catching the wave of mobile banking at rural banks
TRANSCRIPT
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 remittanceBuy and sell goods and services over-the-counter or remotelyPay bills and taxesTransfer money for phone to another phone (P2P)
Banking Services Powered by G-Cash
•Cash-In/Cash-OutInternational 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” convenienceDebit system through mobile phone
Text-A-Credit (in the pipeline)Instant credit line via “texting”
mBanking Benefits for the Rural BankExpand 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
Greater accessibility to banking services
Time savings
Security of transactions
Innovative and state-of the art banking service
G-CASH F
ULL
SERVICE
GREENBANK
Text-A-PaymentCash-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
Globe Telecom Cellphone Services
Globe Telecom Cellphone Services
Globe Telecom Cellphone Services
Expanding services &
creating new markets!
Expanding services &
creating new markets!
G-CASH FULL
SERVICE
G-CASH FULL
SERVICE
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
serviceCustomers/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
Public gets eMoney from bank
BUSINESS OWNER-CLIENTS’ PERSPECTIVE
INDIVIDUAL CLIENT’S PERSPECTIVE
Photos from www.differo.net
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
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!