To complement Mobile Phone Banking Services

To increase loan portfolio To provide flexible payment facility to

clients without credit cards

objectives

Signed MOA last July 11, 2008 Partners: Nokia, Altus, Presnet &

Megacellular Launched in pilot branches last August

2008 Pilot Branches: Ibaan, Batangas,

Mabini Rolled out to other branches last

September 2008 At present: 217 clients, sold 349

cellphones, disbursed P3.1M in loans

Brief History

Process Flow

An Account Officer (AO) offers the product to an eligible borrower

AO computes for maximum loanable amount.

AO prepares a Notice of Loan Approval (NLA) in triplicate.

AO keeps a copy of the NLA. The 2 other copies will be given to the Nokia retailer hand carried by the client.

Client presents NLA to retailer.

Own-a-

Nokia

Cellphone

Loan

Retailer

NLANLANLANLANLANLA

Client picks a cellphone and signs Sales Invoice.

Retailer verifies identification of client by asking for an ID and calling the BOH.

Retailer keeps both copies of NLA.

Retailer sends billing statement, sales invoice and one copy of NLA to the bank.

Bank processes the loan release. Bank deposits loan proceeds to the account of the retailer.

Retailer issues an OR once payment is received.

Retailer

BillBill

S.I.S.I.

NLANLA

Number of clients & cellphones sold

0

10

20

30

40

50

60

70

Aug Sep Oct Nov Dec Jan Feb Mar

Clients

Phones

Loans disbursed

0.00

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

Aug Sep Oct Nov Dec Jan Feb Mar

More than 70% of clients are individual MF borrowers. Regular loan clients may have access to cheaper financing through credit cards.

Clients prefer mid-range models.

Reason for purchase is for personal use.

A good number of clients buy more than 1 cellphone.

observations

Easy & simple terms

Affordable

No documentary requirements

Quick processing

Feedback from clients

Simple process flow

Low risk because offered to borrowers with existing relationship

Good marketing tool (incentive for good borrowers)

Feedback from bank

3 branches cannot participate due to lack of nearby retailers

Effects of business slow down felt at the start of the year

Repair of cellphone

Areas of concern

Support & Strategy of Branch Manager and Account Officers

Location of Retailer

Cooperation from Retailer

Marketing Collaterals

Factors of success