RIZAL MICROBANK

MICROFINANCE DEPARTMENT

The Concept
The Microfinance Department is a newly created department of
Rizal Microbank. It has its own targets to meet. However, all micro
loans and micro deposits will still be booked in the branch, hence,
monitored and counted as part of the production of the Marketing
and Sales Head (MSH) of the branch in as much as their
participation in the generation, growth and maintenance of
portfolio and quality.
 
The overall performance of the microfinance loan and deposit
products is a joint lookout, responsibility and accountability of the
Microfinance Department Head and the Marketing and Sales Head
(MSH).
 
The branch performance of the microfinance loan and deposit
products is a joint lookout and responsibility of the Branch Head
and the MF Supervisor.
The Individual Roles
Microfinance Department Head Roles and Responsibilities:
 Spearhead the Bank’s overall Microfinance operation, prepares microfinance department targets,
budgets, assumptions and guidelines
 Oversee and manage the Microfinance Department Portfolio, both loans and deposits
 Develop strategy and roadmap for improving the financial performance of the Microfinance
Department
 Drive the actualization of financial and non-financial targets
 Coordinate with Customer Support and Product Development Team on the research and
development activities of the Microfinance Department
 Drive the department team members to ensure that customers’ needs are met
 Create a culture of high performance among staff within the department
 Ensure that the department’s procedures are followed to mitigate risks.
 Communicate business development initiatives at the department level
 Review and approve microfinance loans above P150,001to P300,000
 Ensure that the department maintains quality loan portfolio
 Regularly meet with the Branch Marketing and Sales Head, Branch Supervisor and Marketing and
Sales Associates to discuss plans and performance.
Branch Head’s Role in relation to Microfinance Operation of the
Branch:
 The Branch Head is responsible, accountable and is evaluated
based on the achievement of all key performance indicators of
the entire loans and deposits in his/ her branch. Achieving
portfolio targets and maintaining portfolio quality for
microfinance is part and parcel of it.
 He/she has the responsibility to help facilitate the marketing of
microfinance loans to achieve targets.
 The Branch Head has administrative oversight over the MF
Supervisor and Microfinance Marketing and Sales Associates
based in the branch.
Microfinance Supervisor’s Role:
 The Microfinance Supervisor reports directly to the Microfinance Department Head but under the
administrative supervision of the Branch Head he is assigned to.
 He/She is responsible for maintaining constant and open communication and collaboration with the
Branch Head.
 He/She supervises the MF Marketing and Sales Associates.
 He/She is responsible and accountable for the performance of his unit. He is evaluated based on the
achievements of his unit vis-a-vis the unit’s key performance indicators.
 He/She shall review the work of the MSAs and ensure that they only market and disburse quality
loans.
 The MF Supervisor conducts substantive credit review relative to the MF loan’s proper structuring
and underwriting to ensure that portfolio growth is based on quality. His job requires:
o Coaching of Microfinance Marketing and Sales Associates
o Actual random client visits for purposes of account validation, opportunity and risk
identification, and marketing;
o Review and evaluation of microfinance loans
o Recommendation of microfinance loans to Branch Head or Department Head
o Regularly (weekly, monthly or as the need arises) reports to the Department Head on the
performance of his unit relative to the achievement of his Key Result Areas and Key
Performance Indicators.
 The Branch MF Supervisor is also responsible for referring cash agents to the Strat Partnership -
Agency Banking Department
 The MF Supervisor, while based in the branch, reports directly to the Microfinance Department
Head in terms of responsibility, accountability and operational aspects but has the role to maintain a
smooth-sailing coordination and cooperation with the Branch Head in relation to the achievement
of microfinance loan and deposit targets.
Microfinance Marketing and Sales Associate Roles and
Responsibilities:
 Reports to the branch’s Microfinance Supervisor
 Each MSA is responsible for promoting, marketing, generating
and in meeting microfinance loans and basic deposit accounts;
 Each MSA is also responsible for referring cash agents to the
Strat Partnership - Agency Banking Department
 Should maintain at least the required volume of portfolio, case
load and maintain the standard portfolio quality;
 Should be objective in the assessment of microfinance loan
applications as he/she has overall responsibility over the
quality of his /her own loan and deposit portfolio.
TARGETS:
1. The Branch M&S Head and Microfinance Department Head have overall responsibility in meeting
the branch microfinance loans and deposit targets.
2. Microfinance Supervisor is responsible for meeting the branch’s microfinance loans and deposit
targets.
 Cash agents referral to Strat Partnership - Agency Banking Department (these cash agents
will be the branch’s partners in selling BDA and microloans in the barangays, number of cash
agents to be determined later)
3. Each M&S Associate (MSA) is given both microfinance loans and basic deposit account targets.
 Caseload: At least 60 accounts
 Portfolio: At least P5.5M (Avg. of P92K per client)
 Basic Deposit Accounts: At least 300 accounts
 Cash agents referral to Strat Partnership - Agency Banking (number TBD)
 Process Flow
(Origination, Review and Approval,
Disbursement and Monitoring)
New Loan
1. Marketing and Sales Associate (MSA) shall go out to market loans and basic deposit
a. New loans shall be subjected to LenddoEFL Demographic and Psychometric Test
b. If the client (applicant) passes the test, his name shall be endorsed to the CSA for NFIS
checking
c. If client passes the NFIS check, his loan application shall be processed by moving to the
next step of conducting CIBI and Capacity to Pay Analysis;
i. Scope of CIBI and Capacity Analysis include 5 Cs of credit
2. Package the loan based on the purpose and result of his CIBI and Cashflow analysis
3. The loan shall be reviewed by the Branch MF Supervisor. Review should focus on the applicant’s
eligibility qualifications and C’s of credit;
4. The loan shall be approved by MF Supervisor if it is within his authority or endorse to the Branch
Head or Department Head. Defer the loan if he finds insufficiency in the credit structuring and
underwriting. Or deny if found to be not qualified to be granted of a loan. The same process of
being deferred or denied on the part of the Branch Manager or the Department Head based on
their assessments.
5. Disbursement either in Cash or Auto Credit to the Account of the Borrower will follow after the
loan is approved. (to be handled by the back office group)
1. Collection
a. Collection is done via PDC issued by client during loan release. In this case, text
messaging 3-days or 2-days ahead of time is necessary to remind the client to pay. This
will also serve as clue if the borrower can pay or not on time – a hint to act immediately
than wait for the account to become PAR;
2. Monitoring
a. The Microfinance Supervisor is responsible for monitoring the performance of his unit
on a daily basis;
b. He/She shall use MIS reports to check the performances of the MSA’s and shall report
weekly to the Department Head in relation to his unit’s performance aside from the
monthly reporting;
c. Randomly conducts client visit, detecting risks and finding opportunities for possible
product enhancements and cross selling;
d. As part of supervision and internal control, he/she should randomly get borrowers’
feedback on the conduct and behavior of the MSAs;
e. MSA shall pay the required number of visits to his clients to detect business
opportunities, risks indicators and as a way to continue building business relationship
with the client.
Repeat Loan
1. Marketing and Sales Associate (MSA) shall request Client Status Report from the Branch
Customer Service Assistant (CSA) of his client due for renewal at least two weeks prior to loan
maturity;
2. He will request the CSA to subject the client to NFIS checking
3. If client passes the NFIS check, his loan application shall be processed.
4. If the client passes the repeat loan criteria and NFIS, the MSA shall inform the client that his loan
is due for renewal at least two weeks prior to loan maturity
5. The MSA shall conduct a basic CIBI to check on home ownership status, business condition and
collateral (if any).
6. If the loan is the same, the client’s capacity to pay will no longer be subjected to another
cashflow analysis, however, if the client requests for loan increase, the MSA shall prepare a new
cashflow analysis.
7. The MSA shall package the loan based on the result of his CIBI and Cashflow analysis
8. The loan shall be reviewed by the Branch MF Supervisor
9. The loan shall be approved by MF Supervisor if it is within his authority or endorse to the Branch
Head or Department Head
Loan Approval Authority and Limits:
Microfinance Marketing and Initial basic credit underwriting
Sales Associate Approval limit: None, Recommendatory only

Supervisor Substantive credit review and underwriting

Approval limit: Up to P30,000.00

Branch Head Approval limit: >30,000 to P150,000.00

Department Head Approval limit: >150,001 to P300,000.00

IMMEDIATE PLANS

1. Immediate hiring of Branch Supervisor (internal and external hiring).

2. Microfinance Department Head shall:
a. review the existing policies and procedures and loan forms and propose improvement, if
needed;
b. work closely with Branch MSH to review the reasons of high delinquency and propose
solutions to improve the quality of microfinance portfolio;
c. work with the External Collection Agency to closely monitor the progress of collection
d. review the existing microfinance training program and propose changes, if necessary, to
improve the training material; schedule a microfinance training refresher course within
the year (following approval of changes in policies and procedures, if any)
e. train the newly hired or installed microfinance supervisors
f. work with MF Supervisors and MSAs to prepare the budget for 2020

IMMEDIATE ACTIVITIES

July 5, 2019 (Fri) - Meeting with Mindanao BHs

July 13, 2019 (Sat) - Meeting with Mindanao Microfinance MSAs
July 25, 2019 (Thu) - Meeting with Visayas BHs and Microfinance MSAs
July 27, 2019 (Sat) - Meeting with Luzon BHs and Microfinance MSAs