MANILA, Philippines - Globe Telecom has expanded its platform for mobile money transfer into microfinance services.
“The third phase is financial services, after rolling out such services as broad band access for the Internet,” said Ernest Cu, Globe chief executive officer. The Globe chief executive was one of the speakers in the Mobile Money Transfer-Asia Pacific forum and exposition held yesterday.
This time, Cu said Globe will be deeply involved not only in offering financial services through the mobile phones, but also in physical infrastructure to support mobile money for microfinance.
Globe has been offering mobile phone technology for financial products through its GCash platform, with the infrastructure relying on its partnership with rural banks.
Cu said the third phase demands not just the platform but the distribution infrastructure aside from its own financial institution.
Last October, Globe invested in Banko or BPI Globe Savings Bank, along with the Bank of the Philippine Islands (BPI) and Ayala Corp.
It is likewise seeking the approval of the Bangko Sentral ng Pilipinas (BSP) in converting its 15,000 sub-dealers of Globe prepaid airtime loads into cash-in, cash-out centers.
“If approved, the 15,000 sub-dealers will turn into manual ATMs (automated teller machines),” Cu said.
The Globe official said they are prepared to take full responsibility for issues related to the KYC (Know-Your-Clients) requirements of the BSP and the Anti-Money Laundering Council (AMLAC).
That set-up, if approved, would fit in well with the branchless character of Banko, he pointed out.
The thrift bank seeks to be the first branchless bank in the country, relying mainly on mobile phone technology. It would only establish regional centers that are more for liason and communication purposes.
The Globe sub-dealers would function as manual ATMs, releasing cash and accepting payments.
“That will make us the largest remittance network in the Philippines,” Cu added.
Presently, the GCash “universe” involves rural banks, individual, remittances companies, commercial banks, merchant utilities, and the online community.
The partnership with the 50 rural banks has resulted in GCash transactions worth P5 billion in the past three years.
The partnership involves Globe (through G-Xchange Inc.), the Rural Bankers Association of the Philippines (RBAP) and the Microenterprise Access to Banking Services (MABS) program of the United States Agency for International Development (USAID).