BPI Globe BanKO eyes tieup with International Rice Research Institute

MANILA, Philippines - BPI Globe BanKO is studying a possible tie-up with the International Rice Research Institute (IRRI) as part of the savings bank’s novel approach to provide microfinance services and assistance to the country’s rice farmers and eventually to corn farmers as well.

In an interview, BPI Globe BanKO president Teresita B. Tan said research is still currently being undertaken on how the tie-up would be to help the country’s rice farmers.

According to Tan, IRRI has an existing “nutrient” mobile assistance program whereby farmers can text IRRI certain data about their palay (unhusked or paddy rice) production and IRRI would text them advice on how much nutrient they should use to increase their production.

IRRI’s mobile assistance program, thus, Tan said, dovetails with BanKO’s own mobile banking approach to microfinance.

BanKO, which is a joint venture among Bank of the Philippine Islands (40 percent), Globe Telecom (40 percent) and Ayala Corp. (20 percent), is the country’s first fully mobile savings bank that offers banking/financial services to the country’s lower income and “unbanked” segments.

BanKO’s approach to banking makes it easy and convenient for the “unbanked” sector to open an account through so-called “partner-outlets.”

Transactions - which they prefer to call as “cash-in” or deposits and “cash out” or withdrawals are then all conducted via mobile phone, specifically of course through a Globe line.

However, cash in transactions are free of charge only up to four times a month and are subsequently charged for additional deposits.

On the other hand, all cash out transaction are subject to a nominal fee.

Securing a loan, Tan said, is now more accessible to small borrowers to fund their micro or small and medium enterprises — all through mobile banking.

However, Tan points out that BanKO’s approach to microfinance adopts a wholistic plan whereby it “packages” its lending program to ensure a more sustainable business.

For instance, in its PuhunanKO or microloans program, Tan explained, BanKO has tied up with multinational manufacturing firms such as Procter & Gamble, Unilever and Nestle, whereby a small borrower can loan P2,000 to fund a “sari-sari” start-up package from either of the three companies.

Similarly, BanKO offers a “packaged” approach for small home loan repair loans with such entities as Habitat for Humanity, thus ensuring that the small borrower do not misuse the funds.

BanKO’s possible tie-up with IRRI, Tan said, would offer a similar packaged approach to rice farmers in terms of technical assistance and access to IRRI’s rice seed bank.

BanKO’s microfinance loan portfolio already amounts to P1.8 billion, Tan said.