Paper
Window on the Unbanked: Mobile Money in the Philippines
Understanding unbanked consumers' behavior
4 pages
This paper studies mobile banking in the Philippines and seeks to draw insights on increasing outreach of mobile money to the unbanked population worldwide.
Evidence indicates that mobile phones are penetrating the unserved market presenting a potential launch pad for a considerable commercial opportunity. Key findings from the Philippines point out that:
- About 50% of active mobile money users are unbanked;
- Around 26% are poor, living on less than USD $5 per day;
- Mobile money boosts loyalty; 68% of users with multiple SIM cards say their mobile money SIM has become their primary one for calls and texting;
- Distribution is key; intensive users who do four or more transactions per month are 40% more likely to live within 5 minutes of an agent;
- About 1 in 10 unbanked users saves an average of USD $31 in a mobile wallet.
Mobile network operators, banks, and technology providers must enhance their understanding of how unbanked consumers behave in order to fully exploit it. This will help them create more effective marketing, offer appropriate pricing, recognize the importance of building a network of cash-handling agents and meet demand for service offerings beyond remittances.
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