Case presentation - Information and Communication Technologies in Microfinance

Microfinance Development Forum

Amidst Global Crisis

JANUARY 29-30,2009 @ CROWNE PLAZA, ORTIGAS AVE. COR. ADB AVENUE, PASIG CITY

“ GAINING CONNECTIVITY, INNOVATIVE TECHNOLOGIES… IN MICROFINANCE” BY: MR. GADWIN E. HANDUMON General Manager

Outline of the Presentation

Glimpse of Paglaum and its Geographical Location

Brief Description of Partnership with AusAID-PACAP

Innovations using Information Communication Technology

Significant Impact

Misamis Occidental

LINKAGES & PARTNERSHIP NLDC PAGLAUM MULTI-PURPOSE COOPERATIVE WAS ADJUDGED AS MOST OUTSTANDING COOPERATIVE IN THE PHILIPPINES ON THE“COOP-LGU PARTNERSHIP AWARDS 2006”

PARTNERSHIP: PHILIPPINES-AUSTRALIA COMMUNITY ASSISTANCE PROGRAM

The FOCAS Areas Iligan Bay FOCAS Mt. Malindang FOCAS Save Labo River FOCAS Coco Industry FOCAS N PACAP

Project Launching

ROLE OF PAGLAUM MICROFINANCE IN REACHING OUT TO RURAL COMMUNITIES

Programs and Services

LOANS:

* Regular Loans

* MAP (Micro-Assistance Program) * Medal PangNegosyo

* SSS Pension Loan * Disconnection Loan

* Rice Loan * Barangay Officials Livelihood Assistance Loan (BOLA)

* Market Vendors Assistance Loan * Express Loan

* Spare Parts Loan * Micro Solar Energy Loan

* Loan Against Deposits

* MICROFINANCE LOAN

-Micro-Regular Loan -Micro-Agri-aqua Loan

>Project Loan >Production Loan

>Medical Loan >Refinancing Loan

>Housing Loan >Livestock Loan

>Rice Loan >Farm Mortgage Loan

>Disconnection Loan >Fishing/ Farming Equipment

>Educational Loan Loan

SAVINGS: * Regular Savings * Youth/Kiddie Savings * Progressive Savings Deposit * Time Deposit * Fixed Deposit * Pinoy Coop ATM

Special Project: Business Dev’t Center

*Ticketing Services *Unlimited Printing

*Loading/ reloading *Scanning & Laminating

*Internet Café services *Encoding

*Photocopy & Reproduction Center *Western Union

*NCASH Card

INSURANCE:

* CLPP (Coop Loan Protection Plan)

*MYRACL (Member Yearly Renewable Accident-Life Burial Services)

*GADD & D (Group Accidental Death, Disablement & Dismemberment)

*Non-life Insurance (FICA, Vehicle, Fire)

*Family Group Insurance

*MMAF (Member Mortuary Assistance Fund)

*MMF (Member Mortuary Fund)

Programs and Services

Farm Level Grains Center(FLGC) -III A One-Stop-Shop service for the farmers wherein PMPC initiated the so-called “ICO” initial coop offering- wherein an ordinary Farmer can invest his/her P 10.00 for this community project (FLGC) this was made possible thru a collaborative efforts of the Gov’t Agencies : DA, NFA, LGU, Cooperators, & Community. SERVICES OFFERED: * Palay Marketing * Computerized Mechanical Dryer * Solar Drying * Rice Milling *Trucking Services *10,000 bags warehousing capacity

PAGLAUM LABORATORY COOP for Children and Youth

SHS Roof Mounted SHS Pole Ground Mounted Solar Home System Installation Helps provide light to off-grid areas through MICRO-SOLAR Energy

MFI for IPs SHEG PWD

PAGLAUM SITUATIONER

The numerous programs & services serving the vast number of membership using the traditional simple financial transactions will limit the advancement of the cooperative.

Paglaum acknowledged its limited technical capacity so that it has tapped experts on delivering ICT’s as a service

COOPERATIVE ISSUES:

Difficulty in

Reaching remote coop members

Creating consolidated reports

Standardizing coop processes

Members Accounts Mgt.

Operations Updates

Technical Limitations on

System database size

Inter-branch connections

Account access

INNOVATION: INFORMATION COMMUNICATION TECHNOLOGY

ADOPTION OF MICROBANKING SYSTEM

Microbanking System - R esolved!

INSTITUTION:

Strengthen Security & Control

Automatic data recovery

With system audit trail

Real time & fast transactions

At par with other financial institutions

GENERAL MEMBERSHIP:

Updated records

Well-disciplined in terms

of repayment

Computerized passbook printing

Increase savings generation

Transparency on members’

record

Boosts members’ morale

Microbanking System - R esolved!

MAINSTREAMING MFI THRU ATM AS OF DEC. 31,2008: RANKED 224 IN TERMS OF SWITCH TRANSACTIONS OUT OF 3,315 MEGALINK CONNECTED NATIONWIDE

ATM new kick of service to MFIs

Linking with banking institutions

Literacy

Easy & Wide Access

Image Building

Poorest to step on

the eco-ladder

Communications & Transportation

One Card Network / Western Union

For MFIs:

Better personal cash management

Easy bills payment

Card to card transfer benefits

Mobile top up discounts

Mobile retailer package

For PMPC:

Increase membership

Adds revenue to cooperative

Easy information access

Added service offered to members

Easy disbursements of funds

Global market reach and presence

Mobile Top-Up Bill's Pay Card2card Transfer Remittances

PAGLAUM PARTNERS WITH A GIANT COMPANY FOR CONNECTIVITY Web Site Builder *Security Camera *Multiple Sites Channel Monitoring/Playback PLDT IPVPN Connectivity

PLDT – IPVPN A retail solution that links all the coops branches to its head office, enabling them to electronically monitor its business transactions, any time of the day. PMPC Head Office Pagadian Branch Calamba Branch Oroquieta Branch

MFI ONLINE MARKET NAVIGATION

Expanding market reach thru KIVA.org

PAGLAUM CLIENT

$ $ $ Approve & Disburse Loan Post client data on Kiva Receive 0% bulk loan from Kiva Note the delinquencies + final impact Repayments deducted from new loans Social Investor "funds" client profiles

BEATING THE BARRIERS:

*UNCONNECTED ISLAND OF INFORMATIONS

*INVESTMENTS- HIGH UPFRONT COSTS

*LACK OF IN-HOUSE TECHNICAL EXPERTISE

*EDUCATING GRASSROOT- MEMBERS ON INNOVATIONS

*SUPPORT MECHANISMS IN DEVELOPMENT & MAINTENANCE

Significant Results in the Operations

Significant Results in the Operations MEMBERSHIP GROWTH 187% SAVINGS GROWTH 62% CAPITALIZATION GROWTH 171% PORTFOLIO GROWTH 105% ASSET GROWTH 128%

This is a call to eradicate poverty and develop the community thru people’s empowerment We offer you partnership with Paglaum Multi-Purpose Cooperative & Paglaum Community Development Foundation Incorporated "Let us all work together"

Daghang Salamat!