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USAID Officers Get Hands-on Briefing on Mobile Phone Banking Services

Officers of the United States Agency for International Development (USAID) were given a firsthand briefing on the mobile phone banking initiative of the USAID-supported Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program during a visit with partner bank, PR Savings Bank’s Ortigas Branch on August 11, 2011. The officers included Science & Technology Adviser to the Administrator Alex Dehgan, Environment Officer Kerry Reeves, Teresa Leonardo, Global Climate Change Advisor, and Contracts Officer Technical Representative Teresita Espenilla.

The team was provided with a presentation outlining the Program’s mobile phone banking initiative. As of May 2011, there are some 71 accredited rural banks with over 1,100 branches and other banking offices that are registered to offer mobile phone banking services utilizing the GCASH platform.  These banks have served over 256,000 mobile phone banking clients and customers and have processed more than PhP 12 billion ($ 250 million) in …

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BSP’s New Rules on Interest Rates Promote Transparency

The new rules by the Bangko Sentral ng Pilipinas (BSP) (Circular No. 730, Series of 2011) that seek to promote transparency in loan prices by requiring all banks to charge interest based on the outstanding balance of a loan at the beginning of an interest period, and to quote the effective interest rates of loan products in their loan documents and marketing materials. The new rules will take into effect on 1 July 2012.

According to BSP, loan pricing transparency will protect consumers, promote healthy competition, and enable smooth and orderly functions of the entire financial system. This new policy will be applied to all institutions that offer credit in the Philippines including credit NGOs, credit cooperatives, lending investors, pawnshops, as well as banks.

To allow banks and other microfinance institutions to better understand their effective interest rates, MicroFinance Transparency has launched Transparent Pricing Initiative for the Philippines.  The aim …

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Rural Banks at the Forefront of Financial Inclusion

During his keynote speech at the Inaugural Dinner of the Rural Bankers Association of the Philippines (RBAP) last August 4, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr recalled the journey of the two institutions in pursuance of advancing the rural banking sector and expanding financial services through innovative channels to more Filipinos.

Governor Tetangco noted that only five years ago, products and services offered by rural banks were limited. The recent BSP’s Circular 678, 680 and 683 are now allowing rural banks to expand products and services to serve even more clients than ever before. These circulars recognize micro-housing loans, micro-agri loans and microinsurance as products that are suitable for low-income market. In addition, Circular 694 now allows rural banks to expand their outreach through cost-efficient channels such as the establishment of other banking offices (OBO) and micro-banking offices (MBO). Also, Circulars 649 and 704 will also open

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Microfinance changed their lives

Malaya Business Insight – CEBU CITY—Ten years ago, Marcosa Igot and Carina Gonato were just plain housewives of factory workers. Now, together with their husbands and families, they are running their own business, earning hundred of thousands of pesos a month.

Both are recipients of microfinance loans.

From a small industry a decade ago, there are now about 202 local banks who have granted over P7.3 billion in microfinance loans to more than 1 million microentrepreneurs, latest data from the Bangko Sentral ng Pilipinas (BSP) said.

These microentrepreneurs, in turn, have generated employment in their local communities and saved about P3.6 billion in bank deposits.

Pia Roman-Tayag, head for Financial Inclusion Department of the BSP, said the central bank recognizes that microinsurance is a worthy policy objective, something that can be pursued alongside the promotion of stability and efficiency in the financial system.

An inclusive financial system is one where …

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Microinsurance Basic Training Batch 7 conducted by RBAP with the Metro Manila Federation

Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program assisted Rural Bankers Research and Development Foundation Inc. (RBRDFI) conduct the seventh (7th) batch of rural banks for the two-day Microinsurance Basic Training Course last July 14-15, 2011. This qualifies the represented rural banks to apply for Microinsurance Agent licensing with the Insurance Commission and the Bangko Sentral ng Pilipinas (BSP).

Organized by the Metro Manila Federation under the leadership of Mr. Davidson Pascual, the largest Microinsurance Basic Training was attended by thirty-three (33) participants comprised of officers, managers and front liners from thirteen (13) rural banks from Metro Manila and its peripheral municipalities. The RBAP MI Training employed a mix of group workshops and simulation activities that kept the trainees engaged and active.

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Participants listened as Ms. Liamzon-Miller delivers her message during the training

RBAP training for rural banks covers the fundamentals of microinsurance selling, marketing and …

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RBAP-MABS links rural banks, insurers, MSPs, and ATM and m-banking partners in “speed networking” activity

Throughout its more than  12 years of working to strengthen the Philippine microfinance industry, the USAID-supported RBAP-MABS program has sought innovative methods not only in microfinance product and service delivery, but also in training methods on how to sustain best practices and maintain strong business partnerships.

At the 2011 National Roundtable Conference held in Manila on May 23-24, RBAP-MABS, for the first time, employed a “speed networking” approach to facilitate networking among rural banks and other microfinance partners so as to nurture relationships and explore partnerships and business opportunities. RBAP-MABS brought together partner rural banks, insurance providers, MABS service providers (MSPs), and ATM and m-banking partners in the activity.

About Speed Networking

“Speed networking” is a social and business networking event “based on speed dating and a Jewish tradition of chaperoned gatherings of young Jewish singles, originally intended to keep Jewish singles from marrying out of faith”. (See source: European …

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Mobile Phone Banking and New Technologies: Providing New Channels to Serve Clients Better, Faster, and 24/7

Alternative ways of delivering banking services are changing the way rural banks are servicing their clients. Not only that, these innovations are also helping the Philippine Government reach families at the bottom of the economic pyramid.

During the 2011 RBAP-MABS National Roundtable Conference, rural banks shared how technology has been useful to them in expanding microfinance services.  As of May 2011, more than 160,000 rural bank clients have processed more than PhP10 billion (US$220 million) in mobile phone banking transactions via the GCASH platform.

Banking practices have been evolving and expanding coverage geographically, as well as in terms of network, client base, and products and services being offered to clients.  Mobile phone banking services were first introduced to rural banks through an effort promoted by the RBAP-MABS program back in 2004.

From left: Lt. Gen. William Hotchkiss III (Ret.) of Cantilan Bank, Ms. Ma. Cecilia Tanael of the Rural Bank of Mabitac, and Ms. Cynthia Rudinas of First Valley Bank

From left: Lt. Gen. William Hotchkiss III (Ret.) of Cantilan Bank, Ms. Ma. Cecilia Tanael of the Rural Bank

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More Rural Banks in Leyte Complete Microinsurance Basic Training Course

Twenty-one (21) bank officers, managers and staff from sixteen (16) rural bank members of the Leyte-Samar-Biliran Federation completed the Microinsurance Basic Training Course conducted by USAID-supported Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program and Rural Bankers Research and Development Foundation Inc (RBRDFI) on July 29, 2011. The training course is an initial requirement for a rural bank’s application as Microinsurance Agent licensed by the Insurance Commission and the Bangko Sentral ng Pilipinas. The course participants also successfully completed the qualifying examinations administered at the end of the course, which may qualify them as Microinsurance Soliciting Officers.

The Leyte-Samar-Biliran Federation, led by Federation President Rosario Ong Veloso, threw in their full support, making the course the most attended by rural banks since the course was launched in January 2011. This training brings to ninety (90) the total number of rural banks that have been trained in …

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2011 MCPI Conference highlights collaboration for responsible microfinance

Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program helped facilitate two sessions of the 2011 Microfinance Council of the Philippines Inc. (MCPI) Conference last July 28-29 at the Hyatt Hotel Manila. The conference themed, “Making a Difference: Multi-Stakeholder Action towards Responsible Microfinance” aims to promote responsible financial products and practices while addressing global pressing issues and challenges to microfinance.

On the first day of the conference, RBAP-MABS Chief of Party John V. Owens facilitated a session on Avoiding Over-indebtedness with Ms. Mila Bunker, President of Ahon Sa Hirap Inc. (ASHI) and Chairperson of MCPI. The session discussed the causes of over indebtedness and proper ways to conduct credit investigation and cash flow analysis. In particular, these would prevent a borrower from taking in more loans beyond their capacity to pay – a financial practice known as multiple borrowings. The practice of multiple borrowings was also examined …

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Updates on the BAP-Credit Bureau

Mr. Leonilo ‘Topper’ Coronel, Managing Director of the Bankers Association of the Philippines Credit Bureau (BAP-CB), presented the private credit bureau’s latest changes and activities to participants of the 2011 RBAP-MABS National Roundtable last May 23-24 in Manila. He shared the latest developments in the effort of BAP-CB and a consortium of microfinance institutions’ (MFIs) to build a responsive credit information system for the microfinance sector. (see Philippine Star article)

He reported the over 60% growth in the number of participating rural banks from 28 to 46 in May 2011, attributing this increase to the BAP-CB’s efforts to reach out to rural bank federations in the country, and the assistance of the USAID-supported RBAP-MABS Program.

He also underscored the enhancements in the bureau’s Negative File Information System (NFIS) particularly its accessibility via the Internet, which allows the credit bureau to automatically process requests on a daily basis, even on non-working …

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