1. Market Expansion through Microfinance-Banking Offices (MBOs) September 12-13, 2011 RBAP Conference Room, RBAP Building Intramuros, Manila

2. Outline Planning for Success Market Research Modeling an MBO Using MicroPinoy for Financial Projections Piloting MBO operation Completing the BSP requirements Organizing the MBO

3. MBO Expansion Steps

5. Accept loan applications and conduct preliminary credit evaluation as well as perform credit admin support services;

6. Host on-site automated teller machines (ATMs)

9. Accept check deposits of microfinance clients for collection and credit deposit accounts;

10. Disburse/release proceeds of micro-loans and collect loan amortization and related charges;

11. Present, market, sell and service microinsurance products in accordance with existing regulations;

12. Receive/pay out funds in connection with authorized remittance transactions;

13. Act as cash/money in and cash/money out for electronic money (e-money) transactions;

14. Collect premiums/pay out benefits from/to members of social security institutions such as GSIS, SSS, Philhealth, ECC and other gov’t authorized pension and benefit system;

15. Pay-out benefits under gov’t- sponsored conditional cash transfer schemes;

16. Accept utilities payments; and

19. It shall have a maximum on-site cash limit not exceeding P500,000 per day, commensurate to its level of banking activities;

20. It shall have adequate physical facilities and security arrangements as well as information and transaction support system;

21. It shall be managed by responsible officer with adequate experience or training in MF activities;

23. Letter of Intent Template Date ___________ Mr. Nestor Espenilla, Jr. Deputy Governor Bangko Sentral ng Pilipinas Through: Central Application and Licensing Group Supervision and Examination Sector Dear Governor Espenilla: We are respectfully expressing our interest to convert to Microbanking Offices (MBOs) the OBOs listed in Table 1, in accordance with BSP Circ. 694 and Memorandum No. M-2010-040. (If banks wants to retain OBOs that will do non-transactional functions, add this paragraph) We have also indicated in Table 2 the bank’s existing OBOs that will retain their non-transactional functions. We are also attaching copy of the previous Board approvals for the establishment of the OBOs. We look forward to your favorable consideration of our request and permission to proceed to Stage 2 for the preparation of the Business Plan. Thank you very much. Very truly yours, Name Designation Attach.: Tables 1 & 2

24. Process in Establishing an MBO Stage 2: The bank is required to submit a business plan containing the strategic and operational details that will contain the results of the thinking process and analysis within the bank. ( See template for Strategic and Operational Plan for Micro-Banking Offices (MBOs)

25. Thank you!