MICROCAPITAL BRIEF: Smart Communications, ICMFI to Offer Mobile Banking Accounts in Iloilo, Philippines

Smart Communications Incorporated, a mobile services subsidiary of publicly traded PLDT Incorporated (formerly the Philippines Long Distance Telephone Company), has partnered with the Philippine nonprofit International Care Ministries Foundation (ICMFI) to provide Smart Communications’ “SMART Money” mobile banking accounts to members of the Pototan community in Iloilo province. The introduction of mobile banking technology for the purposes of intra-community saving and lending builds upon ICMFI’s Catalyzing Entrepreneurship Among Iloilo’s Ultrapoor (CEAIU) project, a 17-month program funded by a donation of USD 230,000 from the United States Agency for International Development (USAID) that seeks to “build entrepreneurial skills, provide micro-loans, create savings groups in impoverished communities, and launch home-based businesses”. In addition to providing mobile bank accounts, Smart will lead training sessions on how to use the Smart Money platform for savings, loan disbursement and payment collection.

As of 2015, PLDT and its subsidiaries report total revenues of PHP 171 billion (USD 3.69 billion), total expenses of PHP 144 billion (USD 3.11 billion) and core income of PHP 35.2 billion (USD 758 million). ICMFI works from ten service outlets on the Philippine islands of Bohol, Cebu, Mindanao, Negros, Palawan and Panay, serving an estimated 100,000 clients annually. ICMFI reports a 2015-2016 operational budget of PHP 385 million (USD 8.93 million).

By Michelle Dold, Research Associate

About Smart Communications, Inc. (Smart)

Smart Communications Incorporated is a wireless service provider that was founded in the Philippines in 1991. Smart provides broadband Internet services, postpaid and prepaid phone plans, and Smart Money, a mobile phone service that is linked to a debit card to allow users to pay bills, purchase goods and transfer funds. Smart is a subsidiary of the publicly traded PLDT Inc. (formerly the Philippine Long Distance Telephone Company), which reports total revenues of PHP 171 billion (USD 3.69 billion), total expenses of PHP 144 billion (USD 3.11 billion) and core income of PHP 35.2 billion (USD 758 million) for 2015.

About PLDT Inc. (PLDT)

PLDT Incorporated (formerly known as the Philippine Long Distance Telephone Company), which was established in 1928, is a Philippines-based telecommunications company that offers fixed line and mobile products to approximately 68.9 million subscribers. As of 2015, PLDT Inc. and its subsidiaries report total revenues of PHP 171 billion (USD 3.69 billion), total expenses of PHP 144 billion (USD 3.11 billion) and core income of PHP 35.2 billion (USD 758 million).

About International Care Ministries Foundation (ICMFI)

International Care Ministries Foundation (ICMFI) is a nonprofit organization founded in 1992 whose operational headquarters is located in Pasig City, Philippines. ICMFI designs and implements livelihood programs and provides disaster relief funds to an estimated 100,000 clients annually in WRITE AS “17” seventeen provinces from ten service outlets on the Philippines islands of Bohol, Cebu, Mindanao, Negros, Palawan and Panay. ICMFI reports a 2015-2016 operational budget of PHP 385 million (USD 8.93 million).

About United States Agency for International Development (USAID)

The United States Agency for International Development (USAID) is a government agency that provides international economic and humanitarian assistance. It focuses on areas such as economic growth, agriculture, trade, health, democracy, conflict prevention and humanitarian assistance. Under the Development Credit Authority (DCA), it provides credit guarantees that cover up to 50 percent of defaults on wholesale loans made by private financial institutions to institutions that lend on a retail basis to underserved borrowers. USAID reported a total of USD 27.1 billion in budgetary resources for 2015.

USAID offers a suite of resources aimed at improving the outcomes of microenterprise development research and practice at https://www.microlinks.org/es/kdid. (external link)

Sources and Additional Information:

[1] Microfinance Gateway: “Philippines: Smart Powers Financial Inclusion Project in Iloilo”

[2] Smart: “Smart empowers Iloilo community with e-money, financial literacy sessions”

[3] International Care Ministries: “Catalyzing Entrepreneurship Among Iloilo’s Ultrapoor”

[4] International Care Ministries: “Economic Growth and Governance: Catalyzing Entrepreneurship Among Iloilo’s Ultrapoor”

[5] MicroCapital Universe Profile: Smart Communications, Inc. (Smart)

[6] MicroCapital Profile: PLDT Inc.

[7] MicroCapital Universe Profile: International Care Ministries Foundation (ICMFI)

[8] MicroCapital Universe Profile: United States Agency for International Development (USAID)

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: