Your SlideShare is downloading. ×
0
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

NRT 2011 - Recent BSP Regulations: Opportunities for Rural Banks

393

Published on

NRT 2011 …

NRT 2011
May 23-24, 2011
Manila

Session 1:
Taking Advantage of New Regulations to Expand Microfinance Services

By: Ms. Pia Bernadette Roman-Tayag,
BSP Inclusive Finance Advocacy Head

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
393
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Recent
BSP
Regula.ons:
 Opportuni.es
for
Rural
Banks
 Pia
Bernade9e
Roman
Tayag
 Inclusive
Finance
Advocacy
Staff
 Bangko
Sentral
ng
Pilipinas
 RBAP‐MABS
Na.onal
Roundtable
Conference
 23
May
2011

  • 2. Save Invest•  Microentrepreneur
 Borrow living
in
Baggao,

 Cagayan
•  1st
class
municipality
 Send/ with
no
banking
office
 Receive Expensive
•  She
is
one
of
the
 Money Unsafe
 73,000
living
in
the
 town
 Time
Consuming
 Pay Bills•  She
manages
a
small
 Unsustainable
 sari‐sari
store
business

  • 3. How
do
Recent
BSP
Regula.ons
Allow
Banks
to
Address
this
Market
Need?
•  Wider
Range
of
Products
•  Expanded
Physical
Network
•  Expanded
Virtual
Reach
•  Lower
Barriers
in
Customer
Acquisi.on

  • 4. Wide
Range
of
Products
•  Circular
694,
Notes
on
Microfinance
 – Microfinance
Loans
 • Microenterprise
Loans
 • Housing
Microfinance
Loans
 • Micro‐Agri
Loans
 – Microfinance
Savings
Deposit
Account
 – Microinsurance

  • 5. Opportunity
for
Rural
Banks
•  Become
more
responsive
to
the
wide
range
of
client
 needs
•  Increase
the
microfinance
client
base
•  Provide
microinsurance
products
which
were
 previously
an
exclusive
domain
of
large
universal
and
 commercial
banks
•  Diversify
income
streams

  • 6. Expanded
Physical
Network
•  Circular
694,
Establishment
of
Micro‐banking
Offices
 (MBOs)
 – Addresses
obstacles
in
establishing
bank
offices
 • Rela.vely
low
cost
(i.e
low
infrastructure,
no
 theore.cal
capital
needed)
 • Need
not
be
a9ached
to
a
microfinance
bank
or
 branch

 • Viable
in
light
of
complete
range
of
product
 offerings

  • 7. Expanded
Physical
Network
•  Circular
694,
Establishment
of
Micro‐banking
Offices
 (MBOs)
 – Expands
the
products
and
services
that
can
be
 offered
 •  Micro‐loans

 •  Micro‐deposits
 •  Check
deposits
of
exis.ng
microfinance
clients
 •  Microinsurance
 •  E‐money
Conversion
 •  Collec.on/
Pay
out
of
benefits
from
government
 •  U.lity
payments
 •  Purchase
of
foreign
currency

  • 8. Expanded
Physical
Network
•  Circular
694,
Establishment
of
Micro‐banking
Offices
 (MBOs)
 – Provides
requirements
propor.onate
to
the
level
 of
ac.vity
 • Demonstra.on
of
bank
strength
 • Clear
reason
and
plan
for
the
establishment
of
 MBOs

  • 9. Opportuni.es
for
Rural
Banks
•  Set
up
presence
in
areas
which
were
too
expensive
to
 serve
(i.e.
hard‐to‐reach,
etc.)
•  Capture
savings
in
areas
which
were
previously
not
 reached
through
opening
of
micro‐deposit
accounts
•  Increase
value
to
exis.ng
clients
•  Lower
costs
of
servicing
exis.ng
clients
•  Entertain
other
non‐bank
customers
which
can
 eventually
become
bank
clients
(i.e.
bills
payment,
 foreign
exchange,
etc.)
•  Possible
opportunity
as
CCT
pay‐out

  • 10. Expanded
Virtual
Reach

•  Circular
649,
Electronic
Money
Circular
 – Defines
electronic
money
 – Allows
the
establishment
of
e‐money
issuers
 (whether
bank
or
non‐bank)
 – Provides
the
pladorm
for
an
efficient
retail
 payments
pladorm
 – Fosters
the
establishment
of
a
ubiquitous
agent
 network

  • 11. Opportunity
for
Rural
Banks
•  Develop
linkages
with
e‐money
issuers.
As
clients
can
 transact
remotely
through
the
e‐money
pladorm,
 banks:
 – Increase
value
of
service
to
clients
 – Increase
efficiency
 – Lower
costs
•  With
exis.ng
clients,
develop
an
e‐money
ecosystem
 in
the
local
community
•  Expand
and
reach
more
clients

  • 12. Expanded
Virtual
Reach
•  Circular
704,
Electronic
Money
Network
Service
 Providers
 – Recognizes
the
poten.al
of
E‐money
as
an
efficient
 retail
paymentc
channel
 – Recognizes
that
the
E‐Money
business
has
 specialized
opera.onal
and
technological
 requirements
 – Allows
en..es
that
want
to
be
EMIs
to
outsource
 to
EMNSPs


  • 13. Expanded
Virtual
Reach
•  Circular
704,
Electronic
Money
Network
Service
 Providers
 – Allows
the
outsourcing
of
automated
systems,
 network
infrastructure
and
network
of
agents
 – Establishes
clear
outsourcing
rules
and
 arrangements

  • 14. Opportunity
for
Rural
Banks
•  Become
an
E‐Money
Issuer
without
inves.ng
in
the
 en.re
network
infrastructure

•  By
outsourcing
to
an
EMNSP,
banks
will
be
able
to:
 – Use
the
wide
agent
network
established
by
the
 EMIs
 – Convert
E‐money
 – Use
E‐money
for
the
payment
for
goods/
services
 – Transfer
funds
from
one
electronic
wallet
to
 another

  • 15. Lower
Barriers
to
Customer
Acquisi.on
•  Circular
706,
Updated
An.‐Money
Laundering
Rules
 and
Regula.ons
 – Provides
scope
for
banks
to
have
a
risk‐based
and
 .ered
system
of
classifying
customers
 – Establishes
a
framework
for
applying
reduced,
 average
and
enhanced
due
diligence
based
on
the
 type
of
customer
as
well
as
for
customer
 acceptance,
reten.on
and
iden.fica.on
process
 and
record
keeping

  • 16. Lower
Barriers
to
Customer
Acquisi.on
•  Circular
706,
Updated
An.‐Money
Laundering
Rules
 and
Regula.ons
 – Allows
the
outsourcing
or
relying
on
a
third
party,
 the
following:
 • Face‐to‐face
requirement
 • Gathering
of
informa.on
and
documents
 – Uses
the
liberalized
list
of
accepted
IDs

  • 17. Opportuni.es
for
Rural
Banks
•  Classify
transac.ons,
based
on
appropriate
 framework,
small
value
transac.ons
as
low
risk
•  Lower
cost
in
acquiring
customers
•  Less
physical
barriers
in
reaching
and
serving
new
 markets
•  Decreased
transac.on
cost
in
customer
reten.on
and
 record
keeping,
par.cularly
for
microfinance.
•  Increased
opportunity
in
remi9ance
business





  • 18. The
opportuni,es
are
here
for
the
taking.
Strong
and
stable
rural
banks
are
well
posi,oned
to
seize
them.


  • 19. End
of
Presenta.on.

THANK
YOU.



×