Rural bank units across the Philippines already make use of the ubiquitous cell phone as platform for enhanced mobile banking services. But at the recently concluded 54th charter anniversary symposium organized by the Rural Bankers Association of the Philippines, organizational leaders were more than pleased to realize that not a few of their members took the extra step to crank up what the industry has done thus far in making mobile phone banking not just a catchy buzzword but a service that actually gives value to both the banks and their clients.

RBAP president Ian Eric Pama paid tribute to work done on the ground by the various rural bank units, citing, for example, that some P12-billion worth of transactions have been coursed through mobile phones the past four years, making the lives of Filipinos infinitely easier even for those who traditionally were excluded from the menu of services offered by bricks-and-mortar banking brands.

Pama said that as a result, banking with the use of mobile phones have made the delivery of financial
services more inclusive. The extensive use of mobile platforms in the Philippines is at that stage of development wherein some of the jurisdictions also looking to have more inclusive financial systems of their own have travelled to the country to find out how the Filipino bankers do it.

He cites the statistics: 99.2 million mobile subscribers, a sharp increase in internet usage best indicated by cyberspace Pinoys belonging to the so-called topmost 93 percent of whom access the internet from the comforts of home. The degree of sophistication is such that the Philippines has been touted as the social networking capital of the world in which around 94 percent of Filipinos have accounts at the popular networking site Facebook. Filipinos being naturally gregarious, patronage of the micro blogging site Twitter is similarly extensive. Filipinos have also been ranked the eighth most extensive Twitter users as well.

“These are the facts as dictated by various survey sources and news reports. More than ever, the Filipino is wired and has Internet access. These are the current realities and possibilities that present themselves as opportunities for the Philippine rural banking industry. These show that the market has evolved and has become sophisticated,” Pama says. He lauds the rural bank executives and shareholders for embracing instead of rejecting the “evolutionary changes” taking place in the industry at the moment.

“We wish to show you that the RBAP and its members have been leading the way most especially in the field of mobile banking where through the efforts of the RBAP-MABS team has made the Philippines a leading example in financial inclusion using the mobile phone platform. In the past months we have been visited by nations across Asia and Latin America to specifically study the success achieved by mobile financial services in the Philippines and its impact on microenterprise and micro business,” he adds.

Pama then stresses that rural banks are no longer the rusty old carts in many one-horse towns across the Philippines and that the industry has been “changed to a certain degree.” “We need to embrace the opportunities and convert them into concrete services that will enhance our relevance to our core markets,” he reiterates.

“These new rural bankers, the next generation, will definitely ensure that rural banking remains relevant. With the new paradigms and their appreciation of the evolving market and technology, they bring with them the vigor and vitality that will invigorate your respective institutions. While Filipinos have been known to be prudent bankers, I believe the infusion of new blood and new ideas will renew our commitment to the communities we serve,” Pama says.