Digital Financial Services
TSPI TxtBilis System
Eduardo A. Mendoza
Executive Director / CEO
Tulay Sa Pag-unlad, Inc.
MCPI Conference, Century Park Hotel
July 25, 2014: 11:00am-12:30pm
Tulay Sa Pag-Unlad, Inc. …. 1
TULAY SA PAG-UNLAD, Inc.
More than 200,000 microfinance
clients
150 branches + 1,600 field officers
Php1.7Billion Loan Portfolio
Tulay Sa Pag-Unlad, Inc. …. 2
What is TxtBilis?
TSPI-branded microlending
system using a mobile
money platform for Loan
Release and Loan
Collections.
1. Neither telco-led or
bank-led.
2. Our own network of
TxtBilis agents
3. TSPI-wide
implementation
Tulay Sa Pag-Unlad, Inc. …. 3
Collaborative Partnership
TSPI
• Sufficient volume
of transactions
that are all within
our entire
ecosystem – we
can deliver.
• Willing to invest in
building our own
agency network
from among our
clients
Tulay Sa Pag-Unlad, Inc. …. 4
• Unique pricing
model that suits
the mission of
TSPI
• Sufficient
marketing and
training support
for agency network
build-up
• Readiness to
partner with TSPI
beyond
microlending
mobile
applications
• Willingness and
ability to modify
backroom
processes to
accommodate
TSPI’s information
system and cash
management
requirements
WINNER
2013
Strategy Excellence
Award
for
Financial Inclusion
Does it work?
KEY METRICS:
• 70% of disbursements and 10% of loan collections are already in the system.
• 200K+ kits issued
• Over 1 Million TSPI transactions worth Php5 Billion+ (~US$110M+)
IT IS BUILT UPON OWN TSPI’S ECOSYSTEM. WE DIDN’T DEPEND ON OTHER USAGES TO
MAKE IT WORK.
• TSPI = ~1 million payment transactions plus ~50,000 disbursement
transactions/mo.
• It is a reengineering solution, not a product solution
• Clients didn’t need to have money in their wallet … we GAVE them electronic money.
IS IT WORKING IN THE LARGER MOBILE MONEY SPACE?
• Use of our TxtBilis cards = 50:50 with non-TSPI-related transactions
• Clients use TxtBilis for other mobile money transactions
Tulay Sa Pag-Unlad, Inc. …. 5
Lessons Learned
1.
Clients aren’t equipped
– They don’t know about “mobile money”, nor if it can be trusted
(nawawala parang load)
– Only one (shared) phone / household
– It’s not as easy as texting
2.
Approach to mobile finance by
telcos or by banks can bias
them
– Expensive / inaccessible
3.
Maintaining agents is not easy
– don’t have funds
– Clients think they can “borrow”
money from agents
Tulay Sa Pag-Unlad, Inc. …. 6
Challenges & Opportunities
Moving Forward
CHALLENGES
– How to sustain the agency network
– How to serve farmer clients / larger cash transactions
OPPORTUNITIES
– Monetizing efficiency savings
– Capitalizing on our TxtBilis agency network
• Large base
• In the grass roots
Tulay Sa Pag-Unlad, Inc. …. 7
Salamat Po.
TULAY SA PAG-UNLAD, Inc.
Tulay Sa Pag-Unlad, Inc. …. 8