NRT 2011 May 23-24, 2011 Manila Session 7: Experiences in Using New Technologies to Expand Microfinance Operations By: Jove Tapiador, RBAP-MABS Regional Manager for Luzon

2. DEVELOPING MERCHANT
PARTNERS
FOR MOBILE PHONE
BANKING
Key Lessons Learned in the RBAP‐
MABS Channel Management
Ini;a;ve

3. ‘Channel management’ supports third parties (Merchants/CICOs) that are
providing financial facilitation services to end customers.
Bank
Examples
• Market research and development
• Sign‐up, accredita;on
Support Services • Training of third party staff
• Informa;on, MIS
• Liquidity
Third party
(Merchant-CICO)
partner
• Payment acceptance
Financial Facilita;on • Sales and referral
• Marke;ng support
• Customer support
Customer

4. General Benefits of Mobile Phone Banking
(along the Value Chain)
Client
Merchant- Bank
Partners
Leverage Merchants-Partners and
Mobile Phone subscribers to expand
Convenient & more secure Increase walk-in traffic client base and maximize revenue.
than cash
(cross-selling opportunities)
Increase efficiency and save on
Decrease cash-on hand, transaction costs
Comfort of dealing with
corner merchant or Merchant- minimize fraud/risks
Increase deposit levels
Partner neighbors
Revenue from fees, Cross selling opportunities through
Reduced transaction costs for commissions and incentives
Merchant- Partners’ referrals
accessing banking services (no
lines, no travel time/costs)
Significant image building
opportunity

5. What benefits can Merchant-Partners provide to banks ?
• Expand geographic coverage without building additional
infrastructure
• Decongest branches
• Refer new customer segments
• Promote the bank services & perform KYC for new
accounts
SESSION 6

6. Merchant-Partner Selection Criteria