Catching the Wave of Mobile Banking at Rural Banks

Mobile Commerce “Buying and selling of goods and services through wireless handheld devices such as cellular telephone” “Next-generation e-Commerce” Mobile Banking “Banking through your mobile phones”

Challenges and Opportunities in the Philippine Environment that mBanking Addresses  Few Filipinos have bank accounts and fewer have credit cards  Filipinos are reluctant to use their credit cards to pay remotely - telephone, direct mail, internet  Small retailers find it difficult to justify the cost of a point-of- sale or card reader, but most would have a mobile phone  It is expensive to settle with VISA & MasterCard (fees of 5% or more)  Rural areas have few bank branches, so many people would have to travel far to do a simple financial transaction  But almost all Filipinos would have a mobile phone

mBanking Powered by G-Cash What is G-Cash? “Text”/Short Message Service (SMS)-based from Globe Telecom that allows transfer of cash value from one phone to another (P2P) What can it do? International and domestic remittance Buy and sell goods and services over-the-counter or remotely Pay bills and taxes Transfer money for phone to another phone (P2P)

Banking Services Powered by G-Cash Cash-In/Cash-Out  International and domestic remittance  Bills payment Text-A-Payment  Remote loan collection Text-A-Deposit (ready for roll-out)  Remote deposit taking  Merchant cash management facility via “texting”

Banking Services Powered by G-Cash Text-A-Withdrawal (in the pipeline)  “ATM” convenience  “Point-of-sale” convenience  Debit system through mobile phone Text-A-Credit (in the pipeline)  Instant credit line via “texting”

mBanking Benefits for the Rural Bank  Expand market brought by innovative banking service that provides greater accessibility to microentrepreneurs  Easy and cheap entry/participation  Promotes operational efficiency  Low transaction cost  Increase revenues from higher value of relationship with client by improving client satisfaction and loyalty through better service – “satisfied clients spread good words about the bank”  Compete with commercial banks that offer ATM facilities and remittance services

mBanking Benefits to the Rural Bank Clients  Cost Savings Cost Savings  Greater accessibility to banking services  Time savings  Security of transactions  Innovative and state-of the art banking service

G-CASH FULL SERVICE GREENBANK Text-A-Payment Cash-in/ Cash-Out Remittance Service Text-A-Deposit Text-A-Withdrawal & Text-A-Credit Bank-GXchange Partnership RURAL BANK OPPORTUNITIES THROUGH mBANKING Globe Telecom Cellphone Services Expanding services & creating new markets! G-CASH FULL SERVICE

RURAL BANK POWERED ECOSYSTEM RURALBANK Farmer pays gas station for his fuel requirements on farm machineries. Trader pays for farm products purchased Gas station deposits daily sales tru TAD Farmer pays tricycle for transport of goods Driver/operator deposits tru TAD & pays tricycle loan tru TAP Public pays tricycle for service Customers/ public pay vendor/ trader for purchase Driver pays gas purchased Driver/operator purchase spare parts and have vehicle repaired Repair shop & spare parts dealer buys from wholesaler Automotive parts wholesaler deposits sales to bank tru TAD Public gets eMoney from bank BUSINESS OWNER-CLIENTS’ PERSPECTIVE INDIVIDUAL CLIENT’S PERSPECTIVE Photos from Individual gets eMoney from remittance or CICO Buys medicine Buys food Pays electricity bills Pays tuition fees Pays tricycle fare Buys at public market/malls eMoney is transacted through the bank via TAD & CICO

Bangko Sentral ng Pilipinas (BSP) approved on JANUARY 17, 2006 the expanded use of G-CASH to include the full-service feature of CASH-IN/ CASH-OUT, a “first-in-the-world” remittance service through SMS (“texting”) RBAP mBanking Highlights

352 Key Bank Personnel from 207 Rural Banks from Luzon, Visayas and Mindanao participated in the RBAP G-Cash Training-Workshop Roll-out from November 7 to March 6, 2006 RBAP mBanking Highlights

28 Rural Banks with a total of 193 branch network all across the Philippines are currently G-Cash partners, to become key movers of mCommerce in the countryside RBAP mBanking Highlights

Thank you very much!