Globe, RNet partnership seen to hasten financial inclusion

MANILA, Philippines - Globe Telecom subsidiary G-Xchange Inc. (GXI) has expanded its mobile banking reach through its partnership with  RuralNet Inc. (RNet), an information and communications technology (ICT) company focused on areas outside Metro Manila (AOMM).

GXI is the operator of the popular mobile commerce platform GCash.

GXI president Paolo J. Baltao said they are ushering financial inclusion through the use of technology with the new partnership.

“RNet has the platform that we have been trying to establish for the longest time,” Baltao said.

He said financial inclusion is not just having easier access to simple credit and deposit activities with the 800-strong rural banking system. The entry of RNet opens the cooperative movement and its members to the Globe affiliate.

“Now with the cooperatives, we have an ecosystem, that can lead to a more efficient process with the help of technology,” he added.

The Cebu-based ICT company already enrolled 15 rural banks (RBs) operating roughly 200 branches and 90 cooperatives last year.

RNet president Daniel Arcenas said the target is to bring in an additional 300 RBs and 2,000 cooperatives this year.

“Simply put, RNet is offering technology-enhanced banking and financial services to the banking public in the countryside previously being offered exclusively by universal banks,” Arcenas said on the sidelines of the ceremonial signing of the partnership at the Globe headquarters at Bonifacio Global City.

Enrollees to RNet services can offer their banking clients (in the case of RBs) and the individual members (in the case of cooperatives) automated teller machine (ATM), mobile, and Internet banking services.

That would not only simplify banking in the countryside, but likewise reduce the cost of tapping banking services.

A simple case in point is that enrollees to the service can transact payments to government agencies such as the Social Security System (SSS), and the Bureau of Internal Revenue (BIR).

Paying bank loans and transferring cash can also be undertaken.

In a sense, RNet becomes an extension of government services, a collection and payments partner for service providers for remittance, payroll, bills payments, among others, and act as a provider of revenue stream among RBs and cooperatives.

Meanwhile, one of the benefits of the GXI-RNet partnerships will be the introduction of CashKO, the country first 3-in-1 card.

“This will deliver to the RBs and cooperative industries’ affordable mobile phone and Internet banking with ATM functionality all powered by GCash,” Arcenas said.

CashKO will enable these RBs and cooperatives to leapfrog and be at par with the best and biggest banks at minimal entry cost and monthly costs, and provide their clients, members and communities with modern financial services technology.

Similar services are already being done though mainly in Metro Manila and several urbanized areas though BPI Globe Savings Bank (BanKO), a mobile-technology-driven thrift bank. It is a joint venture between the Bank of the Philippine Islands (BPI), Globe, and Ayala Corp.