For the average Filipino, sending money to or receiving money from a loved one based in another part of the country used to be a major production.
The sender had to look for a reputable remittance center, prepare the amount they planned to send, and factor in the service fee, which could range from 3.5 percent to close to 10 percent of the total amount.
Once the money was remitted and the recipient informed, he or she had to commute to the nearest center—which could take anywhere from 30 minutes to an hour away—to accept the money. To go home, they would have to take public transport, an additional expense.
“We are talking about people who need every peso of their hard-earned money,” said Xavier Marzan, chief executive officer of TrueMoney Philippines.
Since it started operating in the country 10 months ago, TrueMoney now has approximately 5,000 centers or partner agents, “with the opportunity to put one TrueMoney center in each of the country’s 40,000 barangays,” he said.
The Thailand-based company is the largest and fastest growing financial life platform in the region. From one market 18 months ago, TrueMoney is now present in six emerging markets in the region: Thailand, Vietnam, Indonesia, Myanmar, Cambodia and the Philippines.
TrueMoney’s investors include Thailand’s C.P. Group, one of the largest conglomerates worldwide; the Ascend Group, an e-commerce company in Thailand; Alibaba Group, a Chinese e-commerce site; and Ant Financial Services Group.
Marzan said that TrueMoney’s mission is to provide access to financial services, particularly for the unserved and the unbanked.
Everyday transactions
“If you look at the markets we’re in today, they are the ones where majority of the population is unbanked. In the Philippines, that’s anywhere from 70 to 80 percent,” he said. The term “unbanked” refers to adults who do not have their own bank accounts, and who may rely on alternative financial services for their financial needs.
“Right now, we are focused on everyday transactions like cash remittances, bills payments and mobile reloading but at affordable rates for the average Filipino.”
Marzan listed two value propositions he hopes will entice Filipinos to try the services offered by TrueMoney: affordability and accessibility.
“Unlike other remittance centers that charge as much or even higher than 10 percent of the total amount, TrueMoney’s fee is 2 percent,” he said.
“We want to be located in residential areas so we’re closer to our market. This way, senders or receivers don’t have to travel so far. They can simply go to their suking tindahan or sari-sari store.’”
Partner stores
The 5,000 TrueMoney centers are easy to spot because of their bright orange signs that incorporate the stores’ names. Instead of simply limiting branding to the signage, even storefronts will be covered in bright orange.
“We’ve only been operating in the country for less than a year but we’ve already built a distribution network of 5,000 TrueMoney centers,” Marzan said.
He assuaged concerns about security, saying that TrueMoney has a “very robust system. We’re regulated by the Bangko Sentral, hence we’re run like a bank.”
Each TrueMoney center will have a handy and dedicated POS (point of sale) system that will track and print receipts for each transaction. Marzan admits that since the company is the new kid on the block, they need to develop awareness.
“We have planning events and activations to help our target market trial the service. The trust in the brand will come from the customer experience. ‘Is it easy to use? Is it secure enough? Will my remittance go through and will my loved one receive the money?’ Once that happens, we expect more regular transactions.”
Marzan is optimistic. Aside from affordability and accessibility, they’ve got approachability down pat with TV host Boy Abunda voicing the two 30-seconder radio commercials, one in Tagalog, the other in Cebuano.
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