Nixon P. Mahilum MABS Mobile Phone Banking Specialist Expanding E-Money Resellers in rural areas for Mobile Phone Banking

Branchless Banking is the cheaper alternative delivery of financial services outside the conventional bank branches using Merchants as Bank’s Agents and Technology (such as ATM, Internet, POS Terminals and mobile phone) as tools. Mobile phone Banking is a variation of Branchless Banking wherein mobile phone and E- Money are being used (with or without agents) to perform banking functions. Branchless Banking POS + Agents Mobile Phone + Resellers ATM and Internet

Stored electronically Monetary Value E-Money Notes: E-Money issuer of GCASH is GXI (a subsidiary company of Globe Telecom) E-Money is not considered a deposit, therefore not covered by PDIC.

GCASH Partners and Outlets in the Philippines: 3,000+ Rural Bank partners Small Merchant 4,000+ Globe Partners 650+ Rural Bank outlets

Western Union Bank Branches Post Offices ATMs POS Mobile Phone Worldwide points of presence

Merchants, Outlets, ATM and POS Bank Client Bank & Telco TelcoBank Other Models: Bank-led Telco-led Independent Service Providers

Mobile Phone

Technology (ATM, POS, Mobile Phone) Third Party Outlets (Retailer, Reseller, Merchants, Post Office) Basic Financial Services (micropayments, deposit, withdrawal, remittance, etc.) Structured and Backup by the Bank Branchless Banking

In the Philippines Mobile Phone OutreachHigh (68 Million; penetrated to more than 50% of the total population) Mobile Network Coverage99% Level of Literacy among Clients and users High Platform ExistenceYes (through mobile phone networks) and GCASH Platform FeaturesSafe, secure, easy to use, fast-built on existing habit, AMLA compliant and BSP recognized Device to use for BankingCellphone (or mobile phone) (existing cellphone and SIM) Registration and Entry requirements Not Much (very easy) (registration through OTA + 1 valid ID + Bank Account with accredited rural bank) Transaction LimitsBasic 40K per day and 100K per month (but can be increased to 500K on a case to case basis) Number of Potential E-Money Resellers 700,000+ sari-sari stores nationwide (1 store:130 Flipinos) RegulatorsOpen-minded and supportive to the use of technology for banking

POS (with or w/o card)Mobile Phone AgentsRetail Shops (linked to the bank, authorized) Retail Shops (independent, authorized) Device CostP15,000 to P500 to high-end models CardATM, Cash, Debit and Credit Cards (and maybe cardless) 100% Cardless Target MarketCardholders (mostly urban)Mobile Phone subscribers (nationwide) TransactionsDeposit, Withdraw, Balance, micro payment, fund transfer, purchase, Reload airtime Deposit, Withdraw, Balance, micro payment, fund transfer, purchase, P2P, Reload airtime Receipt/Statemen t Printed (with serial no.)Electronic (thru text with unique reference number) Speed for volume at the retailer High (face-to-face) Low (upon loading face-to-face); High (remote and individual) Back Office Platform Cost Millions of Peso Almost Zero

CountryNo. of AgentsProviderModel Brazil95,000+Caixa Economica Federal (bank) Banco Bradesco (bank) POS and Card-based South Africa6,500+FNB, MTN, ABSA, Wizzit Mixed (POS, Card and M-Banking) Kenya2,600+Safaricom(mobile operator) Equity Bank (bank) M-Banking Source: CGAP

Sample ID

E-money Merchants and Resellers Increase walk-in traffic (cross selling opportunities) Decrease cash-on hand, minimize fraud/risks Revenue from fees Remote Purchase + Delivery Service Client Convenient & more secure than cash Comfort of dealing with corner merchant or reseller-neighbors Access to financial services from the bank remotely with reduced time and transportation costs Bank Leverage Merchants, Resellers and Mobile Phone subscribers to expand client base Increase efficiency and save on transaction costs Increase deposit levels Cross selling opportunities Significant image building opportunity with major partner Bank keeping up with new technologies

Utilize and Promote Text-A- Sweldo Establish Merchants and E- Money Resellers Implement Mobile Phone Banking Services Promote Micro and Remote Payment Continuous Marketing and Education

Microenterprise Access to Banking Services Program Client Loan and Bills Payment DepositWithdraw Reload Airtime Receive Loan Release Send Money (Remittance) Purchase goods and services Payroll Servicing through GCash With Mobile Phone, you can now…