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.