The next set will be 25 more rural banks covering the entire Visayas region and certain areas of Mindanao.
RuralNet is an electronic settlement system, accredited by several government agencies, allowing depositors of rural banks to make settlements with such agencies as the Philippine Overseas Employment Agency (POEA), the Overseas Workers Welfare Administration (OWWA), and PhilHealth.
Under negotiations is the Government Service Insurance System (GSIS), the Department of Trade and Industry (DTI), and the Social Security System (SSS). For the private sector, RuralNet is holding exploratory talks with the Philippine Long Distance Telephone Co. (PLDT) for its electronic and wireless roaming capabilities.
"Instead of wasting precious time traveling to the cities or rural centers, and falling in line to make settlements with government agencies, the vacationing overseas workers or migrant Filipino can spend more time with their families," Daniel Arcenas, president and chief executive officer of RuralNet, said.
Arcenas explained that their partner is the United Coconut Planters Bank (UCPB) which has a electronic platform ideal for settlements with the government agencies as well as private and business entities. The commerical bank is an accredited government depository financial institution.
At the same time, the GSIS has an e-card which could also be ideal for the RuralNet and thus the rural bank depositors that are GSIS members. Since the rural banks are located in areas often not accessible to other banking units, it becomes ideal and cost-effective for bank clients.
Short-term, the electronic payment and collection system will mean additional fee-based earnings for the rural banks. It will open doors for more similar banking activities and potential banking products even with the private sector like settlements with private utilities companies including telecommunications, power and water.
Long term, it will open new opportunities and products that are e-based, something that is very real in the financial and business global community. The country’s commercial and thrift banking systems are already deeply engaged in the electronic environment both for internal and external purposes.
Arcenas said that they are looking at developing the e-market system that will allow marketing of rural produce through the e-business/marketing. Also in the pipeline is the use of the automated teller machine (ATMs) and credit cards.
Recently, rural banks have partnered with telecommunications companies like Globe Telecommunications to improve banking services and introduce the rual banking community of electronic banking.
Key feature of the partnership is making money transfers or remittances and other bank transactions as simple as "texting" or short messaging system (SMS).
Last year, the Rural Bankers Association of the Philippines (RBAP) and G-XChange Inc. (GXI), a subsidiary of Globe Telecommunications Inc. launched the RBAP Text-A-Payment (TAP) and G-Cash Services.
Part of the arrangement allows the sale of mobile phones are extremely low rates through the rural banks, and the bank clients can tap the same bank for a loan to pay for the mobile unit.