Rural banks partner with telcos to boost microfinance

Tuesday, August 21, 2012

Rural banks will soon have their own set of “killer apps” to better compete with bigger banks and, more importantly, expand their microfinance services in the Philippines.

Anchored on Globe Telecommunications Inc.’s next generation GCash mobile money services provided by its mobile commerce subsidiary, Globe G-Xchange Inc. (GXI), the new line of services is expected to satisfy rural banks’ thirst for new branchless banking technologies to expand its microfinance services in the countryside and create a more seamless experience for rural bank clients.

GXI is working with the RBAP-MABS Program to assist rural banks and other banking offices to become accredited to use GCash in facilitating mobile money-enabled banking transactions. MABS is Microenterprise Access to Banking Services.

RBAP-MABS and GXI have developed a program for expansion and roll-out of mobile banking application to microfinance clients of rural banks. The program will build rural banks’ capacity to assimilate, implement and market new mobile phone banking applications as well as expand the mobile banking ecosystem.

The initial target is low income Filipinos which utilize Globe’s G-Cash electronic money platform converting the phones into virtual wallets for receiving and paying loans, depositing and withdrawing money, sending and receiving remittances, purchasing and selling goods and services and making bills payments.

Source: The Manila Times (link opens in a new window)

financial inclusion, microfinance