SMART taps rural banks for value-added services

Smart Communications, Inc. (SMART) is poised to capture and dominate the huge countryside mobile subscriber market bringing in its value-added services like Smart Money, Smart Load and Smart Padala via the rural bank institutions.

Smart will tap the 1,800 rural bank branches nationwide in 103 cities and 753 municipalities.

Smart has recently clenched a deal agreement with the RuralNet, Inc., for the latter to serve as a Smart Load dealer or reseller of micro-load, and a Smart Padala or cash remittance via text aggregator.

As a Smart Padala aggregator, RuralNet may accredit rural banks to promote and offer loading, sending and encashment transactions using Smart Money.

Smart Money is Smart's reload-able electronic wallet service linked to a mobile phone.

Through its electronic platform, RuralNet aims to bring government and private sector services to the 39.7 million Filipinos in the rural communities, many of whom have relatives working abroad, by partnering with rural banks.

"SMART is constantly striving to provide more convenience to its users through its various innovative products and services. The partnership with RuralNet will enable us to serve rural communities better and help develop a flourishing e-commerce activity at the grassroots level," said Dan Ibarra, head of SMART's E-Services Group.

As of end-June 2005, Smart has 20.8 million subscribers. Through this move, subscriber base of the company is expected to balloon further.

"RuralNet's platform will provide connectivity to rural banks. It is positioning Smart Money as the de facto electronic ATM and debit card in the countryside. With our partnership with SMART, remittance and encashment services may now be made available at the countryside.

Government services such as PhilHealth, passport processing, NBI clearance applications may soon be available. With RuralNet's system, services that are previously available only in the cities may be obtained from the rural bank partners," said Daniel R. Arcenas, head of RuralNet.

RuralNet is a value-added applications service provider with a facility for connectivity, secured data capture, and settlement of daily transactions between the rural banks and the service provider.

At present, Arcenas said the service is being tested in three rural banks in Cebu - Sugbuanon Rural Bank, which has three branches; Rural Bank of Bantayan, Inc, also with three branches; and Rural Bank of Pinamunjahan, Inc., one branch.

"RuralNet started testing its systems with the three banks in September. The results are very promising," he said adding that in two years, the organization aims to partner with 500 rural banks.

In a separate interview with Smart Communications head for public relations Ramon Isberto, he said that soon Smart Money and Smart Padala will totally change the way the consumers spending style, and will now embrace into cashless system, and quick transmission for money transfers.

Next to rural bank access to these features, Smart is also looking at neighborhood stores, like convenience stores, or even the sari-sari stores as channels for the Smart Money and Smart Padala products.