BPI Globe BanKO, the mobile microfinance affiliate of the Bank of Philippines Islands (BPI), reportedly announced that it is launching three microinsurance products in collaboration with two other affiliates of BPI, BPI-Philam Life Assurance Corporation (BPI-Philam) and BPI/Mitsui Sumimoto Insurance Corporation (BPI/MS) [1].
The three products being offered are as follows: PondoKO, which entitles individuals to life insurance paying five times the balance of contributions and annual interest of 1 percent earned on deposits once the balance reaches PHP 2,000 (USD 46); PuhunanKO, which provides a life insurance benefit of PHP 10,000 (USD 231) plus the amount of any outstanding loan balance; and PaniguroKO, which offers coverage of PHP 50,000 (USD 1,160) for accidental death, PHP 5,000 (USD 116) in case of fire and PHP 2,500 (USD 58) in case of flood, typhoon or earthquake. The PaniguroKO policy costs PHP 365 (USD 8.50) for one year of coverage. Pricing for the other products has not been disclosed.
BPI Globe BanKO is a joint venture between Ayala Corporation, a Philippine conglomerate; Bank of the Philippine Islands (BPI), a commercial bank; and Globe Telecom Incorporated, a telecommunication provider whose GCash platform is used by BPI Globe BanKO to transfer funds electronically among microfinance institutions (MFIs) and individual borrowers.
BPI-Philam is an alliance between BPI and local life insurance company Philippine American Life and General Insurance Company. BPI/MS is a joint venture between BPI and Mitsui Sumimoto Insurance Company, a non-life insurance company based in Japan.
As of 2010, BPI reported total assets of PHP 878 billion (USD 20 billion) and net income of PHP 11 billion (USD 250 million).
By Nisha Koul, Research Associate
About BPI Globe BanKO: BPI Globe BanKO is a joint venture between Ayala Corporation, a Philippine conglomerate; Bank of the Philippine Islands (BPI), a commercial bank; and Globe Telecom Incorporated, a telecommunications provider. BPI Globe BanKO is based in San Juan, Philippines, and offers loans and savings services to individual clients and microfinance institutions (MFIs). As of March 2010, BPI Globe BanKO had authorized capital of PHP 500 million (USD 10.7 million) of which PHP 350 million (USD 7.4 million) was paid up. BPI Globe BanKO does not report to the US-based nonprofit Microfinance Information Exchange (MIX).
Sources and Additional Resources:
[1] Business World Online, “BPI microfinance bank ventures into microinsurance,” http://www.bworldonline.com/content.php?section=Finance&title=BPI-microfinance-bank-ventures-into-microinsurance&id=39203
MicroCapital.org story, April 30, 2011, “MICROCAPITAL BRIEF: Mercy Corps Announces Partnership With Philippine BPI Globe BanKO to Extend Mobile Banking to 1m Microfinance Clients,” https://www.microcapital.org/microcapital-brief-mercy-corps-announces-partnership-with-philippine-bpi-globe-banko-to-extend-mobile-banking-to-1m-microfinance-clients/
MicroCapital.org story, March 1, 2010, “MICROCAPITAL BRIEF: Bank of the Philippine Islands Globe BanKO to Provide Investment Services to Microfinance Institutions (MFIs),” https://www.microcapital.org/microcapital-brief-bank-of-the-philippine-islands-globe-banko-to-provide-investment-services-to-microfinance-institutions-mfis/
MicroCapital Universe Profile: BPI Globe BanKO, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BPI+Globe+BanKO
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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