NRT 2011: 1st Valley Bank Experience - Using Technology to Expand Microfinance
1st Valley Bank, Inc. www.1stvalleybank.com.ph Channel Management Program2
Background of the Bank stablished on November 24, 1956 as Rural Bank of E Kapatagan Valley, Inc. ecame 1st Valley Bank, Inc. on Sept 21, 2005 B anked as the 4th biggest RB in the Philippines R ated A+ by PhilRatings system R ost Outstanding Rural Bank Awardee from Land M Bank of the Philippines AGLE Award by RBAP-MABS ( 2003 & 2006 ) E pecial Citation for Outstanding Performance in S Micro-Agri by RBAP-MABS (2010) arious recognitions from the BIR, LGU’s, Western V Union Globe GXI, OWWA 1st Valley Bank, Inc.
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:
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.
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.
Mobile Phone BankingBACKGROUND: Active participation in the mobilephone 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.
CHANNEL MANAGEMENTOBJECTIVE: To engage in channel managementto further deepen our impact in the communityBACKGROUND: Active participation in the revivalof the channel management project which lastedfrom Nov. 2010 to May 2011ACCOMPLISHMENTS (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.
Issue: Is the bank getting the impactit 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.
Impact depends upon the type of customer….123 1st Valley Bank, Inc.
Activities of Channel Managers & AccountOfficers irect Selling D 1st Valley Bank, Inc.
Activities of Channel Managers & Account Officers K-Parties 1st Valley Bank, Inc.
4Ps: A conditional cashtransfer (CCT) Program 1st Valley Bank, Inc.
4P’s Through G-Cash: A bank service forcountryside clientelle 1st Valley Bank, Inc.
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.
4P’s: Municipalities Served # of Payout AmountMunicipality Venue Beneficiaries Date (millions) PitogoPitogo 2,096 23 Mar’11 4.490 Gymnasium MargosMargos 2,220 24 Mar’11 4.773 Gymnasium DumalinaoDimataling 3,231 30 Mar’11 6.716 BranchTukuran 2,834 6 Apr’11 Tukuran 6.052 1st Valley Bank, Inc.