Paper
Catching the Technology Wave: Mobile Phone Banking and Text-a-Payment in the Philippines
Accessing financial services through text messaging
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5 pages
This paper provides an overview of the Rural Bankers Association of the Philippines Microenterprise Access to Banking Services (RBAP-MABS) program in the Philippines. It discusses the developments of mobile commerce in the country.
The paper describes two major mobile commerce service providers:
- Globe telecom;
- SMART communication.
It explains the text-a-payment and mobile banking applications for microfinance, and lists the roles and responsibilities of the following partners:
- Globe telecom;
- RBAP and MABS;
- BSP (Central Bank);
- Rural banks.
The paper elucidates the potential impact of mobile phone banking, stating that it:
- Provides a wide range of services including remittances;
- Improves operational efficiency;
- Increases client loyalty;
- Reduces costs, and enables banks to offer lower interest rates and service charges to the clients;
- Is convenient, easy and fast for the clients.
It highlights the challenges for success of mobile phone banking including:
- Building the ecosystem of retailers, clients and outlets;
- Encouraging public use of mobile phone banking.
The paper concludes by stating that technology can be replicated in other countries provided:
- Existence of large number of cell phone users familiar with text messaging;
- Readiness of rural banks to try something new and innovate;
- Willingness of the Central Bank to support innovation in the banking industry;
- Existence of the ecosystem including merchants, clients and outlets.
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