The Bangko Sentral ng Pilipinas (BSP) last September 13has approved the request of One Network Bank, to establish five Micro-Banking Offices or MBOs in Davao City pursuant to BSP Circular No. 694 dated October 14, 2010. Through the said circular, BSP is allowing rural and thrift banks in the country to establish microbanking offices (MBOs) in cities and municipalities where microfinance-oriented banking services are unavailable and where it is economically unjustifiable to set up large-scale bank services. ONB’s Micro Banking Offices shall be providing services that are suitably intended for the target market such as accept micro-deposits including initial deposit and service withdrawals thereof, accept check deposits of microfinance clients for collection and credit to own deposit accounts, disburse/release proceeds of micro-loans and collect loan amortization payments and related charges, collect payments, sell and market microinsurance products, receive and pay out authorized remittance transactions, act as cash in/out points for electronic money, receive utility payments, collect premiums, and pay out benefits, and purchase foreign currencies up to maximum equivalent of USD300 per client per day for credit to micro-deposit accounts. ONB’s 6 BSP-approved locations for the MBOs within Davao City are in Brgy. Catalunan Grande, Brgy. Cabantian, Brgy. Bunawan, Brgy. Sasa and Piapi (to be replaced by another location in Sandawa). The average total estimated capital expenditure for each MBOs is P834,000 or a total CAPEX budget of 4.17 million for the 5 MBOs. This represents cost of leasehold improvements, furniture and equipment on a rented 5 meter x 6 meter commercial stall space. Over the first 3 years of operation, each MBO is projected to contribute an additional average annual operating income of P534,000 or P2.67 M total income for the 5 MBOs over 3 years. Each MBO will be as high-tech as regular branches with ATM, POS-Debit Bills Payments, Electronic Foreign Remittance, Online Interbranch PeraDala Cash Transfers and Internet Banking. The only limitation for each MBO is that only micro deposits of not more than P15,000 and only micro loans of not more than 150,000 are allowed by BSP to be serviced by MBOs. MBOs will allow ONB to expand its banking infrastructure to reach microfinance clients in growth center barangays within Cities that are unserved by banks. Inclusive banking is the general strategy. ONB also recently inaugurated its 81st Branch in New Corella, Davao del Norte- a product of its recent consolidation with also Mindaoa-based Rural Bank of New Corella adding up one branch and around P22 Million in assets to ONB’s branch network and P12.5Billion in resources. The new consolidated ONB formally started consolidated operations last Sept. 1, 2011. The Bank now has paid-up common shareholdings of P1.45 Billion after consolidation and remains to be the Philipppines’ widest and most modern rural bank operating with a total of 81 branches and 108 PeraAgad ATMS. – [SUEY ASUNCION]
