G.R. Chintala, NABARD, Bangladesh, Partnerships that Build Bridges to New Fro...
Mikhail Mamuta_Innovative Practices for Industrialized Nations
1. Access to Financial Services in Russia and RMC's
Financial Innovations Strategy
Mikhail Mamuta
President
www.rmcenter.ru | www.rusmicrofinance.ru
2. RMC Financial Inclusion
Key Priorities
Development of microfinance institutions: both MFOs and financial
cooperatives
«Banking agents»: delivering a wide range of financial services with
adequate regulations
Use of agents in Brazil (120 thousand bank agents in 5000 bank
offices and branches) and agent regulation in Mexico (5-level risk-
based approach)
E-money (as a broadly available method of micropayments and
remittances)
A citizen ID card with banking application (ambitious G2P project:
plans to issue 100 million cards for 4 years).
www.rmcenter.ru | www.rusmicrofinance.ru
3. Project «Designing an
innovative model for regulation
and supervision of bank
agents»
Implemented by the Ministry of Economic Development in collaboration with the
MOF, the Central Bank and RMC with the AFI’s support
Project has resulted in
National Payment System
Law and amendments
both to AML/CFT and National research on
Number of requested
Banking Law, which financial inclusion and
under-law regulations for
defined E-money and indicators for financial
Banking Agents
seriously expanded inclusion
functional of banking
agents
www.rmcenter.ru | www.rusmicrofinance.ru
4. Innovations in Agent
Banking regulation
Regulations: a regulatory framework for bank agents to enable agent-
assisted provision of a maximum range of banking services, including
remittances and payments without opening a bank account, cash
deposits, operations with e-money and opening deposit accounts for
natural persons via agents.
The right to carry out KYC on behalf of banks for AML/CFT procedures
Functionality: MFO and credit cooperatives as bank agents
(«Microfinance supermarkets» - convenience and more options for
customers: microloans, savings, payments and remittances )
www.rmcenter.ru | www.rusmicrofinance.ru
5. Innovations in E-money
regulation
Supervision: supervisory requirements for e-money operators based
on the principles of proportional supervision. Establish performance
standards which explicitly take into account the qualitative
difference between e-money operators and conventional credit
institutions, ie limited range and low volume of transactions.
Functionality: MFI can provide access to e-money and e-payments
as banking agents. From the other hand, costumers can do a
microloan’s repayment via mobile phones or internet using e-money
www.rmcenter.ru | www.rusmicrofinance.ru
6. Just some examples of
implementation:
MFI as providers of payment cards (in place: 5 participants)
Air and train E-tickets projects: MFI can sell E-tickets getting extra
agent’s fee. Moreover, they can provide microloans to buy E-tickets if
needed (in place: 10 participants)
Repayment of microloans via payment terminals and mobile wallets (in
place: about 20 participants)
MFI as payments and remittances’ points (designing)
Micro business use «E-wallets» for settlements with suppliers and
employee, the same as consumers. This is much cheaper and
convenient for all the sides rather than regular banking (designing)
E-wallets filling-in via MFI (designing)
«On-line»lending: microloans to E-wallets and mobile-wallets (new
model of microfinance with a huge potential (piloting)
www.rmcenter.ru | www.rusmicrofinance.ru
7. Main Challenges
The 2009 financial and economic crisis: less demand for bank transfers
and cards in favor of hard cash
Lack of skills in MFIs: they need a strong partner - specialist in payment
and remittance services, and they also need staff training
MFI nightmare: they are mostly afraid of banks... And it makes sense
sometimes!
Technology upgrade: MFIs need high-speed broadband and better
computers
Regulatory barriers: still hinder project implementation, but we expect to
have a better policy environment
www.rmcenter.ru | www.rusmicrofinance.ru