Nixon P. MahilumMABS Mobile Phone Banking Specialistnmahilum@rbapmabs.orgwww.mobilephonebanking.rbapmabs.org

Expanding E-Money Resellers in Expanding E-Money Resellers in rural areas for Mobile Phone rural areas for Mobile Phone BankingBanking

Branchless Banking is the cheaper alternative delivery of financial services outside the conventional bank branches using Merchants as Bank’s Agents and Technology (such as ATM, Internet, POS Terminals and mobile phone) as tools.

Mobile phone Banking is a variation of Branchless Banking wherein mobile phone and E-Money are being used (with or without agents) to perform banking functions.

Notes: •E-Money issuer of GCASH is GXI (a subsidiary company of Globe Telecom)•E-Money is not considered a deposit, therefore not covered by PDIC.

GCASH Partners and Outlets in the Philippines:

3,000+ Rural Bank partners Small Merchant

4,000+ Globe Partners

650+ Rural Bank outlets

Western Union

Bank Branches

Post Offices

ATMs

POS

Mobile Phone

Worldwide points of presence

Other Models:• Bank-led• Telco-led• Independent Service Providers

Mobile Phone

In the Philippines

Mobile Phone Outreach High (68 Million; penetrated to more than 50% of the total population)

Mobile Network Coverage 99%

Level of Literacy among Clients and users

High

Platform Existence Yes (through mobile phone networks) and GCASH

Platform Features Safe, secure, easy to use, fast-built on existing habit, AMLA compliant and BSP recognized

Device to use for Banking Cellphone (or mobile phone)(existing cellphone and SIM)

Registration and Entry requirements

Not Much (very easy) (registration through OTA + 1 valid ID + Bank Account with accredited rural bank)

Transaction Limits Basic 40K per day and 100K per month (but can be increased to 500K on a case to case basis)

Number of Potential E-Money Resellers

700,000+ sari-sari stores nationwide (1 store:130 Flipinos)

Regulators Open-minded and supportive to the use of technology for banking

POS (with or w/o card)

Mobile Phone

Agents Retail Shops (linked to the bank, authorized)

Retail Shops (independent, authorized)

Device Cost P15,000 to P50,000 Starts @ P500 to high-end models

Card ATM, Cash, Debit and Credit Cards (and maybe cardless)

100% Cardless

Target Market Cardholders (mostly urban)

Mobile Phone subscribers (nationwide)

Transactions Deposit, Withdraw, Balance, micro payment, fund transfer, purchase, Reload airtime

Deposit, Withdraw, Balance, micro payment, fund transfer, purchase, P2P, Reload airtime

Receipt/Statement

Printed (with serial no.) Electronic (thru text with unique reference number)

Speed for volume at the retailer

High (face-to-face) Low (upon loading face-to-face); High (remote and individual)

Back Office Platform Cost

Millions of Peso Almost Zero

Country No. of Agents Provider Model

Brazil 95,000+ Caixa Economica Federal (bank) Banco Bradesco (bank)

POS andCard-based

South Africa 6,500+ FNB, MTN, ABSA, Wizzit

Mixed (POS, Card and M-Banking)

Kenya 2,600+ Safaricom(mobile operator) Equity Bank (bank)

M-Banking

Source: CGAP

Sample ID

E-money Merchants

and ResellersIncrease walk-in traffic (cross selling opportunities)

Decrease cash-on hand, minimize fraud/risks

Revenue from fees

Remote Purchase + Delivery Service

ClientConvenient & 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

Microenterprise Access to Banking Services Programwww.rbapmabs.org

With Mobile Phone, you can now…