Nick Foley, Fexco Philippines vice president for strategic partnership, shows how the small plug and play device works as a micro ATM. Also in photo is Fexco Philippines chairperson Ann Chan-Foley. |CDN Digital Photo/ Irene R. Sino Cruz)
CEBU CITY–Rural banks and micro, small and medium enterprises (MSMEs) can now earn additional income by offering withdrawal services through EasyDebit.
EasyDebit is the country’s first-ever withdrawal solution launched by Fexco Philippines in December 2017. It allows customers to withdraw cash using their ATM cards at any locally accredited merchants, instead of having to travel to an ATM.
Rural banks that can’t afford to have their own ATMs and MSMEs can now provide debit or withdrawal services to those who have accounts with other banks by using EasyDebit plug and play device connected to the internet.
Accredited merchants who have a revolving fund could use this to earn through the convenience fee charged to customers, instead of just placing this in the bank where it would earn less than one percent interest, said Nick Foley, Fexco Philippines vice president for strategic partnership.
Fexco’s EasyDebit aims to help the goal of Bangko Sentral ng Pilipinas for financial inclusion, said Ann Chan-Foley, Fexco Philippines chairperson.
“We knew that we can do so much more to address the inherent need of so many Filipinos for financial services,” Chan-Foley added.
She explained that Fexco’s aim was to serve as a bridge between Filipinos, who have little access to financial services, and banking institutions.
“Through EasyDebit, we are tackling this problem head on with accessible technology. This is fintech at work. This is accessible innovation,” Chan-Foley pointed out.
In the Philippines, there are around 20,000 ATMs for the 82 million local ATM cardholders. But 34 percent of the municipalities in the country have no bank presence and 11 percent has no financial access point.
Accredited merchants and rural banks can offer EasyDebit services to ATM cardholders through a low-investment, easy-to-install device, explained Foley.
During the media roundtable held Friday, September 27, 2019, he demonstrated that it would only take little time to withdraw from one’s account using the ATM and the device.
Fexco first introduced EasyDebit through homegrown banks in Mindanao, like Cantillan Bank.
According to Chan-Foley, they see huge potential in Visayas-Mindanao areas, as there are 70,000 MSMEs in the Visayas and 100,000 in Mindanao.
Since Fexco introduced EasyDebit, the company had experienced 200 percent year-on-year growth in transactions, she said.
With four months still left before the year ends, Chan-Foley disclosed the transactions has reached P1.5 billion.
The device, which is plug and play and us easily replaceable, costs P11,500 that also includes marketing collaterals.
Fexco is also looking at expanding the services of EasyDebit. It will soon offer a payment solutions that would help promote cashless transactions.
“Our vision of accessible innovation is focused on making technology that transforms lives,” Chan-Foley said.
Fexco Philippines would focus on developing services and products that will serve as catalysts of progress and development, she said. /elb