BanKO eyes partnership with state-run funds

MANILA, Philippines - BPI Globe BanKo Inc. (BanKO), the world’s first mobile-based savings bank, is looking at possible partnerships with government-run funds to further grow its customer base.

BanKO president Teresita Tan, in a press briefing, said they are set to meet with officials of Social Security System (SSS) and Philhealth to discuss possible tie-ups.

Tan said they may work out a scheme that would allow an easy way for self-employed members of SSS to use BanKo’s facilities as their payment scheme.

The BanKo executive said they are also having initial discussions with the Trade Union Congress of the Philippines (TUCP).

She said they are also tapping the Department of Education (DepEd) to urge students to be part of its customer base.

At present, BanKO has existing partnerships with microfinance institutions (MFIs), rural banks, NGOs and cooperatives for wholesale institutional loans to fund MFIs on-lending to its client-base; and capability-building development loans in the form of technical assistance and financing training to MFIs and their their clients.

BanKo has extended more than P2 billion in loans to MFIs, reaching over 770,000 microenterprises.

According to Tan, they are targeting to hit a customer base of one million in 2013 from the current 200,000 since the bank started operations in January this year.

With a capital base of P552 million, BanKo was conceptualized and formed in 2009 to develop a way to reach out to unbanked, underbanked and underserved population which are normally in the D and E social bracket.

“This is first-of-its-kind in the world. We are offering an alternative way on how to save money for unbanked Filipinos. We have brought the sachet mentality into banking,” she said.

“BanKO connects to a broader market and reaches out to more individuals by harnessing the power and proliferation of mobile phones, making it easy for Filipinos to open and maintain a bank account.”