Reaction paper about the BPI microfinance arm pushes digital platform.

-So BPI create a digital platform named “BanKo” for their valued clients, they want to help their
clients during this ongoing health crisis. The idea is to start with the features that are known by
their clients. Borrowers may go into the app to check their loan accounts if their payments have
been reflected in the loan balance. BPI will show them the other features or functions once the
app is finish. BPI create this app for faster and less hassle transaction during this pandemic BPI
still prioritize the safeness of their clients

What are the positive and negative impacts of COVID-19 Pandemic in the
Microfinance Industry?
- Impact on Business Continuity Most businesses had to change their way of working during a
state of emergency, even those which were declared essential business activities needed to
adjust to the new physical distancing procedures and increased sanitary requirements.

Many businesses suspended their activities during the state of emergency, and the service
sector (in particular street vendors, restaurants, hairdressing, beauty salons) was the most
affected. Shops, market trading activities, personal transport, and construction were among the
segments that were first in line to close or substantially reduce the scope of their activities. Of
those which did not have to close down their activities, the majority were in agriculture where
the direct immediate impact was less pronounced but this may be only a temporary
phenomenon due to the nature of agriculture and the time lag between production and market
sales.

- Impact on Employees and Salaries Most MFI clients do not have paid employees beyond the
owner, and if they have employee they are mostly family members.

Those who have employees have sent their employees on paid leaves or organized their work
from home, especially when they were able to use a government salary support programs to be
able to continue paying salaries. Still one-third of clients had to reduce the salary of employees
to be able to keep them employed.

Most of those who plan to use government measures plan to use tax and deferral of social
contributions in combination with other measures such as direct salary assistance or a
moratorium on loan repayment. Only a small number plan to rely solely on tax relief methods
proposed by the government.

- Impact on the future outlook most clients expect that when the state of emergency is lifted,
their businesses will return to the situation from before the pandemic, although this conviction
 is not unconditional. Many clients’ outlook is based on the ability of the economy to stabilize
and the governments to provide support during the transition period. There is also a belief that
the recovery may be long and slow. The more pessimistic outlook on the future recovery is
among urban entrepreneurs who have been affected more than the rural ones.

Think of an industry catered by Microfinance Institutions that are still

successful despite of the Pandemic. Explain what are the factors of their
success despite of the Pandemic.
- Kiva’s response to covid-19
In response to the coronavirus crisis, Kiva is assessing the impact of the pandemic on
our partners and borrowers in communities across the globe. Standing by our borrowers
and partners through tough times is integral to our work and our role in the US and
around the world. We are here to help our community of lenders mobilize economic
support in coronavirus-impacted communities worldwide. As the pandemic unfolds, we
will continue to provide updates to our lenders on your loans, borrowers, and the
partners who administer those loans.

- We are responding to this crisis with loans that provide vital economic support to help
borrowers overcome financial hardship brought on by the COVID-19 pandemic.

- We have also introduced larger loans to help Field Partners stay in business during the
pandemic, called Crisis Support Loans. These provide funds directly to our Field
Partners to cover their operating needs during this challenging period.

-  Kiva is proactively reaching out to all Field Partners to better understand the situation on
the ground in their various countries and any potential impacts on their borrowers and
operations. 
Our risk ratings reflect our latest assessment of a lending institution's strength and
remain a good, though imperfect, indicator of an organization's ability to weather any
form of crisis, including COVID. As we gather information, risk will be assessed and
managed directly with the partner on a case-by-case basis. Generally, risk on all loans
has increased and we are working to disclose these risks through partner page updates
and journals from partners. 

As for posting, partners are naturally stopping or slowing down postings given the
current nationwide restrictions. Some partners continue to post loans that were pre-
disbursed; others are located in countries that haven't been affected yet and where risk-
tolerant capital is still much needed.