Nokia Cellphone Financing

To complement Mobile Phone Banking Services
To increase loan portfolio
To provide flexible payment facility to clients without credit cards
objectives

Signed MOA last July 11, 2008
Partners: Nokia, Altus, Presnet & Megacellular
Launched in pilot branches last August 2008
Pilot Branches: Ibaan, Batangas, Mabini
Rolled out to other branches last September 2008
At present: 217 clients, sold 349 cellphones, disbursed P3.1M in loans
Brief History

Process Flow

An Account Officer (AO) offers the product to an eligible borrower AO computes for maximum loanable amount. AO prepares a Notice of Loan Approval (NLA) in triplicate. AO keeps a copy of the NLA. The 2 other copies will be given to the Nokia retailer hand carried by the client. Client presents NLA to retailer. NLA NLA Own-a-Nokia Cellphone Loan Retailer NLA

Client picks a cellphone and signs Sales Invoice. Retailer verifies identification of client by asking for an ID and calling the BOH. Retailer keeps both copies of NLA. Retailer sends billing statement, sales invoice and one copy of NLA to the bank. Bank processes the loan release. Bank deposits loan proceeds to the account of the retailer. Retailer issues an OR once payment is received. Bill S.I. NLA Retailer

Number of clients & cellphones sold

Loans disbursed

More than 70% of clients are individual MF borrowers. Regular loan clients may have access to cheaper financing through credit cards.
Clients prefer mid-range models.
Reason for purchase is for personal use.
A good number of clients buy more than 1 cellphone.
observations

Easy & simple terms
Affordable
No documentary requirements
Quick processing
Feedback from clients

Simple process flow
Low risk because offered to borrowers with existing relationship
Good marketing tool (incentive for good borrowers)
Feedback from bank

3 branches cannot participate due to lack of nearby retailers
Effects of business slow down felt at the start of the year
Repair of cellphone
Areas of concern

Support & Strategy of Branch Manager and Account Officers
Location of Retailer
Cooperation from Retailer
Marketing Collaterals
Factors of success

Nokia Cellphone Financing

by MABSIV on May 20, 2009

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Nokia Cellphone Financing — Presentation Transcript