6. Challenges Facing
Rural Banks
Offering
Microfinance
Services
High Need for
Growing Demanding Product
Competition Operating Clients
Costs Diversification
7. Opportunities in 2010
NEW REGULATIONS TO
SUPPORT MICROFINANCE
Housing Microfinance Circular
Micro Agri Circular
Approval of Cash-in Cash-out
outlets for GCASH (virtual M
-Banking ATM network)
Microinsurance Circular
8. Housing Microfinance (Circular 678)
PURPOSE
House Construction, House and/or Lot
acquisition, Home improvement/Repairs
LOAN AMOUNT
- Up to P300,000 for House and/or Lot
- Up to P150,000 for Home Improvement
TERMS
- Up to 15 years for house construction and
house and/or lot acquisition
- Up to 5 years for home improvement/repairs
9. Housing Microfinance (Circular 678)
INCENTIVES
Compliance with agri-agra mandate
Eligible for rediscounting with the BSP
Assigned risk-weight of 0-50%
Alternative collateral substitution allowed
10. Micro-Agri (Circular 680)
PURPOSE/TERM
- Short term purposes only of up to 12 months
ELIGIBILITY
- Clients with multiple income generation activities
LOAN AMOUNT
Up to PhP150,000
PAYMENT
- Frequent amortization (weekly/monthly)
- Up to 40% lump sum payment can be considered
11. BSP APPROVES LARGEST CASH-IN AND
CASH-OUT NETWORK
Bank coordinates with
GXI for AutoLoadMax
Dealers to provide
Cash-Out functions
12. BSP Circular on Microinsurance
Rural and thrift banks approved to
market, sell & service microinsurance
Opens up microinsurance as an allied
undertaking
Rural banks have the potential to
attract and serve millions of customers
13. RBAP-MABS Helping RBs
Beat the Challenges &
Achieve Success in 2010
OACH
MA BS APPR
NS
MICRO-AGRI REVISIO
MICROINSURANCE HOUSING
SERVICES MICROFINANCE
AN MOBILE PHONE
ATI NG LO
AUTOM ATIONS BANKING
APPLIC
14. MABS APPROACH TRAINING
& TECHNICAL SERVICES
Product Development Modular Course
Market Research (Toolkit & Survey Forms)
Product Development (Manuals & Procedures)
Loan Administration & Management (Pilot)
Operations Review
Offered by MABS Service Providers
Punla Sa Tao
ARMDEV
MICRA Philippines
15. MABS Loan Application Revisions
Objectives:
Improve loan processing efficiency
Updating the MABS Approach training
materials to enhance processing
efficiency
Streamlining the forms for CIBI and
cashflow analysis
16. Automated Loan Applications &
Documentation
Manual
Loan
System
Automated
Loan
AOs
manually
prepare
System
loan
forms
New
technology
can
Time
consuming
automate
and
reduce
Poten6al
for
errors
6me,
errors,
and
costs
Incomplete
loan
forms
Costly
17. Automated Loan Applications &
Documentation
Cost
of
PCs
for
the
field
Netbooks
–
price
(as
low
as
9k)
Automated
soCware
can
make
loan
processing
faster
&
more
efficient
Loan
documenta6on
(CIBI,
cash
flow)
Credit
scoring
Regular
and
special
surveys
18. THE POWER OF AUTOMATION
Internet
1
Field officer gathers information on
site and sends the results to the
branch via the Internet
2
Field officer gathers information on
site then travels back to the
branch to upload the results
19. RBs Offer the Following Mobile Phone Banking Services…
Loan Payment
Payroll
Deposit
Servicing
Client
Bills Payment Withdraw
Send Money
Reload Airtime
(Remittances)
Loan Release
Microenterprise Access to Banking Services Program www.mobilephonebanking.rbap.org
20. Mobile Phone Banking
PERFORMANCE & ACCOMPLISHMENTS
No. of Accredited Rural Bank Outlets = 886
RBs registered over 70,000 clients & processed
over 5 Billion in GCASH transactions
21. Mobile Phone Banking
ON-GOING EVENTS
Mobile Phone Banking Marketing Program
Mobile Phone Banking & GCASH
Accreditation Training
February 17 in Clark
March 3 in Tagaytay
March 17 in Cebu
22. Mobile Phone Banking
PLANS & FUTURE DEVELOPMENTS
Continuing support and promotion of
SMS Alerts service for rural banks
Support savings mobilization study
with Yale University & IPA
To create more incentive programs to
drive volume and habituate users to
use MBanking and increase fee-based
income of the rural banks
23. Housing Microfinance
BSP’s new circular encourages banks to
offer housing microfinance loans.
Market analysis shows high demand for
home improvement
Pilot tested new housing microfinance
products in 2009
Now ready for rolling out to interested
and qualified banks
24. Housing Microfinance
Pilot Test Results
Indicator
No.
of
Branches
40
No.
of
Borrowers
Outstanding
756
Loan
PorQolio
Balance
PhP
17.3
M
Cumula6ve
No.
of
Loans
970
Disbursed
Cumula6ve
Amount
Disbursed
PhP31.2
M
PAR
30
2.19%
25. Housing Microfinance Client Green Bank
1st Loan Window Grills 2nd Loan Room Partition
Next Loan Room
3rd Loan Ceiling
Renovation
26. Housing
Microfinance Client
Cantilan Bank Client
A group loan client for 5
yrs.
Housing loan of PhP50K
leveraged P50k client has
put in to complete house
Business: sarisari store;
buy-sell seafood
27. Micro-Agri Loan
Loan amounts based on cash flow &
capacity vs. per hectare analysis
Regular amortization payments
55 RB branches
40,000 loans over PhP520 million
17,500 small farmers reached
28. Micro-Agri Clients
Rustom Embudo, MAP client of RB Talisayan, under
the amortized-balloon payment scheme, 3rd loan
cycle, Php14,000.00 - poultry
Regerio Arreza, MAP client of Cantilan
Bank under the Amortized-Balloon
payment scheme, 7th loan cycle,
Php13,000 -rice farming
Winnie Laanan, MAP client of Valiant Bank, under
the straight amortization payment scheme, 5th
loan cycle, Php50,000 - piggery
34. RBAP Partner Micro-Insurance
Providers
LIFE INSURANCE COMPANIES
Ayala Life Assurance, Inc. (now BPI PhilAm)
Country Bankers Life Insurance Corp.
PhilAm Life General Insurance Company
Philippine Prudential Life, Inc.
Pioneer Life Insurance
United Coconut Planters Life Assurance Corp. (CocoLife)
NON-LIFE and COMPOSITE COMPANIES
Malayan Insurance Company, Inc.
INTERMEDIARIES
Assistance Alliance International, Inc.
MicroEnsure Philippines