Agreement to Expand RBAP Mobile Phone Banking Services Signed With GXI

MANILA, August 6, 2008 – The Rural Bankers Association of the Philippines (RBAP) and Globe Telecom’s mobile commerce subsidiary G-Xchange, Inc. (GXI) signed a Memorandum of Understanding (MOU) formalizing their partnership to support and jointly promote the expansion of mobile phone banking services (MPBS) of rural banks. GXI President Rizza Maniego-Eala and RBAP President Tomas Gomez IV signed the agreement which will serve as the framework for the expansion of MPBS developed under the RBAP’s Microenterprise Access to Banking Services (MABS) Program - and other related services using the GCASH payment platform to more than 500 rural bank branches and their clients.

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In her remarks, Ms. Maniego-Eala expressed Globe Telecom and GXI’s commitment to the partnership with RBAP and the MABS Program, “We believe that MABS is a fundamental cornerstone in the combined efforts of RBAP and GXI in addressing the growth of the lower socio-economic groups in the country. What seemed to be a daunting task three years ago has now become a revolutionary tool; mobile banking as we know it today has been proven to be an efficient technology solution for lower income segments, converting many unbanked costumers into bank clients with access to banking services.”

Since late 2004, the RBAP-MABS Program with the support of GXI has been working to develop and rollout mobile phone banking services that allow clients of rural banks to complete banking transactions – making microloan payments (Text-A-Payment or TAP), paying bills (Text-A-BillPayment or TAB), making deposits (Text-A-Deposit or TAD) and withdrawals (Text-A -Withdrawal or TAW), sending or receiving domestic or international remittances (Text-A-Remittance or TAR), or disburse and receive salaries (Text-A-Sweldo or TAS) – using only their mobile phones via sending text messages. These services currently utilize the GCASH platform, Globe’s mobile commerce service. GCASH gives Globe and TM subscribers access to a cashless and cardless method of sending and receiving money via text.

Globe Telecom launched GCASH in October 2004. Shortly after the launch, program managers of MABS quickly recognized that this innovation could improve the efficiency and reduce the costs of collecting and administering loans provided to microenterprise borrowers of MABS participating rural banks.

Four years since GCASH was launched, 43 rural banks with 459 branches all across the country have been accredited as GCASH partners and now offer cash-in and cash-out services with the majority of these banks also offering the MABS-developed mobile phone banking services that utilize the GCASH platform.

RBAP President Tomas Gomez IV pointed out that, less than a decade ago, the rural banking industry decade ago was characteristically technology-averse. He however, countered that with “Rural banks have embraced technology like they never have before.” He went on to say that “every month…we receive parts of our salary on our mobile phones. We pay for goods and services, transfer money, withdraw, make deposits on our mobile phones. And more amazing still, thousands and thousands more in the countryside are experiencing the same thing. Even in areas without wire line service or without ATMs present. And of course all these are made possible by the RBAP mobile phone banking initiative developed under the USAID-supported MABS Program using the GCASH platform.”

These mobile phone banking services will be expanded under a renewed agreement between RBAP and GXI.

Since 1997, the MABS Program has been working with rural banks to assist them to develop the capability to profitably provide financial services to the microenterprise sector. MABS receives support from the USAID and is jointly implemented with the RBAP with oversight provided by the Office of the President through the Mindanao Economic Development Council (MEDCo).

GXI President Rizza Maniego-Eala and RBAP President Tomas Gomez IV (center) sign the MOU formalizing the agreement to collaborate on supporting and jointly promoting the expansion of mobile phone banking developed under the MABS Program, and other related services using the GCASH payment platform to more than 500 rural bank branches and their clients. (Left to right) USAID Mission Director Jon Lindborg, RBRDFI Chairman Francis Ganzon, and MABS Chief of Party John Owens (extreme right) witness the signing.