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Industry Overview: Philippines Mobile Banking Industry

Mobile Banking reaches new heights in Philippines as it is the world's 12th largest mobile market. By the end of June 2011, there were almost 91.3 million mobile subscribers in the Philippines, up from just over 86 million at the end of 2010. BMI's Philippines Telecommunications Report indicated that the country is expected to breach the 100% mobile penetration rate by end of 2012, and will have a 114% penetration rate by end of 2016. The country is also the fastest growing smartphone market for Southeast Asia, with the value of smartphones sold growing by 402 % in the first quarter of 2012 over the same period in 2011.

According to leading ICT research firm, Gartner Inc., Philippines is one of the only two countries that have successfully implemented mobile payment solutions in micropayments services to distribute money in far-flung areas. The Philippine government is currently using mobile payments for cash transfers to remote areas, while consumers are using m-commerce; 17% and peer-to-peer; 15% as modes of payment. Like Kenya, Philippines is also using mobile payments for money transfers. There is cooperation between top mobile network operators and the government Conditional Cash-Transfer Program (CCTP) to use mobile payments to transfer money to remote areas.
The top local mobile carriers, Globe Telecom and Smart Communications (PLDT), have long been employing G-Cash and Smart Money, respectively, in micro-payments services. These companies are creating a nationwide ecosystem that can support mobile banking, in various degrees, scale and complexity of applications.
The current scenario in the mobile banking industry is very promising. In 2011, rural banks processed more than Peso 4.9 billion in mobile money-enabled banking transactions and in 2012 between January -April there is already a 58 % increase in the volume of transactions anchored on mobile banking. Over 73 rural banks with 1,168 branches and other banking offices have now been accredited to offer mobile money-enabled banking services in the country. These banks have processed more than Peso 16 billion in mobile banking transactions since 2006.
The future of mobile banking is promising as some analysts have estimated that the total number of mobile subscribers is expected to reach 117 million by end of 2016 due to the strong demand for mobile money services among the unbanked sections.
(Source: Insight Alpha)

Conditional Cash-Transfer Program (CCTP)