BanKO extends P2-billion loans, loads to partners

MANILA, Philippines - Ayala-controlled BPI Globe BanKO Inc. (BanKO) has extended P2 billion in loans to microfinance institutions as it continues to look for partner outlets in an effort to reach the country’s unbanked particularly the low-income segment at lower costs.

BanKo, a tie-up among Bank of the Philippine Islands, Globe Telecom, and Ayala Corp., has extended P2 billion in loans to microfinance institutions reaching over 200,000 micro-borrowers.

The bank is also expanding its network of partner outlets to eschew the traditional branch banking to lower costs and reach more customers and communities.

BanKo has tied up with the Tambunting chain of pawnshops as well as fast rising drug store chain Generika.

It has also partnered with microfinance institutions (MFIs) like rural banks, non-government organizations (NGOs), and cooperatives.

The ‘branchless’ banking method of service delivery enables BanKO partner outlets to perform cash-in or cash-out transactions and conduct customer identification (KYC) for savings and loan applications.

With the support of six regional branches and field coordinators deployed nationwide, this approach to channel development would be critical to bringing financial services to remote locations and ensure permeating reach and accessibility across the country.

BanKo provides the low-income segment with secure and convenient access to affordable financial services by leveraging on its combined assets and infrastructure in banking and telecommunications.

Established in July 2009 it is the first mobile-based, microfinance-focused savings bank in the Philippines.BanKO is pioneering the delivery of financial services through a network of partner outlets equipped with information and communication technologies of BPI and Globe.

BanKo offers PondoKO or Microsavings – a personal savings account, PaniguroKO or Microinsurance- an affordable insurance product designed to provide financial protection against property damage and accidental death, PuhunanKO or Microloans - a small-scale loan extended to borrowers to start a microenterprise or to improve their living conditions.

It also offers Institutional Microfinance Loans for MFIs such as thrift and rural banks, NGOs and cooperatives for their use in portfolio re-lending at competitive interest rates and Microfinance Training and Capacity-building Loans to finance the MFIs’ improvement of operations, and expansion of branch networks.