Empowering Cooperatives
through Information &
Communication Technology:
Connectivity & Accessibility
Cresente C. Paez
President & CEO
National Confederation of Cooperatives
(NATCCO) - Philippines
About NATCCO…
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The biggest and strongest national federation of
cooperatives in the country in terms of geographical
reach, membership, financial capacity and array of
services.
Core financial functions focused on treasury,
deposit-taking, credit-granting, money transfer and
cash management services
Non-financial services include accounting software,
website development, training & consulting on
microfinance, ICT specialization (it@coops), and
professionalization of cooperatives.
About NATCCO…
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We are a national financial solutions
cooperative, servicing the needs of 1.2 million
individuals through our local cooperatives.
Our solutions conform international financial
intermediation standards; and the highest
degree in responding to the needs of the
communities we serve.
….NATCCO throughout the country has embraced
this financial solution for:
Liquidity pool management
 Wholesale lending
 Cash management services
Investment in hi-impact, high growth enterprises
 Development of information technology (IT)
 Microfinance Innovations
Capability building through training & consulting
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The NATCCO NETWORK
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1.2 million members
589 co-ops with 354 branches
Php60 billion (US$1.5 billion)
6,000 Employees
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The NATCCO Central (As of Dec. 31, 2007)
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US$17 million (P683 million) assets
US$1 million (P40.4 million) – shares of co-ops
US$9.2 million (P369 million) – deposits
US$5.3 million (P212 million) – borrowings
US$7.9 million (P317 million) – loans disbursed
PAR – 0.6%
US$0.17 million (P7 million) - Net Surplus
87 employees
NATCCO MEMBERS BY LOCATION
As of January 31, 2008
1 Kalinga
2 Abra
13 Ilocos Sur
1 La Union
4 Benguet
4 Pangasinan
2 Zambales
2 Pampanga
2 Bataan
37 NCR
7 Cavite
4 Batangas
1 Marinduque
2 Mindoro
4 Antique
1 Iloilo
4 Negros Occidental
1 Guimaras
1 Palawan
4 Negros Oriental
1 Misamis Occidental
2 Zamboanga del Norte
4 Lanao del Norte
6 Zamboanga del Sur
2 Sulu
1 USA
4 Cagayan
3 Isabela
7 Ifugao
2 Nueva Viscaya
1 Quirino
3 Aurora
8 Bulacan
5 Rizal
1 Laguna
14 Camarines Norte
8 Quezon
11 Camarines Sur
2 Sorsogon
1 Eastern Samar
13 Leyte
21 Cebu
6 Bohol
1 Camiguin
6 Misamis Oriental
1 Surigao del Sur
1 Agusan del Sur
2 Bukidnon
11 Davao
4 North Cotabato
1 South Cotabato
ICT-Driven Co-ops
•Accounting software (100)
•Internet Connections
•ATMs (6)
Why Information & Communication
Technology?
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Competitiveness is the key that drove NATCCO to
go into ICT
ICT as a tool to deliver more competitive products
and services to cooperatives and its members
2003, initially implemented ICT within the
organization, giving birth to:
 Local Area Network
 Internet & Email
 NATCCO Website
 ICT Trainings
Specific Developmental Problems that ICT
should Address in the Cooperatives…
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Automated financial transactions &
accounting
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Volume of transactions: shift from manualization
to automation
The issue of accuracy, efficiency, speed, analysis,
and MIS (generation of reports)
Data generation (network wide)
The issue of different system providers (i.e.
outsourced, in-house) and their continuity.
Expensive to develop and maintain by one local
co-op
Specific problems…
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The inconvenience of transactions “over
the counter”
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Crowding of customers during peak hours.
Offices are closed before 8:00 a.m. and after 5:00
p.m. and during Saturdays & Sundays
Proximity: Long distances to travel
Specific problems…
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Money Transfer
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No access to payout centers in rural areas
(money sent from other places)
Bank-to-bank transfer: requirement to open a
bank account and pay expensive remittance fee
eKoopBanker - Coop Banking System
System’s Framework
Data
POLICIES &
PROCEDURES
Input
LOAN
Data
LOAN
PORTFOLIO
MGT.
SYSTEM
Input
Savings
Data
SAVINGS
DEPOSIT/
WITHDRAWAL
TRACKING
SYSTEM
Input
Accounting
Data
GENERAL
ACCOUNTING
SYSTEM
CHART OF
ACCOUNTS
Generally Accepted Accounting Principles
Information
Management
Reports
Financial
Statements
Technical Features
 Window-Based
 Available on both stand-alone &
network versions
 Developed using Visual Basic 6.0
 With Microsoft Database Engine
(MSDE) or Microsoft SQL Server
as its Back-end Database
Manager
 Crystal Report enables
migration to MS Word, Excel &
other file formats
eKoopBanker - Coop Banking System
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Automating the operations of the cooperative
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Loan portfolio management
Savings tracking
General accounting
Standardization
Streamline the operations
Member Satisfaction
Hindrances
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Acceptance
End-User Resistance to change
Fear of layoffs due to computerization
Investment Cost
False expectations on automation
Lack of knowledge in the complexity and impact of
automation
Low staff competency
Inability to meet automation requirements (time,
human & resources)
Strategies used and Significant
Accomplishments…
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Strategies Used
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One standard accounting software for the network
To own vs. to outsource: Buy an existing software
and enhance
Accomplishments:
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Currently installed in 96 cooperatives with 118
branches
On-going migration of the system to open-source
and web-based application
Growth for the eKoopBanker
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Migration to open-source system
Web-base application
Inter-branch capabilities
Data warehousing
Online member transaction
SMS transactions
ATM Integration
ATM & Cash Cards
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Strategies Used
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ATM & Cash Cards – to outsource the system
For the ATM – to join the ATM network as a nonbank
For the Cash Card – co-branding with a bank
Accomplishments
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Installed and functional ATMs (Quezon City,
Dumaguete, Tacloban & Iligan)
For the Cash Card - NATCCO entered into
partnership with Chinatrust Bank.
ATM
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NATCCO as the Settlement Bank for
cooperatives thru Central Fund
Cardholders can transact to any ATM
network nationwide
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Availability of cash anytime, anywhere
Loan disbursement
Attract membership
Security
ATM
ATM Withdrawal
Cooperative
Cooperative
Cash Card
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Re-loadable money card
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Withdraw Cash – All ATM Networks
VISA Debit Card – Visa Accepted Worldwide
Bills Payment
NATCCO is the card issuer
Cooperatives – distributors
of the cards
Members – users of the
product
Cash Card
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Easy cash-management
No initial deposit
No minimum maintaining
balance
Easy to roll-out
Convenience with PIN
Mailer
Minimize Risk – cash-less
transaction
Hassle free
Highly secured
Member’s name (1st line)
Coop name (2nd line)
Cash Card
POS
Approval
Cooperative
Card Loading
ATM Withdrawal
ATM & Cash Card - Bills Payment
Gov't and Owned Controlled Corp.
NSO Helpline Plus
PSC-Epass
Media/Publishing
Directory Phils. Corp.
Far East Broadcasting
B a nc N e t
ATM
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B a nc N e t
ATM
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B a nc N e t
O nline
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B a nc N e t
O nline
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Credit Card Companies
AIG VISA/Master Card
Allied Bank VISA
Banco Filipino VISA
Bankard/RCBC/MC/VISA/JCB
BDO Credit Card
Citibank VISA/Mastercard
East West Card
Loans/Financing Companies
FG Financial Co., Inc
Chinatrust Salary Stretch
Citi Financial Corp.
Citystate Savings Loans
Nation Link Pay
Standard Chartered EZ Loan
PSBank
Insurance/Pre-Need Companies
New York Life Insurance
Paramount Life
Prudential Plans, Inc.
Manila Bankers
PLPI
Fortune Life
Fortune Care
Provident Plans
B a nc N e t
ATM
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B a nc N e t
ATM
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B a nc N e t
O nline
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B a nc N e t
O nline
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HSBC Cards
Metrobank Card
MMO Card
One Card
Security Bank Cards Diners/Mastercard
Standard Chartered VISA/Mastercard
Union Bank VISA
Telecommunication Companies
Bayantel/ICC
Digitel/SUN Cellular
Eastern Telecoms
Globe Telecoms
Innove
PLDT
PT&T
Smart Communications
Cable TV Companies
Charitable Institutions
Bantay Bata
Church of Jesus Christ of Latter Day Saints
Knowledge Channel
Piso sa Pasig
B a nc N e t
ATM
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B a nc N e t
O nline
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Destiny Cable
Home Cable
Sky Cable/ZPDEE
Utility Companies
Meralco
Others
FEBC Phils
Green Dot
Manila Memorial
B a nc N e t
ATM
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B a nc N e t
O nline
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Maynilad
Manila Water Co., Inc.
Visayan Electric Co., Inc.
Internet Companies
Edsa Mail
ZPDee
Infocom -ISP
B a nc N e t
ATM
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B a nc N e t
ATM
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B a nc N e t
ATM
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B a nc N e t
ATM
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B a nc N e t
ATM
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B a nc N e t
O nline
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ICT Solutions
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Beneficiaries
 Cooperatives & their members
Technology
 Accounting software – owned
 ATM, Cash Cards, Credit Cards, Money Transfer - outsourced
Capacity building
 Training provided
Project Partners
 Rabobank Foundation, Chinatrust, Infoserve, Western Union (DA5
Company) and Bankard
Is it a pilot project?
 Open source & web-based accounting software, MasterCard & Cash
Card with VISA
Was it scaled up?
 Ekoopbanker, COOPinoy ATM, WU Money Transfer
Website Development
Connecting co-ops through virtual networking:
LINKING WEBSITES
NATCCO Website
Recent Site Created by NATCCO
Recent Site Created by NATCCO
Site Created by it@coops Specialist trained my Inwent, AWCF and NATCCO
Site Created by it@coops Specialist trained by NATCCO in partnership with AWCF &
INWent-Germany.
Major Challenges
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Accounting Software (ekoopbanker)
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To be fully developed as OPEN SOURCE and
WEB-BASED system
Inter-branch and inter-coop transactions as one
NATCCO network
One system, One Standard, One software
COOPinoy ATM
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Co-op as non-bank is mainstreamed in the
banking system
NATCCO to own a co-op ATM network
Major Challenges…
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Integration of internet and mobile phone
banking to our accounting software
Cash Cards & Credit Cards
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Targeting 100,000 cardholders
Money Transfer
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Increase from 300 to 1,000 locations in the next 3
years
Card-Based Technology Development: Card-tocard money transfer with bills payment functions
Key Learnings
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Owning or developing a technology versus
outsourcing is a “business decision” with reference
to investment requirement, in-house capability,
economy of scale, potential market impact and
competition.
Financial services delivered through ICT is a “value
proposition” to win and keep your customers and
members. Bottom line: Does ICT create superior
value in local communities?
It is not only ICT but also “innovation-driven” ICT.
Key Learnings…
”ICT?”
“Do it Fast, Do it Right and Do it
Cheap.”
Thank you very much!