A presentation by Atty. John V. Owens that discuss market, competition, and branchless banking trends

1. Microfinance
Moving Forward for Rural Banks
John V. Owens
RBAP‐MABS
2011 RBAP‐MABS Regional Roundtable Conference
Hya= Hotel Casino, Manila
November 9, 2011

2. Factors Affecting Banks
Increasing New
competition technologies
Changing Inclusive
markets regulations
Rural
Banks

3. Wider Consumer Choices

4. Multiple Borrowings Over-indebtedness

5. More Discriminating Borrowers Savers
ATM Cards
Microinsurance

6. Increased Competition
Commercial
Banks
Finance Rural Credit
Companies
Banks
Cooperatives
NGOs

7. New Technologies Channels

8. Widespread Mobile
Banking Technologies
SMS
Banking

9. Mobile Money Platforms

10. Use of Card-based Banking

11. Lower Cost of Technology

12. Use of Third-Party Networks

13. Are you using !
Social Networking
Crowdsourcing !
to expand your market outreach?!

18. Inclusive Regulations
 Expansion of MBOs
 Introduction of Micro-Savings
 Reduced KYC
 Change in Effective Interest
Rate Calculations
Promotion of Consumer
Protection Practices

19. Rural Bank Responses
 Market trend responses
o Product diversification and improved
customer retention programs
o Introduce payment services
 Competitive responses
o Use MBOs to reach new/underserved areas
o Introduce micro-deposits mobile money
transfer as entry level product,
up-sell other products/services
o Use third-party networks to outsource KYC,
expand reach, and offer new services

20. Rural Bank Response
 New Technology Adoption
 Deploy Cash/Debit Card, Mobile Phone
Banking, and Agent Channels!
 Upgrade Core Banking Solutions!
 Utilize the Power of Social Networks!
 Inclusive Regulation Adaptation
 Review and Share Pricing Structure!
 Incorporate Consumer Protection Principles !

21. Things to watch out ...
1. Pricing Transparency – Tiered Pricing
2. Credit Bureaus
3. Leverage Technology
1. Outreach
2. Competition
3. Efficiency
4. Social Networks ‐ Crowdsourcing

22. • Regular
Branches Branches
Offices • OBOs
• MBOs
• MIS
Technology • ATMs
Interfaces
• Mobile Phones
• Social Networks
• POS
Third‐ • Cash/Debit/ATM
party
Networks cards
• Agents

24. Thank You
Email:
jowens@rbapmabs.com
Websites:
http://www.mobilephonebanking.rbap.org/
http://blog.mobilephonebanking.rbap.org/
Facebook: LinkedIn: Twitter:
johnvowens John Owens jvowens