CANTILAN BANK: Addressing Home
Improvement and Housing Needs
Brig. Gen. Charles Y. Hotckiss (Ret.)
2010 RBAP-MABS National Roundtable Conference
Hyatt Hotel and Casino, Manila
June 2-3, 2010
One of the best products
for helping poor people
get a decent shelter
and improve their assets!
Demand for housing was
staring us in the face!
We did not recognize it
until we did the market
Many own their homes
They make small, varied improvements when
resources become available
Use mostly own cash/savings to improve their
Strong demand among microfinance clients
Preference for separate loan for housing:
◦ Longer term
◦ Less stringent collateral
•Targets existing clients
•Loan of P5k to P150k
Performance fell dismally short of targets
Pilot Phase Targets Actual Performance Compliance with
(2 branches) Pilot Phase Targets
20 accounts 4 accounts 20%
300k loan 184k loan
• Weak driving force from the Head
Office down to the branch level
• Account Officers turnover
• Fear of PAR – perception that giving
more loans to clients will increase
We took steps.
We made adjustments.
We modified policies.
We asked for everyone’s
# Accounts Portfolio Size
From 4 to 280
Secure commitment, top to bottom
Set roadmaps with clear targets and product
Customize product based on market needs
Stick to cashflow analysis of debt capacity
Continuous product review & enhancements
keep products relevant to market needs
LEAD TO SUCCESS...