The document summarizes the Islands Activation Program (IAP), an initiative by Smart Communications to provide mobile-based financial services to remote communities. The program is a partnership between Smart, microfinance institutions, and SEEDFinance. It allows island residents to perform transactions like remittances, payments, and micro purchases via mobile. As of 2012, the program had activated Smart Money centers in 71 communities and released over 7,000 Smart Money cards. The program aims to improve access to financial services in remote areas through branchless banking solutions.

1. Session
8:
Island
Ac0va0on
Program:
Empowerment
Through
Mobile
Banking
Jun Perez
SEEDFinance
2012 RBAP-MABS National Roundtable Conference
June 7-8, 2012
Hyatt Hotel & Manila

2. The SMART Islands Activation Program
Empowerment through Mobile Banking

3. Islands
Ac0va0on
Program
(IAP)
•
an
ini;a;ve
of
Smart
Communica-ons,
Inc
.,
which
aims
to
provide
mobile
based
financial
services
to
remote
communi;es.
•
designed
to
target
Microfinance
Ins;tu;ons
in
remote
areas
where
access
to
financial
services
is
limited.
•
a
partnership
of
SMART-­‐MFI-­‐SEEDFINANCE
•
enabling
island
residents
to
perform
mobile
remiEances,
e-­‐load
purchases,
bill
and
u;lity
payments
and
other
micro
purchases,
all
via
mobile.
•
launched
in
October
22,
2008

4. Islands
Ac0va0on
Program
(IAP)
Aspira0ons
•
To
provide
communi;es
in
far
flung
areas
affordable
access
to
mobile-­‐enabled
financial
services.
•
To
present
clients/members
of
the
Ins;tu;on
with
a
sustainable
business
opportunity
that
may
augment
their
present
livelihood
ac;vi;es

5.
Role
of
SMART
on
IAP
SMART
•
provides
the
technology
and
access
devices
(SIM,
Smart
Money
Account)
that
makes
mobile
money
possible
•
enables
the
plaPorm
and
services
while
engaging
with
partners
who
are
willing
and
able
to
run
the
technology

6. Role
of
Partner
MFI
on
IAP
Partner
MFI
•
promotes
and
encourages
the
use
of
SMART
Money
services
among
members
of
the
community
using
merchandising
collaterals
and
promo;onal
materials
provided
by
SMART
•
loyalty
and
usage
programs
are
designed
and
implemented
by
the
Ins;tu;on
to
further
promote
SMART
Money
reloading
and
encashment
services

7. RemiAance

8. Ac;vated
Smart
Money
Centers
in
71
remote
rural
communi;es.
Released
7,624
Smart
Money
Cards
in
partners’
areas,
as
of
3-­‐31-­‐12

9.
SEEDFINANCE
Support
MOBILE
BEAT
:
Mobile
Banking
Educa;on
And
Training
(MBEAT)
•
designed
to
educate
Microfinance
Ins;tu;ons,
as
well
as
microfinance
clients,
the
technical
and
prac;cal
use
of
mobile
banking
in
their
day
to
day
financial
transac;ons.
•
modules
for
MFIs
are
designed
for
Product
Planning
and
Development,
Computer
Literacy
&
MIS
Management,
Liquidity
&
Fund
Management
and
Marke;ng
&
Customer
Service.

10. Clients’
experiences
BRANCHLESS
BANKING
ATTRIBUTES
PHYSICAL
BRANCH
(THRU
SMART
MONEY)
NEARBY
1
HABAL-­‐HABAL
RIDE
AT
FINGERTIPS
AWAY
SAFE
NEED
FOR
MAINTAINING
NO
MINIMUM
BALANCE
BALANCE
LOW
COST
AFFORDABLE
CLIENT
PAYS
FOR
CHARGES
NO
HIDDEN
CHARGES
FOR
BELOW-­‐MAINTAINING
OR
DORMANCY
CHARGES,
ETC.
FREQUENT
CANNOT
TRANSACT
2
TO
3
ANY
NUMBER
OF
TIMES
OPPORTUNITY
TIMES
A
DAY
OR
MORE
WITHIN
THE
DAY
TO
TRANSACT
USER
FRIENDLY
CANNOT
UNDERSTAND
A
CAN
UNDERSTAND
A
BANK
STATEMENT
OR
THE
SIMPLE
TEXT
TCS
(TRANSACTION
CODES
CONFIRMATION
IN
THE
PASSBOOK)
HIGH
VARIETY
OF
CAN
PAY
LOANS
BASED
ON
IF
AVAILABLE,
C AN
TEXT
VALUE
VALUES,
FIXED
AMORTIZATION
THE
PAYMENT
ANYTIME,
TERMS,
SCHEDULE
EVEN
IN
ADVANCE
OF
DUE
SCHEDULES
DATE
MULTIPLE,
SEPARATE
DEPOSIT
CAN
TRANSACT
CONNECTED
PASSBOOK,
LOAN
LEDGER,
EVERYTHING
THROUGH
PRODUCTS
ETC.
MOBILE
PHONE
ADAPTED
TO
CONFINED
TO
DEPOSIT
CAN
PAY
BILLS,
LOANS,
UNIQUE
NEEDS
AND
LOANS
AND
DEPOSIT,
REMIT,
ETC.
OF
THE
POOR
REMITTANCE

11. Lessons
Learned
• INSTITUTIONAL
PREPARATION
IS
A
CRUCIAL
FACTOR
TO
SUCCESS
• CLIENTS
NEED
TO
BE
EDUCATED,
TOO,
ON
BUSINESS
POTENTIALS
• LIQUIDITY
HAS
TO
BE
MANAGED
CAREFULLY
• NOVELTY
NEEDS
TO
BE
REINFORCED
BY
INTEGRATING
MOBILE
BANKING
WITH
CORE
SAVINGS
&
CREDIT
OPERATIONS

12. The
Vision
for
the
Future
SMARTowns
Cashless,
Branchless
ATMs
SMART
Mobile
Banking
money
tellers
• BRINGING
MOBILE
BANKING
TO
ISLAND
COMMUNITIES
THROUGH
AN
ECOSYSTEM
OF
MOBILE/E-­‐MONEY,
ATM
MACHINES,
POS
MACHINES,
MOBILE
TELLER
MACHINES,
THROUGH
COOPERATION
OF
TELCOs,
KBs,
ATM
SOLUTIONS,
SYSTEMS
PROVIDERS,
&
MFIs
• CUSTOMERS
LINKED
TO
ELECTRONIC
CASH
PLATFORMS,
TRANSACTING
&
REALIZING
TRANSACTIONS
AT
THEIR
OWN
TIME,
AT
THEIR
CONVENIENT
PLACE

13. In
2010
and
2011
we
ini;ally
worked
with
savings
and
credit
coopera;ves
In
2012,
we
partnered
with
RBAP-­‐MABS
to
assist
in
the
SMART
Money
Program
for
rural
banks

14. We
firmly
believe...
MOBILE
BANKING
IS
THE
WAY
TO
GO
FOR
MICROFINANCE
THAT
IS
...
ACCESSIBLE,
RELIABLE,
&
AFFORDABLE!

15. That’s
all
she
wrote...
THANK
YOU!