THE MICROFINANCETHE MICROFINANCE DATA SHARING SYSTEM DATA SHARING SYSTEM

(MiDAS)(MiDAS)

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RBB Foundation

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What is MiDAS?

Data Sharing System that allows MFIs to submit reports, send inquiries and retrieve results on borrower information.

In other words, this is the Microfinance Credit Bureau.

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Jan 2012Jan 2012onwardsonwards

FebFeb20112011

MarMar

AprApr

MayMay

SeptSept

• Planning Conference in IloiloPlanning Conference in Iloilo

• MOU Signing and Finalization of Terms MOU Signing and Finalization of Terms Of ReferenceOf Reference

• MiDAS Application Development MiDAS Application Development

• Launching of Pilot PhaseLaunching of Pilot Phase

• MOA MOA Signing, and Signing, and Road showsRoad shows

• Final review and acceptanceFinal review and acceptance

The MiDAS Journey

• Review and finalization Review and finalization of MOA of MOA

DecDec

Technical Working Group composed of senior representatives from 6 MFIs agreed on definitions, scope, reports, desired service levels by first week of March

6 MFIs signed an MOU with RBB FOUNDATION as project manager on behalf of the MFIs and BAP-CB as service provider

First subsystem of MiDAS is the BARIS (Borrowers At Risk Information System)

The MiDAS Journey

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• Individual Level• Barangay Level

– List all BAR in a given barangay as reported by participating MFIs as of a certain date

– Follow the official list of provinces, cities/municipalities and barangays posted on the website of the National Statistics Coordination Board (www.nscb.gov.ph) which is the primary reference for BAR reporting and BAR search by area.

MIDAS Business Requirements

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Contains only 8 data elements1. Name of MFI2. Name of Borrower (Last Name,

First Name, Middle Initial)3. Birth Date (MM/DD/YYYY)4. Complete Address (no., street,

brgy, municipality or city, province)

5. Regular Loan Outstanding (Income Generating Loan)

6. Other Loan Outstanding

MIDAS Business Requirements

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7. BAR Type - Explanation why borrower is classified as “at risk” based on the definition of client at risk (code applies only to regular loans). In cases where the client does not have regular loan, code applies to other loans.

8. Cutoff date of report of the institution

MIDAS Business Requirements

Value Description01-01 FRAUD – ride on / loan sharing / dummy loans01-02 FRAUD – non remittance of collections01-03 FRAUD – getting commission on loans released of other members02-01 ABSENCE / DISAPPEARANCE03-01 UNDER LITIGATION04-01 WRITTEN OFF ACCOUNTS / BAD DEBT ACCOUNTS05-01 MATURED LOANS06-01 DROP OUT – loan paid by center/group/co-member06-02 DROP OUT – expelled by center member07-01 Restructured loans that incurred at least 2 missed payments w/o valid reason08-01 PAST DUE – reported by Rural Banks99-99 OTHERS

Key Agreements with MiDAS Participants1. Reciprocityo Give = GETo Voluntary vs. Mandatory

2. Confidentialityo Info limited to those who are

authorized w/in the institution3. Retentiono No prescriptiono Obligation to report any

resolution in BAR

Key Agreements with Future MiDAS Participants4. Required Reportso Monthly Submissiono BAR - Categories

BAR TYPE Value Description01-01 FRAUD – ride on / loan sharing / dummy loans01-02 FRAUD – non remittance of collections01-03 FRAUD – getting commission on loans released of other members02-01 ABSENCE / DISAPPEARANCE03-01 UNDER LITIGATION04-01 WRITTEN OFF ACCOUNTS / BAD DEBT ACCOUNTS05-01 MATURED LOANS06-01 DROP OUT – loan paid by center/group/co-member06-02 DROP OUT – expelled by center member07-01 Restructured loans that incurred at least 2 missed payments w/o valid reason08-01 PAST DUE – reported by Rural Banks99-99 OTHERS

Key Agreements with Future MiDAS Participants

5. Ownership and Governanceo Data belongs to participating MFIs

collectivelyo Create an entity to own and

manage MiDAS going forwardo RBB Foundation plays only an

interim role6. Client Waiver

Key Agreements with Future MiDAS Participants7. Cost (Effective October 01, 2012)o Annual Membership Fee – P10,

000 8. Fees

Type of Inquiry

Per person/individual PHP1.00 per inquiry

Per Barangay PHP0.50 per name generated