leveraging mobile money to increase financial inclusion
DESCRIPTION
This presentation was given during the Asian Development Bank session on "Enhancing the Potential for Inclusion-Friendly Electronic G2P Payments" held at the Bangko Sentral ng Pilipinas (BSP) on May 2, 2012.TRANSCRIPT
Leveraging Mobile M neyLeveraging Mobile M neyto Increaseto Increase
Financial Inclusion in the Financial Inclusion in the PhilippinesPhilippines
Enhancing the Potential of Inclusion-Friendly Electronic G2P PaymentEnhancing the Potential of Inclusion-Friendly Electronic G2P PaymentBangko Sentral ng Pilipinas, ManilaBangko Sentral ng Pilipinas, ManilaMay 2, 2012May 2, 2012
John V. OwensJohn V. OwensChief of PartyChief of Party
RBAP-MABS Program, USAIDRBAP-MABS Program, USAID
Mobile MoneyMobile MoneyMobile MoneyMobile MoneyMobile MoneyMobile MoneyRuralBank
Pay-Out Counter
Pay-Out Counter
Pay-Out Counter
CCT Disbursement via the Rural BanksCCT Disbursement via the Rural Banks
CCT Recipient
CCT Recipient
CCT Recipient
One of the channels for providing CCT has been under a partnership between Land Bank, Globe GCASH, rural banks & other partners using mobile money to enable transfers in hard to reach communities.
Step 1 – Grouping beneficiaries by barangay and lining them up based on the order of their names in the
DSWD-provided “payroll” list.
Actual CCT Disbursement Through GCASH RemitActual CCT Disbursement Through GCASH Remit
Step 2 – GCASH Remit numbers & ID confirmed by bank employees
Actual CCT Disbursement Through GCASH RemitActual CCT Disbursement Through GCASH Remit
Step 3 – Cash disbursement by bank teller
Actual CCT Disbursement Through GCASH RemitActual CCT Disbursement Through GCASH Remit
CCT Recipients in CantilanCCT Recipients in Cantilan
Opening Up Savings Accounts for Opening Up Savings Accounts for Children of CCT RecipientsChildren of CCT Recipients
Low Levels of Financial InclusionLow Levels of Financial Inclusion
Philippines ranked 12 out of 15 countries in the East Asia & Pacific Region with only 26.6% of the population
(age 15 years and above) having an account with a formal financial institution.
Women top Men in Financial Inclusion Women top Men in Financial Inclusion
In the Philippines, the number of women with an account in a formal financial institution was almost
1.8 times higher than men (33.7% vs 19%)
Mobile Money enabled accounts increasing financial inclusion in countries such as Kenya & the Philippines with the advent of MPESA mobile money in Kenya and
and in the
Philippines.
Mobile Money – Bright Spot in Financial Inclusion Study
Mobile Money Now Accessible Via Mobile Money Now Accessible Via Multiple PlatformsMultiple Platforms
ATM
Bank Account
Debit Card
Mobile Phone
The BSP issued circular 706 which allows third party outsourcing of KYC, making it easier to
open bank accounts.
MOBILE MONEY ECOSYSTEM DEVELOPMENTMOBILE MONEY ECOSYSTEM DEVELOPMENT
BANKMarket vendor,
tricycle driver, gas station, restaurant,
suppliers and repair shops deposit daily sales thru Text-A-
Deposit
Individual pays Utility company,
school etc. tru bill-pay facility offered
by rural bank Bank credits utility company's and school’s
accounts with the corresponding amount
paid by individuals through electronic money
Individual receives electronic money by
way of Text-A-Remittance or Text-A-
Sweldo
Individual buys food, pays tricycle fare, fuel and even buy from the market using
electronic money
Market vendor, tricycle driver, gas station owner and restaurant pays suppliers, repair shops etc. thru
electronic money
Utility Companies
Suppliers
Farmers
Service Centers
Transport
OperatorsGas Station
Restaurants
Market Vendors
Schools
Clients
Bank Account
Disbursing CCT via a Mobile Money Disbursing CCT via a Mobile Money Linked Bank Account with an ATM / Linked Bank Account with an ATM / Debit card would result in a dramatic Debit card would result in a dramatic increase in the number of people with increase in the number of people with access to a formal financial account, access to a formal financial account, especially those at the lowest income especially those at the lowest income levels of society. levels of society.
For theGovernment For theGovernment
Brins down COST and TIME of disbursing CCTs.
Brins down COST and TIME of disbursing CCTs.
Benefits of Offering CCT via a Mobile Money / Benefits of Offering CCT via a Mobile Money / Bank / ATM / Debit Card AccountBank / ATM / Debit Card Account
For the Recipients For the Recipients
While only having cash, an ATM card, a debit card, a bank account or mobile money account might limit what you can do with your benefits, linking all of them together in one account opens up new doors.
While only having cash, an ATM card, a debit card, a bank account or mobile money account might limit what you can do with your benefits, linking all of them together in one account opens up new doors.
For Providers
For Providers
1.Cheaper and easier to manage multiple small accounts and transactions.
1.Cross selling other services.
1.Cheaper and easier to manage multiple small accounts and transactions.
1.Cross selling other services.
Thank Y u!Thank Y u!
Email:
Websites:
www.rbapmabs.org www.mobilephonebanking.rbap.org
www.youtube.com/RBAPMABS