microfinance -- moving forward for rural banks

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Microfinance Moving Forward for Rural Banks John V. Owens RBAP‐MABS 2011 RBAP‐MABS Regional Roundtable Conference Hya= Hotel & Casino, Manila November 9, 2011

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A presentation by Atty. John V. Owens that discuss market, competition, and branchless banking trends

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  • 1. Microfinance Moving Forward for Rural Banks JohnV.Owens RBAPMABS 2011RBAPMABSRegionalRoundtableConference Hya=Hotel&Casino,Manila November9,2011
  • 2. Factors Affecting Banks Increasing New competition technologiesChanging Inclusive markets regulations Rural Banks
  • 3. Wider Consumer Choices
  • 4. Multiple Borrowings & Over-indebtedness
  • 5. More Discriminating Borrowers & SaversATM Cards Microinsurance
  • 6. Increased Competition Commercial Banks Finance Rural Credit Companies Banks Cooperatives NGOs
  • 7. New Technologies & Channels
  • 8. Widespread Mobile Banking Technologies SMS Banking
  • 9. Mobile Money Platforms
  • 10. Use of Card-based Banking
  • 11. Lower Cost of Technology
  • 12. Use of Third-Party Networks
  • 13. Are you using ! Social Networking & Crowdsourcing !to expand your market outreach?!
  • 14. Inclusive Regulations Expansion of MBOs Introduction of Micro-Savings Reduced KYC Change in Effective Interest Rate Calculations Promotion of Consumer Protection Practices
  • 15. Rural Bank Responses Market trend responses o Product diversication and improved customer retention programs o Introduce payment services Competitive responses o Use MBOs to reach new/underserved areas o Introduce micro-deposits & mobile money transfer as entry level product, up-sell other products/services o Use third-party networks to outsource KYC, expand reach, and offer new services
  • 16. Rural Bank Response New Technology Adoption Deploy Cash/Debit Card, Mobile Phone Banking, and Agent Channels! Upgrade Core Banking Solutions! Utilize the Power of Social Networks! Inclusive Regulation Adaptation Review and Share Pricing Structure! Incorporate Consumer Protection Principles !
  • 17. Things to watch out ...1. PricingTransparencyTieredPricing 2. CreditBureaus 3.LeverageTechnology 1. Outreach 2. Competition 3. Efciency 4.SocialNetworksCrowdsourcing
  • 18. Regular Branches Branches &Oces OBOs MBOs MIS Technology ATMs Interfaces MobilePhones SocialNetworks POS Third Cash/Debit/ATM partyNetworks cards Agents
  • 19. Thank You Email: [email protected] Websites:http://www.mobilephonebanking.rbap.org/ http://blog.mobilephonebanking.rbap.org/ Facebook: LinkedIn: Twitter: johnvowens John Owens jvowens