session 2: innovative remittance and mobile money products challenges and developments...
TRANSCRIPT
1
Caribbean Remittances Forum
Session 2:
Innovative Remittance and Mobile Money Products
Challenges and Developments in the Philippines
Bangko Sentral ng Pilipinas
2
Presentation Outline
Philippine Mobile Money Scenario
Approaches to Mobile Commerce and
Emerging Models
Enabling Environment for Mobile
Commerce/E-Money
Related Philippine Laws
Central Bank Regulations
Recent Issuances
3
Philippine Mobile Money Scenario
Non-bank institutions offering financial
products, including those not traditionally
supervised by the central bank
Use of third-party service providers by
banks and non-bank institutions
Various technologies and business models
Complex partnerships
4
Approaches to Mobile Commerce
Bank-Centric or the Bank-led model
Telco-Centric or the Nonbank-led model
5
Approaches to Mobile Commerce
Bank-Led
The bank has the primary relationship with the
account holders
Telco operates and maintains the technology
Usually requires the user to have an account
with the bank that is not treated as a deposit
but an electronic money (e-money)
The bank is the E-money Issuer (EMI)
Telco’s agents serve as cash in-cash out
centers
6
Bank-led Model
7
Registering to the Smart Money
1 User goes to the
Smart Wireless Center to register (name, address, number) and present valid ID
2 User will
receive the Smart money card
3 User can
convert actual cash to electronic money in MIMO centers
8
Approaches to Mobile Commerce
Telco-Centric/Nonbank-Led
Telco has a subsidiary which operates the e-
money business
Said Telco subsidiary has the primary
relationship with the account holders
Said Telco subsidiary is the E-money Issuer
(EMI)
Bank participation limited to “clearing”
Banks serve as cash-in/-out agents of the EMI
along with the EMI’s agents
10
Registering to the G-cash Service
1 User will register in the system by sending an SMS of key information (name, address, number)
2 User will receive a reference no. as acknowledgement
3 User can go to any Cash In center to convert actual cash to electronic money
4 After verification, the e-money will be registered on the mobile phone with a reference number
11
Emerging Models
As to purpose
Non-remittance uses for e-money
Designed for retail payments
Cash-in intended for usage, not
withdrawals
End-to-end process (purchase to delivery)
In line with central bank policy of
inclusive finance
12
Emerging Models
As to organization
Branchless banking
Bank provides banking services,
especially microfinance
Partners with a non-bank E-Money
Issuer
Allows depositors/clients to access
banking services in mobile manner
13
Enabling Environment to E-Money
1. Allow non-banks to offer mobile money
2. Remittance Agents allowed to perform Cash-In/Cash-Out
3. Simplification of requirements for KYC
4. Formalized guidelines on issuance of electronic money
5. Competitive business models allowed to be tested
14
Related Philippine Laws
General Banking Law
Central Bank Act
Electronic Commerce Act
Anti-money Laundering Act
15
Central Bank Regulations
E-Banking (2000)
Outsourcing (2000)
Remittance and Money Transfer Agents
Registration (2005)
Consumer Protection for E-Banking(2006)
Technology Risk Management (2006)
E-Money Issuance (2009)
16
Recent Issuances
Circular 704 (2010) – guidelines on outsourcing
of services of EMIs to E-Money Network Service
Providers (EMNSP)
Recognizes the specialized operational and
technological requirements of e-money business
Provides additional guidelines from the regular
outsourcing framework of the BSP
Expected to bring about increase in the number of
EMIs
17
EMNSPs are non-financial institutions
that provide
automated systems
Network infrastructure
network of accredited agents
18
EMNSPs can enable clients of EMIs to
perform the following:
Convert cash to e-money and monetize
e-money
Transfer funds from one e-wallet to
another
Use e-money as a means of payment
Conduct similar or related activities
19
Recent Issuances
Circular 706 (2011) – Updated Anti-Money
Laundering Rules and Regulations
Customer Acceptance Policy
Enhanced Due Diligence
Reduced Due Diligence
Outsourcing Arrangement for KYC
Face-to-face contact
Gathering of minimum information/documents
Third-party reliance
