owens rbap presentation nov 2011
TRANSCRIPT
New Developments & Future Directions
for Rural Banks offering
Microfinance
54th RBAP Charter SymposiumNovember 10-11, 2011
RBAP-MABS ProgramProviding technical assistance and training
to rural banks in microfinance best practices since 1997!
@15!
RBAP-MABS Participating Banks
• 100 participating rural banks
• 1,100 bank branches & OBOs
PERFORMANCE HIGHLIGHTSKey Indicators As of Sept-2011
Cumulative No. of New Borrowers
> 900,000
Cumulative Amount of Loans Disbursed
> PhP 37 B
Total No. of Micro-deposits > 1.45 M
Total Volume of Micro-deposits
> PhP 2 B
RBAP-MABS Activities
Technical Initiatives and Training in microfinance best practices
Enhancement of ICT Systems to support microfinance operations
Microfinance Products and Services
Local & International linkages
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110
50,000
100,000
150,000
200,000
250,000
300,000
0
500
1,000
1,500
2,000
2,500
85 1,90510,185
22,26633,587
45,216
72,315
89,137
139,454
184,933
203,964
223,125
246,016 249,579
0 7 53129 225
317
525
632
921
1,468
1,603
1,696
1,963
2,028
Micro-Loans Performance Indicators 1998 - June 2011
No. of Active Micro Borrowers Outstanding Micro-Loan Portfolio Balance (in Millions)
No
. o
f A
cti
ve
Bo
rro
we
rs O
uts
tan
din
g
Mic
ro-L
oa
n P
ort
foli
o B
ala
nc
e (
in M
illi
on
s)
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
0
500
1,000
1,500
2,000
2,500
482 11,601
197,146
349,459
482,488523,713
771,799
835,469
1,170,669
1,280,994
1,424,1111,458,905 1,437,370 1,446,772
0 12
171
336
541
567
1,002
1,104
1,578
1,688
1,831
1,930
2,023
2,059
Micro-Deposits Performance Indicators 1998 – June 2011
No. of Micro Depositors Outstanding Amt. of Micro Deposit Balance (in Millions)
No
. o
f M
icro
-De
po
sit
ors
Am
ou
nt
of
Mic
ro-D
ep
os
it B
ala
nc
e (
in M
illi
on
s)
Factors Affecting Banks
What is your market niche?
10
Households
Enterprises
Children
Employees
Utility companies
Fishermen
Farmers
Out-of-town Workers
Teachers
Wider Consumer Choices
Multiple Borrowings & Over-indebtedness
More Discriminating Borrowers & Savers
Microinsurance
ATM Cards
Addressing the Needs of your Market
TRADITIONAL PRODUCTS
MicrofinanceSalary LoansCommercial LoansAgriculture LoansDeposit ServicesRemittancesBill Payments
NEW PRODUCTS
Housing MicrofinanceMicroinsuranceCash CardsATM servicesMicro-Agricultural LoansMoney Transfer ServicesMobile Phone Banking
Inclusive Regulations enabling Greater Outreach
MICRO BANKING OFFICES
• Micro Deposits (deposits/withdrawals)
• Micro Loan Disbursements and Collections
• ATMs• Electronic Money
Cash-in and Cash-out services
• Bill payments• Remittances• Government
Payments• Utility Payments
Circulars in 2010: 694
HOUSING MICROFINANCE & MICRO AGRI LOAN PRODUCTS
small loan amounts
alternative forms of collateral
character & cash flow-based
regular amortization
short-to longer-term (for housing)
*/CGAP
MicroSavings
MicroSavings
MicroSavings
WIN P500
BE THE FIRST TO TEXT YOUR NAME AND EMAIL
ADDRESS TO
0-917-848-MABS
New Technologies & Channels
Widespread Mobile Banking Technologies
SMS Banking
Mobile Money Platforms
•Card-less Mobile Money Platform •Now linked to an ATM card•Co-branded with rural banks•Payments•Money Transfer•Mobile Banking
•Card-based Mobile Money Platform•Instant Smart Money Card •MasterCard Debit Card•Payments•Money Transfer•Mobile Banking
“Toys are hooks for selling Happy meals as mobile payments or mobile transfers are
hooks for selling a depository relationship” Qasif Shahid MCB
Today, Rural Banks Can Offer the Following Mobile Phone Banking
Services…
Lower Cost of Technology
Use of Card-based &ATM Banking
Use of Third-Party Networks
Are you using Social Networking &
Crowdsourcing to expand your market
outreach?
Rural Bank Responses Market trend responses
o Product diversificationo Customer retention programso Introduce payment services
Competitive responseso Use MBOso Introduce micro-deposits & mobile money transfer to ‘up-sell’ other
products/servicesUse third-party networks to outsource
KYC & market bank services
Rural Bank Responses New Technology Adoption
Deploy Cash/Debit Card, Mobile Phone Banking, and “Agent” Channels
Upgrade Core Banking Solutions
Utilize the Power of Social Networks
Things to watch out ...
1. Pricing Transparency – Tiered Pricing
2. Credit Bureaus 3. Leverage Technology 1. Outreach
2. Competition 3. Efficiency
4. Social Networks - Crowdsourcing
M a r a m i n g
S a l a m a t !!!Email:
Websites:www.rbapmabs.org
www.mobilephonebanking.rbap.orgmicroinsurance.rbap.org
www.youtube.com/rbapmabs Facebook:MABS Phil