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

To complement Mobile Phone Banking Services

To increase loan portfolio

To provide flexible payment facility to clients without credit cards

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

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

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

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.

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

Easy & simple terms

Affordable

No documentary requirements

Quick processing

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

Simple process flow

Low risk because offered to borrowers with existing relationship

Good marketing tool (incentive for good borrowers)

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

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

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

Support & Strategy of Branch Manager and Account Officers

Location of Retailer

Cooperation from Retailer

Marketing Collaterals