• AsiaDHRRA taps NATCCO to help Farmers’ Co-op

    EASTERN SAMAR – Many agricultural cooperatives fail due to the inability of its members – mostly farmers – to run its operations.  But for a farmers’ cooperative named Island of Samar & Leyte Agriculture Cooperative (ISLACO), the future looks bright. Read More
  • CDA now under DTI

    MANILA – President Rodrigo Duterte ordered the Cooperative Development Authority (CDA) to be placed under the Department of Trade & Industry (DTI).  Malacanang Palace issued Executive Order 67 on October 31.   It will be recalled that just on his Read More
  • First Co-op Chess Tourney in History

    MAKATI CITY – More than 200 chess players battled wills over the Chess Board on Sunday, October 22, at the First Co-op Cup Chess Tournament held at the Alphaland Southgate Mall, with Max Dave Tellor of Adamson University taking the Read More
  • ACCU Founder Rekindles Raiffeisen Ideals

    Mr. Andrew So, one of the founders of the Association of Asian Confederation of Credit Unions gave this inspirational speech at the 2018 ACCU Forum in September in Manila.   Social Justice is a moral principle and a moral value. Read More
  • Co-op Month Celebrated Nationwide!

    Cooperators all over the country celebrated the Cooperative Month this October, culminating in the National Cooperative Day on October 20.   According to the Co-operative Month Secretariat that collates nationwide data and monitors social media posts under the hashtag “#1coopnation”, Read More
  • Co-op Resiliency & Sustainable Development

    COOP-NATCCO Rep. Anthony Bravo delivered the following Privilege Speech in Congress last  October 8.   Mr. Speaker, honorable colleagues, I rise today as we again honor our cooperatives across the country for being resilient amidst the growing inflation and other Read More
  • Duterte Meets Leaders on 103rd Year of Philippine Co-ops

    MANILA – President Rodrigo Duterte met with 250 co-op leaders on October 17 in the Malacanang Palace, to hear co-op issues and concerns, and hear proposals on how co-ops and Government can work together to accelerate nation-building.   This is Read More
  • First Movers Ink Contractual Solidarity

    CAGAYAN DE ORO CITY – The NATCCO Network has moved closer to its Vision of becoming an integrated federation of co-ops as eight leaders signed the Contractual Solidarity Agreement.  The simple ceremony is  considered to be the highlight of the Read More
  • Let's Get Digital!

    USAID’s Mamerto Tangonan gave a talk entitled The National Retail Payment System & the Digital Finance Landscape in the Philippines, delivered at the NATCCO Co-op Leaders Congress in Limketkai Luxe Hotel in Cagayan de Oro City for all co-ops to Read More
  • First Co-op Cup Chess Tournament October 21

    Excellent Peoples' MPC and NATCCO Network recently signed an Agreement to hold the first chess tournament for co-ops.   In the spirit of Cooperative Solidarity, the First Co-op Chess Cup Tournament for co-operators is scheduled for October 21 with theme Read More
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Kaya is the Way to Go!

In the UN Sustainable Development Goals 2030, there are two buzz words: “Leave No One Behind!” and a new one, “Reaching the Farthest Behind First”.
 
I think of the indigenous peoples in the rural areas.  In my village in Bukidnon Province, they send money down and pay as much as P200 to P250.  That is already the allowance of a student!
 
But if they use the Kaya Payment Platform (KPP), if they send P1,000, they pay only one peso.
 
The P250 is only for the transportation.  The rural areas are the best places where the KPP can be used.
 
Let’s not generalize that there is no internet in rural areas.  My village 56 kilometers from town, there is connectivity.  Of course, there are still many areas without internet.  Your members can then go the Municipal Hall, connect to the internet, and begin to transact.  
Kaya is an acronym for “Kooperatibang May Asenso, Yaman at Abilidad" (Cooperative that is Dynamic, Rich and Capable).  In Visayan, it is Kooperatiba: Atong Yawi sa Pag-asenso (Co-operatives: Our Partner in Development).
 
KPP is a shared platform  with Association of Asian Confederation of Credit Unions (ACCU) and Philippine Federation of Credit Cooperatives (PFCCO). Our tech partners are Temenos and Software Group –  giants in the digital finance sector.  Why did we get them?  Because we need partners with good reputation.
 
At a recent meeting when Bangko Sentral ng Pilipinas officials learned we partnered with Temenos and Software Group, the immediate question was: “How did you afford them?”
 
Recent visitors from Colombia asked the same question.
 
We can afford Temenos and Software Group because we are a network of 840 co-ops, plus PFCCO.
 
We have to work with ACCU and PFCCO just to make KPP possible and feasible.  And we really need to because if we will join the National Retail Payment System (NRPS) of the BSP, they will ignore us if we don’t have good partners.  
 
Temenos has created software for banking and finance for more than 25 years. 
 
41 of the top 50 banks, rely on Temenos to process daily transactions of 500 million banking customers.
 
Our second partner is Software Group based in Bulgaria, a global technology company that helps financial service providers digitize their business, extend their outreach and improve operational efficiency.  Software Group operates from 9 main offices around the world. 
 
Our partners are heavyweights!
 
With KPP, the dream of co-ops to serve members “Anytime, Anywhere” is realized.  And you can serve members “Anyhow” since transactions can be performed over-the-counter, thru mobile phones, and – very soon – thru ATMs and POS.  
 
We are now looking into using mobile to borrow money. You can borrow money anywhere, even on Facebook!
 
We should be scared that 66% of Filipinos intend to use mobile transactions.  They are ready.  Is your co-op ready?  If not, they will go somewhere else.  Once people get used to the convenience provided by a new technology, there is no turning back.
 
If people want digital transactions and we don’t have a ready infrastructure to meet their needs, you should be scared!  But there is nothing to fear because we offer Kaya Payment Platform!
 
The next phase is remittance.  Filipinos are the world number three remitters and co-ops should be relevant to remitters.
On Agency Banking, that means that outside of the co-ops  you can identify your merchants, and we will integrate it into our core banking system as well.
 
The BSP is very clear on its Financial Inclusion agenda.  BSP will soon abolish “dormancy” of savings accounts and there will be no more “maintaining balance” required.  Who’s going to get hit?  The BSP clearly wants the poor to have access to formal financial services from whoever will provide it.  And if the people can get it from banks . . .  where does that leave us?
The National Retail Payment System for digital, cashless, online transactions is not clear about the participation of co-ops, but we are lobbying for co-ops to be included in the BSP Financial Inclusion agenda.
 
This is scary.  But again, we are engaging the CDA and the BSP in the participation of co-ops in the NRPS.
 
Co-ops are sleeping giants.   We have almost 2,000 branches in our NATCCO Network.  If only we could be inter-connected, we would be a formidable force in the financial system.
 
This is all potential.  We have only started to tap or awaken that potential.  
 
Some say our members do not have smart phones.  These members can perform over-the-counter transactions initially.
In Cagayan de Oro City, you can pay your power, water,and cable bills using Kaya Payment Platform.  There is a convenience fee of P5.00 for each transaction.  Your co-op gets a commission of P1.50.  If you have 10,000 members . . . just do some arithmetic and you have an idea on the monthly revenue potential of the Kaya Payment Platform for your co-op.
 
There are currently 50 co-ops using the KPP.  
 
The BSP is dead serious about digital payments.  In their canteen, BSP employees’ purchases are cashless.  In NATCCO, employees’ communication allowances are given thru Kaya.
 
We facilitate biller enrollment with ECPay.  We met with the Association of Mindanao Electric Co-ops – CEPALCO in Cagayan de Oro, Davao del Sur, Davao del Norte, and Surigao del Sur accept payments thru ECPay.  Surigao del Norte will eventually be in ECPay as well.  
 
It was said in 2015, three years ago:  “For the banks, it is fair to say that getting digital banking right is a do-or-die challenge.  It is high time for financial institutions to take their stance in the digital financial services ecosystem before others take theirs.”
 
 If you don’t do it, you will die!
 
We must really force the transition towards digital payments.  How will it be done?
 
At the end of the day, it is leadership. The technology is here, we just need leadership to take it to the next level.  
 
Our members pay bills – telephone, electricity, cable, loans to the co-op, government transactions, buy plane tickets, and even transfer funds to other e-moneys like GCash, PayMaya.  
 
You can even open e-money accounts using Facebook Messenger.  That is already your signature!  That is what our competition is already doing!
 
GCash and PayMaya are in the malls.  Pawnshop are also everywhere.
 
We are not there – not yet.  At the going rate, they will slowly get our members.  But we have the KPP waiting to be implemented in co-ops.
 
Co-ops should be the place where members can do all their payments.  We envision co-ops to be part of the members everyday lives.
NATCCO is enabling you do digitize what used to be over-the-counter cash transactions.  It will be very convenient for your members. 
 

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