29 June 2011
Mr. Leonilo 'Topper' Coronel, Managing Director of the Bankers
Association of the Philippines Credit Bureau (BAP-CB), presented the
private credit bureau's latest changes and activities to participants of
the 2011 RBAP-MABS National Roundtable last May 23-24 in Manila. He
shared the latest developments in the effort of BAP-CB and a consortium
of microfinance institutions' (MFIs) to build a responsive credit
information system for the microfinance sector. (see Philippine Star
article)
He reported the over 60% growth in the number of participating rural
banks from 28 to 46 in May 2011, attributing this increase to the
BAP-CB's efforts to reach out to rural bank federations in the country,
and the assistance of the USAID-supported RBAP-MABS Program.
He also underscored the enhancements in the bureau's Negative File
Information System (NFIS) particularly its accessibility via the
Internet, which allows the credit bureau to automatically process
requests on a daily basis, even on non-working days. In addition, BAP-CB
provides its participating institutions with (1) one-on-one training for
their key officers, (2) data management modules, and (3) other data
mining applications such as SNIP (or Similar Names Inquired Previously).
Finally, the inquiry fee has been reduced by half – the bureau now
charges P5.00 per inquiry versus P10.00 in the past.
Mr. Coronel also presented the activities that BAP-CB is currently
working on with major microfinance institutions (MFIs) that rural banks
can participate in soon. In what he described as a historic meeting of
minds, the leading microfinance players in the country agreed to build a
'client at risk' file in contrast to the traditional 'caution list' or
negative list for delinquent borrowers. The objective is to provide
reform programs for delinquent borrowers from lower income segments with
the aim of rehabilitating their credit worthiness and making them
'bankable' again based on a better understanding of their financial
situation.
The tripartite partnership for the experimental project has defined the
roles for each of the partners: the group of MFIs provides the vision,
strategic directions and specific business requirements; the Rafael B.
Buenaventura (RBB) Foundation, a microfinance enabler, plays a key role
as catalyst to match needs against resources; and BAP-CB develops
solutions, operates the technology infrastructure, and provides credit
bureau services for the participating institutions. This project enables
MFIs to create a new category of outreach that supports former borrowers
and provides a pathway for them to become financially healthy and
creditworthy once more. Furthermore, as rural banks join the efforts of
the BAP-CB, the client database is enriched to cover key rural areas in
the country and not just urban town centers. This supports the credit
risk management processes of many financial institutions and at the same
time allows rural banks to explore 'client at risk' issues.
Interest in BAP-CB services has also prompted the Federation of Laguna
Rural Banks to pilot test the sharing of positive data among its
members. Furthermore, BAP-CB is now at the forefront of developing
SMS-based or text-based information inquiry through the mobile phone
that will open up a new venue for more accessible credit information
even for banks' field credit officers.
The USAID-supported RBAP-MABS program started its partnership with the
BAP-Credit Bureau more than 10 years ago with a pilot implementation in
Mindanao that allowed some rural banks to test the use the credit bureau
services. BAP-Credit Bureau is a private non-government organization
providing credit bureau services.
Mr. Leonilo"Topper" G. Coronel is the current Executive Director of the
Rafael B. Buenaventura (RBB) MicroFinance Resource Center Foundation,
which was established by the BAP to continue the vision of the late BSP
Gov. Rafael B. Buenaventura in support of microfinance.
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