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Will the local sari-sari stores be an effective agent of the bank? That is what the Rural Bank Association of the Philippines (RBAP) think so. The rural banks have expressed their intentions of expanding mobile banking services through third-party agents such as sari-sari stores.

With the said proposal, rural banks will be able to reach more clients, especially in far-flung areas. The initiative involves appointing merchants – such as sari—sari stores “which have the ability to service significantly larger amounts,” said RBAP past president Tomas Gomez IV.

Gomez believes that by allowing small establishments to handle bigger amounts through electronic banking, they may also be able to offer financial services to their clients.

He said, “The sari-sari store has already the infrastructure but it requires additional training and management. I cannot preempt what the BSP (Bangko Sentral ng Pilipinas) is saying. Is it practical from a business model point of view? Yes. It is a win-win for everyone.”

Together in partnership with Globe Telecom Inc.’s mobile banking platform GCash, RBAP also seeks to appoint more merchants. “Rural banks have accredited some merchants locally. What we want to do is expand that so not only the merchants accept the payments through GCash but eventually be able to open accounts as agents,” Gomez added.

He said that through the mobile phone banking services partnered with local agents, they would have an extension of their infrastructure, “This can be made possible by technology and partners by GCash and Smart Communications Inc. eventually.”

Gomez said the sari-sari store can generate business as well, and it will serve the community well. Because before, clients need to travel an hour before they can have access to banking services.  The rural bank sector releases an approximate amount of P2.7 billion loans every month as working capital for micro-entrepreneurs.