Implementing Mobile Phone Banking

Implementing Mobile Phone Banking

A major constraint to economic growth was limited access to financial services. Most Rural areas has limited access to financial services 10% of the population regularly did business with a bank. Lower socio-economic groups generally did not save with banks and were forced to turn to moneylenders, pawnshops or lending investors for loans. Rural banks are an ideal vehicle to reach lower income individuals. These 800 rural banks have approximately 1600 offices already operating in low income communities and already covering their overhead costs.

Some of the identified challenges for Rural Banks are:

  • Reaching deeper into rural areas without costly investments in infrastructure
  • Reducing costs of servicing
  • Avoiding risks from robbery, holdup
  • Reducing costs to clients

Among all industries, the mobile phone industry is the best partner for the Financial Services. There are three reasons:

  • Mobile Phone penetration offers a way to cheaply and rapidly provide financial services to unbanked customers – no other technology offers the same way nowadays.
  • There is no other technology aside from mobile telephony that is reaching maturity at a rapid rate in so many developing countries at the same time.
  • Mobile phone’s physical proximity to human than other technology products.

Rural Areas are underserved market due to transaction cost and densities in rural area is too low for bank branching. Mobile Phone Banking is the great solution to reach the unserved or underserved (unbanked) rural community. You only need a cellphone (1 for each branch ) to start offering mobile phone banking services to your bank.

TEXT-A-PAYMENT

Text-A-Payment (TAP) service is an innovative mobile technology product that uses the mobile phone’s SMS technology (or texting) to allow micro-borrowers to perform microfinance loan payments.

TEXT-A-DEPOSIT

Text-A-Deposit (TAD) is an innovative service designed for allowing mobile phone subscribers to perform deposit transaction to their existing bank account using their mobile phone.

TEXT-A-WITHDRAWAL

Text-A-Withdrawal is a service that allows bank clients to remotely withdraw money from their bank accounts using their mobile phones.

Other Mobile Phone Banking Related Manuals

These manuals are included in the training kit provided to the rural banks during the GCASH accreditation training.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s