Download MABS April 2010 Highlights
.
April 2010 Highlights
April 30, 2010 By Leave a Comment
Philippines to lead in mobile commerce, expert says
April 19, 2010 By Leave a Comment
As the texting capital of the world averaging more than two billion text messages a day, the Philippines is predicted to become the leader in mobile commerce.
John Owens, a well-known microfinance expert who serves as chief of party to Microenterprise Access to Banking Services, said with around 76 million mobile phone subscriptions in the Philippines, it is more than double than all the country’s bank accounts of 33 to 34 million. He said that potentially today people can be provided with financial services just by using the phone.
“Mobile commerce reaches all levels of society. From those who are considered the unbank (people with no bank accounts), to rural household where the whole infrastructures putting ATMs, and physical bank networks won’t reach — the mobile phone does,” Owen said, adding there are tremendous opportunities being seen worldwide about the growth of the mobile commerce industry, especially MMS (multimedia messaging service) which is now reaching almost half of the globe’s population.
As the texting capital of the world averaging more than two billion text messages a day, the Philippines is predicted to become the leader in mobile commerce.
John Owens, a well-known microfinance expert who serves as chief of party to Microenterprise Access to Banking Services, said with around 76 million mobile phone subscriptions in the Philippines, it is more than double than all the country’s bank accounts of 33 to 34 million. He said that potentially today people can be provided with financial services just by using the phone.
“Mobile commerce reaches all levels of society. From those who are considered the unbank (people with no bank accounts), to rural household where the whole infrastructures putting ATMs, and physical bank networks won’t reach — the mobile phone does,” Owens said, adding there are tremendous opportunities being seen worldwide about the growth of the mobile commerce industry, especially MMS (multimedia messaging service) which is now reaching almost half of the globe’s population.
FAIR Bank takes another step towards expansion through MABS
April 18, 2010 By Leave a Comment
MABS visited First Agro-Industrial Rural Bank (FAIR Bank) in Cebu on April 12-17 to review its Housing Microfinance (HMF) Product and provide technical assistance for the development of its planned microinsurance services.
MABS has been working with the bank during the past few months in its campaign to expand its services and outreach by incorporating products such as HMF and microinsurance in its portfolio. The bank has also been focusing on strengthening its overall microfinance services and expanding these services throughout its 12-branch network.
This visit included an evaluation of the bank’s current HMF product procedures and operations manual, as well as the re-alignment of strategies and practices to ensure effective HMF implementation. MABS also worked with the bank’s officers in enhancing its staff and client orientation materials for microinsurance, which are to be pre-tested for effectiveness in the coming months. Further, MABS assisted the bank and their new insurance partner in reviewing upcoming plans to improve the efficiency and simplification of FAIR Bank’s upcoming microinsurance service. The team provided support by facilitating application and simplifying the product’s claims procedures.
MABS visited First Agro-Industrial Rural Bank (FAIR Bank) in Cebu on April 12-17 to review its Housing Microfinance (HMF) Product and provide technical assistance for the development of its planned microinsurance services.
MABS has been working with the bank during the past few months in its campaign to expand its services and outreach by incorporating products such as HMF and microinsurance in its portfolio. The bank has also been focusing on strengthening its overall microfinance services and expanding these services throughout its 12-branch network.
This visit included an evaluation of the bank’s current HMF product procedures and operations manual, as well as the re-alignment of strategies and practices to ensure effective HMF implementation. MABS also worked with the bank’s officers in enhancing its staff and client orientation materials for microinsurance, which are to be pre-tested for effectiveness in the coming months. Further, MABS assisted the bank and their new insurance partner in reviewing upcoming plans to improve the efficiency and simplification of FAIR Bank’s upcoming microinsurance service. The team provided support by facilitating application and simplifying the product’s claims procedures.
RBAP-MABS holds Housing Microfinance Product Development Workshop
April 17, 2010 By Leave a Comment
Fourteen (14) participants from six RBAP-MABS participating banks returned to the training room on April 14-16 for the second module of the Housing Microfinance (HMF) Product Development Workshop.
Held in continuation of the HMF market research training on March 3-5, this module allows the participants to complete the development of their housing microfinance loan product, draft their manual and business plan, and prepare an action plan for pilot testing their respective loan product in the next six months.
During the workshop, Cantilan Bank Accounts Management Head Eric Mendiola imparted the bank’s experiences and lessons learned in implementing its loan product “HOME” over the past year. Cantilan Bank is one of the pilot test banks in the housing microfinance initiative supported by the RBAP-MABS Program.
“Housing microfinance is one of the best products for helping poor people get a descent shelter, but commitment to proper implementation is key”, Mr. Mendiola shared. “Clients who have received loans for home improvement have been motivated to make their loan payments. Most of them plan on getting succeeding loans for the other home improvements,” Microfinance Product Head Leandro Luengas added.
The MABS training team guided the participants on using the information from the market research in developing their loan product as well as in drafting the product manual, preparing the financial projections and business plan.
Green Bank’s branch in Subangdaku hosted the facilitation of an actual focus group discussion to train the participants on how to manage a focus group discussion. This exercise also demonstrated the value of validating the product design in dialogue with clients.
Bangko Sentral ng Pilipinas (BSP) Circular 678 issued on January 6 this year recognizes loans for housing to microfinance clients as part of a wide range of financial services to the sector. Rural Bankers Association of the Philippines President Joseph Omar Andaya thanked USAID/Philippines for their continued support of the RBAP-MABS Program and for working with rural banks to develop new products and services such as housing microfinance. Since the pilot test phase, over 1000 housing microfinance loans totaling more than PhP35 million have been disbursed by RBAP-MABS participating rural banks. Portfolio-at-risk levels have remained below 3% on average.
Fourteen (14) participants from six Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) participating banks returned to the training room on April 14-16 for the second module of the Housing Microfinance (HMF) Product Development Workshop.
Held in continuation of the HMF market research training on March 3-5, this module allows the participants to complete the development of their housing microfinance loan product, draft their manual and business plan, and prepare an action plan for pilot testing their respective loan product in the next six months.
Rural banks and micro-insurance
April 15, 2010 By Leave a Comment
Manila Times - The Rural Bankers Association of the Philippines (RBAP) has long been actively advocating for member rural banks to partner with private local insurance companies to provide needed affordable insurance products for their microfinance clients. Rural banks would act as information disseminators and collection agents of the insurers who are mostly based in urban centers and rarely venture into rural areas.
The recent signing of Republic Act 10001, which reduced taxes on life insurance premiums, paves the way for more affordable life insurance products. Under this new law, the tax rate for total premiums collected has been scaled down to 2 percent from the previous rate of 5 percent, as stated in Section 123 of the National Internal Revenue Code of 1997. The new law also provides for a revised documentary stamp tax scheme.
With the prices of life insurance policies expected to go down, more Filipinos can now afford to purchase life insurance. This supports rural banks’ venture into micro-insurance in promoting increased access to affordable and demand-driven products for rural communities where very few insurance companies are present.
This will give farmers and micro entrepreneurs that belong to the base of the economic pyramid social protection in case of a peril or tragedy. This is the proverbial rod that rural banks can hand to the poor in order for them to hold and pull themselves out of the poverty cycle they are in.
The recent signing of Republic Act 10001, which reduced taxes on life insurance premiums, paves the way for more affordable life insurance products. Under this new law, the tax rate for total premiums collected has been scaled down to 2 percent from the previous rate of 5 percent, as stated in Section 123 of the National Internal Revenue Code of 1997. The new law also provides for a revised documentary stamp tax scheme.
With the prices of life insurance policies expected to go down, more Filipinos can now afford to purchase life insurance. This supports rural banks’ venture into micro-insurance in promoting increased access to affordable and demand-driven products for rural communities where very few insurance companies are present.
This will give farmers and micro entrepreneurs that belong to the base of the economic pyramid social protection in case of a peril or tragedy. This is the proverbial rod that rural banks can hand to the poor in order for them to hold and pull themselves out of the poverty cycle they are in.
