MABSProgramTheMicroenterpriseAccesstoBanking
ServicesorMABSProgramprovidestechnicalassistanceandtrainingtoruralbanksin
microfinancebestprac;ces.
Theprogramisdesignedtodevelopthecapabilityofruralbankstoprofitablyprovidefinancialservices(loans,deposits,insurance,
moneytransfer,micropayments)tomicroenterprises.
• Veryrapidexpansionoverthelast10years• Morethan50%ofFilipinosaremobilephonesubscribers
MobilePhoneBankingPenetra;on
MobilePhoneSubscribers
(WorldProjec;ons)
2008(ITU):4Billion
2040(WorldBank):6Billion
2008(ITU):4Billion
2040(WorldBank):6Billion
MobilePhoneSubscribers(Philippines)
>68millionsubscribers>Projec;ons76M(2010)
>60%penetra;onrate>70millionsubscribers>Projec;ons76M(2010)
MobilePhoneSubscribersvs.BankAccts(Philippines)
1998BankAcct:>23MMphone:>1.7M
2008:BankAcct:>32MMphone:>68M
1998BankAcct:>23MMobilesub:>1.7M
2009:BankAcct:>32MMobilesub:>70M
Opportuni;esforMobilePhoneBanking
MobilePhoneIndustry
Subscriberbaseisgrowingrapidly.
S;ffcompe;;onamongtelcosisbringingcostsofservicedown(unlimitedtext,rebates,promos.)
MobilePhoneCostisge[ngcheaper.
Remi]anceBusiness
Growing($17Bin2009&expectedtogrowto$18Bin2010)
Transac;onsandtransfermethodsnowincreasinglyusingE‐Money(GCASH/SmartMoney)
RuralBanks
Morethan50%ofpopula;onislocatedintheruralareaswheremanyareunder‐bankedorunbankedduetohightransac;oncosts
Veryminimalinvestmentneededtooffermobilephonebankingservices.
Breakthroughs&Milestones:MobilePhoneBankingforRuralBank&theirClients
RBAPsignedanMOAwithGlobe(GXI)forLoanPaymentusingGcash
BSPapprovedpilotofText‐A‐Paymenttoselectedruralbanks
AutoloadmaxretailersasGcashoutletswaslaunched
StudyonCostSavingsconductedinselectedruralbanksontheuseofG‐Cashforloanpayment
2004
‐200
5 SomeRBsstartedpayingemployeessalariesorallowanceswithGcash
M‐commercewasusedbylocalmerchants
BSPapprovedCash‐in/Out(Text‐A‐Remi]ance)servicesforruralbanks
BSPapprovedText‐A‐Depositserviceforruralbanks
StrategicPlanningwasconductedwith5pilotbanks
2006
Salary disbursements (Text-A-Sweldo) expanded to other businesses in the community
Text-A-Bill Payment was initiated by a rural bank with local utility cooperative
Text-A-Withdrawal was approved by BSP
Mobile Phone Banking Specialist Program was launched
2007
Mobile phone banking specialist program generated more than 60,000 new users; more than 3,400 signed up as local merchants
Mobile Phone Marketing program launched
More than 40 rural banks with more than 400 branches are Gcash accredited outlets
RBAP and Globe (GXI) partnership renewed (Gcash)
RBAP signed an agreement with Nokia Philippines (Nokia phone financing and educational materials for mobile phone
RBAP Signed an agreement with Smart Communications (Smart Money)
2008
BSPapprovedSmartMoneyPilotin2RuralBanksinJuly.
55AccreditedRuralBankswith830branchesandotherbankingoffices
44%increaseinM‐BankingTransac;onsin2009
Cumula;veMobileBankingTransac;onsviatheGCASHplajormexceed$100million
2009
Prac;calIssuesbetweenMobileMoneyIssuersandMFIpartnerships
Flexible
ResponsivenessMarke;ngSupportTraining
✔✔✔✔
PreparingSmallFinancialIns;tu;onstoPromoteMobileMoneyandMobile
FinancialServices
EnvironmentforMobilePhoneBanking&MobileCommerce
• Evolu:onoftheretailandfinancialsectors:– Natureoffinancialandretailmarketisimportantfordetermining
func:onality
• Leveloffinancial/electronicliteracy:– Influencesnatureoftransac:ons
• RegulatoryandPolicyEnvironment– Needsuppor:veenvironmentformobilephonebanking&mobilecommerce– Bringtheregulatorsonboard–early– NewPhilippineE‐MoneyCircular
RegulatoryEnvironment• BasleCommiJeeonBankingSupervision–importantroleofregulatorstobalancee‐bankingriskswhilesuppor:nginnova:on
• Regulatoryframeworkgoverninge‐banking:– Underlyingsoundnessofthebankingins:tu:on
– Adequateriskmanagementsurroundinge‐bankingac:vity
• PhilippineCentralBank(BSP)–seese‐bankingaswaytoimproveefficiency&increaseaccesstobankingservices
• BSPremainsresponsivetotherapidlydevelopingtechnologiesrelatedtoelectronicbanking
• BSPhasissuednumerouscircularstooversee&supporte‐banking
RegulatoryEnvironment
RegulatoryEnvironment
BSPCircular511(TechnologyRiskManagement)
– RiskManagement– Opera:onalissues– Compliance– Reputa:onandstrategicrisksassociatedwithtech‐relatedproducts
RegulatoryEnvironment
Circular542Series2006(ConsumerProtec:onforE‐Banking)
– BoardOversight– InternalControls– Security– Authen:ca:on– Customerorigina:on/verifica:on– Monitoringandrepor:ng– Disclosureandcomplaintresolu:on
RegulatoryEnvironment• BSPbuiltupitscapacitytorespond&supportthee‐bankingenvironmentinthePhilippines
• Crea:onofaCoreInforma:onTechnologySupervisoryGroup(CITSG)– Centralgrouptomonitor&addresselectronicbankingissues
– IncludesMobileMoney&MobilePhoneBanking
RegulatoryEnvironment ProductApprovalProcess:
‐ ProposalforbanksusedasCashIn/CashOutoutletsallowedBSPtoevaluatetheGCASHproductandfeatures
– Keyareasreviewed:• KYC• An:MoneyLaunderingRequirements• RiskManagement• Integrity• SecurityandConfiden:ality
RegulatoryEnvironment Measuresapproved:
• Transac:oncap– PhP40,000/day($1,000)– PhP100,000/month($2,500)
• Processflowwasdevisedformoreexpedi:ousproductapprovalsinthefuture– Banksinterestedinprovidingapprovedservicecanapplythroughtheirrespec:vebankingassocia:ons
– Associa:onaccreditsmemberbanksaaercomplyingwithrequirementsandtraining
– Associa:onsubmitstoBSPthelistofaccreditedbanks
RegulatoryIssuesConsidered
• Keyareasofconfiden:ality,moneylaundering,riskmanagementshouldbeupheldevenwiththenewmodali:es
• Consumerprotec:onisespeciallyimportantine‐banking
• Riskandsecuritymanagementrequirementsaswellasregulatorycostsshouldbecommensuratetorisksinvolved
• Responsivenesstoinnova:onandexperimenta:onisimportant
RegulatoryIssuesConsidered
• Ins:tu:onalarrangementsareimportantespeciallyifthee‐bankingservicesoutsourcetonon‐bankins:tu:ons(i.e.E‐MoneyIssuers(EMI)/MobileNetworkOperators(MNOs).
• Whenthirdparty,suchasEMIorMNO,handlesorsupportsbankingtransac:ons,BSPhastheauthoritytoinspectthedatabaseofthethirdparty.
• Confidenceinindustryassocia:onandnetworks–keyissueforBSPinsuppor:ngexpansionofe‐bankingservices.
E‐moneyCircular• DefinesElectronicMoney&E‐MoneyIssuers
• UsesofElectronicMoney P2P Payroll Remi]ances Purchases Payments Disbursementofloans,etc.
• LoadlimitofPhP100,000/month(accumulated)
TheBusinessModelforSmallFinancialIns;tu;onstoofferanduseMobileMoney:
TheBusinessModelforSmallFinancialIns;tu;onstoofferanduseMobileMoney:
ReduceInterestratesonMicroLoansClients(TAP)
Ac;vateMobileMoneyResellers(SourceofMobileMoneyofTAPClients)
IssuesandLessonsLearntfromPilotTests
Understandyourmarket
Importanceofregistra;on,training,andadop;onofservicebyclients/merchants
EcosystemDevelopment–mul;plesourcesanduses–m‐banking/m‐commerce
Acceptanceandfearoftheuseoftechnologyespeciallyamong
elderlyclients
IssuesandLessonsLearntfromPilotTests
Convenience Reducestransac0on Reducesrisks Increasessales
ValueProposi;onforClients,Merchants&Customers
IssuesandLessonsLearntfromPilotTests
LackofMobileMoney
Outletsorsource
especiallyintheruralareas
Effec;vetrainingandeduca;ngLoanOfficersandFront‐linestaff
Releaseofemployee’spayrollorAllowancesviamobilemoney
Planforsufficientcash‐in/cash‐outpoints
IssuesandLessonsLearntfromPilotTests
Howtoreachclientsinremote
communi:es‐awareness
andinforma:oncampaign
Informa;onandProductAwarenessCampaignsthroughmediaprint,radio,TV,online
MobilePhoneBankingwebsiteh]p://mobilephonebanking.rbap.org
PromoteMobileMoneybybanksinkeyloca;ons/events(suchaslocalfes;vals)
IssuesandLessonsLearntfromPilotTests
Increasingofvolumeandusageofmobile
moneyintheruralareas
Incen;veprogramsforaccreditedruralbanks
MobilePhoneBankingconferences&workshopdialogueevents
IssuesandLessonsLearntfromPilotTests
WorkingwithMFIs–
Networksarekeyto
outreach
Crea;ngasenseofownershipamongbankpartners
RegularAccredita;ontraining
RuralBankersMembershipMee;ngs
Tes;monialsfromaccreditedruralbanks
GlobeGCASHpromo;on
OvercomingCash‐in/Cash‐outConstraintsinRuralCommuni;es
LarryBat‐ao,Can;lanBankMerchant‐DepositandproviderofGCASH
BankpartneredwithLocalMerchantstoactasresellersofmobilemoneyinruralareas.
OvercomingCash‐in/Cash‐outConstraintsinRuralCommuni;es
Bankestablishedkiosks,sub‐offices,andotherbusinessoffices(OBOs)toprovideCash‐InandCash‐Out
OvercomingCash‐in/Cash‐outConstraintsinRuralCommuni;es
BankcoordinateswithGXIforAutoLoadMaxDealerstoprovideCash‐Outfunc;ons
DevelopingMobileMoneyEcosystemsCommitmentofBankManagement
DevelopmentofMobileMoneyEcosystem
SufficientCash‐In/Cash‐OutAgents/Resellers
Crea;ngAwarenessoftheuseofMobileMoneyintheRuralCommunityPromotethevalueproposi;onforbusinesses,clients,andcustomers
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