BPI’s BanKo Among Top Asian Microfinance Institutions for Social Impact
In a world where financial access can dramatically transform lives, BPI Direct BanKo, Inc. (BanKo) has solidified its reputation as a leading microfinance institution in Asia as it ranks in the top 20% of microfinance institutions (MFIs) globally in the most recent 2024 Microfinance Index, released by the renowned social impact measurement firm 60Decibels. This accolade highlights BanKo’s significant role in advancing financial inclusion and improving the quality of life of self-employed micro-entrepreneurs in the Philippines.
BPI Direct BanKo, Inc. (BanKo) is the microfinance arm of the Bank of the Philippine Islands (BPI), one of the largest and most established banks in the Philippines. BanKo serves the financial needs of the country’s unbanked and underserved populations, particularly self-employed micro-entrepreneurs (SEMEs). BanKo provides accessible and affordable financial products, including microloans, personal loans, and savings accounts, designed to help small business owners grow their businesses and improve their livelihood. The institution focuses on financial inclusion, aiming to empower individuals and communities by offering them the financial tools they need to succeed.
60Decibels, known for its expertise in impact investing and social entrepreneurship, provides crucial insights into how institutions like BanKo are driving real change. By focusing on client outcomes and experiences, 60Decibels offers valuable benchmarks that help MFIs evaluate their social performance. BanKo’s high ranking in this prestigious index validates its commitment to fostering growth and sustainability among its client base of micro-entrepreneurs.
BanKo’s Outstanding Performance in the 2024 Microfinance Index
The 2024 Microfinance Index provides a comprehensive analysis of microfinance institutions worldwide, evaluating their impact on clients across six key dimensions: Access, Business Impact, Household Impact, Client Protection, Resilience, and Agency. The report reveals that BanKo has not only excelled but outperformed the Asian and Global benchmarks in multiple areas, showcasing its commitment to driving positive change for its clients.
Based on the survey, BanKo has significantly improved financial accessibility, with 59% of its clients accessing loans for the first time, surpassing the Asian benchmark of 55%. This demonstrates BanKo’s ability to reach underserved populations, particularly those without access to alternative financial services.
The impact of BanKo on its clients’ businesses is profound, the survey reveals. An impressive 38% of clients reported a significant increase in their income, compared to just 15% in the Asian benchmark. Additionally, 19% of clients saw an increase in their number of paid employees, with the average employee count doubling post-loan, indicating BanKo’s critical role in job creation and economic growth.
BanKo’s influence extends beyond business, deeply impacting the household well-being of its clients. While the Asian benchmark shows that 20% of clients experienced substantial improvements in their quality of life, BanKo’s clients fared significantly better, with 39% reporting a major improvement. Notably, 45% of clients stated that their spending on children’s education greatly increased, a stark contrast to the Asian benchmark of 12%.
BanKo also did better than benchmark in other dimensions. BanKo performed significantly better than benchmark with regard to client protection, promoting financial resilience, and improving client confidence in financial decision-making.
The Net Promoter Score (NPS), a key indicator of customer satisfaction and loyalty, further highlights BanKo’s success. Clients gave BanKo one of the highest NPS score among MFIs globally, with many citing the quality of the company’s staff as the primary reason for recommending BanKo to others, followed by the efficient loan approval process and favorable loan terms.
Leadership and Stewardship: Guiding BanKo to New Heights
BanKo’s impressive achievements can be attributed to the visionary leadership of its management team, led by Chairman Josephine M. Ocampo and President and CEO Rodolfo Mabiasen, Jr. Together with BanKo’s Board of Directors – Gerardo Ablaza, Karl Kendrick Chua, Rodell Garcia, Juan Carlos Syquia, Jesus Razon, Jr., Ignacio Bunye, and Jose Ferdinand de Luzuriaga – the team has guided BanKo to become a beacon of microfinance excellence in Asia.
As BanKo continues to flourish, the legacy of its Chairman, Josephine “Jojo” Ocampo, stands as a testament to visionary leadership. Serving also as Mass Retail Products Head at BPI, Jojo has not only steered BanKo to remarkable growth but has also deeply impacted the lives of countless micro-entrepreneurs across the Philippines. Her leadership has been transformative, fostering a culture of empowerment and inclusivity.
With her impending retirement, a new chapter begins. The torch at BanKo will be passed to Gerardo Ablaza, a leader of unparalleled experience. His storied career, marked by his tenure as CEO of Globe Telecom and Manila Water, speaks volumes of his capability. As he steps into the role of Chairman, his concurrent positions as Chair of BPI Foundation and AC Mobility promise to bring a wealth of wisdom and vision to BanKo’s future, ensuring its continued success and impact.
BanKo’s recognition among the top 20% of microfinance institutions globally, as highlighted in the 2024 Microfinance Index by 60Decibels, is a powerful affirmation of its steadfast dedication to financial inclusion, client empowerment, and sustainable growth. As BanKo transitions into a new era of leadership, it remains poised to deepen its impact, ensuring that even more Filipinos gain access to the financial resources necessary to uplift their lives and drive economic progress across the nation. With this continued commitment, BanKo is not just shaping the future of microfinance but also the future of countless communities across the Philippines.
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