Download MABS January 2010 Highlights
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January 2010 Highlights
January 31, 2010 By Leave a Comment
RBAP-MABS gears up to support expansion of micro agri lending
January 27, 2010 By Leave a Comment
In light of the BSP’s approval of micro-agri lending expansion last week, the Rural Bankers Association of the Philippines (RBAP) Microenterprise Access to Banking Services (MABS) Program is gearing up to support the extension of this product among all qualified RBAP member rural banks.
Supported by the United States Agency for International Development (USAID), the RBAP-MABS Program has been promoting a unique agricultural financing approach, which follows the lessons learned from more than a decade of microfinance lending in rural communities. It provides technical assistance and training to develop rural banks’ capacity to profitably offer microfinance products and services for microentrepreneurs, small farmers and low-income households. While RBAP-MABS does not provide loan funds or guarantees, it supports savings mobilization and commercial sources of capital and investment to finance and support sustainable microfinance services. [Read more...]
BSP expands coverage of micro-agri loan
January 27, 2010 By Leave a Comment
Small farmers may soon tap any bank for their funding needs after the Bangko Sentral ng Pilipinas (BSP) allowed all banks to offer micro-agri loans.
BSP Governor Amando M. Tetangco, Jr. told reporters on Friday the Monetary Board, the central bank’s policy-setting body, has agreed to permit all banks to offer micro-agri loans, instead of limiting this service to rural banks participating in the Microenterprise Access to Banking Services (MABS) program.
MABS, which receives funding from the United States Agency for International Development, is assisting the Rural Bankers Association of the Philippines (RBAP) expand member-banks’ financial products and services.
The central bank would issue a circular formalizing the new rule this week.
“In January 2006, the Monetary Board approved the RBAP-MABS micro-agri loan product and classified this as a microfinance loan. This [product] was limited to RBAP-MABS banks. What we are doing now is to extend this to all banks… following prescribed conditions and standards,” Mr. Tetangco said.
Philippine Star - The Bangko Sentral ng Pilipinas (BSP) will soon allow all banks to provide microfinancing to the agriculture sector as part of efforts to spur lending in the countryside, BSP Governor Amando Tetangco Jr. said over the weekend.
This as the BSP is expanding the existing program with the Rural Bankers Association of the Philippines (RBAP) dubbed as the Microenterprise Access to Banking Services (RBAP-MABS).
The policy-making Monetary Board approved last week the expansion of the credit program to include all other banks, mostly rural banks that were not part of the previous program.
“It was a limited program but now it will be open to all,” Tetangco told reporters.
Under the program, banks will provide small agricultural farmers these microfinance loans or the so-called high-frequency loans because of the frequent payment schemes. Loan amortization can be as frequent as weekly or monthly.
Read the complete article on Philippine Star online.
RBAP plans for big time mobile phone banking services expansion this 2010
January 26, 2010 By Leave a Comment
The Rural Bankers Association of the Philippines (RBAP) projects a substantial increase in mobile phone banking services this year as G-Xchange, Inc. (GXI) plans to activate Globe Telecom’s nationwide sub distributer network of over 18,000 cash-in and cash-out outlets.
Combined with the mobile phone banking services developed by USAID-supported RBAP-MABS program, this will provide the rural banks with a virtual ATM network that more than doubles the current count of about 8,000. “We see this as an opportunity to leapfrog the rural banking sector’s outreach in the countryside and we are gearing up to accomplish this in 2010,” said RBAP President Joseph Omar Andaya.
RBAP also has an application pending with Bangko Sentral ng Pilipinas to utilize its own closed-loop merchant network. This network will provide cash-in and cash-out locations for RBAP banks’ clients in areas that the sub distributor network does not reach. “We are confident that we can seek approval this year from the BSP to significantly expand our outreach to not only our clients but to also provide banking services to the under-banked and unbanked sector,” President Andaya added.
Since 2004, the RBAP-MABS Program has been in partnership with GXI in the development and implementation of mobile phone banking applications and mobile commerce services for rural banks and their clients. More than 885 rural bank branches and other banking offices of more than 60 rural banks are now offer mobile phone banking services from the comfort of their homes, businesses, or just on the road. These services include Text-A-Payment for loan payments, Text-A-Remittance, Text-A-Deposit, Text-A-Withdrawal, and Text-A-Sweldo for salary services for local companies. The accredited rural banks also offer GCASH Remit, a GXI product that allows for remittances locally or abroad, with all sending fees paid by the remitter.
Mobile phone banking transactions within the rural banking sector grew by 45% in 2009. Since 2006, the cumulative amount of mobile phone banking transactions in the accredited rural banks already exceeded 5 billion pesos as of December 2009. RBAP also has a pending application within the BSP to offer Smart Money Money-In and Money-Out services and expects to receive approval soon. “This is definitely going to be the year that mobile phone banking services in the rural banking sector reach new milestones.”
The Rural Bankers Association of the Philippines (RBAP) projects a substantial increase in mobile phone banking services this year as G-Xchange, Inc. (GXI) plans to activate Globe Telecom’s nationwide sub distributer network of over 18,000 cash-in and cash-out outlets.
Combined with the mobile phone banking services developed by USAID-supported RBAP-MABS program, this will provide the rural banks with a virtual ATM network that more than doubles the current count of about 8,000. “We see this as an opportunity to leapfrog the rural banking sector’s outreach in the countryside and we are gearing up to accomplish this in 2010,” said RBAP President Joseph Omar Andaya. [Read more...]
RB Angeles holds first Microfinance Credit Committee Meeting
January 25, 2010 By Leave a Comment
Having completed the MABS Approach training and technical services course, Pampanga-based Rural Bank of Angeles (RBA) is now offering microfinance loans to microenterprise clients in various markets in Pampanga. The bank held its first Microfinance Credit Committee meeting and released its first wave of loans in January to jumpstart its microfinance operations.
According to RBA President Robin King, the bank believes that “the MABS Approach to Microfinance emphasizes basic banking principles of knowing your customer well; finding out what their financial needs are; and in micro-lending, making sure that cashflow supports the loan structure rather than any form of collateral or support,”
He added that “based on market surveys in the areas where RBA branches are located, there appears to be a good market for microfinance. … RBA is intent on tapping this market extensively before venturing out to other areas.”
With the support and expertise provided by its new management and its innovative approaches to using technology in improving its efficiency, the Rural Bank of Angeles is laying the foundation to expand microfinance services in Pampanga and surrounding areas. RBA decided to ensure that microfinance services, both loans and deposits, will be one of the main drivers for the bank.
“There are a lot of potentials and opportunities in microfinance; and that is why the Asia United Bank has invested in the ownership of RBA and attendant resources in people, infrastructure and capital to ensure that it can benefit from these opportunities over time,” Mr. King said.
Having completed the MABS Approach training and technical services course, Pampanga-based Rural Bank of Angeles (RBA) is now offering microfinance loans to microenterprise clients in various markets in Pampanga. The bank held its first Microfinance Credit Committee meeting and released its first wave of loans in January to jumpstart its microfinance operations.
According to RBA President Robin King, the bank believes that “the MABS Approach to Microfinance emphasizes basic banking principles of knowing your customer well; finding out what their financial needs are; and in micro-lending, making sure that cashflow supports the loan structure rather than any form of collateral or support,”
He added that “based on market surveys in the areas where RBA branches are located, there appears to be a good market for microfinance. … RBA is intent on tapping this market extensively before venturing out to other areas.” [Read more...]
