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.
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