GCASH Enabling Better Access to Micro-

Finance

24 July 2008
Rizza Maniego-Eala

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Non-Traditional m-Banking Opportunity
z The Philippines is geographically fragmented; substantial portion of
population in remote rural areas
z 80% of the Philippine population remains unbanked / underbanked
often traveling far to make a simple financial transaction
z Commercial banks still have very limited reach to remote areas
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z Over 62M mobile subscriptions
z Mobile network infrastructure and distribution system are well
developed even in the remotest areas
z The average mobile user is accustomed to loading and sharing airtime
credit over-the-air and is comfortable with mobile phone’s security
features
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z Globe has high transaction processing capability
z Globe has well developed sales force and business development
capability across the Philippines

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Globe utilizes its m-commerce platform to address the
remote payment requirements of micro-finance
activities
Hypothesis: If the micro-finance community embraces
mobile commerce or mobile banking in a big way, we can
reach more poor people in the rural areas with financial
services products such as:

Savings
Loans
Insurance
Remittance
Bills Payment

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Award-winning Mobile Wallet Service…

Loan Payments to
Rural Banks & Coops

Remote prepaid
Merchant Re-loading
Payments

Money Transfer

Bills Payment

Domestic / International
Remittances
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Answer to Opportunity : GCash
• Transforming a mobile phone
into a wallet, enabling
What is subscribers access to a cashless
GGash? and card-less method of
facilitating money transfer with
just a text message

• Enable remote payments

• Pay bank loans w/out going to
What GCash bank
can do and • Pay bills without lining up
Cash cannot?
• Pay for food / services from
anywhere
• Send remittances
All you need is a mobile phone and SIM
Instant money transfer via text message costing only P1.00 or U$0.02
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Central Bank and AMLA Compliant
“…GCash is virtual cash that is better than actual cash, because the system leaves a trail for the Anti-Money
Laundering Council, the Bangko Sentral ng Pilipinas, and other regulatory and law enforcement agencies
to follow.

Atty. Vicente S. Aquino, Executive Director: Anti-Money Laundering Council Secretariat,

Presentation to APG, Singapore, June 2005

Anti Money Laundering Council Central Bank

Know-Your-Customer (KYC)
• Monetary Board
Subscribers
Resolution no. 116 in
– 1 time registration and Jan. 2005
valid ID

Merchants • U$ 2,000/month
Merc
-Duly accomplished
hant accreditation forms w/
s necessary licenses
Systems Controls • Periodic audits in
- Reporting of the Business
“covered”/suspicious Processes and the
transactions Systems/Security
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…that has expanded into a Platform
Worldwide Presence
• More than 1.5m users
• Available in over 800
international outlets in 25
countries
• Accepted in 6,000 domestic
outlets in the Philippines
• 1,500 exchange outlets
comprising of Rural Banks,
Pawnshops, Telco Counters,
and FX outlets (all with
government issued
remittance licenses)
• Spurred a wave of new
approaches and applications
in Micro-Finance and Micro-
Payments 7
Microfinance Use Case: Rural Bank Centric
Ecosystem
Intl. / Dom Remco’s
Text-a-Sweldo
(Salary
Disbursement)
P2P
(Domestic
Remittance)
P
P Cash-In GCash2Load
(Face-to-Face (Airtime Credit
Wallet Funding) Purchase)
Rural Bank / *Also possible from
MFIs Cash-in Partners
Text-a-Withdrawal P2P
(Withdrawal from (Purchase
Bank Account to of Goods
GCash Wallet) /Services)

Text-a-Credit
(Loan / Credit Text-a-
Disbursement) BillPay
(Bills
Text-a-Payment Payment)

(Loan/Credit Repayment)
Text-a-Deposit (Deposit to Bank Account)
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Text-A-Payment
There is strength in RB/MFI - Telco Synergy
TELCOs:
z Expansion of Telco Revenue Stream

z Creation of a more robust platform around its core

merchant ecosystem (mobile subscribers and various
retailers)
z Providing an alternative and low-cost infrastructure to
banks and customers
RB / MFIs:
z Additional value proposition to customers

z Alternative solution at lesser or even close to zero capex

z Ability to expand distribution channel at lower cost which

they may pass on to consumers
BORROWERs:
z Better access to micro-finance at lower borrowing or
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maintenance costs
CGAP and Gates Foundation supporting
GCash in building ecosystems
ƒ Spur mini-ecosystems in low-income / rural provinces in
the Philippines with large unbanked population using
GCASH

ƒ Project objectives:
¾ Extend access to financial services in rural areas
¾ Improve access to money transfers and payment
services

ƒ Learning objectives:
¾ What approach extends the frontier of delivering
financial services in Philippines?
¾ Is the approach financially viable?
¾ What strategies and programs need to be 17
implemented?
End Presentation

24 July 2008
Rizza Maniego-Eala

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Cash In to P2P Demo Video