The tie-up will make money transfers or remittances and bank transactions as simple as "texting" and will also bring thousands of mobile phones to the countryside at give-away or subsidized rates.
The aggreement will allow banks to sell mobile phones that are extremely low rates through the rural banks, and the bank clients can tap the same bank for a loan to pay for the mobile unit.
As of presstime, 129 banking units (43 head offices and 86 branches) have already enrolled in the program to market mobile phones.
"The number of units that the rural banks can and will sell can easily reach the thousands a year," William K. Hotchkiss III, RBAP president said.
Each unit will cost between P3,000 to P6,000 depending on the unit model. Initially, the units to be distributed are Nokia, Sony Ericsson and Motorola mobile phones.
Lizanne Uychaco, Globe vice president for the wireless group, said that the units are passed to the rural banks at subsidized prices.
"We want these to be affordable to the farm- and fisherfolk nationwide," Uychaco added.
The Globe official also stressed that the company continues to roll out cellsites to meet the growing demand especially in the Visayas and Mindanao.
RBAP officials meanwhile said that with the Globe alliance or program, overseas Filipino workers (OFWs) can inform through short messages system (SMS) or text their remittances to their relatives in the Philippines.
The relatives can then remit or get their money through the rural banks enrolled in the program.
The alliance offers services that promote efficiency by reducing collection efforts, as well as savings to borrowers who have to travel far to pay their loans at the bank. This is particularly magnified in the case of rural folk who have to travel long distances.
"With better efficiency and savings, rural banks are starting to reduce the interest rates and service fees they charge to small borrowers who make their payments using Text-A-Payment," RBAP officials noted.
G-Cash turns a mobile phone into an electronic wallet. It is an accessible and easy way to send and receive remittances locally or from abroad; buy goods and services over-the-counter or remotely; pay bills such as power, water, insurance, and even taxes; load cellphone airtime credit and allows for easy transfer from one person’sphone to another.