The document discusses how financial technology (FinTech) innovation, a focus on customers, and collaboration across the financial ecosystem can help address the "last mile" challenge of expanding access to financial services. It summarizes several case studies of organizations that have implemented digital financial services with these elements in mind. For example, using mobile phones as the primary delivery channel, understanding and addressing customer pain points to create frictionless services, taking a phased rollout approach, and establishing physical access points. It concludes that while technology enables solutions, addressing customer needs through collaboration is key to achieving last mile access.

1. 1
Banking with
the Poor
Network News
December 2016
Registration Now Open!
The Asia-Pacific Financial Inclusion Summit is the region’s premier thought-leadership event on financial inclusion – today’s
opportunities and challenges of the future.
A series of thought-provoking plenary discussions and break-out sessions will examine key issues stakeholders face and actions
required to promote positive change and inclusive economic growth, including:
 What influences the varying levels and growth of financial inclusion across the Asia-Pacific region?
 How are stakeholders across the financial ecosystem responding to and harnessing digital disruption to stimulate
growth and protect clients?
 How will financial inclusion empower the poor and disadvantaged to participate in the transformation occurring
throughout the regional economy?
 Where can we see breakthroughs that give women access to finance, control over their economic circumstances and
the ability to fully participate in the regional economy?
 How should we define financial inclusion today and where is financial inclusion headed?
Join senior leaders from across Asia and beyond to debate these issues and more, analyse current trends, and explore
possibilities for acting together.
For more information, please visit the Summit website: www.fininclusionsummit.org
Scholarships Now Available!
Limited participant scholarship funds are available for applicants meeting specific criteria. For further information, click
here.
Contents
Secretariat News 1
Financial Technology
Article
2
Case Studies 4
Financial Technology
Resources
BWTP Member News
13
14

2. 2
What is the Secret Sauce for Last Mile
Financial Access?
By Juanita Woodward
What is FinTech Innovation?
Everyone in the banking industry is talking about FinTech (Financial Technology). Across
the globe, the FinTech industry has seen exponential growth as new companies launch
with business models that have begun to disrupt the banking industry across all customer
and product segments, with new, faster and more cost-effective offers. FinTech
investment continues to climb, and a PwC report estimates that more than 20% of
traditional financial services players’ business are at risk to FinTech companies by 20201.
This situation begs the question – can FinTech innovation alone be the driver and
disruptor that can solve the ‘last mile’ problem for financial access?
There is a need in the industry to build ecosystems that digitally and physically reach
those most excluded: women, rural populations and the poorest of the poor. While many
see FinTech as the driver for new solutions across the industry, in practical terms,
technology is the enabler. Technology provides the rails to deliver and distribute financial
services.
Customer, Collaboration, and FinTech Innovation
Attracting over 11,000 participants, I heard a consistent story from company founders and
industry experts speaking at the Singapore FinTech Festival, and a consistent story was
being told. Beyond technology, there needs to be a laser focus on customer needs, and building new models requires a more
collaborative approach with regulators and other industry players.
So, could a focus on the customer, collaboration across the financial inclusion ecosystem, and FinTech innovation be the secret
sauce to best respond to the ‘last mile’ challenge? To investigate how technology innovation is influencing the last mile
problem, BWTP members were asked to share their stories and provide their insights.
Mobile as the Delivery Channel
Across all BWTP case studies, the mobile phone was consistently a key enabler of the last mile access story. The mobile phone
today has substantial and a growing reach to rural areas, women and the poor.
BWTP member, Vietnam Bank for Social Policies (VBSP) reports that nearly 100% of adults in Vietnam have a mobile phone,
and the telco network covers almost the entire country. 90% of VSBP’s ’clients live in rural, remote and mountainous areas,
engaging in small business and other small-scale livelihood activities. While the use of electronic transactions such as mobile
money in Vietnam is still relatively new, ubiquitous mobile coverage provides the rails for last mile access.
Customer Pain Points and a Frictionless Service
Three of the BWTP member case studies covered in this article have the aim to provide a more efficient loan repayment service
with a focus on improving the customer experience. While each organization used different methodologies to assess the
current customer situation, and collaborated in different ways, a few key questions were addressed: what are the key
‘customer pain points’ to get the product offering right, and how can collaboration help to build a financial service offering that
is easy to use, and is frictionless?
People are naturally pain-averse. Organisations should understand their customers’ pain points as pain is a driver, and the
ultimate reason why customers will act to change behaviour or buy. Discovering a customer’s pain point involves active
listening, and an understanding that the customer will only act if there is a perceived pain to be addressed such as time
pressure, cost constraint, income loss or other risk.
The term frictionless references technology-aided experiences that remove time-consuming or inconvenient processes. A
frictionless customer experience could translate into a one-click experience that can be conducted based on stored preferences
or other information. Ordering through Amazon with its one-click payment and delivery option, or paying for an Uber ride with
a pre-set payment preference, are good examples of a frictionless, digital customer experience.
Chamrouen, serving nearly 35,000 clients across Cambodia saw most loan repayments being made by traditional cash transfer
delivered by taxi or motor taxi as a key customer pain point. In 2014 they started a pilot to provide loan repayments via mobile
1
Blurred lines: How FinTech is shaping Financial Services, Global Fintech Report, March 2016

3. 3
phone. Today nearly 30% of their clients enjoy the convenience of loan repayment by mobile phone. Chamrouen has
collaborated with two providers - Wing and True Money - providing a more frictionless, secure and convenient way for clients
to pay, saving them time and money.
NEFSCUN, the Nepal Federation of Savings and Cooperative Union, is a national apex organization, providing a natural
environment for collaboration. By implementing a core banking system that now operates in 350 cooperatives, they can use a
shared technology utility to develop other financial services for its member organizations’ clients such as mobile banking
services.
NEFSCUN now has its first mobile banking service pilot in the Dolakha district, and other NEFSCUN members now see how
clients are benefitting from the service. Eliminating the long travel distance, sometimes up to 2 hours to make a loan
repayment at a co-op, the client can now make a loan repayment as well as send person-to-person payments, handle mobile
top up, and pay bills – all through the convenience of their mobile phone.
Grameen Foundation India (GFI)’s case study also focuses on the issue of loan repayment as a customer pain point. The
solution focuses on a collaborative model from the start bringing together Sonata, a MFI, whose core strength is to develop
poor client’s financial capability, and Oxigen, a payments company who provides payments infrastructure and systems for rural
agents, which provides the last mile connectivity. The goal over time is to expand rural women’s financial services usage once
they become comfortable with the simple mobile money transactions for loan repayment.
GFI conducted detailed client level behavior research to understand the customer
pain points. The product design and payment process was developed using the
human-centered design approach, complemented by a systematic training plan
and aids for the staff and clients.
Multi-Phase Roll Out and Physical Points of Access
Understanding the customer ‘pain points’ and providing a ‘frictionless’ customer
experience can influence a shift from the more traditional cash experience to
digital financial services delivered via mobile phone.
The GFI case study highlights two key learnings:
- the value of a phased rollout approach to allow clients the time to adapt and
trust the new digital financial service; and
- the importance of setting up convenient access points for clients to handle
transactions, which could cover loan disbursements and repayments, as well as
other payments and other cash-in/cash out transactions.
VSBP’s feasibility study on mobile banking with the last mile population in
Vietnam revealed that clients viewed lack of transparency in getting bank
information and lack of understanding of the banking process as an issue. They
also wanted to save time and money on their banking transactions, and receive
better information about the bank’s products and services.
To roll out a nationwide service, close collaboration with the regulator, as well as
partners - mobile network operator, agent network manager, and technology
provider – was seen as essential to build the appropriate service and ecosystem
to tackle these Customer pain points and provide last mile delivery.
VSBP has taken a phased implementation approach to roll out its full-scale mobile
banking platform, starting in peri-urban areas and gradually expanding into less
accessible rural and remote regions. The first phase will focus on SMS
information notifications such as monthly account balances and loan repayment
schedules and reminders. The second phase will introduce mobile loan
repayments, cash deposits and withdrawals and more.
Customer adoption, engagement, and a high rate of usage is the ultimate test
The BIMA case study is a model of effective delivery of microinsurance services, with success measured by a growing customer
adoption rate, engagement, and a high rate of usage. BIMA now operates in 16 countries with 24 million subscribers, and is
acquiring 500,000 new registrations per month.
BIMA brings insurance to the truly underserved, with 90% of the customer base lacking access to any other kind of insurance
and 93% living under $10 a day. Their impressive claims rates illustrate that customers understand how to use the product and
feel it is valuable. In Ghana, BIMA processes 650 claims per month. Conversion of customers to additional insurance products
shows solid education, as evidenced by 78% of Sri Lanka customers opting to purchase a second product. Around 50% of the
global base is active in a given month, an engagement rate that outshines most other digital financial services.
The case studies for this
article were submitted by

4. 4
The company is a pioneer in delivering life, accident and health insurance paid for via mobile. BIMA has tackled key barriers to
scale – an effective distribution channel and collecting micro-premiums efficiently – having a mobile strategy with little friction
with the client’s regular mobile behavior, and reach to the last mile of banked, and unbanked, population.
Delivering a Successful Digital Financial Service
BIMA’s innovative approach addresses key features of a successful digital financial service: a frictionless registration process,
built for a mix of feature phone and smartphone users, pragmatic management of KYC, effective collection of fees from the
Unbanked, and provision of customer support via a mix of digital vs human modes.
BIMA’s registration is fully paperless, and can be done on any type of mobile phone in just two minutes using SMS/USSD. BIMA
uses the mobile MSISDN as an e-signature ensuring universal access for those with no form of ID.
The BIMA platform can integrate with many payment channels, including but not limited to mobile money, postpaid billing,
bank accounts and cards. Mobile airtime credit creates an alternative payment method for the Unbanked.
While BIMA took great care to design a mobile insurance delivery service that met the needs of the customer, they also
understood the need for robust education and high standards of customer care. For BIMA, they see no substitute for the
human touch and employ over 3,500 agents to facilitate sales and service delivery.
Conclusion and What Next?
These five BWTP case studies illustrate many common themes, which include the mobile phone as a key enabler to reach rural
areas, women and the poor for last mile access, in combination with convenient physical points of access for financial services
transactions.
However, technology innovation and reach are not sufficient alone to meet customer needs and address customer pain points.
A focus on the customer, and collaboration with many stakeholders, regulators and other industry players, are needed to
achieve last mile access.
So for now, a focus on the customer, collaboration, and technology innovation may be considered as the secret sauce to
responding to the ‘last mile’ challenge.
What new FinTech developments can further last mile financial access?
Many folks in the FinTech industry see the data analytics as the next chapter in the reach to the unbanked and last mile access.
Some new FinTech players are using new data models to assess credit worthiness such as social media, international
remittances and mobile phone usage patterns. As more client information is being gathered digitally by organisations, this data
can provide richer insights into customer behaviour and needs, as well as monitor market trends and emerging risks.
Case Study 1: Innovation for Better Repayment to Our
Partners
Submitted by Chamroeun Microfinance
Chamroeun Microfinance Limited was initiated as a program named as Chamroeun (meaning “progress” in English) in 2006 by
the French NGO, Entrepreneur du Monde. This program aims to provide financial and non-financial support to the poor families
in Phnom Penh’s urban depressed areas mainly to provide adapted and affordable loans, savings, and micro-insurance to
address the needs of the small market stallholders, ambulant vendors, and other small scale activities. Within 10 years,
Chameroeun has developed from a program to credit operator in 2009, and received a Microfinance Institution license from the
National Bank of Cambodia in 2011.
As of October 2016, CHAMROEUN is serving 34,988 partners (clients) in 16 out of 25 cities/provinces in Cambodia.
Further development of the microfinance sector in Cambodia has recently moved into digital financial services. Mobile payment
services have become popular in the kingdom as more people find it more reliable and convenient compared to traditional cash
money transfer through taxi or motor taxi.
Seeing this technology development, Chamroeun started testing the mobile loan repayment service with clients in 2014 in
partnership with Wing Cambodia Ltd., (now Wing Specialized Bank), and rolled out this service to all branches in mid-2015.

5. 5
Once 20% of Chameroeun’s clients used mobile payments to repay their loan, the MFI engaged another well-known mobile
payment provider, Truemoney Cambodia, which comes under the Thailand-based Charoen Pokphand Group to create more
options for their clients. Loan repayment by mobile phone has now grown to 29% of Chamroeun’s clients via Wing Cambodia and
TrueMoney.
Chamroeun continuously encourages its clients to
trust the more secure and convenient mobile loan
repayments service so that clients can enjoy the
benefits of saving time and money, and view
Chamroeun as a convenient micro-loan provider.
For more details about Chamroeun, please visit our
website: www.chamroeun.com
Case Study 2: Innovating for Inclusion
Submitted by BIMA
Introduction
The mobile financial services revolution has already demonstrated the power that technology has to reach the underserved on
an unprecedented scale. But in addition to distributing products farther and wider than ever before, innovative use of
technology creates efficiencies that allow providers to service their customers better. Technology can enable the industry to
shift towards client centricity, creating more valuable products and making it possible to deliver education and high standards
of customer care.
BIMA is one of the first companies to build a scalable, sustainable and
profitable microinsurance business. In a little over five years, BIMA has
reached 24 million subscribers in 16 countries across Africa, Asia and Latin
America, 75% of which are new to the concept of insurance. The company’s
innovative mobile technology is a principle driver of its success, establishing
BIMA as a pioneering force in both microinsurance and financial inclusion.
The Challenge
Microinsurance as a concept has been around since the late nineties. While most initiatives did a great job at tackling issues of
affordability, financial literacy and trust, they struggled to scale. The most fundamental barriers remained un-tackled, i.e. a lack
of effective distribution channels and an inability to collect micropremiums efficiently. A model that failed to address these
challenges would fail to reach scale.
BIMA saw that mobile technology could unlock the full potential of the microinsurance industry. Mobile penetration is so high
that it offers a route for distribution that is capable of reaching the last mile, while mobile airtime credit creates a form of
digital payment for the unbanked.

6. 6
The Innovation
BIMA's key technological innovation is the development of customer-facing and back-end platforms that integrate to digitalise
the insurance lifecycle and manage customer data.
Registration
 Fully paperless, executed via any type of mobile handset in just two minutes using SMS/
USSD
 The ability to use mobile MSISDN numbers as e-signatures ensures universal access for
those who have no other form of identification. Democratising access has driven
unprecedented rates of adoption, e.g. in Cambodia where BIMA became the largest life
insurance provider in under one year.
Payment
 BIMA's award-winning MIP platform integrates with a Mobile Operator’s billing system. Payment is automated, deducting
a small amount each day from the customer's prepaid airtime credit. This payment mechanism makes it possible to collect
micropremiums (e.g. just $0.01) efficiently for the first time.
 BIMA’s platform can be customised to integrate with other payment channels, including but not limited to mobile money,
postpaid billing, bank accounts and cards.
 Customers can roll on and off on a monthly basis, giving much-needed flexibility for people with volatile cash flows.
Claims
 A digitalised claims portal increases transparency and efficiency, to enable submission, management and payment of
claims. When working with Dushtha Shasthya Kendra (DSK), a leading MFI in Bangladesh, BIMA used technology to deliver
on its claims, paying out over 95% of filed claims.
 Claims documentation can be submitted physically or through multiple digital platforms (e.g. email, Facebook, Whatsapp),
and paid out using mobile money or other channels.
Learnings: Tech-Enabled Not 100% Digital
Adoption is just one KPI that the industry should consider. When a low-income customer is
trying a product for the first time, it's vital that they have a good experience. Otherwise,
they may drop out of insurance altogether. Providers must design products that address
the needs of the customer. Additionally, they must deliver robust product education and
high standards of customer care. For this, there is no substitute for the human touch;
BIMA employs a team of over 3,500 dedicated agents to facilitate sales and service
delivery.
Impact
BIMA’s disruptive model has revolutionised access and quality of insurance for low-income families in emerging markets.
 Reaching the last mile - BIMA is bringing insurance to the truly underserved, with 90% of the customer base lacking access
to any other kind of insurance and 93% living under $10 a day. E.g. in Papua New Guinea, 53% of the base live in remote,
rural Highlands region and 49% of the base is female.
 Sustainable – BIMA has built a market for microinsurance at the bottom of the pyramid by driving engagement and
maturing its base. Impressive claims rates (e.g. 650 individual claims per month in Ghana), show that customers
understand how to use the product and feel it is valuable. Conversion of customers to additional insurance products
shows solid education, e.g. in Sri Lanka, where 78% of base opted to purchase a second product. Around 50% of the global
base is active in a given month; an engagement rate that outstrips other MFS e.g. mobile money were only 25% accounts
are active.

7. 7
 Scalable - Mobile is now one of the fastest-growing channels for insurance distribution in emerging markets; the GSMA
estimates a growth rate of 268% annually. BIMA alone has reached 24 million subscribers, acquiring 500,000 new
registrations per month.
Future Growth
Moving forward, BIMA aims to drive increased access to the mass market in existing and new emerging markets through the
following means:
 New Partnerships - BIMA is keen to expand collaborations with organisations which share similar interests in financial
inclusion for the last mile, including MFIs, banks and other Fintech players. BIMA works closely with partners to tailor its
product offerings and operational model to fit their customer base.
 Product Development – In addition to microinsurance, BIMA has developed complementary products in the field of
mobile health, including teledoctor consultations launched across 5 markets. BIMA will continue to build on its product
portfolio to address the critical needs of underserved customers.
Contact Information
Global Website: www.bimamobile.com
Contact Person: Ren Hooi, Partnerships Manager (Asia)
Email: renyi.hooi@milvik.se
Case Study 3:
Submitted by Grameen Foundation India
Grameen Foundation, through Grameen Foundation India, aims to measurably improve the lives of India’s poor by increasing
their incomes and enhancing their resilience. Established in 2010, Grameen Foundation India is a wholly owned subsidiary of
Grameen Foundation.
Grameen Foundation India (GFI) works with financial services institutions and technology providers to extend financial services
to underserved communities, particularly in rural India, through new delivery channels and mobile-based services. It also works
with the Government of India to provide mobile technology-enabled health services to women, infants and frontline
healthcare workers across the country.
 We INNOVATE to deliver customized, client-centric poverty alleviation solutions to leverage mobile technology and
trusted intermediaries to reach the ‘last mile’
 We drive and leverage PARTNERSHIPS to create scalable solutions
 We offer technical assistance and consulting services to organizations serving the poor
What was the issue or challenge the technology aimed to address?
Financial Inclusion in India
While the Government of India is making inroads for financial inclusion in rural India, millions of people are still unable to
access and use financial services. On the demand side, lack of awareness, low income levels, limited financial and digital
literacy continue to limit the demand for financial services. On the supply side, factors affecting uptake of services include lack
of banking infrastructure, products that are not structured to meet the needs of low income populations, and complex
processes that deter the poor.
Overcoming Challenges to Promote Financial Services
With a mission to enable the poorest of the poor, and to create a world without poverty, Grameen Foundation aims to assist

8. 8
the world’s most vulnerable populations to reach their full potential through provision of tools and information that lead to
empowerment. Digital financial services play a crucial role in this arena, especially for women in rural areas who typically are
the least served when it comes to formal financial services.
Microfinance Institutions (MFIs) have been delivering much needed financial services, particularly micro-credit. In one of the
most prevalent models (Grameen/Joint Liability Group) women borrowers meet on a regular basis (weekly, fortnightly or
monthly) with the MFI loan officer to receive loans and repay their installments. All these transactions are heavily cash-based
and pose significant risks to MFIs such as robbery, counterfeit and fraud.
Cashless transaction solutions (including money transfers and access to bank accounts) in rural areas poses a feasible solution
to these issues. However, this requires sustainable infrastructure, more specifically in the form of agent networks to provide
the last mile connectivity to the clients. Payment providers have struggled to overcome this challenge as they need to meet a
certain volume of financial transactions to be sustainable, and they cannot achieve those volumes without an agent network—
even if all other conditions are conducive for growth.
To tackle the problems mentioned above, Grameen Foundation India formed a partnership with Sonata Finance Pvt Ltd and
Oxigen Services India Pvt Ltd to pilot a project on digital financial inclusion. The aim of the pilot is to introduce women from
rural areas to use mobile money as a channel for loan repayments. As clients become comfortable with mobile money usage
for simple financial repayment transactions, the goal over time is to expand usage to include an extensive suite of products
including airtime top-up, remittances, financial education and savings, among others.
Overview of the innovative technology
The Project
GFI is executing an innovative partnership between Sonata, a Microfinance Institution (MFI), and Oxigen, a payments company,
to route MFI repayments through mobile money as an introductory transaction for clients to develop their mobile financial
capability as well as to start using mobile money to access digital financial services. The project is designed to let Sonata focus
on its core strength as a trusted intermediary to support the development of financial capability of the clients and on delivering
financial services to the poor, while Oxigen will focus on providing a digital transaction channel to the poor.
Objectives
Develop a workable model to introduce and encourage adoption of digital financial services by low income population. This
model with its proven execution capability,
strengthened through pilot testing and adapted
for scale-up could then be replicated by other
players in the industry
 To encourage MFI client loan repayments
through mobile money as an introductory
transaction for clients to develop their digital
financial capability as well as to start using it
to access other financial services
 To develop a sustainable rural agent network
which will provide the last mile connectivity
to clients and ease the cash management
function for inclusive Financial Service
Providers
Any challenges experienced using or implementing the technology?
The critical success factor in this program during the pilot phase was to train the field staff to act as change agents for
introducing, onboarding, and encouraging the adoption of digital financial service by the low-income MFI clients. This was done
through detailed client level behavior research, designing the product and payment process using the human-centered design
approach and creating systematic training plan and aids for the staff and clients.

9. 9
Managing the change was a serious concern, not just for the clients but also for the MFI staff. On one hand, introduction of a
possibly disruptive technology can pose as a threat to staff for their own jobs while on the other hand there is a risk of it being
perceived as just another experiment which will die after the initial euphoria. This challenge was tackled with focused but
adaptive change management efforts from senior management to field level staff through interactive workshops,
communication plan, incentive, rewards and recognition schemes.
The initiative is being continued to roll out at scale across the organization. The lessons learned from this program are also
being shared with the industry at large and more MFIs are keen to adopt digital financial services to improve efficiency and
offer better and newer services to the poor clients by their financial inclusion. Large scale adoption and usage of this service
are expected to bring about efficiency improvements at MFIs, develop a sustainable last mile agent network and spread
awareness and trust on the service among clients.
What success was achieved?
As of October 2016, this program has reached out to over 23,222 clients to train them on mobile financial services of which
7,000 clients have been on-boarded. This payment option has been introduced at over 18 branches at Sonata and transactions
have started flowing in; as of October 2016, transactions worth INR 1.5 cr (US$ 218,171) have been routed through Oxigen.
The following story of Shanti, one of our beneficiary illustrates the impact possible by transitioning women to digital loan
repayments:
Shanti runs a small general store in Gadaganj. She and her husband recently moved to the village from a more rural area so
their son could have better educational opportunities, but in order to earn enough money for his education and their family
needs, Shanti’s husband had to take a job in Mumbai as a cook. Shanti has taken loans from Sonata for seven years, and hopes
to be earning enough from her business that her husband can come home and help run the shop.
Shanti has had a positive experience as a Sonata microloan customer, so when her loan group decided to try the new Oxigen
mobile repayment option developed by Grameen Foundation, she felt confident that it would work well. Each time she closed
down her shop to go to a Sonata branch to make loan payments, she lost valuable sales time. Now she goes to a nearby Oxigen
agent and uses her Oxigen mobile wallet to pay directly into Sonata’s bank account; having a quicker – but still dependable –
way to handle her loan repayment is a boost to her business.
For more details about Grameen Foundation India, please visit our website: http://grameenfoundation.in
Case Study 4: Innovative Technology Solution to Reach the
Last Mile
Submitted by NEFSCUN
Nepal Federation of Savings and Credit Cooperative
Unions Ltd. (NEFSCUN) is the member based
national apex organization of financial cooperatives
of Nepal established in 1988. It is committed to the
development, promotion and strengthening of its
member organizations through supporting in their
aim to contribute to the upliftment of financial,
social and cultural aspiration of individual members
of their respective communities by following the
credit union principles propounded by World
Council of Credit Union (WOCCU) in 1984. NEFSCUN’s outreach covers 2,700 member financial cooperatives serving more than
2,200,000 individual members in 74 districts out of 75 in Nepal (Oct 2016).

10. 10
Case Study 5: Improve Financial Inclusion for the Poor in
Vietnam through Mobile Money
Submitted by Vietnam Bank for Social Polices
NEFSCUN provides competitive financial services - micro-finance, micro-insurance, and remittance services - training and
education to build capacities, and provides innovative technologies as an e-solution to promote and strengthen its members
for socio-economic development of the people. View NEFSCUN Introduction 2016 Video.
To Increase financial access to rural people, NEFSCUN has a strategy of enhancing financial inclusion, and has conducted
various awareness programs on formal banking through financial cooperatives, financial literacy sessions, management
training, and system support for the tracking of members' transactions with assistance from the government of Nepal, as well
as national and international support agencies.
In 2006, NEFSCUN implemented a computerized core banking system for all the financial cooperatives; it was the first
cooperative system specially designed for financial cooperatives. At that time, implementation was very challenging due to the
lack of trained and skilled human resources in the local community-owned financial cooperatives, as well as the challenge of
power cuts, and unavailability of relevant computer technology.
NEFSCUN now has a stable, core banking system operating in 350 cooperatives, and they
are piloting a mobile banking system to rural communities. NECOS – technical description
JANASACHETAN SACCOS (rural financial cooperative) with more than 12,000 members in
the DOLAKHA district, situated 132Km far from the capital city, is testing the mobile
banking service with the theme of financial service on hand of member. The recently
introduced service is making members very happy. They save time as they don’t need to
go to the market from their village, or to the cooperative, which may be a 2-hour walking
distance.
So as this new and innovative mobile banking service launches in Nepal, other Cooperatives are now being attracted to offer
this services to include all the segments of the rural people, with a focus on women and youth.
More than 500 rural people are using this mobile banking service daily, which includes Top-up, utilities payment system,
balance transfer, loan payment and deposit of regular savings services. Clients benefit from this banking technology by
reducing their cost and time to go to the market and service centres of the cooperatives.
There is great demand for this mobile banking service in Nepal, but the need for technical human resources, increased capacity
of service providers, affordability of service, reliability of the system, and a sustainable plan are major challenges that must be
addressed. Also, NEFSCUN has the challenge of lobbying for a favourable regulatory environment for those financial
cooperatives that want to link to the national banking network.
Today this is a pilot of innovative technology for NEFSCUN who is promoting partnerships with national and international
development agencies to make the dream become a reality to support the last mile delivery to its member cooperatives’
clients.
For more details about NEFSCUN, please visit the website: www.nefscun.org.np
Vietnam Bank for Social Policies (VBSP) aims to develop a mobile money product with a view to improve access to financial
services for the poor, low-income, and other vulnerable groups in Vietnam in a more efficient and sustainable way, thus
contributing to lifting them out of poverty and connecting them to the formal economy.
VBSP introduction
VBSP has been operating in Vietnam since 2003, and is now one of the top microfinance banks in Vietnam in terms of total

11. 11
assets and customer base, as well as one of the top five microfinance institutions in the world.
VBSP currently has 63 provincial branches, 629 district transaction offices, approximately 11,000 commune transaction outlets,
and 200,000 savings and credit groups across 63 cities/provinces of Vietnam. VBSP enables financial inclusion of the poor and
other disadvantaged groups through grassroots networks, appropriate infrastructure, socialized procedures and skillful
employees. VBSP’s vision is to become a leading retail and universal bank
promoting financial inclusion to the mass market, with a focus on the last mile
population.
Challenges to be addressed by innovative technology
The Ministry of Labor, Invalids and Social Affairs (MOLISA) reported in 2014
that there were still 1.44 Million poor households (5.97%), and 1.34 Million
near-poor households that are vulnerable (5.62%), and have difficulty to access
financial services in Vietnam.
Poverty incidence is much higher in rural areas and among ethnic minorities. Vietnam's poor are largely uneducated, and 70%
of the poor live in rural and remote areas. In addition, most Vietnamese, especially the poor, operate almost entirely in the
cash economy. On a daily basis they use cash, physical assets or informal financial service providers to meet their financial
needs—from receiving wages to saving money. However, these informal mechanisms can be insecure, expensive, and
complicated to use. They also offer limited assistance when a major problem arises, such as a serious illness in the family or a
poor harvest.
VBSP is currently serving a large number of clients: 7 million active borrowers, over 8 million loan accounts, and 4 million
savings accounts. Among these clients, 90% are living in rural and remote areas and engage in small business and other small-
scale livelihood activities.
Despite VBSP’s success, processing transactions in remote, mountainous areas still reveal a number of limitations, such as the
high cost and time consuming situation for VBSP to arrange monthly transport to each commune across the country. It is also
costly and time consuming for clients to travel to mobile transaction points to repay debts and interests to VBSP.
Opportunity for mobile money serving the poor
Over the past ten years, Vietnam has undergone an evolution in information, communications, and technology (ICT) with a
telecommunications network covering almost the entire country. Nearly 100% of adults now have mobile phones. The number
of mobile subscribers nationwide is increasing rapidly to comprise nearly 140 million by end of 2015, ranking Vietnam as one of
the five top mobile subscriber countries globally. This demonstrates a potential market for developing mobile money services
for the low-income population in Vietnam.
The IT infrastructure of VBSP was upgraded in 2013 under the project "Upgrade and modernization of information technology
system in VBSP". Under this project, VBSP collaborated with Polaris (CBS-contractor) deploying the ‘Intellect’- Core-Banking
System in its 63 branches across the country. The integrated core banking system provides a strong foundation in technology
for VBSP, meets the requirements for lending, loan collection, mobilization from savings, money transfer and more, and can
support VBSP in successfully rolling out its mobile phone banking service.
With regard to the current legal framework, VBSP is eligible to provide both non-financial and financial mobile banking
services, according to State Bank of Vietnam’s Payment Department. There are no legal road-blocks preventing VBSP to offer
mobile-based banking services. Many potential organizations are open to partner with VBSP such as mobile network operators,
agent networks and technology providers.
Innovative technology overview
VBSP conducted a feasibility study on mobile banking for the last mile population in Vietnam in partnership with the Asia
Foundation during 2014-2015. This study demonstrated many potential opportunities for VBSP.
Initial success achieved
After more than a year of researching the mobile money innovation, the findings proved that implementing banking services

12. 12
via mobile phones will be effective and help the VBSP develop sustainably. In 2016, VSBP developed its first-ever mobile
banking platform in collaboration with the Asia Foundation, and MasterCard as a technology solution partner.
All necessary ingredients for developing a mobile money solution are in place, together with a positive environment for
launching mobile-based banking services to help VBSP achieve its overall development objectives.
For VBSP, there are internal needs arising to improve transparency for customers and group leaders, enhancing efficiency in
providing cost-effective, fast and effective services, and achieving sustainability of existing and new services. VBSP’s customers
are seeking improved transparency; saving time and cost in banking transactions, and a better understanding of products and
services.
Therefore, mobile-based banking services can play an important role as a new channel to help VBSP meet the bank’s and its
customers’ needs in the enabling internal and external environments. Keeping in mind VBSP’s and its customers’ unique
features and needs, the provision of mobile-based banking services can be conducted step by step in two phases. Phase 1 will
provide SMS Banking for transparency improvement, and Phase 2 will implement Mobile Banking for efficiency improvement.
Mobile money innovation in progress
During the few first months in 2016, VBSP in partnership with Asia Foundation and MasterCard, a global leader in payments
and technology, developed VBSP’s first-ever mobile banking platform.
The second phase project is built on the Mobile Banking Feasibility Study in 2014-2015. It will be a five-year project to pilot and
roll-out SMS-notification and mobile banking services.
The project will utilize a two-track business model and phased implementation approach, starting in peri-urban areas and
gradually expanding into less accessible rural and remote regions of the country.
Track 1 will provide VBSP with the capability to send account-related information via SMS to clients, such as repayment
schedules and reminders and monthly account balances. Through SMS banking notifications, VBSP will improve transparency,
reduce delinquency rates, and provide timely information to clients.
Track 2 will introduce mobile banking for customers to initiate loan repayments and cash deposits and withdrawals, etc. This
will lower the opportunity cost of banking for VBSP at mobile transaction points and reduce the risk of misappropriation in the
service delivery channel, and provide clients with access to more diversified banking services, thereby increasing the quality
and cost efficiency of VBSP’s operations.
More support from international organizations
VBSP expects this initiative to be a catalyst and foundation from which VBSP can and will leverage funding from international
organizations to roll out the mobile money innovation, thus increasing much-needed financial access to millions of poor and
disadvantaged groups in the country.
VBSP’s mobile money services will also help to improve the poor and disadvantaged population groups’ ability to run their
businesses and other livelihood activities more efficiently and effectively through e-transactions, thus helping to reduce the
dominance of cash transactions in Vietnam.
Further information:
Application of New Technology for Mobile based Products and Services for Vietnam Bank for Social Policies
Feasibility Study on Mobile Money Products and Services for Vietnam Bank for Social Policies
Contact information:
Mr. Nhan Phan Cu, Director of Communication and International Cooperation Dept.
icd@vbsp.vn; nhanphancu@gmail.com
Web: www.vbsp.org.vn

13. 13
Additional Financial Technology Resources
(Hyperlinked)
Juanita Woodward is the Principal at Connecting the Dots, a Singapore-based boutique firm providing
consultancy, market research, and project management services covering Payments, Remittances and
Financial Inclusion for FinTech companies as well as established financial services market leaders.
Juanita Woodward has over 25 years of global experience in the financial services and payments
industry working across 17 countries in Asia Pacific, as well as numerous projects in the US, Europe,
Middle East and South America. Based in Singapore since 1991, her payments experience covers
corporate and consumer payments, including card and mobile solutions. Ms Woodward also has
extensive work experience across the areas of financial inclusion, migrant worker remittance payments, women’s economic
empowerment, organisational governance, and postal payment networks.
Ms Woodward is an Investment Committee Member of UNCDF’s Shaping Inclusive Finance Transformations (SHIFT)
programme, a Fellow on FinTech at SIM University in Singapore, and an Industry Advisory Council Member, Centre for
Corporate Governance, Institutions & Organisations at the National University of Singapore. She also serves as Singapore
Country Director for WorldRemit, a leading UK FinTech providing global online money transfer services. She is a frequent and
passionate speaker on payments and remittances as a catalyst for Financial Inclusion.
She previously held various regional and global roles at Citibank, ABN AMRO Bank, and Standard Chartered Bank based in
Singapore, and served as the Executive Director, Asia Pacific for Eurogiro A/S Singapore branch.
She also served as the Eurogiro representative on the World Bank’s Public and Private sector advisory group on migrant worker
Remittances, and as an Observer at the intra-governmental agency, Asia Pacific Postal Union, Executive Committee meetings.
Further Reading
 The Intersection of Fintech And Financial Inclusion in
Asia
 Accenture: Banking within Reach - How banks in
emerging economies can grow profitably by being
more inclusive
 Getting to Zero Poverty: How to Reach the Last Mile
 For Unbanked Populations, the Future of Banking Is
Pocket-Size -
 Blockchain and Financial Inclusion: From the Last Mile
to the Last Meter
Additional BWTP Member case studies
 Amret Cambodia Mobile Financial Services Project
 Good Return CAFE Field app
 Innovative Technology Solution to Reach the Last
Mile: An Experience of NUBL, Nepal
 SSF Innovations facilitating borrowers to ease them

14. 14
BWTP Member News
Banking with the Poor Network
Secretariat, 137 Melbourne Street South Brisbane
+61 7 3217 2924
+61 7 3846 0342
info@bwtp.org
Find us on the Web: www.bwtp.org
BWTP is an initiative of The Foundation for Development Cooperation
AGAHE Microfinance
Pakistan
Overview of Microfinance
Achievements
ASHRAI
Bangladesh
Saving-led model fighting poverty
discrimination
ASKI
Philippines
ASKI, WTRC program produce
skilled graduates
CFPA Microfinance
China
Universal Financial Access 2020
Farmer’s Friend Organization
Pakistan
Village Banking Model: An
Innovative Approach of FFO
Guardian MFI
India
Client Case Studies
LFSUS
Sri Lanka
LFSUS assisted 300 poor families
for their housing needs
LMFPA
Sri Lanka
Update on the Sri Lankan
Microfinance Regulation
Nirdhan Utthan Bank Ltd.
Nepal
November News
NRDP
Pakistan
Client Stories
TMSS
Bangladesh
Achievements of the Microfinance
Program (HEM) of TMSS in
Bangladesh
VBSP
Vietnam
The Deposit Product for Members
of Savings and Credit Groups –
Useful Tool for the Poor
VisionFund
Cambodia
Debt Relieving Loan Impact
Villagers Development
Organization
Pakistan
Financial Inclusion Week