MICROCAPITAL BRIEF: Local Governments in the Philippines Support Smart Communications’ Fintq in Rolling Out KasamaKA to Enable Sari-sari Stores to Act as Mobile-money Agents

KasamaKA, a program of the Philippines’ Fintqnologies (Fintq), recently won a vote of support from the National Executive Board of the League of Provinces in the Philippines (LPP), an association of municipal officials, for its work to help financial institutions deliver services such as microsavings, microinsurance and loans via sari-sari stores, small convenience stores common in the Philippines. LPP agreed to “encourage” the public to use “KasamaKA by conducting financial literacy and education campaigns.”

KasamaKA, which was launched in 2017, delivers 2.4 million Filipino families microfinance services from 100 bank and non-bank partners. The service is available via mobile phone as well as at retailers and other commercial establishments.

Formed in 2015, Fintq is a unit of Voyager Innovations. In addition to the KasamaKA initiative, Fintq offers digital lending, electronic deposit services and microinsurance. Between its inception and year-end 2017, Fintq disbursed 150,000 loans totaling PHP 23 billion (USD 460 million).

Voyager Innovations, which was established in 2013, is a subsidiary of wireless service provider Smart Communications. It is a technology firm that provides services such as digital commerce, payments, remittances, lending and marketing. Smart Communications, which was founded in 1991, provides broadband Internet services; postpaid and prepaid phone plans; and Smart Money, a mobile phone service that allows users to pay bills, purchase goods and transfer funds via debit cards. As of year-end 2017, Smart Communications provides services to 22 million customers. Philippines Long Distance Telephone (PLDT) acquired Smart Communications in 2000 for USD 983 million.

PLDT is a provider of wireless, fixed-line and online services that was established in 1928 in Manilla. It operates primarily in the Philippines. For 2017, PLDT reports total assets of PHP 459 billion (USD 9.19 billion) and pretax profits of PHP 14.6 billion (USD 291 million). As of year-end 2017, the firm provides service to 63 million subscribers.

LPP is an organization comprised of local government officials that was formed under the Philippines’ Local Autonomy Bill of 1957. Its goal is “to ventilate, articulate and crystallize issues affecting provincial and metropolitan government administrations.”

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

Fintq press release
http://www.fintq.com/provinces-adopt-financial-inclusion-program-kasamaka/

KasamaKA background
http://www.fintq.com/wp-content/uploads/2018/02/KasamaKA-primer.pdf

Fintq background and mission
http://www.fintq.com/wp-content/uploads/2017/09/FINTQ-Inclusive-Digital-Finance-Report-2017-2018-1st-Edition.pdf

Voyager Innovations background
https://www.voyagerinnovation.com/innovations

PLDT background
http://www.pldt.com/docs/default-source/annual-reports/2017/main-section.pdf?sfvrsn=0

PLDT finances
http://www.pldt.com/docs/default-source/annual-reports/2017/financial-section.pdf?sfvrsn=0

“History of Sari-Sari Stores” from the US-based restaurant Sari Sari Store
http://sarisaristorela.com/blog/history-of-sari-sari-stores/

LPP background
http://lpp.gov.ph/?page_id=70

MicroCapital article; May 6, 2015; Voyager Innovation, Cash Credit to Offer Mobile Consumer Microloans in the Philippines via Smart Communication
https://www.microcapital.org/microcapital-brief-voyager-innovation-cash-credit-to-offer-mobile-consumer-microloans-in-the-philippines-via-smart-communication/

MicroCapital article; August 26, 2016; Smart Communications, ICMFI to Offer Mobile Banking Accounts in Iloilo, Philippines
https://www.microcapital.org/microcapital-brief-smart-communications-icmfi-to-offer-mobile-banking-accounts-in-the-philippines/