DAVAO CITY -- One Network Bank is establishing five micro-banking offices (MBOs) in this city next year in a bid to reach more customers without having to make high investments on full-blown branches.
The MBOs, the bank said in a statement, will provide services to
smaller accounts. Among these services are cash deposits and
withdrawals, check deposits, loan windows for micro-finance accounts,
other microfinance products, and purchase of foreign currencies of up to
$300 per client.
The central bank issued Circular 694 in September last year, allowing banks to establish MBOs in cities and municipalities. The smaller offices are an alternative to full-blown branches that are more expensive to set up.
The bank’s MBOs will be located in Catalunan Grande, Cabantian, Bunawan, Sasa and Piapi, all remote districts of Davao City.
One Network Bank is spending about P4.17 million to put up the five offices, which will extend the following services: automated teller machines, point-of-sale debit bills payments, electronic foreign remittance, online inter-branch cash transfer and Internet banking.
“The only limitation... is that only micro deposits of not more than P15,000 and only micro loans of not more than P150,000 are allowed by the (central bank) to be serviced by (these offices),” the bank said.
It added that the establishment of these offices will allow the bank to reach more microfinance clients in growth centers.
“Inclusive banking is the general strategy,” it added.
The bank has already 81 branches after it absorbed the Rural Bank of New Corella located in New Corella, Davao del Norte last month. Its assets have grown to about P22 billion, while its paid-up common shareholdings are about P1.45 billion.
One Network Bank also reported loans went up by 39% during the first three quarters of the year to P8 billion. This was driven by the continued patronage of public school teachers as loans extended to them went up by 28.9% to P4.54 billion.
The bank not only reduced the interest rate on loans to teachers to 7.5% per year from 12% per year, but also doubled the maximum loan to P300,000 per borrower. The bank also increased the loan term to three years from two years. -- Carmelito Q. Francisco
The central bank issued Circular 694 in September last year, allowing banks to establish MBOs in cities and municipalities. The smaller offices are an alternative to full-blown branches that are more expensive to set up.
The bank’s MBOs will be located in Catalunan Grande, Cabantian, Bunawan, Sasa and Piapi, all remote districts of Davao City.
One Network Bank is spending about P4.17 million to put up the five offices, which will extend the following services: automated teller machines, point-of-sale debit bills payments, electronic foreign remittance, online inter-branch cash transfer and Internet banking.
“The only limitation... is that only micro deposits of not more than P15,000 and only micro loans of not more than P150,000 are allowed by the (central bank) to be serviced by (these offices),” the bank said.
It added that the establishment of these offices will allow the bank to reach more microfinance clients in growth centers.
“Inclusive banking is the general strategy,” it added.
The bank has already 81 branches after it absorbed the Rural Bank of New Corella located in New Corella, Davao del Norte last month. Its assets have grown to about P22 billion, while its paid-up common shareholdings are about P1.45 billion.
One Network Bank also reported loans went up by 39% during the first three quarters of the year to P8 billion. This was driven by the continued patronage of public school teachers as loans extended to them went up by 28.9% to P4.54 billion.
The bank not only reduced the interest rate on loans to teachers to 7.5% per year from 12% per year, but also doubled the maximum loan to P300,000 per borrower. The bank also increased the loan term to three years from two years. -- Carmelito Q. Francisco
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