NRT 2011 May 23-24, 2011 Manila Session 7: Experiences in Using New Technologies to Expand Microfinance Operations By: Ms. Cynthia Rudinas 1st Valley Bank Compliance Officer

2. 1st Valley Bank, Inc.
www.1stvalleybank.com.ph
Channel Management
Program
2

3. Background of the Bank
 stablished on November 24, 1956 as Rural Bank of
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Kapatagan Valley, Inc.
 ecame 1st Valley Bank, Inc. on Sept 21, 2005
B
 anked as the 4th biggest RB in the Philippines
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 ated A+ by PhilRatings system
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 ost Outstanding Rural Bank Awardee from Land
M
Bank of the Philippines
 AGLE Award by RBAP-MABS ( 2003 & 2006 )
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 pecial Citation for Outstanding Performance in
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Micro-Agri by RBAP-MABS (2010)
 arious recognitions from the BIR, LGU’s, Western
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Union Globe GXI, OWWA
1st Valley Bank, Inc.

4. Branches:
• Baroy • Dumalinao • Sinacaban
• Kapatagan • Zamboanga City • Sindangan
• Maranding • Pagadian City • Imelda
• Molave • Buug • Dipolog
• Iligan City • Ipil • CDO
• Ozamiz City • Malaybalay • Gingoog
• Margosatubig • Liloy • Aglayan
• Maramag
• Dumaguete
• Talakag • Manukan • Aurora
• Puerto, Mis. Or. • Sinacaban • Initao
• Dumingag • Bacolod, Lanao
1st Valley Bank, Inc.
OBO’s:

5. MF Loan Portfolio as of April 2011
LOANS
Apr’11 Mar’11 Dec’10 Mar’10 Diff., Mo.
(millions)
GROUP A 22.948 23.376 21.834 25.657 (0.428)
GROUP B 15.148 15.723 16.664 16.930 (0.575)
GROUP C 6.324 6.552 6.746 5.531 (0.227)
TOTAL 44.421 45.652 44.974 47.939 (1.230)
1st Valley Bank, Inc.

6. MF Loan Portfolio as of April 2011
Amount
Product) No. of Accts
(millions)
MEP 3,575 37.337
MAP 1,017 6.778
HMF 42 0.305
TOTAL 4,634 44.420
1st Valley Bank, Inc.

7. Mobile Phone Banking
BACKGROUND: Active participation in the mobile
phone banking specialist program in Year 2008 -
2009.
ACCOMPLISHMENTS:
 5 marketers deployed in different areas
1
 2,989 MPB users registered
1
 34 Merchants registered
3
1st Valley Bank, Inc.

8. CHANNEL MANAGEMENT
OBJECTIVE: To engage in channel management
to further deepen our impact in the community
BACKGROUND: Active participation in the revival
of the channel management project which lasted
from Nov. 2010 to May 2011
ACCOMPLISHMENTS (as of April 2011):
 6 Merchants registered
7
 ,853 MPB users registered
3
 32 MPB users have availed of bank services
9
1st Valley Bank, Inc.

9. Issue: Is the bank getting the impact
it should?
• Are customers using the service in
Requirements for success
ways that reduce bank costs?
• Customers • Using CICOs to repay their
loans?
benefit
Yes • Using CICOs to put money into
– More convenient
their accounts?
– Lower cost
• Are CICOs generating direct
• Merchants benefit revenue?
– New business • Increasing deposits?
Yes
line
• Generating fee based revenue?
– More customers
• Borrowing from the bank?
• Bank benefits • … or indirect revenue?
– More customers ??
• Cross-selling bank products to
– Lower costs their clients?
1st Valley Bank, Inc.

10. Impact depends upon the type of
customer….
1
2
3
1st Valley Bank, Inc.

11. 1st Valley Bank, Inc.

12. Activities of Channel Managers & Account
Officers
 irect Selling
D
1st Valley Bank, Inc.

13. Activities of Chan
nel Managers & Account Officers
 K-Parties
1st Valley Bank, Inc.

14. 4Ps:
A conditional cash
transfer (CCT) Program
1st Valley Bank, Inc.

15. 4P’s Through G-Cash: A bank service for
countryside clientelle
1st Valley Bank, Inc.

16. 4P’s Through G-Cash Pay-out
 1st Valley Bank, in partnership with GLOBE served
these beneficiaries through GCash
 Unlike any GCash transaction, the service was
done through laptops or netbooks for faster
service
 Target time to complete transaction is 2 minutes
per beneficiary
 A minimum of 1,600 beneficiaries can be served
by 1st Valley Bank-G-cash team in a single day
1st Valley Bank, Inc.

17. 4P’s: Municipalities Served
# of Payout Amount
Municipality Venue
Beneficiaries Date (millions)
Pitogo
Pitogo 2,096 23 Mar’11 4.490
Gymnasium
Margos
Margos 2,220 24 Mar’11 4.773
Gymnasium
Dumalinao
Dimataling 3,231 30 Mar’11 6.716
Branch
Tukuran 2,834 6 Apr’11 Tukuran 6.052
1st Valley Bank, Inc.

18. 4P’s: Zamboanga del Sur
1st Valley Bank, Inc.

19. 4P’s: Zamboanga del Sur
1st Valley Bank, Inc.