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Philippine NGO gets USAID, NetHope grant to evaluate mobile banking platform

CABANATUAN CITY, Nueva Ecija - The Alalay sa Kaunlaran Inc. (ASKI), a non-government organization specializing in microfinance was chosen as one of the organizations to receive a grant from US Agency for International Development (USAID) and NetHope on the Electronic and Mobile Payment Implementation and Evaluation Grants Program.

ASKI is the only organization in Southeast Asia to receive and implement the said project. Other recipients were Concern Worldwide in Malawi and Mennonite Economic Development Associates (MEDA) in Tanzania.

The initiative from USAID and NetHope is aimed at supporting the leading development organizations committed to testing electronic payments, compare and document the costs, challenges and benefits of using cash versus electronic payments.

A grant of $42,000 is awarded by USAID and NetHope to the selected organizations to demonstrate the potential uses of electronic payments in relief and development programs, provide insights into procedures for making this transition and encourage the adoption of electronic payments by other implementing partners.

ASKI will use the grant to evaluate mobile banking platform implemented in partnership with BPI Globe BanKo, the Philippine’s first mobile phone-based, microfinance-focused bank.

In 2012, ASKI and BanKo entered into an agreement to introduce mobile banking platform in its micro-agri loans for rice farmers. The provision of agricultural loans was pilot-tested with rice farmers receiving a crop management recommendation from Rice Crop Manager to increase their rice yield and profit.

The Rice Crop Manager is a web-based tool developed by International Rice Research Institute (IRRI), in partnership with the Department of Agriculture, to provide rice farmers with a fertilizer recommendation precisely matching the nutrient needs of the crop.

ASKI will document the continued expansion of its transition of loan disbursements from check (a cash-based platform) to mobile, cash-less platform not only for the farmers but also to other micro-entrepreneurs.

“Since the implementation of the program, there has been no comparative study conducted to look into the benefits of going from cash-based to cashless transactions,” said Rolando B. Victoria, ASKI executive director.

“We will document the key lessons learned, challenges faced and processes applied in shifting from cash to electronic payment in the Philippine perspective specifically in the experience of ASKI. We hope to share with the other organizations across the globe our experiences on this innovation,” Victoria added.

Meanwhile, Frank Schott, interim president and executive director of NetHope, said that they received and reviewed a wide range of proposals showing innovative uses for transitioning cash to electronic payments across a variety of markets.

“Whether organizations are transitioning their payment streams for internal operational expenses like staff per diems or local suppliers, or for program clients in health, agriculture or microfinance, it’s an important first step towards promoting financial inclusion. We are delighted to support these organizations in their commitment towards this goal,” Schott said.

NetHope, Inc., is a consortium of 41 leading international humanitarian organizations founded in 2001. It is a new-generation collaboration of the international community’s leading non-governmental organizations (NGOs), representing over USD40 billion of emergency relief, human development and conservation programs in more than 180 countries. For more information you can visit their website at http://www.nethope.org


Meanwhile, USAID is the principal U.S. federal government agency primarily responsible for administering civilian foreign aid, providing economic, development and humanitarian assistance around the world in support of the foreign policy goals of the United States. For more information visit: www.usaid.gov.

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