Mindanao coop ATM deals reach 13,230/mo

CAGAYAN DE ORO CITY — Sooner than later long lines of people infront of an automated teller machine (ATM) located to a bank, will be a thing of the past. Non-bank financial institutions are now taking advantage of the practical use of ATMs.

One of the largest confederation of cooperatives in Mindanao can attest to that, as their member cooperatives and federations have started their own beeline to their own ATMs. And they are earning from it at the same time.

The MASS-SPECC Cooperative Development Center based in Mindanao already operates four ATM units, not to mention operating computerized financial centers operating like banks.

MASS-SPECC is a Mindanao-based confederation of cooperatives, covering 120 primary cooperatives and provincial federations in 21 out of 25 provinces in southern Philippines.

In fact, three of the four units  are now online with MegaLink. The fourth unit will be online next year.

“Next year, another 14 units will be established with different cooperative members,” Sylvia Okinlay-Paraguya, chief executive officer of MASS-SPECC Cooperative said.

The progressive cooperative movement not only operates four ATM units, it has already issued nearly 6,000 ATM cards called Pinoy Coop ATM. It is obviously co-branded with MegaLink.

From initial data released, it appears that Pinoy Coop ATMs average 13,230 transactions monthly for such basic services like loans, payroll and other personal transactions.

Cardholders will soon benefit from the interconnection of MegaLink, BancNet and ExpressNet.

Incidentally, MASS-SPECC is one of two non-bank members of MegaLink.

Meanwhile, MASS-SPECC operates its own “banks” or financial centers with its member coops and federations which are also information technology (IT) savvy.

Their “banks” uses a customized program designed for the cooperative operations.

“We bought the core system of Microbanker, the program extensively used and developed by rural bankers. Then we customized for it to become the first coop banking software installed by a coop federation which was in 1996,” Paraguya said.

Today, there are presently 167 sites, or banks, for their member cooperatives. The bulk or 163 in located in Mindanao, while four are domiciled in Luzon.

“Our target by 2011 is to bring this to 400 sites,” the chief executive added.

Services offered by cooperatives include savings and credit, marketing, housing, consumer store, postharvest facilities, funeral services, and even hostel operations.

Of course, member coopertives or its individual members that need larger amounts can always tap the credit resources of rural, development or thrift, and commercial banks.

MASS-SPECC has nearly 300,000 individual members from its member cooperatives and federations.

It has total assets worth P4.03 billion and share capital of P1.166 billion.

Loans receivable already amounts to P2.41 billion and loans released so far reached P3.37 billion. Delinquency rate dropped from a high of 74 percent in 2000 to just 11 percent.

This year alone, loans released is estimated to reach P350 million, from P251 million in 2006, and P166 million in 2005. Target by 2011 is P800 million.

Deposits is estimated to break the P100 million by end 2007, and the target for savings awareness should result in deposits amounting to P440 million by 2010.

Share capital is seen to reach P42 million end 2007.

Cooperatives are regulated by the Cooperative Development Agency (CDA). While its ATM operations is not directly under the regulatory functions of the Bangko Sentral ng Pilipinas (BSP), it is MegaLink that will answer for the MASS-SPECC ATM operations.