Session 4

Financial Technology for MSMEs

Mr. Paul D. Lazaro, Development Bank of the Philippines (DBP)

MR. PAUL D. LAZARO has a solid experience in banking and management both in the private

and public sectors. He started his career at the Development Bank of the Philippines as

Assistant Manager and rose as head of Financing Infrastructure Environment and Logistics

Development Department. He previously served as an Alternate Board Member of the

National Renewable Energy Board, and the Maritime Industry Authority Board. He also

served as a Board Member of the DBP Service Corporation. He obtained his Mastersdegree

in Business Administration from the University of Sto. Tomas, and has a Certificate in

Business Economics from the University of Asia and the Pacific.

Session 4 Financial Technology for MSMEs

Mr. Paul D. Lazaro, Development Bank of the Philippines (DBP)

Summary

The fourth session focused on how the government, through the DBP, promotes the

sustainability and competitiveness of micro, small, and medium enterprises through

financial technology.

Key Points

DBP recognizes the role of MSMEs in spurring the growth of economic

development by providing credit and non-credit assistance. The DBP’s program

called Sustainable Enterprises for Economic Development (SEED) aims to: 1) enhance

access of MSMEs to credit; 2) assist entrepreneurs and community improve their

socio-economic conditions and provide livelihood assistance; and 3) increase supply

of needed goods and commodities.

Financial inclusion. DBP also has financial inclusion program in building financial

payment infrastructure for MSMEs through digital banking portal, point-of-sale

facility, payroll and ATM services, and internet payment gateway. The DBP has also

lined up new services for MSMEs such as online loan application, dealership

financing, and online marketplace.

Open Forum

Is the DBP is part of the DICT’s Integrated Government Philippines (iGovPhil) program

which aims to provide a one-stop-shop of online government services to the public

sector and private businesses via the National Government Portal (NGP)?

DBP is part of the NGP and with that program, the DBP could also help in the

ease of doing business in the country specifically in processing the required

documents from entrepreneurs to avail of the various services of the bank.

RA 6977 requires banks to allocate 10% of its loanable funds for MSMEs; however,

only rural and cooperative banks have fully complied with the loan quota. Is there

anything in this design of financial technology tools that will raise compliance of

banks with this law?

The bank’s compliance will depend on the nature of the projects applying for

credit. If there are many borrowers from MSMEs, they should also comply

with the requirements of the banks. As far as the DBP is concerned, they are

targeting to attract more borrowers from MSMEs. The DBP has launched new

programs to which MSMEs are responding well.

NATIONAL PRODUCTIVITY CONFERENCE“Financial Technology Tools for MSMEs”

2018 Phil ippine Water and Sanitation ForumMay 10, 2018Marco Polo Plaza Hotel

FVP PAUL D. LAZARO

Development Bank of the Philippines

• 100% owned by the National Government

• Country’s Premier Development Financial Institution

• 71 Years in Existence

• Key Player in Nation-Building

• 1st Philippine bank to be ISO 14001 Certified

As of December 31, 2017, compared to other

commercial banks, DBP was ranked :

• 9th in terms of total assets

• 10th in terms of total loans

• 9th in terms of total deposits

Luzon 46 Branches

2 Ext. Offices

NCR19 Branches

Visayas26 Branches

Mindanao34 Branches1 Ext. Office

BranchesExtension

Offices

On-site

ATMs

Off-site

ATMs

125 3 178 560

As of July 2018

DBP Priority Development Thrusts

Provides financial assistance to the SME Sector

Finances the country’s infrastructure projects

Advances environmental protection

Contributes to the well-being of Filipinos across the nation

DBP MSME PROGRAMS

SUSTAINABLE ENTERPRISES for ECONOMIC DEVELOPMENT (SEED)

The umbrella program of all the MSME development programs of the bank.

OBJECTIVES OF MSME PROGRAMS

• Enhance access of micro, small and medium enterprises to credit

• Assist entrepreneurs and community improve their socio-economic conditions and provide livelihood assistance

• Increase supply of needed goods and commodities

SEED PROGRAM COVERAGE• Broiler Contract Growing (BCG) Program

• Small Business Puhunan Loan Program

• Infrastructure Contractors’ Program

• Inclusive Lending for Aspiring Women (ILAW)

• Bankability Enhancement for SETUP Technopreneurs(BEST)

• Sustainable Agribusiness Financing Program

• SAFP – Dairy

• Retail Lending for Micro & Small Enterprises

• Medium and other Business Enterprise Lending Program

• OFW Reintegration Program

• Tree Plantation Financing Program

Building our Country’s Financial Payments Infrastructure (FinTech)

DBP DIGITAL BANKING PORTAL (DBP)2

Enjoy banking at your fingertips with DBP’s complete suite of Internet Banking Services.

COMPLETE SUITE OF

ONLINE FINANCIAL SERVICES

FINANCIAL TECHNOLOGY (FINTECH)

ACCOUNT SERVICES

COLLECTIONS & RECEIVABLES

₱

PAYMENTS & DISBURSEMENTS

₱

EIPP

₱

POINT-OF-SALE (POS)

Enables the merchant to accept over-the-counter payments via ATM/Debit Cards AND/OR VISA Credit/Debit Cards.

POINT-OF-SALE (POS) FACILITY

DBP also has an existing partnership with Metrobank Card for the Balance Conversion Facility for the payment of RPT with LGU Taguig.

PAYROLL & ATM SERVICES

ATM Card solution for your efficient disbursement needs.

DEBIT CARD

Linked to a Savings or Checking AccountHybrid card: Magstripe, EMV Chip and Contactless (Visa payWave)

BancNet-affiliated (local acceptance) and Visa-branded (accepted internationally)

EMV Debit Visa Card

BancNet-affiliated Proprietary CardClients include LGUs and government hospitals and corporations

ATM ID CARD

Payroll Solution

INTERNET PAYMENT GATEWAY (IPG)

Enables eMerchant’s website to facilitate acceptance of payments from their clients via ATM/Debit Cards and/or VISA Credit/Debit Cards.

Major Implementation: BIR Paytax, TIEZA’s – Pay Travel Tax Online, Property Tax Online Payment for LGUs, University of the Philippines Press Online Store

Upcoming Services for MSMEs

1

Online Loan Application

Where mSMEs avail of DBP’s loan products via

online application

Dealership Financing

2

Where dealers and sellers may avail of Electronic Invoice Presentment &

Payments Processing online

3

Online MarketplaceA web-based solution

where mSMEs can have a mini-website to display their

goods or services offered

thank you!