The Rural Bankers Association of the Philippines has been enhancing rural banks' microfinance capabilities since 1997 through the RBAP-MABS program, supported by USAID. As of September 2011, the program has assisted over 100 banks, facilitating significant growth in borrowers and loan disbursement across the Philippines. Future strategies focus on product innovation, geographic expansion, and partnerships to increase service reach and efficiency in the microfinance sector.

1. New Developments & Future Directions for Rural Banks offering Microfinance Mindanao Confederation Meeting and Presentation October 06, 2011

2. The Rural Bankers Association of the Philippines - Microenterprise Access to Banking Services (RBAP-MABS) Program provides technical assistance and training to rural banks in microfinance best practices since 1997 with support from USAID. The program is designed to develop the capability of rural banks to profitably provide financial services (loans, deposits, insurance, money transfers and mobile banking) for microenterprise clients.

3. RBAP-MABS is working all member rural banks and is currently directly providing technical assistance to over 100 participating rural banks throughout the country with more than 1,100 bank branches and OBOs. These banks are located in all three island groups of the Philippines (Luzon, Visayas, and Mindanao)

4. Key Indicators As of Sept-2011 Cumulative No. of New Borrowers > 900,000 Cumulative Amount of Loans Disbursed > PhP 37 B Total No. of Micro-deposits > 1.45 M Total Volume of Micro-deposits > PhP 2 B

5. Technical Initiatives and Training in microfinance best practices through courses, workshops, one-on-one assistance, private sector providers, learning centers and distance learning program. Technological Support: Enhancement of MIS Systems to support microfinance operations, mobile phone banking, microfinance performance monitoring system. Products and Services: Microenterprise Loans, Micro-deposit services, Micro-Agri Loans, Housing Microfinance, Micro-insurance services, Mobile Phone Banking & Mobile Commerce Services. Support to RBAP to develop policy and regulatory advocacy for microfinance and support research and evaluation Local & International linkages.

8. Rural Banks Moving Forward

9. What Should We Do? MF Growth Strategy 2011 – 2014 Introduce new loan products to existing clients? Exploit new distribution channels? Form strategic alliance with other institutions & cos.? Introduce new loan products to new markets segments? Growth Objectives Move upmarket to target bigger customers? Expand branch network to new region? 1. What’s my strategic growth objective? 2. How do I assess competing opportunities? Next Steps for Rural Banks looking Forward

10. 9 Ways to Expand Services : Mix & Match Source: Philip Kotler, International Marketing Guru & Professor, Kellog School of Mgmt, Northwestern University, Illinois P R O D U C T S Existing Modified New MA R K E T Existing Sell more of existing products to our existing types of customers (Market Penetration) Modify current products & sell more to existing customers (Product Modification) Design new products that will appeal to existing customers (New Product Dev.) Geographical Enter & sell our products in new areas (Geographic expansion) Offer & sell modified products to new geographical markets Design new products for prospects in new areas New Sell our existing products to new types of customers (Segment Invasion) Offer and sell modified products to new types of customers Design new products to sell to new customers (Diversification)

11. Why Should We Do It? Increase efficiency? Improve distribution? Improve cost-effectiveness? Expand markets? Reach more unbanked areas? Improve income? Why This Technology? Why This Channel? (Ex.: ATM; M-BANKING; MBOs) Why This Product Innovation? (Ex.: New microloan prods; savings prods; microinsurance) Respond to client needs? Increase Client Retention? Remain competitive? Fill market gap? Expand markets? Improve Income? Think Through Analysis

12. What is your market niche? Households Enterprises Children Employees Utility companies Fishermen Farmers Out-of-town Workers Teachers

13. Addressing the Needs of your Market TRADITIONAL PRODUCTS Microfinance Salary Loans Commercial Loans Agriculture Loans Deposit Services Remittances Bill Payments NEW PRODUCTS Housing Microfinance Microinsurance Cash Cards ATM services Micro-Agricultural Loans Money Transfer Services Mobile Phone Banking

14. Regulations providing opportunities to expand and offer new services

15. MBOs can now provide a full range of banking services Micro Deposits (deposits/withdrawals) Micro Loan Disbursements and Collections ATMs Electronic Money Cash-in and Cash-out services Bill payments Remittances Government Payments Utility Payments Circulars in 2010: 694

16. … microfinance principles and methodologies - small loan amounts alternative forms of collateral character & cash flow-based regular amortization short-to longer-term (for housing) */ CGAP

17. MicroSavings

18. Microinsurance Video

19. Today, Rural Banks Can Offer the Following Mobile Phone Banking Services…

20. Mobile Money Platforms Card-less Mobile Money Platform Now linked to an ATM card Co-branded with rural banks Payments Money Transfer Mobile Banking Card-based Mobile Money Platform Instant Smart Money Card MasterCard Debit Card Payments Money Transfer Mobile Banking

21. M a r a m i n g S a l a m a t !!! Email: [email_address] Websites: www.rbapmabs.org www.mobilephonebanking.rbap.org microinsurance.rbap.org www.youtube.com/rbapmabs Facebook: MABS Phil