Rural Banks engaged in Microfinance Plan for Market Expansion

DSCN3148Thirty-six bank officers and staff of eighteen rural banks from Luzon, Visayas, and Mindanao participated in the Market Expansion Training conducted by the USAID-supported Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program last September 12-13 at the RBAP Conference Room in Intramuros, Manila.

The two-day training was designed to assist participating rural banks to understand various strategies and appropriate tools to enable them to expand their market outreach. So that each bank could identify what type of strategy to pursue for its expansion, a combination of lecture, workshop and case study analysis was employed. The types of microfinance expansion strategies presented were customer segmentation, product diversification including new approaches to micro-deposits, micro agricultural lending and housing microfinance as well as geographic expansion through the establishment of micro banking offices.

Mr. Gerardo Butardo, Acting Deputy Director for MSME Finance Specialist Group of the BSPParticipants were also guided on the procedures and rules issued by the Bangko Sentral ng Pilipinas (BSP) in relation to applying for and operating micro banking offices.  Mr. Gerardo Butardo, Acting Deputy Director for MSME Finance Specialist Group of the BSP, clarified issues and pertinent questions regarding BSP Circular 694 on the establishment of other banking offices which can be used by banks to expand the outreach of microfinance products and services.

The RBAP-MABS program has assisted more than 100 rural banks with more than 1,100 branches and other banking offices to expand their outreach to more than 900,000 cumulative microfinance borrowers and more than 1.4 million outstanding microdeposit clients.

See presentations on Market Expansion Modules, Market Expansion through Micro Deposits, Product Diversification, Mobile Phone Banking, Savings Mobilization Expansion, Savings Mobilization Strategies, Micro-finance Banking Offices and BSP Circular 694 on the establishment of OBOs.