Promoting its initiatives and taking part in enlightening young minds, the USAID-supported RBAP-MABS team conducted a seminar on “Microfinance Innovations for the Base of the Pyramid” last February 26 for the Ateneo De Manila University audience.

Presenting to a group of students, professors and practitioners in microfinance and mobile technology, the presentation focused its discussion on their innovations applied to microfinance services for rural banks in the Philippines, emphasizing the need for market-driven product innovations to expand outreach.

The presentation introduced the MABS program’s innovative approaches especially in housing microfinance, micro-agri, and microinsurance. It also highlighted various technological applications such as e-learning and credit processing through Internet-enabled netbooks. MABS presenters stressed how an automated approach to loan processing can significantly reduce processing time, improve data accuracy, and enhance credit/cashflow analysis leading to better lending decisions and more efficient operations.

Finally, MABS presented its mobile phone banking applications and approaches to branchless banking, underscoring the pioneering efforts of Philippine telecommunication companies particularly Globe and Smart.  Both telecom operators have introduced the first e-money platforms in the world that have been used by rural banks and other MFIs to facilitate microfinance and mobile phone banking services. The importance played by the enabling regulatory environment, especially the role of the Bangko Sentral ng Pilipinas (BSP), was also highlighted.  Several new circulars issued since the start of 2010 to support housing microfinance, micro agri lending, and microinsurance as well as the approval to allow GXI to expand their cash-in and cash-out network were presented as concrete examples of the BSP’s commitment to support innovation and the expansion of microfinance services of rural banks.