Mercy Corps, a US-based relief and development nonprofit, has announced plans to fund a USD 1 million partnership with BPI Globe BanKO, a savings bank in the Philippines, to expand the uptake of mobile banking services. Mercy Corps will offer assistance in the application of mobile technology and the design of financial products tailored to poor people, enabling BPI Globe BanKO to increase the use of financial services through cell phones. The work is funded by a 2008 grant of USD 19.4 million from the US-based Bill and Melinda Gates Foundation to build innovative financial services in Indonesia and the Philippines.
BPI Globe BanKO is a joint venture between Ayala Corporation, a Philippine conglomerate; Bank of the Philippine Islands (BPI), a commercial bank; and Globe Telecom Incorporated, a telecommunications provider. With support from Mercy Corps, BPI Globe BanKO plans to serve an additional one million clients via mobile services. Furthermore, BPI Globe BanKO will work with smaller microfinance institutions (MFIs) to help them integrate mobile banking into their operations. BPI Globe BanKO does not report to the MIX Market, the microfinance information data provider, and financial information on the bank is not available on its website.
While an estimated 85 percent of Filipinos have access to a mobile phone, the United Nations reports that only 26 percent have access to formal financial services like credit and savings.
By Rohan Trivedi, Research Associate
About Mercy Corps:
Mercy Corps is a global relief and development agency based in the US. It provides disaster relief, health solutions and other services that enable social and economic development in 39 countries. As of June 2010, the organization reported total assets of USD 209 million.
About BPI Globe BanKO:
BPI Globe BanKO is a joint venture between Ayala Corporation, a Philippine conglomerate; Bank of the Philippine Islands (BPI), a commercial bank; and Globe Telecom Incorporated, a telecommunications provider. BPI Globe BanKO is based in San Juan, Philippines, and offers loans and savings services to individual clients and microfinance institutions (MFIs). As of March 2010, BPI Globe BanKO had authorized capital of PHP 500 million (USD 10.7 million) of which PHP 350 million (USD 7.4 million) was paid up. BPI Globe BanKO does not report to the MIX Market, the microfinance information data provider, and financial information on the bank is not available on its website.
About Bill and Melinda Gates Foundation:
Based in the US, the Bill and Melinda Gates Foundation provides grants to organizations in approximately 100 countries around the world with the aim of enhancing health care, reducing poverty and expanding educational opportunities and access to information technology. As of December 2009, its endowment totalled USD 34 billion. The Bill and Melinda Gates Foundation’s Financial Services for the Poor initiative focuses on providing people with secure methods for saving. To support this initiative, the foundation works with financial organizations to increase access to technology (point-of-sale devices, automated teller machines, etc.) and forge partnerships between mobile phone companies, banks and microfinance institutions. It also supports the startup and growth of new banks in challenging markets.
Sources and Additional Resources:
[1] Mercy Corps Press Release: “Mercy Corps Partners with BPI Globe BanKO to Extend Mobile Banking to One Million People in the Philippines”, http://www.mercycorps.org/pressreleases/24341
MicroCapital.org story, March 1, 2010: “MICROCAPITAL BRIEF: Bank of the Philippines Islands Globe BanKO to Provide Investment Services to Microfinance Institutions (MFIs)”, https://www.microcapital.org/microcapital-brief-bank-of-the-philippine-islands-globe-banko-to-provide-investment-services-to-microfinance-institutions-mfis/
MicroCapital.org story, February 1, 2010: “MICROCAPITAL BRIEF: BPI Globe BanKO, Mobile Microfinance Bank, Plans Regional Offices in Philippines”, https://www.microcapital.org/microcapital-brief-bpi-globe-banko-mobile-microfinance-bank-plans-regional-offices-in-philippines/
MicroCapital.org story, December 14, 2009: “MICROCAPITAL BRIEF: ‘Bank of the Philippines Islands Globe Savings Bank’ (BanKO) Begins Microfinance Pilot Testing Using Mobile Money Technology (MMT) with Intention of Becoming a Branchless Bank”, http://www.microcapital.org/microcapital-brief-bank-of-the-philippines-islands-globe-savings-bank-banko-begins-microfinance-pilot-testing-using-mobile-money-technology-mmt-with-intention-of-becoming-a-branchless-bank/
MicroCapital Universe Profile: Mercy Corps, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mercy+Corps
MicroCapital Universe Profile: BPI Globe BanKO, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BPI+Globe+BanKO
MicroCapital Universe: Bill and Melinda Gates Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bill+and+Melinda+Gates+Foundation
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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