Access to Financial Services in Russia and RMC's
Branchless Banking Strategy
Mikhail Mamuta
President
www.rmcenter.ru | www.rusmicrofinance.ru
RMC Strategy for Financial
Inclusion and Microfinance
Development (2008-2011)
RMC Strategy’s become an important component of the
overall Policy & Advocacy and a solid foundation for the
continued policy reform in 2009 – 2011
While started to develop it in 2007 we based our approach
on research of situation with Financial Inclusion in Russia
www.rmcenter.ru | www.rusmicrofinance.ru
Regional Disproportions in
Banking: strong reason for
changes
Access to financial services in
regions averages:
4% 8%-12%
of that in Moscow
in 2011
in 2007
www.rmcenter.ru | www.rusmicrofinance.ru
Social issues: strong reason to
go ahead quickly
50
Size of a group, mil people
40
Rural population
30
Poor people
20
Micro and small
Self -
business
entrepreneurs
10
0
0 1 2 3 4 5
Social priority level
www.rmcenter.ru | www.rusmicrofinance.ru
RMC Financial Inclusion
Key Priorities
Development of microfinance institutions: both MFOs and financial
cooperatives
«Banking agents»: delivering a wide range of financial services with
adequate regulations
Use of agents in Brazil (120 thousand bank agents in 5000 bank
offices and branches) and agent regulation in Mexico (5-level risk-
based approach)
E-money (as a broadly available method of micropayments and
remittances)
A citizen ID card with banking application (ambitious project: plans
to issue 100 million cards for 4 years).
www.rmcenter.ru | www.rusmicrofinance.ru
Branchless Banking: Measures
Implemented in 2009-2011
Federal law № 103-FZ from 2009 on Acceptance of Payments
from Individuals by Payment Agents; amendments of the Law on
Banks and the AML/CTF Law
Set a $500 cap on
Determine the status of Expand the range of transactions without
bank agents and payment agent-assisted opening a bank account
agents (MFI could become transactions (less KYC that do not require KYC
agents) constraints) (80% of all
micropayments)
www.rmcenter.ru | www.rusmicrofinance.ru
Project «Designing an
innovative model for regulation
and supervision of bank
agents»
Implemented by the Ministry of Economic Development in collaboration with the
MOF, the Central Bank and RMC with the AFI’s support
www.rmcenter.ru | www.rusmicrofinance.ru
Innovations in Agent
Banking regulation
Regulations: a regulatory framework for bank agents to enable agent-
assisted provision of a maximum range of banking services, including
remittances and payments without opening a bank account, cash
deposits, operations with e-money and opening deposit accounts for
natural persons via agents.
The right to carry out KYC on behalf of banks for AML/CFT procedures
Functionality: MFO and credit cooperatives as bank agents
(«Microfinance supermarkets» - convenience and more options for
customers: microloans, savings, payments and remittances )
www.rmcenter.ru | www.rusmicrofinance.ru
Innovations in E-money
regulation
Supervision: supervisory requirements for e-money operators based
on the principles of proportional supervision. Establish performance
standards which explicitly take into account the qualitative
difference between e-money operators and conventional credit
institutions, ie limited range and low volume of transactions.
Functionality: MFI can provide access to e-money and e-payments
as banking agents. From the other hand, costumers can do a
microloan’s repayment via mobile phones or internet using e-money
www.rmcenter.ru | www.rusmicrofinance.ru
Just some examples of
implementation:
MFI as providers of payment cards (in place: 5 participants)
Air and train E-tickets projects: MFI can sell E-tickets getting extra
agent’s fee. Moreover, they can provide microloans to buy E-tickets if
needed (in place: 10 participants)
Repayment of microloans via payment terminals and mobile wallets (in
place: about 20 participants)
MFI as payments and remittances’ points (designing)
Micro business use «E-wallets» for settlements with suppliers and
employee, the same as consumers. This is much cheaper and
convenient for all the sides rather than regular banking (designing)
E-wallets filling-in via MFI (designing)
«On-line»lending: microloans to E-wallets and mobile-wallets (new
model of microfinance with a huge potential (piloting)
www.rmcenter.ru | www.rusmicrofinance.ru
Main Challenges
The 2009 financial and economic crisis: less demand for bank transfers
and cards in favor of hard cash
Lack of skills in MFIs: they need a strong partner - specialist in payment
and remittance services, and they also need staff training
MFI nightmare: they are mostly afraid of banks... And it makes sense
sometimes!
Technology upgrade: MFIs need high-speed broadband and better
computers
Regulatory barriers: still hinder project implementation, but we expect to
have a better policy environment
www.rmcenter.ru | www.rusmicrofinance.ru
Fund «Russian Microfinance Center»
107031, Moscow, Petrovka str., 15/13, building 5, office 500
Tel./Fax: E-mail:
+7 (495) 258-87-05, info@rmcenter.ru
+7 (495) 258-68-31,
+7 (495) 258-87-09