MABS program extended anew
The Microenterprise Access to Banking Services (MABS) program has been extended by its parent company, the United States Agency for Development (USAID) up to March 2013. It contract was to have expired this year.
Over the past 10 years, the program provided technical assistance and training to rural banks to profitably provide financial services to the microenterprise sector.
MABS participating banks, majority of which are rural banks, have served more than 470,000 microentrepreneurs extending more than 1.5 million loans amounting to a total P17 billion, and in the process developed small savings accounts.
Presently, rural banks under the program manage more than 1.3 million micro deposit accounts totaling more than P1.7 billion.
During this new phase of the MABS program, the MABS team and their accredited MABS service providers will continue to provide technical assistance and training utilizing the MABS Approach to assist more banks expand access to microfinance services through more branches across the countryside.
In late 2004, a team from MABS worked with select rural banks to design micro agriculture loan products to expand access to credit for small farmers and agricultural households, while reducing the risk factors.
The micro agri loan product was specifically approved and categorized in line with the definition of Bangko Sentral ng Pilipinas (BSP) of microfinance loan products under a Monetary Board resolution in January 2006.
Since these products were launched, over 16,000 loans totaling more than P200 million were provided to more than 8,000 farmers. Portfolio-at-risk averaged less than three percent.
Meanwhile, the program collaborated with 39 rural banks with over 350 branches to pilot test and launch mobile phone banking services and commerce solutions for clients.
Electronic banking services via mobile phones for clients became a hit. And up to the present, mobile phone-based transactions expand at a rate of over 10 percent per month.
The mobile phone banking services being pioneered by MABS in partnership with Globe Telecom’s G-Xchange utilizing the GCASH platform will benefit more rural banks and their clients and help the sector to offer new and more cost effective banking services than ever before.
RBAP and MABS also launched a very successful website located at www.mobile-phonebanking.rbap.org which now receives more 30,000 hits a month. It provides rural banks and their clients and customers overseas with updated access to mobile phone banking services and a complete list of accredited rural banks in the
The MABS program is presently working on micro housing finance and micro insurance services, in keeping with the BSP’s approach to financial inclusion. The MABS team will also work on collaborating with the BSP on the implementation of the upcoming Credit Information Systems Act and assist rural banks to take part in an expanded credit information sharing initiative. – Ted Torres
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