Why is mobile banking the future for rural banks and MFIs?
Given the fact that more than 70 million mobile phone subscriptions exist in the Philippines and the fact that even the poor can now own a phone or at least have a SIM card, we see the ability to reach out to more clients in more areas, more cost effectively than ever before. Rural banks can now offer many of the types of services that commercial banks are able to offer via online platforms to clients via mobile money and SMS technology with only a mobile phone. What is the key for MFIs to successfully deploy mobile microfinance? Open regulators are crucial. There also needs to be a willingness and commitment on behalf of the mobile money issuers, who must be flexible and responsive to meet the needs and work with MFIs. Strategic partnerships with the support of large microfinance networks, such as the rural banks, along with a committed and experienced third party microfinance technology provider like our MABS team can help to develop turn-key approaches for MFIs to make effective use
