Part I

Title: Loan Payment using the Globe GCash mobile banking platform Proponent: Rural Bank of Bayombong, Inc. Romeo Ramos, Jr. Bayombong, Nueva Vizcaya Project Duration Six (6) months (Three (3) months for the installation, One (1) month staff training, (1) month marketing, (1) month testing and evaluation) Total Project Cost Source of Fund Location of the Project In the head office of Rural Bank of Bayombong, Inc. National Highway Bayombong, Nueva Vizcaya Implementing Agency Rural Bank of Bayombong, Inc. Project Beneficiaries: Board of Directors, Management and staff of Rural Bank of Bayombong, and its clients

Part II
Background / Rationale Rural Bank of Bayombong, Inc celebrating its fifty (50) golden years anniversary this coming April 10, 2011. This is the best time to innovate new service aligned with the current trend. Technology advances have allowed the cell phone to become safe and
effective transactional device. The widespread and rapidly growing ownership of a mobile phone and the ever increasing geographical coverage of the network mean that the use of this device has the potential to be able to offer a cost effective and simple means of making financial transactions and therefore banking services have a broader market base in which

to operate. Mobile banking or Mbanking , simply put, is using a handheld device to make banking transactions. The target of mobile banking is to enable people in rural areas to transact in banks using their mobile devices. Mobile banking through a mobile phone is

possible by sending text messages, since it does not depend on the model of the phone. The user can request services through a set of codes for every transaction to be made. Rural Bank of Bayombong, Inc. are more in need of borrowers than depositor. As evidenced of their project Performance Target wherein they are required to produce twenty one percent increased of loan production, while they were on a high force of campaigning loans they are also responsible for the collection. This is now the opportunity to offer a business proposal about mobile banking in particular with loan payment to increase business performance. This is design to all the borrowers specifically to those who are from remote areas. Project Description: Planning Planning about this project outline the vision, culture, profit potential and risk bearing capacity of Rural Bank of Bayombong, Inc. This project clearly defines its operating culture that provides the momentum for growth, performance, and financial stature. The project deals with a new process of improving the bank services in terms of loan management in a rural banking environment. The plan lays out a course of action based on assessment of opportunities. With the emergence of smaller and more portable devices such as cell phones, ultra mobiles, and net books, new trends of computing have emerged. These new technology provides a high degree of implementation success. The continuously rising volume of mobile users adds more value to this project both for the Bank and its clients. Through an evaluation of capabilities and competitive forces, the implementation should be made. As it relates to banking, this evaluation is where decisions are made either to expand into new markets or to meet customer satisfaction. Data Gathering Rural Bank of Bayombong, Inc. is very particular with collection matters as per required by the Bangko Sentral ng Pilipinas. Although they are currently using Effective Collection System considering the primary credit factors or the so-called, 5Cs which stands for Collateral, Capacity, Capital, Character and Condition.

There are technical requirements for interconnected mobile banking The technical requirements must be presented in order for two mobile systems to be inter connect. This means the ability of a subscriber in one system to be able to send money (preferably in real-time) to another subscriber on the other system.

Both systems must be able to do the following:

Adhere to the same message routing strategies. It is essential that the payment instruction issued on the one system should travel to the correct destination system and then that the actual target account be identified. This is not a simple problem as the routing should cater for multiple accounts associated with the same telephone number. Banking systems use the concept of a BIN to route payment systems, Telco systems use international dialing codes and operator codes (or look-up tables if number portability has been implemented). Which one of the two should banking systems use?

A mechanism to clear the transaction and ultimately settle the transfers must be implemented in the same way by both systems. This is not a trivial issue as clearing and settlement creates all kinds of liabilities that must be analysed properly and catered for in the selected system. Reconciliation and detection (and correction) of discrepancies are also important.

One of the most difficult interconnect problems is the schema for the management of uncompleted transactions. This type of situation would occur when the originating system did not get a confirmation nor a decline message from the destination system. The resolution of such conflicts are extremely complex. The design of roll-backs, pending transactions etc. is not trivial.

Reporting systems must be agreed on. Technical handshakes, unavailability of one of the systems and consideration like load management (because of the potential huge volumes) must be well defined in order for the solution to work. (mbanking blogspot.com)

*A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When depositing money, the merchant receives cash and the system credits the client's bank account or mobile wallet. In the same way the client can also withdraw money at the merchant: through exchanging sms to provide authorization, the merchant hands the client cash and debits the merchant's account Mr. Raymond Estioko of the Central Bank of the Philippines (BSP), on the other hand, presented on the mobile phone banking and mobile money transfer regulatory environment in the country. According to him, with the countrys over 7,000 islands, there is a need for alternative channels to communicate and transmit money and financial services. Thus, the BSP allowed for an enabling regulatory environment for mobile money in the Philippines.

Software Development Test Run of the Software Training of users Objectives To offer innovative services such as deposit, withdrawal, loan payment, remittances and payroll for the purpose of providing a more convenient way for our

borrowers to transact business with the bank and with great consideration to data security and borrowers information confidentiality. Project Management
This section must include presentation and discussion of the following: Management structure of the project team Organizational structure to which the project team is attached Specific functions/roles of the each member of the project team Schedule of workdays/man days per project team

Project Implementation
This section must include the following: ** Regulatory approval from Central Bank, Regulatory approval from GXI, Schedule (in tabular form) of the activities, duration, pre-requisite activities, required inputs per activity, expected outputs/output indicators (please refer to the logical framework if you have prepared one for your project) Work breakdown structure (presented as chart) of the schedule of activities or deliverables

Processing requirements for accreditation: (Must be

an RBAP member bank ,Staff must have attended and completed the RBAP Mobile Phone Banking Training, With CAMELS rating of at least 3.0 ,With certified results of Users Acceptance Test (UAT) ) Accreditation Procedure: a) Download the accreditation forms and documents from this website b) Submit the following accreditation forms and requirements to RBAP: BSP Requirements: Bank Application to Offer GCASH Services (filled-up and signed, Certified by the President of the Bank and Notarized) Users Acceptance Test (UAT) Result GXI Requirements: Implementing Agreement (all pages must be signed), NonDisclosure Agreement with Terms and Conditions (all pages must be signed), Annexes to the Implementing Agreement (all pages must be signed), Attach the following documents: Bank Application Form (filled-up and signed) Batch Registration File (filled-up and signed) Articles of Incorporation (photocopy) By-Laws and SEC registration (photocopy) Secretarys Certificate or Board Resolution indicating authorized signatories for GCASH transactions (filled-up and Signed) Latest Income Tax Return Company ITR (photocopy) Latest Audited Financial Statements (photocopy) Settlement Bank Agreement-BPI Account if BPI is the settlement bank (filled-up and signed)

Globe Telecom Requirements (for mobile phone line subscription): Mobile Service Agreement MSA Form (filled-up and signed), Any billing sent in the company/bank name at least 2 months from the date of submission (photocopy) , Any Valid ID of the authorized representatives indicated in the secretarys certificate (photocopy) , c) Perform Users Acceptance Test (UAT) procedures within 30 days from the date of activation of your GCASH wallet d) Submit UAT Result to RBAP
Responsibility matrix (which is consistent with the schedule of man days or workdays as presented in Project Management Section) Project network (either in the form of Gannt Chart or CPM) Resource scheduling, if your project will be using one specific resource for all activities

Project Cost
Present direct and indirect costs of the entire project. Present cost per work package. The total of all work package costs must be equal to the total project cost

Project Impact M-Banking allows Rural Bank of Bayombong, Inc. to expand their reach to communities too small or too remote to justify a branch. It provides a cost-effective means to support bank services. It is timely, because people nowadays prefer doing things on-the-go than doing things the old way. RBBI is highly responsible to introduce innovative services in a most convenient way which minimizes time, cost and effort to the clients who are from far flung places. Like Kasibu, Ambaguio, Malabing, etc. Providing customer needs will meet customer satisfaction therefore, increase productivity. Bank service like Text a Payment improves efficiency of collection performance because it makes operations much simpler. Many banks are shifting from its old, manual process to a new trend to gain competitive advantage. It heightened corporate social responsibility with regards to security and trust as the major concerns of client. Questioning, Can they trust the bank with their mobile money payment? Is sending the money via the GCASH platform secure, and will it in fact reach the bank? Based on Bangko Kabayan experience, the clients are slowly beginning to trust the SMS receipts that they get upon sending money to the bank, but

they still insist on having a record of their transactions updated in their passbooks. The clients still also appreciate having face-to-face interactions with the bank officers, who still come to visit the community once or twice a month to answer questions, establish relationships, offer loans, and open new savings accounts. Project Sustainability
Describe how the business/operations will continue after the completion of the project. Discuss how stable the project team is in implementing the project and how stable is the organization is (in terms of structure and priorities) to continue operation after the project is completed. Discuss also whether the environment is protected.

Project Monitoring and Evaluation Risk Management A. Data Security Contingencies: network monitoring, security measures (firewall, intrusion detection and protection system), highly skilled system and network admins and staff) B. Technical failure Contingencies: back up system (server mirroring, RAID system), database back up, fail-over and redundant network system C. Hardware failure
Develop and present in this section, the contingency plan that shows risk identification, risk assessment/analysis and risk management plan. The cost of these risks must also be part of the accounting/estimation of project costs in the earlier section

(CHALLENGE) clients resistance to culture change, breaking clients habits and encouraging them to embrace the new technology.
(HURDLES in developing rural mobile phone banking) regulatory approval for banks, regulatory approval for GXI, Security concerns, arrays of text a services.

Discuss in this section the monitoring system for the project (which will be implemented within the duration of the project. This must include the activities to be done, the reports to be prepared, the sources of information for these reports, and the frequency of these activities or report submission. Presentation in chart form is acceptable)

 Develop and present in this section a monitoring report form that will be accomplished by the project team. Develop an evaluation system for assessing the impact of the project after at least one year of its completion. The impact/outcome indicators must be consistent with those identified in the earlier sections. Using a logical framework will be most useful Develop and present in this section an evaluation form that the organization will use in assessing the projects impact to the organizations operation and goals.

8. You will then receive a confirmation message. The bank will also receive a confirmation message with the same Transaction Reference Number. Important: Save/take note of the Transaction Reference Number found on the confirmation message. This will serve as your electronic receipt or proof payment. Borrowers Payment must be made before 3:00 PM. All payments received after cut-off time will be considered for next banking day transaction. INTERVIEW: 1. How it works? Requirements needed 2. Qualification of

A. Methodology: The methodology that will work perfectly is the qualitative method. It deals with a new process of improving the bank services in terms of loan management in a rural banking environment. The existence of similar system in some commercial banks and other financial institutions such as GSIS, SSS and Pag-ibig fund are evidences of the feasibility of this project. It is important to note that as of this writing no rural banks in the Philippines has implemented this type of project. Modern web technologies, network facilities, and enterprise resource planning systems provides a high degree of implementation success. The continuously rising

volume of Internet users, service coverage and quality, and the peoples increasing demand for on-line services adds more value to this project both for the Bank and its clients.