Banks seeking to use a mobile app that promises to enable them to expand their businesses without building any physical branches, are required by the Bangko Sentral ng Pilipinas (BSP) to obtain a special license, the BusinessMirror reported.
The app’s developer Black-Genie, a Singapore-based company, claims their solution allows banks to not spend on bricks and mortar branches and that all a lender needs are a $200 tablet, a $40 card reader and a $60 printer, tops. Private banks noted building physical branches typically cost in excess of P10 million per branch.
Backed by Japan-based SBI Group, and the Dutch development bank FMO, Black-Genie is said to be in the advanced stages of negotiation with some of the largest universal and commercial lenders in the country, although its founder and CEO Ramkumar Sarma would prefer that thrift and rural lenders get the app for themselves and give the big banks a run for their money.
Sarma said he learned 67 perc cent of Filipinos are without bank accounts, and are effectively barred access to the formal financial system that helps perpetuate their state of penury.
“These people need to be brought in. If excluded, they will remain poor,” Sarma said.
Featured image via Pixels
