MABS-4 introduces micro-insurance, housing

The fourth phase of the Microenterprise Access to Banking Services program (MABS-4) was formally launched early this month, which will introduce housing microfinance and micro-insurance.

Under MABS-4, the MABS team and their accredited service providers will continue to provide technical assistance and training utilizing the MABS approach – a comprehensive systematic approach to developing microfinance products and services – to assist more banks expand access to microfinance services to more rural bank branches.

At least 200 additional rural and other bank branches are expected to initiate or substantially expand the level of financial services presently providing to the microenterprise sector.

Housing microfinance and microinsurance will also be developed and rolled out during the fourth phase.

It will also continue to expand the micro agri-loan product, which extends microfinance services to small farmers as well as mobile phone banking services, which allow clients of rural banks to complete banking transactions using their mobile phones.

The program has developed the capacity of rural banks to expand access to banking services throughout the countryside and assisted these banks to become major players in the Philippine microfinance sector.  To date, MABS participating rural banks have disbursed over 1.6 million loans totaling more than P19 billion to more than 500,000 micro-borrowers. 

These banks also manage more than P1.8 billion in small savings deposits from more than 1.3 million micro-deposit accounts.

USAID mission director Jon Lindborg cited during the formal signing the importance of innovation and technology in the Philippine experience.

“I am struck by the incredible innate innovation of our Filipino partners, best represented in terms of the use of the mobile technology, which I predict will continue to revolutionize how we do development around the world,” Lindborg said.

He also acknowledged G-Xchange Inc. (GXI) – the mobile commerce subsidiary of leading wireless operator Globe Telecom, and new marketing support now coming from Nokia, global leader in producing and manufacturing mobile handsets.

GXI and Nokia has committed to support and promote the expansion of mobile phone banking and other related services to more than 500 rural bank branches and their clients. More than 330 rural bank units involving 60,000 bank clients are now offering mobile phone banking services that utilize the GCASH platform.

Since 1997, the MABS program has been working with rural banks to assist them to develop the capability to profitably provide financial services to the microenterprise sector. MABS receives support from the United States Agency for International Development (USAID) and is jointly implemented with the Rural Bankers Association of the Philippines (RBAP) with oversight provided by the Office of the President through the Mindanao Economic Development Council (MEDCo). – Ted Torres