KasamaKA gives out 1 million microinsurance policies to barangay constituents during the 2018 Liga ng mga Barangay sa Pilipinas National Assembly.

FINTQ Managing Director and KasamaKA Founder and Lead Convenor Lito Villanueva with North Cotabato Barangay Chairmen during the 2018 Liga ng mga Barangay sa Pilipinas National Assembly.

Accelerating financial inclusion at the grassroots through microinsurance

True to its mission of supporting the government’s thrust of promoting inclusive growth in the country, FINTQ, through its grassroots-based financial inclusion program KasamaKA, is providing 1 million free microinsurance policies to unbanked and underserved Filipinos across the 42,000 barangays nationwide. 

“We all need security and protection from any uncertainties. With this affordable and accessible microinsurance policies under the KasamaKA Microinsurance Program, this will kickstart the massive nationwide financial literacy campaign to educate millions of unbanked and underserved Filipinos on the importance of being financially secured and insured,” said Lito Villanueva, FINTQ Managing Director, and Founder and Lead Convenor of KasamaKA. 

For his part, Insurance Commissioner Dennis B. Funa said: “We welcome KasamaKA as a national digital enabler towards achieving our goals to exponentially grow the country’s insurance penetration rate to 4% by year 2020 from 1.7% in 2017. This is the first of its kind initiative in the country.” 

Insurance penetration rate is the ratio of premiums over GDP. The national insurance penetration grew to 1.64% last year from 1.61% in 2016.

The distribution of the 1 million free microinsurance policies is an initiative under the KasamaKA Ka-Barangay sa Kaunlaran, a capacity-building initiative in collaboration with Liga ng mga Barangay sa Pilipinas. It was announced during the Liga ng mga Barangay sa Pilipinas National Assembly last February 27 at the Manila Hotel. A month ago, its National Executive Board, through a national resolution, unanimously adopted KasamaKA as a social advocacy and a national movement for financial inclusion across 42,036 barangays in the country. 

Villanueva who is also the chairman of the FinTechAlliance.ph noted that with a microinsurance policy, Filipinos will have an additional source of financial assistance to help them cope and recover faster in times of natural disasters or unfortunate events in their lives.

Atty. Edmund R. Abesamis, Liga ng mga Barangay sa Pilipinas National President concurred, saying: “KasamaKA levels the playing field as it empowers even our marginalized constituents to avail and enjoy the benefits of digital financial services. They no longer need to request and wait for the release of financial assistance from various government offices. With their insurance coverage, they now have peace of mind as their beneficiaries are entitled to avail immediate release of their accident-related claims to cover for their needed expenses, all through the use of their mobile phone.”  

The distribution of free microinsurance policies will run from February 27 to March 13 only. Insurance coverage period will be for three months. Beneficiaries of policyholders are entitled to the following claims: Accidental death and disablement, PHP20,000; Total and permanent disability due to accident, PHP2,500; Burial assistance due to accident, PHP5,000; Daily accident hospital benefit,PHP200 per day for a maximum of 10 days hospitalization due to accident; and Fire cash assistance, PHP5,000.

Liga ng mga Barangay sa Pilipinas officially adopts FINTQ’s KasamaKA as the financial inclusion program in barangays

KasamaKA, FINTQ’s income and community builder program for financial inclusion, has further expanded its reach in grassroots communities after the Liga ng mga Barangay sa Pilipinas (LNB) issued a National Executive Board Resolution, making it as the national program to accelerate financial inclusion in barangays.

The Board Resolution was turned over by LNB President Atty. Edmund Abesamis, LNB NCR Regional Chapter President Ricardo Corpuz, and LNB Press Relations Officer Marlon Manalo to PLDT, Smart, Voyager Innovations and PayMaya Philippines Chairman Manuel V. Pangilinan and FINTQ Managing Director Lito Villanueva in the recently held FINTQ’s Disruptors’ Ball.

Under the Board Resolution, barangays are set to adopt KasamaKA–the first-of-its-kind program that aims to accelerate financial inclusion in the Philippines. It combines financial literacy with an income opportunity builder that rewards responsible usage of digital financial services such as digital micro savings, lending, micro insurance, and micro investments. The adoption of the program is aimed to protect individuals from predatory lenders, more popularly knows as 5-6 operators. It also supports President Rodrigo R. Duterte’s initiative to reduce poverty by 2020.

Each LNB Member Barangay will appoint their Barangay Community Leader (BCL) who will be tasked to facilitate the voluntary participation of their constituents in various financial inclusion activities such as information dissemination campaigns and financial education programs in barangay assemblies with the help of FINTQ.

The BCLs will also have to identify sari-sari stores that will cater as the Barangay Digital Community Centers that will serve as the “last mile customer touchpoint” for digital financial services in their respective communities.

“Financial inclusion is definitely part of our capacity building measures. Being at the grassroots, KasamaKA will enable our over 42,000 barangays to have greater awareness and access to inclusive digital financial services. As a national movement for inclusive growth, it will surely have a ripple effect on economic growth and development,” said LNB President Atty. Abesamis.

For his part, FINTQ Managing Director Lito Villanueva said “The adoption of KasamaKA by the Liga ng mga Barangay sa Pilipinas in their vast network will certainly empower most, if not all Filipinos, in the country as it aims to aid these communities in conducting sustainable financial education campaigns and at the same time expand their community livelihood and create more income-generating opportunities.”

“This collaboration has a huge potential and will certainly amplify KasamaKA’s reach to help us achieve our goal of including 30 million Filipinos by 2020 in the formal financial system. It is likewise a strong boost to make the Bangko Sentral ng Pilipinas’ vision of increasing the digital financial transactions in the country from the current one percent to 20 percent by 2020 into a reality,” Villanueva added.

Barangay constituents particularly the likes of ambulant vendors, farmers, and self-employed workers who remain financially excluded can learn more about available, accessible and affordable financial services. At the same time, they can also earn up to P300 additional income every time they use a service or successfully refer a relative, a friend or their regular customer in the KasamaKA program.

To make financial inclusion work, KasamaKA combines technology and a grassroots-based approach. Filipinos can sign up to become part of KasamaKA by just registering online at www.kasamaka.com or by texting REG <Space><First Name>/<Last Name>/<Date of Birth, MMDDYYYY>/<Address> and send to 29292 to jumpstart the free registration process. Once signed-up, a member will receive his own KasamaKA Builder ID code via SMS. Once registered, members are given incentives based on referrals and transactions made in services that are giving rewards via KasamaKA.

FINTQnologies, Corp. (FINTQ) is the global pioneer in mobile-first financial technology innovations for emerging markets. It is the financial technology arm of PLDT and Smart’s Voyager Innovations. Working in collaboration with partners such as banks, financial institutions and governments, among its key thrusts is to accelerate inclusive digital finance in the era of digital economy. Its platforms and services encompass areas including loans, insurance, micro savings, disbursements, anti-fraud security, and cloud e-banking platforms. For more information, visit www.fintq.com and www. lendr.com.ph..

FINTQ introduces “Sacheted” Banking Products to Reach Unbanked Filipinos

Bringing financial services through digital technology and sari-sari stores

Formal financial institutions can penetrate the unbanked and underserved market when financial products are offered in pocket-sized amounts and are easily accessible for consumers, a report from FINTQ, the financial technology arm of leading technology company Voyager Innovations, revealed.

The Inclusive Digital Finance Report (IDF) Vol. 2 titled Retail Financial Services in a Sachet Economy affirmed how sachet banking is fit for the Philippine market with most of the unbanked families owning a mobile phone and residing in communities where micro, small, and medium enterprises (mSMEs) such as sari-sari stores are prevalent.

This can be done through a radical innovation that can accelerate the state of financial inclusion in the Philippines as FINTQ enables banks to introduce “sacheted” banking products to communities, down to the neighborhood level through its various KasamaKA digital platforms ranging from microsavings, microinsurance, microinvestment, and digital lending via Lendr.

This agent banking model allows banks to tap mSMEs such as sari-sari stores to act as cash agents to reach unserved and underbanked Filipinos, through FINTQ’s platforms and network.

“We have a bold goal of including 30 million Filipinos in the formal financial system by 2020. This may be a long shot for an economy that is still cash-heavy, but we know from the very start that unbanked families could be served better when banks tap the most ubiquitous device  – the mobile phone – and the most pervasive touchpoint in the country – sari-sari stores,” said Orlando B. Vea, President of FINTQ and President and CEO of Voyager Innovations, the digital innovations arm of PLDT and Smart.

Sachet banking: The last mile solution

The second IDF Report, which is based on the 2015 Family Income Expenditure Survey conducted by the Philippine Statistics Authority, also revealed that about 70% of Filipino families have no savings account, effectively tagging them “unbanked” under the survey’s definition. However, this segment earns ample income and owns assets that can help banks and non-banks to design financial products that are affordable for the majority of the unbanked segment.

Against this backdrop, FINTQ reignited the sachet banking model to allow partner banks and non-bank institutions to promote financial inclusivity and accommodate the less affluent segments.

For this year, under the sachet banking model, banks and non-banks can now offer financial products and services at a lower price and through FINTQ’s KasamaKA platforms: KasamaKA Microsavings, KasamaKA Microinsurance, KasamaKA Microinvestment, and KasamaKA Lending (Lendr).

“Sachet banking is the last mile solution, and FINTQ is putting this innovation to scale. In the months to come, our products will allow consumers to deposit in their bank accounts small amounts, not directly at a bank branch, but through sari-sari stores and other mSMEs. We are doing this to enable our partners in the banking and finance industry so we can all accelerate the state of financial inclusion in the country,” said Lito Villanueva, managing director of FINTQ.  

By transforming sari-sari stores into cash agents, banks could sustainably operate in low-density communities. By turning mobile phones into a “digital bank,” unbanked and underserved Filipinos could now open a savings account, apply for a loan, find affordable insurance, and make an investment without having to visit a bank branch.

Meanwhile, consumers can access the KasamaKA platforms through a mobile device any time of the day and wherever they are. Should they need to do banking transactions, they can now transact within their neighborhood through sari-sari stores tapped by their bank to serve as its cash agents.

“Accessing bank products and services will be as easy as loading up your prepaid mobile number or buying a shampoo sachet. Thanks to the BSP for the recent release of the enabling regulation to promote basic deposit account,” Villanueva said.

“Banking products and services have long been considered necessities that only the few well-to-do can afford. Today, FINTQ’s KasamaKa carries to the farthest reaches of our archipelago, savings, loans, insurance, and investment products — and with those instruments the capacity for every Filipino to aspire beyond their present circumstances,” he added.

—

About FINTQ

FINTQ is the leader and award-winning financial technology provider of customer-centric, demand-driven, mobile-first, value-creating, and inclusive digital financial innovations. It is the largest and the only FinTech business in the country with diverse digital banking and finance portfolio of platforms including lending, security, micro-savings, micro-investments, insurance, disbursements, micro-credit and virtual banking, among others.

For more information about FINTQ and all of its products and services, please visit www.fintq.com.

Over the years, the Philippines has made great strides in financial inclusion. But a lot depends on geography as not all Filipinos have equal access to traditional formal financial institutions and their services, a report by FINTQnologies Corp. and Voyager Innovation shows.

Still, the report concludes that there is a big opportunity for banks, financial institutions and financial services providers to to provide cost-effective and cost-efficient digital solutions for the vast unbanked and underserved population coming from outside the Metro Manila.

Among the findings show:  

• Access to traditional financial institutions remains unequal across provinces.  About 92% of total domestic deposit and 97% of total domestic loan volume in 2017 only came from 23 high-access provinces, a similar trend observed in 2015.
• Conflict-ridden, geographically separated, and low-income provinces comprise the Bottom 40% in the Index. About 17% of the population live in low-access provinces, yet the residents only received 0.9% of the total loan transactions and 2.5% of total domestic deposits in 2017 — an indication that financial resources may not be enough for the local population.
• FinTech has the greatest potential in transforming the country’s financial landscape. Based on FINTQ data, majority of borrowers who access digital lending platforms actually come from outside Metro Manila, where financial resources from traditional banks are heavily concentrated.
• Opportunities for banks, financial institutions and financial services providers are huge in FinTech.

New insights from FINTQ’s data show the spending and demographic profile of the traditionally untapped borrowers who are digitally savvy yet underserved.