Ayala Corporation subsidiaries Bank of the Philippine Islands (BPI) and Globe Telecom have teamed up to put up a mobile savings bank with plans to lend out P1 billion in microfinancing over the next two years.

BPI and Globe moved to further fulfill the needs of microfinance industry in the Philippines by putting up a new venture, BPI Globe BanKO with microfinance as its main thrust.

BPI Globe BanKO president Teresita Tan said the firm will have an authorized capital of P500 million of which P350 million is paid up. They can lend up to 75 percent of their paid up capital plus money from bank deposits.

Back in 1989, BPI was the first commercial bank to grant loans to microfinance institutions (MFIs) for funding through the BPI Foundation. In 2006, the BPI Microfinance Unit was formally incorporated into the bank’s business.

BPI Globe BanKO will absorb and expand the wholesale microfinance portfolio of BPI. With BPI Globe BanKO, the three companies aim to reach out to the untapped microfinance market in the country by providing microfinance institutions (MFIs) much needed funding and development programs.

“The gap between demand and supply for microfinance funding is immense. Based on the figures released by Asian Development Bank for 2007, only eight percent of the demand was met,” Tan said.

She added that BPI Globe BanKO will work hand-in-hand with MFIs to service the entrepreneurial poor even at the base of the economic pyramid.

The bank is a synergy of the three companies, harnessing Ayala’s thrust for sustainable development, BPI’s expertise in financial services, and Globe Telecom’s innovative technology.

“Our strategy is to provide innovative products and services, establish a market-oriented ecosystem, and utilize of alternative low-cost channels of delivery,” added Tan.

The new BPI Globe BanKO features strong service for wholesale microfinance, providing MFIs with four major services: Wholesale microfinance loans, capacity-building loans, electronic banking, and partnerships with international guarantors.

Capacity-building programs are also made available to MFIs through BPI Globe BanKO’s partnership with Ateneo de Manila University’s Institute of Social Sciences.