MOBILE BANKING Financial inclusion and economic empowerment for the low income population and women in Vietnam - Nguyen Thi Ngoc Anh May 25, 2017
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
MOBILE BANKING Financial inclusion and economic empowerment for the low income population and women in Vietnam Nguyen Thi Ngoc Anh May 25, 2017
Presentation outline § Financial Inclusion: Introduction § Financial Inclusion in Vietnam: A Snapshot § Mobile Banking Project Overview – A shared value concept § Implementation challenges
Financial inclusion
introduction
Financial inclusion means that individuals and
businesses have access to useful and affordable
financial products and services that meet their
needs – transactions, payments, savings, credit and
insurance – delivered in a responsible and
sustainable way
(World Bank)
Financial inclusion
Pillars of financial inclusion
§ Payment system _ key enabler of FI
§ Innovative distribution channels: Financial products / services are provided through both
traditional and innovative channels, focusing on new technology-based distribution
channels (e.g. mobile banking, agent banking)
§ Diversification of financial services providers: including MFIs, non-financial companies.
§ Banks for Social Policy/ Development financial Institutions: still play an important role in
providing the poor with financial services in many countries.
Financial inclusion Vietnam: Snapshot
Financial inclusion
Vietnam: a rapid growth in Telecom network
Population: 91.71 mil. with over 60
mil. in rural areas (2015)
•
Fixed line Subscribers: 5.9
millions
•
Mobile Subscribers: 120.32
millions (3G: 35.78 millions)
•
Broadband Internet
Subscribers: 10.23 millions
•
Internet Users: ~45.5 millions
•
Mobile Signal Coverage: 94%
Source: GSO, MIC 2015 Appota, Vietnam Mobile Report, Q1 2016
Financial inclusion
Vietnam: new players
•
In MF subsector: 02 state-owned financial institutions
(Agribank, VBSP), a Coop Bank and 1,147 PCFs, 3
licensed MFIs (SBV) and about 50 semiformal MF
providers supported mostly by mass orgs, social funds
and donors (MFWG).
•
Among MFIs, VBSP has largest market share (67%) of
total microfinance clients (ADB).
•
Increasing application of modern technology solutions
by banks to expand their products/services in effective
manner. However, not much seen among MF service
providers.
•
FI ecosystem is evolving. Besides financial services
providers, new players like mobile providers and e-
money operators.Financial inclusion
Vietnam: Direction
§ FI is considered as one of key socio-economic development areas. The
Govt. is formulating NFIS.
§ Legal framework is developed to boost financial and technological
infrastructure; diversify financial products/services, set up mechanism for
consumers protection and financial education. SMEs, poor people and
women are priority groups.
§ Policies directly promote FI:
• National Strategy and Plan for Microfinance Development in Vietnam by 2020
(Dec.2011);
• Master plan on development of non-cash payment in Vietnam during 2016-
20 (Dec. 2016): Development of modern means and methods of payments at
rural and far-reaching areas, promotion of financial inclusion; At least 70% of
over 15-year-old people will have banking accounts by 2020.Project overview
Vietnam Bank for Social policies (VBSP)
A public not-for-profit policy bank, serving poor
and near-poor households and other priority
groups.
§ 63 provincial branches, 629 district
transaction offices, and nearly 9,000
employees nationwide.
§ 7 mil. borrowers, nearly 200,000 SCGs at
11,000 communes. Monthly transactions at
MTUs at community nationwide.
§ VBSP’s IT infrastructure upgraded with the
Intellect Core-banking system in all 63
branches.
§ Facing with high operational costs, limited
products/services, ineffective communication
and transparence etc.Project overview Feasibility Study: in 2015, shown positive level of acceptation among VBSP’s clients and operational readiness of relevant service providers, together with positive environment to launch mobile banking services.
The partnership: PPP The partnership: • TAF facilitates VBSP-MC partnership to development of VBSP’s first- ever mobile banking platform for the poor and low-income population. • Shared value concepts: bring both social and business returns Project goal: increase and improve access to a full range of financial services for low-income households, especially women-led microenterprises, and also promote cost-effectiveness and sustainability at VBSP
The partnership:
Shared Value
Increase competitiveness, -
Minimize up-front investment by VBSP
business while improving -
Increase operational efficiency – save time
access to financial and costs
services for the -
New services to clients and reinforce Trust
underserved population. Image of VBSP.
-
Future business opportunities for MC for
market penetration in Vietnam.
-
Greater access to financial services with
increased security and convenience.
-
Economic empowerment, par. for women –
improved ICT knowledge/use, opportunity
-
Promote FI - policy inputs, rep. model
time, increase financial literacy.
-
Support reduction of cash transaction -
Contribute to MC’s financial inclusion
in economy
commitment for 500 mil. people by 2020
-
Enhance operational efficiency in
social development policy lending to
support poverty reduction.Development roadmap
Track 1 Track 2
VBSP sends account-
related information via
SMS text to clients:
- repayment
schedules,
reminders
- Inf. account
balances.
- VBSP new policies
To make the system and
clients familiar with SMS
notification on their
mobile phone and
improve transparency.Challenges
§ Building trust between partners. § Resistance to changes among
§ Partnership building take longer bank staff at HO and branches.
time than expected due to many § Resistance from group leaders
considerations and negotiations in before the threat of losing power.
making investment decisions, § Difficulty faced in reviewing and
getting related approval. verifying phone number of clients
§ Internal procedures for MOUs, in track 1.
contracts take time. § Training group leaders and clients
§ Multi-actors (Polaris, Collega, to get use of the service.
Viettel) involvement in the § Adoption rate is not expected due
process of system configuration, to related telecom infrastructure
planning and operate the FI problems (smartphone users,
platform and Mobile Services. internet system…)Thank you
You can also read
