Smart Communications, the leading telecommunications company in the Philippines, recently joined forces with the Microfinance Council of the Philippines to promote microfinance in the country. Holding a total of 52% of the market share with 44 to 45 million subscribers, Smart aims to utilize one of their ongoing services in a manner that will benefit more than just the average user.
Smart Money is a service that allows every Smart user to store money in their Smart accounts. Using the Smart Wallet, users can now make transactions. Money stored in the Smart Wallet can also be encashed at the nearest Smart Money Center usually found at 7/11s and accredited sari-sari stores. Clients may also encash their money using Smart Money cards through any of the 9,000 MasterCard powered ATMs. These cards function similarly to debit cards and allow clients to purchase goods and avail of services. This service, started in 2000, is what Smart hopes will aid the microfinance industry and microentrepreneurs in remote areas. As 60-70% of Smart users belong to the mass market, this being the sector that most often engages in microbusinesses, Smart Money aims to provide services that improve the quality of business transactions for these microventures.
Smart Money means efficient business
Smart Money allows users to transfer funds electronically at any time or place. Controllably through any cell phone with a Smart sim, this facilitates the easy and safe disbursement of funds for microfinance institutions in rural areas. This also helps keep the owners of microventures safe by eliminating the need to carry large sums of cash to and from where loans are disbursed and to their place of business.
Smart Money also allows users to make transactions such as the receipt and payment of loans and even the payment of salaries in the safety of their own homes at their own convenience. This makes it more convenient for users to accomplish important business transactions faster and with less risk. Also, since it allows users to receive funds and pay their amortizations through Smart Money, this eliminates the need to travel to and from the places their loans are disbursed.
Another feature of the service is that it also allows microentrepreneurs to directly contribute to the economy. In areas not even reached by any Local Government Units, people have access to mobile phones which connect them to the rest of the country. Smart contributes further by qualifying people in these areas to sell airtime and also by giving them seed money to start this small business which helps create a small economy in an area.
Currently, Smart has over 1.25M retailers, more than half of which were previously unemployed. The creation of these new ventures, no mattehttps://microfinancecouncil.org/sandbox/wp-admin/post-new.php#r how small, leads to local business growth and thus helps the rest of the government and national economy through each venture’s newfound ability to pay taxes. This service contributes to the growth of other industries that further improve the Philippine economy while allowing Smart to fulfil its own corporate social responsibility by giving back to the community.
Smart Communications boosts local economy
In the future, Smart looks toward the improvement of their own infrastructure in order to accommodate more information and widen its outreach by bringing these services to more remote areas. Currently, Smart is servicing 16 islands and aims to expand to 40 islands with the help of microfinance institutions. According to Mr. Elmer “Jojo” Malolos, head of the Financial Services of the Wireless Consumer Division of Smart Communications, the coverage of microfinance organizations will double in the coming years through sustaining and developing microventures that will further contribute to the economy. Along with this, the microfinance industry will also be recognized as a major economic enabler for the country.
Smart and MCPI
Smart engages with ventures such as MCPI, who know how to leverage on its capabilities and help microentrepreneurs acquire funds and business support. In order to find and establish ways to maximize and complement each others’ strengths, Smart hopes for a continuous collaboration as a member of MCPI. Through working together, they hope to benefit more microfinance institutions and the Filipinos they serve.
Smart Money, previously, being only a value-added service, is now turning into a service that facilitates not only personal, but also business transactions. It allows users to realize that the possibilities are bigger and that they can, with Smart Money, make their lives better and brighter through their own microenterprises even if they are from remote areas of the country.