MICROCAPITAL STORY: Globe Telecom Philippines Joins with Microfinance Providers in the Rural Bankers Association of the Philippines (RBAP) to Supply Mobile Banking Services to the Rural Poor

The Rural Bankers Association of the Philippines (RBAP) and Globe Telecom Inc, the Philippines’ second largest telecommunications provider, have partnered to extend mobile banking services to rural banks, allowing their customers to conduct transactions using mobile phones.

The effort brings the mobile banking service G-cash, managed by Globe Telecom’s subsidiary G-Xchange Inc, to 375 participating branch locations. Microfinance institutions under this program become “cash in” and “cash out” outlets that are accredited to convert actual money into electronic money and vice versa.

RBAP is a consortium organization of approximately 700 rural banks in the Philippines. Its Microenterprise Access to Banking Services (MABS) assists its members in increasing access to banking services for the microenterprise sector. The US Agency for International Development has supported MABS since 1998. The central bank of the Philippines Bangko Sentral ng Pilipinas (BSP) has approved G-cash and expects the market for these services to grow by at least 20 percent over the next year. RBAP reports that the gross loan portfolio of MABS microfinance institutions is equivalent to USD 41.1 million and that their savings deposits total USD 36.6 million.

Globe Telecom: home, G-Xchange, G-Cash

Rural Bankers Association of the Philippines: home, Mobile Banking for Rural Banks, Mix Market Profile

RBAP-MABS: home

Mix Market report: Benchmarking Philippine Microfinance

Business Inquirer Article: Globe Telecom enters $14-B remittance business