GCASH (Mobile Banking)

GCASH provides target market with easy-tousle and convenient wireless funds transfer, cash withdrawal, etc. People now can borrow or loan in the bank without the hassle of going to their branch by just using their mobile phone. Also they can achieve more benefits. GCASH required registration before the customer can benefit this.
For the record GCASH of Globe Telecom is consider as a mobile banking procedures for the reason that it manage an individual finance by using Mobile Phone. Globe Telecommunication Company now offers new strategy. This strategy is consists of two elements. First is to participate in full banking services along with the mobile wallet. Recently Globe purchased 40 percent stake in savings bank with the partnership of Bank of the Philippines Islands (BPI) which now retained a 40 percent stake. The remaining 20 stake was purchased by Ayala Corporation which is one of their common major shareholders. The main objective of this element is to find new product that will link mobile with microfinance activities. By this it could help to propagate the financial inclusion which more than half of the Philippines population is still unable to have access to various financial services. By understanding the bank and unbank customers needs and their intent of coming up with more innovations that may shared with their entire rural bank.
Example of this is the GCASH, by using this along with other mobile data points they were able to deliver loans remotely by understanding the development of credit scores. This score is still and unknown and not yet tested. For now they are closely working with the CGAP.
The second element will be the larger network of cash-in and cash-out points, by this it will benefit the remittances and other financial transactions that GCASH can offer. Some of this is the accession of deposit and withdrawal, salary, and fund disbursement, donation, online purchases and bills payment facilitated simply by text messaging. They were able to overcome the challenged to further grow the merchant partner ecosystem. They also intended to cash-in and cash-out point closer to the areas where potential users live.
GXI which is responsible for the network KYC and AML compliance will be the final stage of getting the approval of central bank (Banko Sentral ng Pilipinas) to enable the Globe Telecom to load 15,000. Together with 15,000 and GCASH existing 3,000 cash-in and cash-out points. They will significantly increase the touch points of each costumer they have. By this success of partnership along with CGAP the propagating of GCASH in the low-income areas such as Bohol and Palawan, they will now process the work more attach to see what further progress they can take. Since GCASH is a Business to Consumer (B2C) category each of them can have a benefit. Usually the account officer who’s the collector of the bank spends 63% of the time going to clients to collect payment but with TAP (Text a Payment), this time can be spent on generating new loans and monitoring clients and the costs of the collection will be dropped to 23% while the bank become competitive on their interest rates charging. While the borrowers or the loaners can save the additional expenses like service fee, interest fee, and transportation expense. The borrowers who loan P5,000-P150,000 will have the repayment period of 3-12 months. While the typical loan amortization P1,000 per week in rural areas.