Integrating Alternative Channels into SME Banking Value Proposition

Transcription

1 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

2 The huge opportunity... With unbanked D & E market 5% 95% And the country s 75% mobile phone penetration Source: Mercy Corps & BFA 2010 And Smart Telecom website Private and Confidential 2

3 ... Access to Finance 26% Filipinos have access to formal financial channel 2.2 Mn Overseas Filipino Workers send remittance regularly 86 Mn active mobile phone or 75% of Filipinos 99% mobile phone coverage 2 Bn SMS daily 11,328 ATMs 610 out of 1634 (37%) Municipalities have no banking office 50K POS 9,207 bank offices Source: BSP thru Nancy Llaguno Private and Confidential 3

4 ... Led to a milestone partnership Bank of the Philippine Islands Banking excellence, leadership and manpower pool Involvement in socioeconomic development Globe Telecom Expertise in telecommunication and mass acquisition Ayala Corporation Private and Confidential 4

5 Creating a Bank for Every Filipino farmer BPI Globe BanKO Inc., is the Philippines s first mobile phone-based, microfinance-focused savings bank students primarily serving the unbanked & under-banked D&E economic class ($2/day earner) market sellers small business tricycle driver Private and Confidential 5

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 Private and Confidential 6

7 Delivering via 2K+ Outlets, a branchless model Drug Store 9 BanKO Regional Office MFI or Rural Bank Gas Station Community Center 7 Pawnshop Sari Sari Store Money Changer Private and Confidential 7

8 Bundled Savings Account Product PondoKO PuhunanKO PaniguroKO 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 Private and Confidential 8

9 ... Leads to Mobile Financial Services Runs Mobile phone even with NO Airtime Load Avail of Credit Line like card Less credit card No docs, no exclusion BanKO Partner Outlet Save time, transport P12.50 vs P70 10% rebate No POS device Free vs P10 Utility Billers Sellers 9 9

10 Security Features Confirmation & ALERTS First Factor: you own Second Factor you know SMS confirmation for all transactions Audit Trail, Permanent Record & Backup to Telco Can use any model of Mobile phone MPIN is required for all transaction Instantly, transactions available In BanKO Link, web-based Private and Confidential 10

11 BanKO Loans to MFI and Enterprises Co-Funding thru MFI Loans to MFI clients Enables MFI to grow portfolio beyond capital MFI remains face to clients Shared credit risk Value Chain Financing thru Distributors Credit Line to Retailer Solely for purchase of Distributor product Distributor provides Retailer credit history and purchases Scorecard- Based Multi Purpose Loan to Depositors Deposit and transactions serves as credit history Deposit backed loan Score Card based lending Private and Confidential 11

12 B2B Value Chain Loan - SME 1. Construction Company submits bill of materials 2. Construction Company orders materials from accredited Hardware 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 Private and and Confidential 12

13 B2B Value Chain Loan MSME Acquisition Profiling & Loan Kit Distribution Document Submission Activation Availment Payment BanKO visits each Retailer, profiles and distribute generic loan kit BanKO collects signed loan Documents from Retailer BanKO creates Retailer loan credit line Retailer avails, BanKOreleases loan with auto transfer to Distributor Retailer pays BanKO Private and Confidential 13

14 Agri Value Chain Loan with MFI 5.AVAIL Farmer avails loan for credit to various input store as needed Input Store 1. ISSUE P.O. SMC issues PO to Assembler Farmer 4. CREDIT LOAN Farmer gets a credit line BanKO 2. APPLY Farmer applies for loan at MFI 3. PROCESS LOAN Collects docs & input supply breakdown 14 Assembler is an MFI/COOP/NGO

15 BanKO reaches customers thru various channels Mobile *118*1# (toll-free) and SMS confirmation Family bundles* Referral program* Family Friends Hotline Hotline x7 toll-free Events, caravans BDS Website 2,100 partner outlets nationwide BPO Social Media Facebook 6 branches nationwide 3 regional administrators Branch Media Eat Bulaga TV Show Private and Confidential 15

16 Thank You