The document summarizes a mobile phone banking program launched by a bank in the Philippines in 2008. The program allows existing borrowers to take out loans to purchase mobile phones from partner retailers. Over 200 clients have taken part, borrowing over 3 million pesos to purchase 349 phones. Most clients are individual borrowers who prefer mid-range models for personal use. The bank and retailers have found the program benefits both parties through increased business and loans.

4. Process Flow

5. An Account Officer (AO) offers the product to an eligible borrower AO computes for maximum loanable amount. AO prepares a Notice of Loan Approval (NLA) in triplicate. AO keeps a copy of the NLA. The 2 other copies will be given to the Nokia retailer hand carried by the client. Client presents NLA to retailer. NLA NLA Own-a-Nokia Cellphone Loan Retailer NLA

6. Client picks a cellphone and signs Sales Invoice. Retailer verifies identification of client by asking for an ID and calling the BOH. Retailer keeps both copies of NLA. Retailer sends billing statement, sales invoice and one copy of NLA to the bank. Bank processes the loan release. Bank deposits loan proceeds to the account of the retailer. Retailer issues an OR once payment is received. Bill S.I. NLA Retailer

7. Number of clients & cellphones sold

8. Loans disbursed