A FINANCIAL technology company is eyeing to partner with more rural banks in the country to roll out its cash withdrawal solution and increase the financial inclusion in the country.
Fexco Philippines recently introduced EasyDebit, a microATM that allows people to withdraw cash even in sari-sari stores.
Using a pin entry device and a mobile phone, EasyDebit allows customers to withdraw cash using their ATM at any locally accredited merchants such as cooperatives, remittance and payment centers, pawnshops and retail businesses like convenience and sari-sari stores, instead of traveling far to access ATMs.
Ann Chan Foley, co-founder and chairperson of Fexco Philippines, said this microATM cashout is ideal for communities that are currently underserved by universal and rural banks.
“We knew we could do so much to address the inherent need of so many Filipinos for financial services,” she said, adding that the company’s goal is to serve as a bridge between Filipinos who have little access to financial services and banking institutions.
At present, the Philippines is significantly underserved by ATMs.
There are more or less 20,000 ATMs spread across the country that serve the 82 million ATM cardholders. Thirty-four percent of municipalities in the country have no bank presence and seven percent have no financial access point.
Fexco was established in 1981. The company is operating in 29 countries including the Philippines.
Foley said they have forged partnerships with banks and merchants to roll out the EasyDebit product. It tapped homegrown banks in the Visayas and Mindanao, such as Cantillan Bank, Rural Bank of Rizal and Development Bank of the Philippines-owned Al-Almanah Islamic Bank to enable the rapid and low-cost deployment of banking services to underserved areas in the region.
“We are working for more collaborations in banking institutions because Visayas, for one, has a lot of untapped potential. These relationships we foster with small and medium enterprises and banks are vital in ensuring that the dream of financial inclusion comes to fruition,” she said.
Since 2017, the company has already deployed 1,200 devices all over the country, 38 percent of which were deployed in the Visayas and Mindanao.
Foley said the system had been helpful to Filipinos, especially those living in far-flung areas. She said they were able to save money and time when withdrawing cash.
This solution also augments the income of sari-sari store owners as they earn a convenience fee per transaction.
To become an EasyDebit merchant, a sari-sari store owner would need to invest at least P11,500 for the device, an internet connectivity minimum of 2G data connection, an Android phone version four and a revolving cash fund to distribute for withdrawals.
Moreover, Fexco Philippines said it is eyeing to expand the functionality of EasyDebit to incude bills payment in the future. (KOC)