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CANTILAN BANK: Addressing Home
 Improvement and Housing Needs
   Brig. Gen. Charles Y. Hotckiss (Ret.)
              Canti...
Housing Micro-Loan:
         Micro-

One of the best products
 for helping poor people
   get a decent shelter
and improve...
From Bare   To Covered
Living Room Area   Dining Room Area
Dining Room


    Living Room   Dining Room
BEFORE
Demand for housing was
 staring us in the face!

We did not recognize it
until we did the market
       research.
   Many own their homes
   They make small, varied improvements when
    resources become available
   Use mostly own c...
Product Highlights
•Targets existing clients
 initially
•Loan of P5k to P150k
   Performance fell dismally short of targets

Pilot Phase Targets   Actual Performance   Compliance with
(2 branches)   ...
Causes
• Weak driving force from the Head
  Office down to the branch level
• Account Officers turnover
• Fear of PAR – pe...
We took steps.

 We made adjustments.

 We modified policies.

We asked for everyone’s
     commitment.
# Accounts Portfolio Size

                    Php184K to
                 From
 From 4 to 280
    accounts
              ...
   Secure commitment, top to bottom
   Set roadmaps with clear targets and product
    operational plan
   Customize pr...
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs
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Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs

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Cantilan Bank: Housing Microfinance, Addressing home Improvements and Housing Needs

  1. 1. CANTILAN BANK: Addressing Home Improvement and Housing Needs Brig. Gen. Charles Y. Hotckiss (Ret.) Cantilan Bank 2010 RBAP-MABS National Roundtable Conference Hyatt Hotel and Casino, Manila June 2-3, 2010
  2. 2. Housing Micro-Loan: Micro- One of the best products for helping poor people get a decent shelter and improve their assets!
  3. 3. From Bare To Covered
  4. 4. Living Room Area Dining Room Area
  5. 5. Dining Room Living Room Dining Room
  6. 6. BEFORE
  7. 7. Demand for housing was staring us in the face! We did not recognize it until we did the market research.
  8. 8.  Many own their homes  They make small, varied improvements when resources become available  Use mostly own cash/savings to improve their homes  Strong demand among microfinance clients  Preference for separate loan for housing: ◦ Longer term ◦ Less stringent collateral
  9. 9. Product Highlights •Targets existing clients initially •Loan of P5k to P150k
  10. 10.  Performance fell dismally short of targets Pilot Phase Targets Actual Performance Compliance with (2 branches) Pilot Phase Targets 20 accounts 4 accounts 20% 300k loan 184k loan 61% portfolio portfolio
  11. 11. Causes • Weak driving force from the Head Office down to the branch level • Account Officers turnover • Fear of PAR – perception that giving more loans to clients will increase delinquency
  12. 12. We took steps. We made adjustments. We modified policies. We asked for everyone’s commitment.
  13. 13. # Accounts Portfolio Size Php184K to From From 4 to 280 accounts Php3.7M loan portfolio
  14. 14.  Secure commitment, top to bottom  Set roadmaps with clear targets and product operational plan  Customize product based on market needs  Stick to cashflow analysis of debt capacity  Continuous product review & enhancements keep products relevant to market needs LEAD TO SUCCESS...

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