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Agency Banking: Revolutionizing Agency Banking in the Philippines

Overview


FAIRBank or First Agro-Industrial Rural Bank, has thirty-six branches in four provinces of the Philippines; its headquarters is located in Daanbantayan, Cebu. The bank’s primary focus is to

address the needs of rural communities by offering basic banking services, and loan products micro, small-medium enterprises, and microhousing.


Customer Challenges

  • Customers were inconvenienced by being unable to conduct transactions outside their home branch. This caused the customers to travel far just to be able to make transactions thus.

  • Banking services were difficult to access due to the long lines.



Bank Challenges

  • Meanwhile, Fairbank had their challenges of their own. Many business processes such as Customer Authentication were being processed “manually”.

  • These cumbersome and time-consuming processes led to the inefficient use of staff, overworked staff, and human errors. These issues were attributed to an outdated legacy system and the maintenance of such a system.

  • Moreover, with decentralized system and multiple instances at branch level, it led to data and operation inconsistencies.

  • Compounding these issues, was the unavailability of proper 3G/4G network for reliable data transmission and connectivity. It posed the risk of latency in data synchronization.


Goals of the Project

  • Fairbank set out several objectives for the project with the least being the setting of a Customer-Centric Standard Operating Model for Microönance.

  • The business model required the maximum outreach to customers especially in remote location in far-flung islands.

  • Fairbank needed to increase the productivity and value of their Loan Officers and Field Agents through automation by increasing case workload without adding additional personnel.

  • Fairbank wanted to develop Self-Service options through the use of technology.


The Solution


Fairbank selected Bank-Genie’s Genie-Branch which is part of the company’s Digital Platform Genie-Transformation which provided a wide range of branchless banking features and functionalities including Loan Origination, Disbursals, Collections, Repayments, Cash Deposit, Credit Scoring, Commission Calculations, Enquiry, Mini-statement.


Technically, by consolidating the data in a centralized core banking system and the use of a middleware to synchronize distributed database, the issues surrounding the distributed and a synchronous legacy database were solved.


Working closely with FairBank in a highly focused and committed fashion, Bank-Genie delivered the project in a mere 16 days from Project Kick-off to Go Live with a lean and

dedicated team of 4 consultants.



The Results

  • Through this model, there was an exponential growth with 178 rural and semi-urban municipalities and cities brought under the Fairbank network using Genie-Branch.

  • It was achieved through a full-scale transformation of processes from manual to full automation thereby increasing efficiency by 70%. The caseloads per officer increased from 100 to 900 accounts.

  • Customer satisfaction improved as “the last-mile” access issues were resolved and the bank’s goal to promoted financial inclusion fully realized.

What's in it for our agents and clients?

  • Economic Empowerment

  • Increased Footfall

  • Positive Brand Association

  • Increased Proximity and Convenience

  • Lesser Queueing Time at Branches

What's in it for the bank?

  • Field officers will be focused on value-adding activities

  • Reduction of lead times in processing new loans by half

  • Growth in loan portfolio

  • Expand reach to unbanked areas without the need to invest for brick and mortar

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