News Archive

The third instalment of the Mobile Money Explained Live Webinar series is scheduled on the 17th of January at 2:30pm UK time (10:30pm MNL time).

One of the biggest issues facing mobile money providers at the moment is how to cope with dormancy. Maintaining high usage rates, especially in increasingly competitive markets, is not easy and after initial spikes in subscriptions, many service providers are faced with a vast number of dormant accounts on their hands.

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FinanceAsia – Mobile telephone capabilities may have come a long way since the days of the brick-size device, but how much can they really change banking?

Communicating through radio link has come a long way since World War II. With voice calls, text messages, mobile internet access and built-in cameras, today’s smartphone is already a remarkable all-in-one handheld computer — but its potential could be even greater in the developing world.

This is particularly true in banking. Asia’s fragmented payments infrastructure and large unbanked population mean that millions lack even limited access to branch-based banking, but rising mobile penetration is creating new options for person-to-person payments.

“Mobile banking works because the individuals and small businesses in the emerging markets have access to a mobile phone,” said Richard Davies, Asia-Pacific director of Logica’s global products business. “Similarly, in the more mature markets, it would be strange to see somebody who does not own a smartphone.”

Telecommunications service providers have been quick to pick up on this trend. Mobile banking and payments solutions, such as GCash in the Philippines and MPesa in Kenya, have been very successful in the emerging markets. “Banks in Southeast Asia are interested in mobile banking to get ahead of the game and provide additional services for their customers,” said Dean Young, vice president of product management at SunGard’s ambit retail banking business arm.

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In Filipino grammar, adding the prefix mag is a nifty way to verbalize a noun. This extends from everyday, colloquial conversation Mag-kape tayo (Let’s have coffee) Mag-sine tayo (Let’s watch a movie) to more profound exhortations, like Mag-bago na tayo. (It’s time we make a change). The United States Agency for International Development-supported Rural Bankers Association of the Philippines Microenterprise Access to Banking Services (RBAP-MABS) Program with assistance from Microfinance Opportunities (MFO) is now assisting rural banks to extend this further to promote mobile phone banking services with the launch of mag-CellBank! and the pilot testing of the Financial Education for Branchless Banking Project.

mag-CellBank!, the new logo for mobile phone banking services, employs the prefix mag to cell (for cellphone) and bank. Mag-CellBank! is an enthusiastic call for clients to perform banking transactions using their cellphones. The new name, along with a visual identity, is integrated into the new Financial Education for Branchless Banking toolkit that is currently being used by three pilot banks – GM Bank, Cantilan Bank, and 1st Valley Bank. mag-CellBank! services include Text-A-Payment (TAP), Text-A-Deposit (TAD), Text-A-Withdrawal (TAW), and phone-to-phone transfers and payments.

Launched in June 2010, the Financial Education for Branchless Banking Project is implemented by the RBAP-MABS Program with support from MFO, a Washington-based global nonprofit that develops consumer-focused ideas and solutions for the microfinance industry. The project, which is implemented in partnership with The MasterCard Foundation, aims to increase the uptake and use of mobile phone banking services through the use of financial education tools.

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The United States Agency for International Development-supported Rural Bankers Association of the Philippines–Microenterprise Access to Banking Services (RBAP-MABS) Program conducted a Regional GCASH Accreditation Training for North Luzon rural banks in Clarkfield Pampanga last October 28, 2011.

The Globe GXI team – composed of their training team, North Luzon area managers, and the account manager and coordinator for rural banks – were present to facilitate the presentation and hands-on activities. Twenty (20) participants from 11 rural banks completed the training.

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The Asia Foundation – A rapidly increasing number of people across the globe are now staying connected to one another via a mobile phone device – whether it’s an iPhone, Nokia, or Samsung. In fact, the United Nations reported earlier this year that the worldwide figure for cell phone subscriptions had topped five billion at the end of 2010. According to the International Telecommunication Union, approximately 3.8 billion of these mobile subscriptions were from developing countries – with India and China fueling this upsurge.

As this trend continues, the mobile financial services market is also booming, and is increasingly dominated by Asia, driven by mobile, operator-led initiatives in these developing nations to “bank the unbanked.” Developing countries such as Pakistan are among those that have made remarkable progress in global mobile phone adoption; in 2007, while just one million Pakistanis owned bank accounts, 70 million were mobile subscribers. In April 2011, this total subscriber figure stood at 108 million. This rapid mobile subscription rise has the potential for even greater expansion among those living in the developing world with the enablement of these four mobile banking functions: government cash transfers, international remittances, bill payments, and savings.

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Fourteen representatives from eight rural banks based in the Visayas and Mindanao attended the Mobile Phone Banking Accreditation training and refresher course at the Diamond Suites in Cebu City last September 9. The training was organized by the United States Agency for International Development-supported Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program and co-sponsored by G-Xchange Inc. (GXI), a wholly-owned subsidiary and the mobile commerce arm of Globe Telecom.

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The United States Agency for International Development-supported Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program joined mobile financial service stakeholders at the 5th Annual Mobile Financial Services – Asia Pacific Summit held at the Waterfront, Singapore on September 6-7, 2011. The annual conference gathers partners in mobile, banking, business and technology industries to build a robust and sustainable mobile commerce ecosystem.

Industry trends and challenges in the mobile financial services were discussed during the two-day summit. The impact of the near field communication (NFC) technology and smartphones were the highlights of the summit. Banks in countries including Singapore, Japan and Korea are now utilizing the power of smartphones in providing mobile financial services to their clients. The socio-economic impact and success of this innovation in the financial services space were recognized.

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The Rural Bankers Association of the Philippines–Microenterprise Access to Banking Services Program (RBAP-MABS) in cooperation with Globe’s G-Xchange Inc. (GXI) conducted a regional GCASH accreditation training and refresher course on August 25, 2011 at the RBAP Conference Room in Intramuros, Manila. Thirty-three (33) participants from eighteen (18) rural banks from Luzon completed the course.

The training introduced the participants to the basic concepts and applications of mobile phone banking as an additional rural bank service. Ms. Letty Young of Globe Telecommunications discussed the fundamentals of GCASH and engaged the participants with hands on exercises: registration to GCASH, person-to-person (P2P) electronic money transfer and balance inquiry. Other topics essential to the successful implementation of mobile phone banking services (MPBS) were also discussed; such as developing a contingency plan and security and internal control measures.

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A delegation from China visited the Rural Bankers Association of the Philippines – Microenterprise Access to Banking Services (RBAP-MABS) Program on 22 August 2011 to learn about microfinance and mobile banking. RBAP-MABS welcomed the group with a multimedia presentation on the topics, including a live demonstration of the workings of mobile phone banking.

Organized and coordinated by the China International Center for Economic and Technical Exchanges (CICETE), the group was composed of representatives from Fuping Development Institute, China Association of Microfinance, CreditEase Group, Baoshang Bank and China Development Bank.

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Officers of the United States Agency for International Development (USAID) were given a firsthand briefing on the mobile phone banking initiative of the USAID-supported Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program during a visit with partner bank, PR Savings Bank’s Ortigas Branch on August 11, 2011. The officers included Science & Technology Adviser to the Administrator Alex Dehgan, Environment Officer Kerry Reeves, Teresa Leonardo, Global Climate Change Advisor, and Contracts Officer Technical Representative Teresita Espenilla.

The team was provided with a presentation outlining the Program’s mobile phone banking initiative. As of May 2011, there are some 71 accredited rural banks with over 1,100 branches and other banking offices that are registered to offer mobile phone banking services utilizing the GCASH platform. These banks have served over 256,000 mobile phone banking clients and customers and have processed more than PhP 12 billion ($ 250 million) in mobile phone banking transactions via GCASH.

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Four Rural Banks president share their views and visions on mobile banking and mobile money using the Globe GCASH platform in the Philippines.

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More than a thousand people waited in line to receive their second cash payment from the Conditional Cash Transfer (CCT) or Pantawid Pamilyang Pilipino Program (4Ps) in Tabogon, Cebu last July 26, 2011. Green Bank, a participating bank of the United States Agency for International Development (USAID)-supported Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program, assisted the release of PhP 1.2 million pesos (US$30,000) financial assistance through GCASH Remit.

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The officers and staff of 1st Valley Bank Zamboanga Del Norte branch welcomed officials of the United States Agency for International Development (USAID) composed of Director Andrew Plitt (ASIA/Special Project Office), Myra Stokes and Teresita Espenilla of USAID/Philippines on July 20, 2011. On hand to provide the briefing on the USAID-supported Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program was Regional Manager for Mindanao Anthony Petalcorin, while 1st Valley Bank officer Ms. Emily Enad, 1st Valley Bank Vice-President for Risk Management provided the guests a look at how the bank is implementing the different initiatives under the RBAP-MABS program, especially with regard to mobile phone banking.

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The USAID-supported Rural Bankers Association of the Philippines – Microenterprise Access to Banking Services (RBAP-MABS) program in coordination with RBAP International Study Visit Program once again organized a study tour on Mobile Phone Banking for UTIBA, the supplier of Globe’s GCASH platform and representatives from Digitel Venezuela and Grupo Mas, Coca Cola, and DIPOR from Ecuador. Apart from visiting RBAP, the group also visited G-Xchange Inc (GXI), the Bangko Sentral ng Pilipinas (BSP), and GM Bank from July 18-20, 2011.

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The Microenterprise Access to Banking Services (MABS) in coordination with Rural Bankers Association of the Philippines (RBAP) on its International Study Visit Program once again conducted a lecture on Mobile Phone Banking (MPB) with its partners from different parts of the globe. Participants last July 13-14, 2011 were from Thailand’s Bank for Agriculture and Agricultural Cooperatives (BAAC) as well as representatives from People’s Bank and Central Bank of Sri Lanka.

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To support Rang-ay Bank’s plan to expand its microfinance services, the USAID-supported Rural Bankers Association of the Philippines – Microenterprise Access to Banking Services (RBAP-MABS) Program provided the senior officers of the bank with briefings on different program initiatives that are aligned to the interests of Rang-ay Bank on August 6, 2011. Aside from the briefing, MABS helped the bank come up with microfinance services expansion strategy and provided the bank with an updated assessment of its mobile phone banking (MPB) services initiative.

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Alternative ways of delivering banking services are changing the way rural banks are servicing their clients. Not only that, these innovations are also helping the Philippine Government reach families at the bottom of the economic pyramid.

During the 2011 RBAP-MABS National Roundtable Conference, rural banks shared how technology has been useful to them in expanding microfinance services. As of May 2011, more than 160,000 rural bank clients have processed more than PhP10 billion (US$220 million) in mobile phone banking transactions via the GCASH platform.

Banking practices have been evolving and expanding coverage geographically, as well as in terms of network, client base, and products and services being offered to clients. Mobile phone banking services were first introduced to rural banks through an effort promoted by the RBAP-MABS program back in 2004.

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Located in Cagayan about 242 miles away from Manila, the Rural Bank of Gattaran serves over 50,000 clients in Northeastern Luzon. With the strategic location of its branches including one near a famous tourist spot, Sta. Ana, the bank sees the potential for mobile phone banking services in its areas of operation.

The bank’s current remittance facility is servicing up to 40 transactions daily, totalling P5,000 – P500,000 ($116-$11,630) for each of the bank’s three branches.

To support the bank in its commitment to improve its operations, the USAID-supported RBAP-MABS program evaluated the current banking software deployed in RB Gattaran’s three branches during its visit on June 23-24. The RBAP-MABS review team gave recommendations to improve the bank’s monitoring system and assisted the bank in planning for enhancements.

RB Gattaran became a MABS participating bank in 2006 and has since then provided micro loans to over 5,000 clients totalling more than PhP 341,000,000 ($7.9M).

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A well-known member of the Congress of Guatemala, Ms. Roxana Baldetti, visited the Rural Bankers Association of the Philippines (RBAP) on June 17, 2011 to better understand how the mobile phone banking initiative through the rural banks has worked out in the Philippines, particularly in reaching out to more remote areas..

Guatemala is a country with a population of about 13.8 million – over 75 percent of which live below the poverty line. Poverty is even more severe among the rural and indigenous populations. (Source: Encyclopedia of the Nations)

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Seventeen (17) delegates from the Bank of Mongolia, the Finance Regulatory Board of Mongolia, the Information, Communications Technology, and Post Authority, along with other Mongolia government officials participated in the RBAP International Visits Program on May 16-20. This was to learn first-hand about the uses of mobile money and mobile phone banking in the Philippines.

Mr. John Owens, Chief of Party of the USAID-supported RBAP-MABS program, introduced the delegates to the uses of mobile money and mobile phone banking practiced by Philippine rural banks. He also shared the latest updates in the Philippine rural banking industry, as well as how mobile money and mobile phone banking are helping in the expansion of banking services to reach far-flung areas in the country. He shared how this approach and other principles practiced in the Philippines can be also applied in Mongolia. He also discussed how the Philippines’ excellent regulatory system has helped in the success of mobile phone banking.

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