integrating alternative channels into sme banking … · integrating alternative channels into sme...
TRANSCRIPT
Integrating Alternative Channels into
SME Banking Value Proposition
IFC SME Banking Conference 2013 with AMF
Jumeirah Emirates Towers, Dubai
7-8 May 2013
Teresita B. Tan
President, BPI Globe BanKO
Philippines
The huge opportunity . . .
• With unbanked D & E market
• And the country’s 75% mobile phone penetration
5% 95%
Source: Mercy Corps & BFA 2010
And Smart Telecom website Private and Confidential 2
Private and Confidential 3
. . . Access to Finance 86 Mn active mobile phone
or 75% of Filipinos
11,328 ATMs
50K POS
9,207 bank
offices
26% Filipinos have
access to formal
financial channel
2.2 Mn Overseas
Filipino Workers
send remittance
regularly
610 out of 1634 (37%)
Municipalities have
no banking office
2 Bn SMS
daily
99% mobile
phone coverage
Source: BSP thru Nancy
Llaguno
Private and Confidential 4
. . . Led to a milestone partnership
Ayala Corporation
Bank of the Philippine
Islands Globe Telecom
Involvement in
socioeconomic
development
Banking
excellence,
leadership and
manpower pool
Expertise in
telecommunication
and mass
acquisition
Private and Confidential 5
Creating a Bank for Every Filipino
BPI Globe BanKO Inc.,
is the Philippines’s first mobile phone-based,
microfinance-focused savings bank
primarily serving the unbanked & under-banked
D&E economic class ($2/day earner)
farmer students
tricycle driver
small business
market
sellers
Private and Confidential 6
With services and security like any BANK
Traditional Banks BPI Globe BanKO
• BanKO is also regulated by the Central Bank (BSP)
• BanKO deposits are also insured by Phil Depository Insurance Corp (PDIC)
• BanKO clients get an ATM Card usable at ALL ATMs nationwide
• BanKO ATM Card will soon be accepted at ALL POS nationwide
Delivering via 2K+ Outlets, a “branchless model”
9 BanKO Regional Office
Sari Sari Store 7
Pawnshop
Gas Station
Money Changer
Community Center
MFI or Rural Bank
Drug Store
Private and Confidential 7
Private and Confidential 8
PondoKO
PaniguroKO
Bundled Savings Account Product
PuhunanKO
• Savings Account, the enabling account
• With Free Life Insurance
• Multi-Purpose Loan via mobile
• With 100% backed deposit initially
• Based on scorecard, deposit backing will be reduced
• Voluntary Property Insurance with accidental death rider
• Against Fire, Flood, Earthquake and Lightning
. . . Leads to Mobile Financial Services
Runs Mobile phone even with NO Airtime Load
9 9 Utility
Billers
Sellers
BanKO Partner Outlet
P12.50 vs P70
Free vs P10
No POS device
10% rebate
No docs, no exclusion Avail of Credit
Line like card
Less credit card
Save time, transport
Private and Confidential 10
Security Features
Can use any model of
Mobile phone
SMS confirmation
for all transactions
MPIN is required
for all transaction
Instantly, transactions available
In BanKO Link, web-based
First Factor: “you own” Second Factor – “you know”
Confirmation & ALERTS
Audit Trail, Permanent
Record & Backup to Telco
Private and Confidential 11
BanKO Loans to MFI and Enterprises
Value Chain
Financing thru
Distributors • Loans to MFI clients
• Enables MFI to grow
portfolio beyond
capital
• MFI remains face to
clients
• Shared credit risk
• Credit Line to Retailer
• Solely for purchase of
Distributor product
• Distributor provides
Retailer credit history
and purchases
Co-Funding
thru MFI
Scorecard-
Based Multi
Purpose Loan to
Depositors
• Deposit and
transactions serves as
credit history
• Deposit backed loan
• Score Card based
lending
Private and Confidential 12
B2B Value Chain Loan - SME
Private and Confidential 12
3. Construction Company uses mobile phone to avail of credit line as payment method
PAYMENT RECEIVED! 4. Hardware
receives payment real time
5. Construction Company pays for loan on due date
2. Construction Company orders materials from accredited Hardware
1. Construction Company submits bill of materials
Private and Confidential 13
Acquisition
Retailer pays
BanKO
BanKO collects
signed loan
Documents
from Retailer
1-1 Profiling
& Loan Kit
Distribution
Document
Submission Activation Availment
B2B Value Chain Loan – MSME
Payment
1 2 3 4 5
BanKO visits each
Retailer, profiles and
distribute generic loan
kit
BanKO creates
Retailer loan
credit line
Retailer avails,
BanKOreleases
loan with auto
transfer to
Distributor
14
BanKO
Assembler is an MFI/COOP/NGO
Farmer
Input Store
1. ISSUE P.O. SMC issues PO to Assembler
2. APPLY Farmer applies for loan at MFI
4. CREDIT LOAN Farmer gets a credit line
3. PROCESS LOAN Collects docs & input supply breakdown
5.AVAIL Farmer avails loan for credit to various input store as needed
Agri Value Chain Loan with MFI
Mobile
Hotline
Website
Social Media
Media Branch
BPO
BDS
Family Friends
BanKO reaches customers thru various channels
Hotline 2882
24x7 toll-free
www.banko.com.ph
Eat Bulaga TV
Show
6 branches nationwide
3 regional administrators
*118*1# (toll-free) and
SMS confirmation
2,100 partner
outlets nationwide
Family bundles*
Referral
program*
Events,
caravans
Private and Confidential 15
Thank You