction to MPB Services

6. Breakthroughs & Milestones
- Roadshow (17 regions)
- Accreditation training
- BSP approved TAD, TAR
- MPB Marketers’ Program
RB units accredited
- MOA (RBAP/Nokia) signed
- MOA signed with Globe
- BSP approved TAP pilot
1,168 RB Units accredited
2012
2011
2008
2007
2006
2005
2004
BSP approved TAP
- TAW approved
- TAS Implemented
- MPB Specialist Program
830 RB Units accredited
MPB Transactions > P4.9B
Cumulative MPB Transactions > P14 B
Introduction to MPB Services

7. 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
Introduction to MPB Services

8. Today, Rural Banks Can Offer Following Mobile Phone Banking Services…
Client
Loan Payment
Deposit
Withdraw
Reload Airtime
Receive Loan Release
Send Money
(Remittance)
Bills Payment
Payroll Servicing through GCash

9. Benefits of Branchless Banking (Along the Value Chain)
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
E-money Merchants and Resellers
Increase walk-in traffic (cross selling opportunities)
Decrease cash-on hand, minimize fraud/risks
Revenue from fees
Bank
Leverage 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
For Client:
It is convenient for clients to get emoney within their area (at least 1 km radius) of residence or business. The closer and the easier the better to do financial services and banking without traveling to the bank and lining up in the lobby of the bank leaving business closed and losing the opportunity to earn.
For Merchants:
It is definitely increases customers and increase revenue as well, from fees on reselling Gcash to micro-client within the area (for payment of loans or utility bills, or money tranfer) plus accepting emoney in exchange of goods and services saves the merchant from cash handling issues (fraud and risk).
For Banks:
1) Increase Deposit Level
Ecosystem Rollout (merchant clients)
Text-A-Deposit (Clients sending emoney for deposit to their account in the Bank)
Text-A-BillPay (Utility Bills Company’s ADB)
2) Convenience
Text-A-Withdrawal- mobile ATM
Unclogging Lobby and reduce service time
Text-A-Salary = Paying salary via mobile wallets
3) Cost Savings
Text-A-Payment = saves on collection cost; more time for portfolio management
Reduce over the counter processing and paper works
4) Increase Profits (from fee-based transactions)
Fee-based income (GCash2Load, Cash-In/Out, Advise and Pay)
Improve loan portfolio and management, cost savings on loan payment through GCash
Introduction to MPB Services

10. Mobile Phone Banking installations Nationwide
End of Presentation
Website:
Mobile Phone Banking installations Nationwide
Introduction to MPB Services