the microfinance data sharing system (midas)

1. Session 5: The Micronance Data Sharing System (MIDAS) Patricia Calilong BAP-Credit Burea 2012 RBAP-MABS National Roundtable Conference June 7-8, 2012 Hyatt Hotel & Manila

2. THE MICROFINANCE DATA SHARING SYSTEM (MiDAS) RBAP MABS ROUNDTABLE 08 JUNE 2012 2

3. RBB Foundation 3

4. RBB Foundation l RBB Foundation continues Gov. Paengs legacy in developing and promoting sustainable microfinance through capability building. 4

5. What is MiDAS? l Data Sharing System is the Microfinance Credit Bureau that allows MFIs to submit reports, send inquiries and retrieve results on borrower information.l Primarily, 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. 5

8. MIDAS Business Requirements Contains only 8 data elements 1. Name of MFI 2. Name of Borrower (Last Name, First Name, Middle Initial) 3. Birthdate (MM / DD / YYYY) 4. Complete Address (no., street, brgy, municipality or city, province) 5. Regular Loan Outstanding (Income Generating Loan) 8

9. MIDAS Business Requirements Contains only 8 data elements 6. Other Loan Outstanding 7. BAR Type - Explanation why borrower is classified as at risk based on the definition of client at risk (code applies only to regular loans). In cases where the client does not have regular loan, code applies to other loans. 8. Cutoff date of report of the institution 9

10. Key Agreements with 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 3. Retention o No prescription o Obligation to report any resolution in BAR 10

11. Key Agreements with MiDAS Participants 4. Required Reports o Every 30 days o BAR - Categories BAR TYPE Value Descrip>on 01-01 FRAUD ride on / loan sharing / dummy loans 01-02 FRAUD non remiKance of collec>ons 01-03 FRAUD geMng 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 Restructured loans that incurred at least 2 missed payments w/o valid 07-01 reason 11 99-99 OTHERS

12. Key Agreements with 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 role6. Client Waiver authorizes MFI to report clients name in the BARIS7. Cost o Annual Membership Fee P10, 000 12

13. Learnings from the Field1. Challenges in robustness of data o Cascading of information to users o Backroom support o Access problems o Client Waiver o Errors in reporting (learning cycle) o Cut off date and period covered 13

14. Learnings from the Field 2. The Response o Technical Working Group refined business process o Unique reference number per account (in group lending) is mandatory o Changes in status of borrower at risk are inserted to preserve history of the loan account o Workshop conducted for users and I.T. personnel of MFIs to cascade rules and allowed sharing of experiences from using the system 14

15. Learnings from the Field 2. The Response o Incorporation of client waiver in PNs o MFIS slowly acquiring reporting discipline o Inquiries are made per loan application 15

16. What Makes It Work 1. Reduces cost 2. Multiple exposures to the same BAR 3. Reciprocity 4. Ownership 16

17. Some Statistics (as of June 07, 2012) Region Province Count CAR - CORDILLERA ADMINISTRATIVE BENGUET 20 REGION Region Total 20 NCR - NATIONAL GMA - NCR FOURTH 13 CAPITAL REGION DISTRICT NCR - NATIONAL GMA - NCR SECOND 9 CAPITAL REGION DISTRICT Region Total 22 17

18. Some Statistics (as of June 07, 2012) REGION I (ILOCOS REGION) LA UNION 7 Region Total 7 REGION III (CENTRAL LUZON) TARLAC 161 Region Total 161 REGION IV-A (CALABARZON) BATANGAS 133 REGION IV-A (CALABARZON) CAVITE 50 REGION IV-A (CALABARZON) LAGUNA 258 REGION IV-A (CALABARZON) QUEZON 40 REGION IV-A (CALABARZON) RIZAL 156 Region Total 637 18

19. Some Statistics (as of June 07, 2012)REGION IV-B (MIMAROPA) MARINDUQUE 4 REGION IV-B (MIMAROPA) OCCIDENTAL MINDORO 16 REGION IV-B (MIMAROPA) ORIENTAL MINDORO 35 REGION IV-B (MIMAROPA) PALAWAN 283 Region Total 338 REGION IX (ZAMBOANGA ZAMBOANGA DEL NORTE 6 PENINSULA) REGION IX (ZAMBOANGA ZAMBOANGA SIBUGAY 11 PENINSULA) Region Total 17 19

20. Some Statistics (as of June 07, 2012) REGION V (BICOL REGION) ALBAY 1 REGION V (BICOL REGION) CAMARINES NORTE 23 REGION V (BICOL REGION) CAMARINES SUR 34 REGION V (BICOL REGION) MASBATE 222 REGION V (BICOL REGION) SORSOGON 299 Region Total 579 REGION VI (WESTERN VISAYAS) AKLAN 322 REGION VI (WESTERN VISAYAS) ANTIQUE 1314 REGION VI (WESTERN VISAYAS) CAPIZ 347 REGION VI (WESTERN VISAYAS) GUIMARAS 103 REGION VI (WESTERN VISAYAS) ILOILO 1282 REGION VI (WESTERN VISAYAS) NEGROS OCCIDENTAL 25 Region Total 3393 20

21. Some Statistics (as of June 07, 2012) REGION VII (CENTRAL BOHOL 54 VISAYAS) REGION VII (CENTRAL CEBU 406 VISAYAS) Region Total 460 REGION VIII (EASTERN EASTERN 419 VISAYAS) SAMAR REGION VIII (EASTERN LEYTE 157 VISAYAS) REGION VIII (EASTERN NORTHERN 907 VISAYAS) SAMAR 21

22. Some Statistics (as of June 07, 2012) REGION X (NORTHERN BUKIDNON 7 MINDANAO) REGION X (NORTHERN MISAMIS ORIENTAL 72 MINDANAO) Region Total 79 REGION XI (DAVAO REGION) DAVAO DEL SUR 8 Region Total 79 REGION XIII (CARAGA) AGUSAN DEL NORTE 2191 REGION XIII (CARAGA) SURIGAO DEL NORTE 95 REGION XIII (CARAGA) SURIGAO DEL SUR 23 Region Total 2309 22 Grand Total = 9574

23. Some Statistics (as of June 07, 2012) BAR ClassicaMon Count 01-01 FRAUD - ride on / loan sharing / dummy loans 127 01-02 FRAUD - non remiKance of collec>ons 40 02-01 ABSENCE / DISAPPEARANCE 156 04-01 WRITTEN OFF ACCOUNTS / BAD DEBT ACCOUNTS 2431 05-01 MATURED LOANS 6228 06-01 DROP OUT - loan paid by center/group/co-member 36 06-02 DROP OUT - expelled by center member 104 07-01 Restructured loans that incurred at least 2 missed 127 payments w/o valid reason 99-99 OTHERS 325 TOTAL 9574 23

24. Paeng Microfinance Awards l Aside from the MiDAS credit bureau, the RBB Foundation has launched the Paeng Microfinance awards that will.. - Recognize outstanding MFIs who through their initiatives have carried out exemplary work, worthy of emulation. 24

25. Paeng Microfinance Awards l Theme for first year of Awards is PIONEERING Product or service Delivery mechanism New / remote area or community never been served by microfinance 25

26. Paeng Microfinance Awards Winners will earn the distinction of being a catalyst like Gov. Paeng, i.e, pushing the frontiers of microfinance forward to empower microentrepreneurs to help themselves Technical assistance to strengthen MFIs commercial sustainability will be provided to winners by experts from the field 26

27. Paeng Microfinance Awards l Call for nominations will be on April 1, 2012 with the help of networks, councils, banking federations/ associations, etc. in information campaignl Entry or nominations forms will be down- loaded from the RBB Foundation websitel MFIs will submit entry or nominations forms to networks, councils, federations, etc. of which they are members 27

28. Paeng Microfinance Awards l Networks, etc to rank and endorse to RBB Foundation top ten MFIs from among the nominations (criteria to be furnished by the Paeng Awards Technical Committee)l Ranking done by networks, etc will in no way influence the final outcomel Awarding is in November 2012. 28

29. For more information, go to http:// rbb.bapcb.com 29