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Nov 9, 2018 | DLSU, Taft Campus Business, Society, and Technology
Nov 9, 2018 | DLSU, Taft Campus
Business, Society, and Technology
Private & Confidential
Agenda
2
How BanKo is helping the SEME
(unbanked/underbanked)
Impact to Quality of Life
Technology Enabled Product Innovations that
promote Financial Inclusion
Private & Confidential
Agenda
3
BPI Direct BanKo
Financial Inclusion
Self Employed Micro Entrepreneurs (SEME)
Credit Solution
Savings and Payments
Private & Confidential
Who is BanKo?
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• BPI Direct BanKo, Inc. is a 100% owned
subsidiary of the Bank of the Philippine Islands
(BPI).
• The bank’s main focus is to provide financial
solutions to the unbanked and underserved with
the goal of bringing the benefits of financial
inclusion to many Filipinos.
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Financial Inclusion
Defined …
A state wherein there is effective access to a wide
range of financial products and services by all.
Reference: National Strategy for Financial Inclusion 2015
Key components:
1. Effective Access – access/availability, usage, quality, welfare
2. Wide range of financial products and services – full suite of basic products
and services such as savings, payments and remittance, credit, insurance and
investments
3. ALL
Private and Confidential
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Formal account refers to an account held in financial institutions such as banks, cooperatives or microfinance institutions and can be a mobile money account as well.
Source: World Bank Global Findex 2014 – PH; ProjectPlay; National Baseline Survey for Financial Inclusion;ConsumerFinance Survey
Year PopulationTargetMarket(18 – 70 Years Old)
Unbanked Banked
2016 102.3 Mn 64.4 Mn 50.2 Mn 14.2 Mn
2015 100.7 Mn 63.4 Mn 49.5 Mn 14.0 Mn
31%
69%
With formal account vs Without
formal accountw/ formal account w/o formal account
Private and Confidential
The State of the PhilippinesThe Need for Financial Inclusion is Evident
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Financial Inclusion Initiatives
I. Access to Credit
II. Savings and Payments Solutions
Private and Confidential
Private & confidential
Financial Inclusion Initiatives
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I. Access to Credit : BanKo NegosyoKo Loans
• Business Loans not Consumption Loans
• 25k to 300k
• 6 months to 3 years
• Mostly clean loans
• Graduate Micro Businesses to become
SMEs
• Directly Impacts Welfare of Individual
and Nation as a whole
Private & Confidential
Micro, Small and Medium Enterprises (MSME): DTI website
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Micro Enterprise Segment is about 90% of registered businesses
Private & Confidential
Self Employed Micro Entrepreneurs (SEME)
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Targeting 4 Main Industries
SEME segments
Wholesale and retail
trading
Agriculture (non-
seasonal),
livestock
Food services
Example of
business
Who is SEME?
Key characteristics of SEME
Borrowing needs of SEME
• Market stall owner
• Sari-sari store
• Carinderia
• Bakery
• Pastry
• Animal product farming
• Poultry (eggs)
• Piggery
• Owner of one or more businesses
• With less than 10 employees
• Strong entrepreneurial spirit
• Awareness of borrowing options
• Good understanding of loan mechanics
• Borrow multiple times
• Small amount for operational purpose (<50K):
- Increase working capital
- Pay unexpected operational expenses
• Large amount for ‘strategic’ purpose (>50K):
- Invest in new businesses
- Expand current businesses
1
2
3
4
Manual services • Hair dresser
• Auto repair service
• Tailor shop
• Lacking documentary requirements
• “Long processing time”
• “Amount applied for is not big enough for
banks”
Barriers in borrowing from banks
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Customer Value Proposition
Daily Payment * P475.00
BanKo:
It’s time to Pay Yourself : Reap the Fruits of Your Hardwork
Loan
P75K
Term
6 months
Street Lenders:
Loan Release
P25K renew every 2 months
Daily Payment * P500.00
Daily Income ** P500.00
* Principal + Interest for 6 months
** @10% ROS, turnover of 5 days :
(25,000 x 10% = P2500 / 5 = P500/day)
* Principal + Interest for 6 months
** @10% ROS, turnover of 5 days :
(75,000 x 10% = P7500 / 5 = P1500/day)
Daily Income ** P1,500.00
Private and Confidential
Private & Confidential
•
Branch and Branch Lite Units (BSP Cir 987)
Total count of 150 as of Oct 31, 2018 North Luzon (41)
1. Laoag
2. Vigan
3. San Fernando,
LU
4. Dagupan
5. San Carlos
6. Urdaneta
7. Cauayan
8. Ilagan
9. Tuguegarao
10. Santiago
11. Solano
12. Roxas, Isabela
13. Angeles
14. Apalit
15. Sta. Ana
16. Guagua
17. San Fernando
18. Paniqui
19. Tarlac City
20. Concepcion
21. Cabanatuan
22. San Jose
23. Gapan
24. Baler
25. Balanga
26. Sta. Maria
27. Malolos
28. Baliuag
29. Marilao
30. Iba
31. Olongapo
32. San Jose del
Monte
33. Bangued
34. La Trinidad
35. Baguio
36. Lingayen
37. Rosales
38. Bayambang
39. Plaridel
40. Floridablanca
41. Mangaldan
Visayas (37)
1. Iloilo
2. Estancia
3. Cabatuan
4. Tigbauan
5. Roxas City
6. Bacolod
7. Silay
8. San Carlos NIR
9. Kabankalan
10. Cadiz
11. Sagay
12. Kalibo
13. Dumaguete
14. Bayawan
15. Guihulngan
16. Tanjay
17. San Jose Buenavista
18. Cebu City
19. Mandaue
20. Danao
21. Lapu-Lapu
22. Tagbilaran
23. Tacloban
24. Maasin
25. Ormoc
26. Catarman
27. Consolacion
28. Guimaras
29. Minglanilla
30. Pototan
31. Talisay
32. Bago
33. Ubay
34. Baybay, Leyte
35. Calinog
36. Bogo City, Cebu
37. Carcar
Mindanao (22)
1. Cagayan de
Oro
2. Valencia
3. Malaybalay
4. Ozamis
5. Gingoog
6. Davao
7. Panabo
8. Mati
9. Toril
10. Digos
11. Tagum
12. Butuan
13. Iligan
14. Kidapawan
15. Tacurong
16. General Santos
17. Polomolok
18. San Francisco
19. Surigao
20. Koronadal
21. Pagadian, ZDS
22. Dipolog, ZDN
South Luzon (50)
1. Greenhills 41. Sariaya
2. Caloocan 42. Daet
3. Cainta 43. Dasmarinas
4. Lipa 44. Lemery
5. Naga 45. Lucban
6. Antipolo 46. Cavite CIty
7. Balayan 47. Cubao
8. Bacoor 48. Imus
9. Batangas City 49. San Juan,
Batangas
10. Binan 50. Nasugbu
11. Binangonan
12. Brooke’s Point
13. Candelaria
14. Calamba
15. Calapan
16. Gumaca
17. Iriga
18. Legazpi
19. Ligao
20. Lucena
21. Masbate
22. Pili
23. Polangui
24. Puerto Prinsesa
25. San Jose Mindoro
26. Santa Rosa
27. Santa Cruz
28. Silang
29. Sorsogon
30. Tabaco
31. Tanauan
32. Tanay
33. Trece Martires
34. Virac
35. Pinamalayan
36. Rodriguez, Rizal
37. Boac
38. General Trias
39. GMA, Cavite
40. Rosario, Cavite
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Providing Trusted Advice to the Negosyanteng Pinoy
Private and Confidential
Private & confidential
Financial Inclusion Initiatives
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II. Savings and Payments
1. Launch of Basic Deposit Accounts (BSP Cir 992)
2. Adoption of the Cash Agent framework/Deposit and Cash Servicing Outside of Bank
Premises (BSP Cir 940)
3. NRPS ready
The NRPS is a policy and regulatory framework which aims to establish a safe,
efficient, reliable and affordable retail payment system in the country.
Characteristics of the Savings and Payments Solution
• Self Registration (Easy On-boarding for the financially excluded)
• NRPS ready
• QR code technology enabled
• Transactions via BanKo Partner Agents, branches, mobile, on-line and ATM
• Cloud-based so readily scalable
• TELCO agnostic
• Uses one time password (OTP)
• Transaction based Risk Profiling / AMLA Compliant
Private & confidential
Savings Account
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NRPS ready
Private & Confidential
2018 Achievements
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• Microfinance Initiative of the Year (Asian Banker, 2017)
• Finalist, BSP Outstanding Financial Inclusion Champion Award
• 16th Philippine Quill Awards (BanKo Launch)
BanKo Awards and Recognitions
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The Start of Something Big
Private and Confidential
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Target Market
Private and Confidential
•High-quality customer service and a comprehensive set of products
•Multi-channel delivery (e.g. branch, ATMs, Internet, telephone)
•Stringent credit, risk and compliance processes .
Upper mass
(banked)
Private andAffluent
Lower mass
(under / unbanked)
Middle mass
(under / unbanked)
Self-Employed Micro-Entrepreneurs
(SEME)
Corporate +
SME+
Credit
Savings
Payments and
Remittance
Protection
Financial Needs
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anking made easy and attractive for the un/under-banked
ccessible loans with innovative credit process and fast TAT
o frills banking and basic products
nowledge of community as the foundation of the business
fferings and service models tailored to the target client’s needs
BanKo’s Approach
Private and Confidential
www.banko.com.ph
Thank you!
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