case presentation - information and communication technologies in microfinance
DESCRIPTION
Gadwin Handumon discusses the way Paglaum Multipurpose Cooperative has utilised information and communication technologies in Misamis Occidental (Jan 30, PACAP Community Development Forum: Microfinance Amidst the Global Financial Crisis).TRANSCRIPT
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Microfinance Development Microfinance Development ForumForum
Amidst Global CrisisAmidst Global CrisisJANUARY 29-30,2009 @ CROWNE PLAZA, ORTIGAS AVE. COR. ADB AVENUE, PASIG CITY
“GAINING CONNECTIVITY, INNOVATIVE
TECHNOLOGIES… IN MICROFINANCE”BY: MR. GADWIN E. HANDUMON
General Manager
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Outline of the Presentation
I. Glimpse of Paglaum and its Geographical Location
II. Brief Description of Partnership with AusAID-PACAP
III. Innovations using Information Communication Technology
IV. Significant Impact
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MisamisOccidental
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55
66
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LINKAGES & PARTNERSHIP
PAGLAUM MULTI-PURPOSE COOPERATIVE WAS ADJUDGED AS MOST OUTSTANDING COOPERATIVE IN THE PHILIPPINES ON THE“COOP-LGU
PARTNERSHIP AWARDS 2006”
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PARTNERSHIP:PARTNERSHIP: PHILIPPINES-AUSTRALIA PHILIPPINES-AUSTRALIA COMMUNITY ASSISTANCE COMMUNITY ASSISTANCE
PROGRAMPROGRAM
99The FOCAS AreasThe FOCAS Areas PACAPPACAP
Iligan BayIligan BayFOCASFOCAS
Mt.
Malin
dan
gM
t. M
alin
dan
gFO
CA
SFO
CA
S
Save Labo Save Labo RiverRiverFOCASFOCAS
Coco IndustryCoco IndustryFOCASFOCAS
NN
1010
1111
1212Project LaunchingProject Launching
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ROLE OF PAGLAUM MICROFINANCE ROLE OF PAGLAUM MICROFINANCE IN REACHING OUT TO RURAL IN REACHING OUT TO RURAL
COMMUNITIESCOMMUNITIES
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Programs and ServicesPrograms and Services
LOANS:LOANS: * Regular Loans * Regular Loans * MAP (Micro-Assistance Program) * Medal PangNegosyo* MAP (Micro-Assistance Program) * Medal PangNegosyo * SSS Pension Loan* SSS Pension Loan * Disconnection Loan * Disconnection Loan * Rice Loan * Barangay Officials Livelihood Assistance Loan (BOLA)* Rice Loan * Barangay Officials Livelihood Assistance Loan (BOLA) * Market Vendors Assistance Loan * Market Vendors Assistance Loan * Express Loan * Express Loan * Spare Parts Loan* Spare Parts Loan * Micro Solar Energy Loan * Micro Solar Energy Loan * Loan Against Deposits* Loan Against Deposits * MICROFINANCE LOAN* MICROFINANCE LOAN
-Micro-Regular Loan-Micro-Regular Loan -Micro-Agri-aqua Loan -Micro-Agri-aqua Loan>Project Loan>Project Loan >Production Loan>Production Loan >Medical Loan>Medical Loan >Refinancing Loan>Refinancing Loan>Housing Loan>Housing Loan >Livestock Loan>Livestock Loan>Rice Loan>Rice Loan >Farm Mortgage Loan>Farm Mortgage Loan>Disconnection Loan>Disconnection Loan >Fishing/ Farming Equipment >Fishing/ Farming Equipment >Educational Loan>Educational Loan Loan Loan
SAVINGS:SAVINGS: * Regular Savings * Youth/Kiddie Savings * Progressive Savings Deposit * Time Deposit * Fixed Deposit * Pinoy Coop ATM
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Programs and ServicesPrograms and ServicesSpecial Project: Business Dev’t CenterSpecial Project: Business Dev’t Center*Ticketing Services*Ticketing Services *Unlimited Printing*Unlimited Printing*Loading/ reloading *Loading/ reloading *Scanning & Laminating*Scanning & Laminating*Internet Café services*Internet Café services *Encoding *Encoding *Photocopy & Reproduction Center *Photocopy & Reproduction Center *Western Union*Western Union*NCASH Card*NCASH Card
INSURANCE:INSURANCE:* * CLPP (Coop Loan Protection Plan)CLPP (Coop Loan Protection Plan)*MYRACL (Member Yearly Renewable Accident-Life Burial *MYRACL (Member Yearly Renewable Accident-Life Burial
Services)Services)*GADD & D *GADD & D (Group Accidental Death, Disablement & Dismemberment)(Group Accidental Death, Disablement & Dismemberment)*Non-life Insurance (FICA, Vehicle, Fire)*Non-life Insurance (FICA, Vehicle, Fire)*Family Group Insurance*Family Group Insurance*MMAF (Member Mortuary Assistance Fund)*MMAF (Member Mortuary Assistance Fund)*MMF (Member Mortuary Fund)*MMF (Member Mortuary Fund)
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Farm Level Grains Center(FLGC) -Farm Level Grains Center(FLGC) -IIIIII
A One-Stop-Shop service for the farmers wherein PMPC initiated the so-called “ICO” initial coop offering- wherein an ordinary Farmer can invest his/her P 10.00 for this community project (FLGC) this was made possible thru a collaborative efforts of the Gov’t Agencies : DA, NFA, LGU, Cooperators, & Community.
SERVICES OFFERED:* Palay Marketing
* Computerized Mechanical Dryer
* Solar Drying* Rice Milling*Trucking Services*10,000 bags
warehousing capacity
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PAGLAUM LABORATORY COOP PAGLAUM LABORATORY COOP for Children and Youthfor Children and Youth
1818SHS Roof SHS Roof MountedMounted
SHS Pole Ground SHS Pole Ground MountedMounted
Solar Home System InstallationSolar Home System InstallationHelps provide light to off-grid areas through MICRO-SOLAR Energy
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MFI for IPs
SHEG
PWD
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PAGLAUM SITUATIONER
The numerous programs & services serving the vast number of membership using the traditional simple financial transactions will limit the advancement of the cooperative.
Paglaum acknowledged its limited technical capacity so that it has tapped experts on delivering ICT’s as a service
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COOPERATIVE ISSUES:COOPERATIVE ISSUES: Difficulty inDifficulty in
Reaching remote coop Reaching remote coop membersmembers
Creating consolidated Creating consolidated reportsreports
Standardizing coop Standardizing coop processesprocesses
Members Accounts Mgt. Operations Updates
• Technical Limitations on– System database size– Inter-branch connections– Account access
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INNOVATION: INNOVATION: INFORMATION INFORMATION COMMUNICATION COMMUNICATION TECHNOLOGYTECHNOLOGY
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ADOPTION OF MICROBANKING ADOPTION OF MICROBANKING SYSTEMSYSTEM
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Microbanking System -Resolved!
INSTITUTION: Strengthen Security &
Control Automatic data recovery With system audit trail Real time & fast
transactions At par with other financial
institutions
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GENERAL MEMBERSHIP: Updated records Well-disciplined in terms
of repayment Computerized passbook printing Increase savings generation Transparency on members’
record Boosts members’ morale
Microbanking System -Resolved!
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MAINSTREAMING MFI THRU ATMMAINSTREAMING MFI THRU ATM
AS OF DEC. 31,2008: RANKED 224 IN TERMS OF SWITCH TRANSACTIONS OUT OF 3,315 MEGALINK CONNECTED
NATIONWIDE
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ATM new kick of service to MFIsLinking with banking institutions
Literacy
Easy & Wide Access
Image Building
Poorest to step on the eco-ladderCommunications & Transportation
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One Card Network / Western UnionOne Card Network / Western Union For MFIs:
Better personal cash management Easy bills payment Card to card transfer benefits Mobile top up discounts Mobile retailer package
For PMPC: Increase membership Adds revenue to cooperative Easy information access Added service offered to members Easy disbursements of funds Global market reach and presence
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PAGLAUM PARTNERS WITH A GIANT PAGLAUM PARTNERS WITH A GIANT COMPANY FOR COMPANY FOR CONNECTIVITY CONNECTIVITY
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PMPC Head Office
PLDT – IPVPN PLDT – IPVPN
A retail solution that links all the coops branches A retail solution that links all the coops branches to its head office, enabling them to electronically to its head office, enabling them to electronically
monitor its business transactions, any time of monitor its business transactions, any time of the day.the day.
Pagadian Branch
Calamba BranchCalamba Branch
Oroquieta Branch
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MFI ONLINE MARKET NAVIGATION MFI ONLINE MARKET NAVIGATION
Expanding market reach thru Expanding market reach thru KIVA.orgKIVA.org
PAGLAUMPAGLAUM CLIENTCLIENT
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$
$
$
Approve & Disburse Loan
Post client data on
Kiva
Receive 0% bulk loan from Kiva
Note the delinquencies + final impact
Repayments deducted from
new loans
Social Investor "funds" client
profiles
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BEATING THE BARRIERS:BEATING THE BARRIERS: *UNCONNECTED ISLAND OF *UNCONNECTED ISLAND OF
INFORMATIONSINFORMATIONS *INVESTMENTS- HIGH UPFRONT *INVESTMENTS- HIGH UPFRONT
COSTS COSTS *LACK OF IN-HOUSE *LACK OF IN-HOUSE
TECHNICAL EXPERTISETECHNICAL EXPERTISE *EDUCATING GRASSROOT- *EDUCATING GRASSROOT-
MEMBERS ON INNOVATIONSMEMBERS ON INNOVATIONS *SUPPORT MECHANISMS IN *SUPPORT MECHANISMS IN
DEVELOPMENT & DEVELOPMENT & MAINTENANCEMAINTENANCE
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Significant Results in the Significant Results in the OperationsOperations
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
Hu
nd
red
s
1992 35 0 2,000.00 0 2000
1999 983 1,443,462 1,779,396 5,641,356 13,552,040
2008 25,833 48,609,653 42,272,771 122,117,835 170,467,671
membership Savings CBU Portfolio Asset
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Significant Results in the Significant Results in the OperationsOperations
MEMBERSHIP MEMBERSHIP GROWTH GROWTH
187%187%
SAVINGSSAVINGSGROWTH GROWTH
62%62%
CAPITALIZATIONCAPITALIZATIONGROWTH GROWTH
171%171%
PORTFOLIO PORTFOLIO GROWTH GROWTH
105%105%
ASSETASSETGROWTH GROWTH
128%128%
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This is a call to eradicate poverty and develop the community thru people’s
empowerment
We offer you partnership withPaglaum Multi-Purpose Cooperative
& Paglaum Community Development Foundation
Incorporated
3737Daghang Salamat!Daghang Salamat!