NOEL Z ALMERA Senior System Officer NATCCO I

NOEL Z. ALMERA Senior System Officer NATCCO I. T. Group

SITUATION ü ü Economic condition. Financial Intermediation. Business Trend. Global.

Communication Technologies

WHAT ABOUT US NOW IN THE COOPERATIVE? • Why do we need to act? ! • Why Kaya Payment Platform is the answer? • What should we do?

Shared payment platform for and with co-ops

GLOBAL CHALLENGES Regulatory Challenges (WOCCU) Payments Young Member Growth Small CU Sustainability Market Disruptors

National Retail Payment System http: //www. bsp. gov. ph/publications/media. asp? id=4274

Non Traditional Entrants (DISRUPTORS) World Council of Credit Unions

Non Traditional Entrants (DISRUPTORS) World Council of Credit Unions

World Council of Credit Unions

Agency Banking (BSP Circular 940) Electronic Banking Self-service real-time transaction 3 rd Party Cash Agent Cash-in/Cash-out

Banking is at the highest risk of disruption! Source: Millennial Disruption Index identifies the industries most likely to be transformed by Millennials World Council of Credit Unions

World Council of Credit Unions

Co-ops as FI Players 40% of Filipino adults SAVE • 68% KEEP SAVINGS at HOME • 33% SAVE IN BANKS • 7. 5% SAVE IN COOPS 47% of adults BORROW – 62% FROM RELATIVES – 12% LENDING/FINANCING COMPANIES – 10. 5% COOPS http: //www. bsp. gov. ph/publications/media. asp? id=4274 – 9. 9% NGOs • 2. 6% IN PALUWAGAN – 4. 4% FROM BANKS

SAVINGS INVESTMENTS INSURANCE FINANCIAL SERVICES CREDIT PAYMENTS & REMITTANCES P 2 G P 2 B G 2 P B 2 P

Most Often and Most Preferred Remittance Channels: P 2 P Transactions WHERE ARE THE COOPS? http: //www. bsp. gov. ph/publications/media. asp? id=4274 Source: 2015 BSP National Baseline Survey of Financial Inclusion

WHERE ARE THE COOPS? http: //www. bsp. gov. ph/publications/media. asp? id=4274 Source: 2015 BSP National Baseline Survey of Financial Inclusion

We need to control our own destiny • We do not want to create a dependency on a competitor -- mobile operator or other providers. Using a 3 rd party platform is at the expense of the member and the cooperative system • Cooperatives should not expose members to other providers who will cross sell other services and compete with the coop By: Brian Branch, CEO & President of World Council of Credit Unions.

Vision of an Integrated Network MEMBERS COOP COOP FEDERATION Ø Contractual Solidarity Ø Pooling of resources Ø Standardization of operations Ø Governance & Self Discipline

Delivery Channels Teller Mobile Services Banking ATM POS

Benefits Convenient transactions for Co-op Members Savings on cost and time Additional revenues

Kaya Savings account • A digital savings account bundled with over-the -counter services, mobile banking, ATM and POS • KAYA savings account provides your members with easy and secure access to their coop accounts through their mobile phones, ATM, POS and KAYA outlets

KAYA Savings Product feature Set up 1. Currency allowed 2. Minimum Opening Amount 3. Minimum Deposit Amount 4. Maximum Deposit Balance Policy Php 0. 00 Php 100, 000. 00 5. Interest Fixed Type 2. 5% p. a. Rate Capitalization Frequency (credit Quarterly period) Calculation Period Quarterly Withholding Tax exempt Calculation basis Average Daily Balance (ADB) Accrual Type Include first day, Exclude last day

MINDANAO Region 10 Mambajao Credit Coop Oro Integrated Coop MSUIIT NMP Coop Lorenzo Tan MP Coop Paglaum MP Coop Gata Daku MP Coop Oro Savings & Sharing Coop Sta. Catalina MP Coop BUGEMCO MICOOP Different Coops

MINDANAO STRATEGIC COOPERATIVES Oro Integrated Coop MSUIIT NMPC Paglaum MPC Panabo MPC SOEMCO MICOOP LEGEND VARIOUS COOPS: Region 13 CARAGA Region 12 Region 11 Region 10 Region 09 ARMM

Demo / Video

Commonly Used Available Billers • • • Globe Smart ABS CBN Mobile Sun cellular PLDT Manila Water Sky Cable Television Network NBI Clearance Payment NSOHelpline. Com POEA (COE) • • PRC Asialink China Trust Home Credit Paramount Insurance Cocolife Malayan Insurance Axa Philippines

Commonly Used Available Billers • • Asia United Bank (AUB) Credit Cards BPI Credit Cards Philippine Airlines Air Asia/Zest Air Cebu Pacific/Cebgo Skyjet VIA. COM

Phase 1: OTC and Mobile Banking with Inter–Branch and Inter–Coop Transactions Account Opening Balance Inquiry / Mini statement Fund Transfer Bills Payment Cash Deposit Cash Withdrawal (own billers) Live: Dec 2016 Reports: For fine-tuning, UAT

Phase 2 a: OTC and Mobile Banking with Inter–Branch and Inter–Coop Transactions Bulk Payments (Payroll servicing, bulk loan disbursements, ECT/CCT)

Phase 2 a: OTC Bills Payment with Inter–Branch and Inter–Coop Transactions with ECPay Integration

Phase 2 b: ATM, POS and CARDS On-Us Balance Inquiry Fund Transfer Cash Withdrawal Bills Payment Purchase May to June 1 st week: Development to UAT June 2 nd week: Go-live

Phase 2 b: ATM, POS and CARDS Issuer / Acquirer with Bancnet integration With EMV certification Balance Inquiry Fund Transfer Cash Withdrawal Bills Payment Purchase June to August

Investment and Revenue

Subscription Requirements • Php 100, 000. 00 (40 k / 60 k) one time fee • Settlement deposit Php 200, 000. 00 non-interest bearing deposit (minimum) Time deposit with federation as buffer fund

MOBILE BANKING

OVER THE COUNTER

BENEFITS Coop and Membership growth More savings Generation Nationwide area of operations. Coop branding Easy access any time anywhere Intercoop and interbank transactions ü Wide array of services ü ü ü

How to avail • Contact NATCCO/PFCCO for subscription • Board resolution • Include in By-laws: “…. payments, remittances as part of services to members” • Requirements: internet connection, computer; Android phones for members • Trainers’ training to be provided by Kaya Team for coop staff

THANK YOU! NOEL Z. ALMERA Senior System Officer 09177931225 / 09999933264 nzalmera@natcco. coop