THE MICROFINANCE  DATA SHARING SYSTEM  

(MiDAS)  

Leonilo “Topper” Coronel BAP Credit Bureau 

 

2011 RBAP‐MABS Regional Roundtable Conference Hya= Hotel & Casino, Manila 

November 9, 2011  

THE MICROFINANCE  DATA SHARING SYSTEM  

(MiDAS) A PRESENTATION TO THE  

MABS REGIONAL ROUNDTABLE 09 NOVEMBER 2011 

HYATT HOTEL 

Dec

Feb 2011

Mar 

Apr 

May 

Sept 

•   Planning Conference in Iloilo 

•   MOU Signing  and FinalizaLon of  Terms Of Reference 

•   MiDAS ApplicaLon Development  

•   Launching of Pilot Phase 

•  MOA Signing, and Road shows

•   Final review and  acceptance 

  The MiDAS Journey  END

  The RBB Foundation plays a key role as catalyst to match needs against resources while the BAP Credit Bureau develops solutions, operates the infrastructure and provides services.

  Historic meeting of the minds among major

MFIs to implement a credit bureau facility that enables them to stay true to their social mission of poverty alleviation

  Share data to identify and offer reform

programs to ‘borrowers at risk’ rather than build a traditional negative list of clients to be used as a ‘caution list’.

  The MiDAS Journey 

  Multi-borrowing not a primary objective, but system features partly address this.

  MFIs provides the vision, strategic directions

and specific business requirements for the project.

  The MiDAS Journey 

Core Group of Institutions and Initial Project Scope

CARD NGO

Taytay Sa Kauswagan, Inc.

Ahon Sa Hirap, Inc.

Negros Women for Tomorrow Foundation, Inc.

CARD Bank, Inc.

ASA Philippines Foundation, Inc.

OK Bank, Inc.

LifeBank Foundation, Inc. LifeBank Rural Bank

BAP Credit Bureau, Inc. RBB Foundation

  The MiDAS Journey 

 Technical Working Group composed of senior representatives from 6 MFIs agreed on definitions, scope, reports, desired service levels by first week of March (Business Requirements)

 6 MFIs signed an MOU with RBB FOUNDATION as project manager on behalf of the MFIs and BAP-CB as service provider

  The MiDAS Journey 

–  Borrowers At Risk ClassificaNons  Value Description

01-01 FRAUD – ride on / loan sharing / dummy loans

01-02 FRAUD – non remittance of collections

01-03 FRAUD – getting commission on loans released of other members

02-01 ABSENCE / DISAPPEARANCE

03-01 UNDER LITIGATION

04-01 WRITTEN OFF ACCOUNTS / BAD DEBT ACCOUNTS

05-01 MATURED LOANS

06-01 DROP OUT – loan paid by center/group/co-member

06-02 DROP OUT – expelled by center member

07-01 Restructured loans that incurred at least 2 missed payments w/o valid reason

99-99 OTHERS

MIDAS Business Requirements 

 Barangay Level

–  List all BAR in a given barangay as reported by participating MFIs as of a certain date

–  Follow the official list of provinces, cities/municipalities and barangays posted on the website of the National Statistics Coordination Board (www.nscb.gov.ph) which is the primary reference for BAR reporting and BAR search by area.

MIDAS Business Requirements 

  Key Agreements with Future MiDAS Participants 

1.  Reciprocity o  Give = GET o  Voluntary vs. Mandatory

2.  Confidentiality o  Info limited to those who are

authorized w/in the institution o Anonymity of reporting institutions

3.  Retention o  No prescription o  Obligation to report any resolution in

BAR

  Key Agreements with Future MiDAS Participants 

4.  Required Reports o  Every 15 days o  BAR - Categories

BAR TYPE   Value   DescripLon 01‐01   FRAUD – ride on / loan sharing / dummy loans 01‐02   FRAUD – non remi=ance of collecLons 01‐03   FRAUD – geXng commission on loans released of other members 02‐01   ABSENCE / DISAPPEARANCE 03‐01   UNDER LITIGATION 04‐01   WRITTEN OFF ACCOUNTS / BAD DEBT ACCOUNTS 05‐01   MATURED LOANS 06‐01   DROP OUT – loan paid by center/group/co‐member 06‐02   DROP OUT – expelled by center member

07‐01   Restructured loans that incurred at least 2 missed payments w/o   valid reason

99‐99   OTHERS

  Key Agreements with Future MiDAS Participants 

5.  Ownership and Governance o  Data belongs to participating MFIs

collectively o Create an entity to own and manage

MiDAS going forward o  RBB Foundation plays only an interim role

6.  Cost o  Annual Membership Fees

Who are MIDAS Eligible Participants? 

   Microfinance NGOs   Cooperatives   Rural Banks with MF operations   Eligibility Requirements:   A member in good standing of

and endorsed by a microfinance council, network or association

e.g. RBAP or MABS

Key Agreements After Pilot Phase 

   Acceptance of MiDAS as evidenced by Certificate of Acceptance

  Populate system with nationwide data

  Preparation of MOA

Thank you.