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.
