Improving efficiency, expanding the reach and range of financial services, enhancing coop competitiveness and alignment with regulatory changes are among the aspirations of NATCCO in providing the KAYA Payment Platform services to the network. In an increasingly digitized financial environment, co-ops cannot afford to be complacent or adopt a business-as-usual stance in delivering products and services to their members.
With the Kaya Payment Platform, co-op members are able to open online savings accounts that are accessible via three digital channels -- KAYA coop branches, mobile phones, and ATMs – and soon at POS terminals. Members can perform cashless transactions that are fast, reliable, and safe.
KAYA Payment Platform, which uses a cloud-based technology, is a partnership between the Association of Asian Confederation of Credit Unions (ACCU), Philippine Federation of Credit Cooperatives (PFCCO) and NATCCO Network. Technology partners are Temenos and Software Group.
78 co-ops came on board Kaya in 2018 for a total of 97 co-ops with 192 branches providing digital transaction capability to their members. The total KAYA accounts activated is 15,796.
Ten (10) Kaya ATMs were installed for 2018, or a total of 57 ATMs in 51 co-ops providing 24/7 service in their communities. 8,849 EMV-compliant ATM cards were issued to KAYA accountholders from different co-ops.
For the Conditional Cash Transfer Program, NATCCO co-ops disbursed Php 6.903 Billion in cash benefits to 2,953,948 households in 523 municipalities.
NATCCO established the NATCCO Central Fund on September 2002 to provide deposit-taking and credit-granting services to affiliates and members of the network. The best practices of the Rabobank and Desjardins serve as the model followed by the Central Fund in its operations. Today, the NATCCO Central Funds has three functional service packages: liquidity fund, investment fund and loan fund. The strategy that the Central Fund promotes is based on the simple, yet powerful idea that it is best for co-ops to invest the funds that the local co-ops could not utilize for lending purposes in a central co-op fund facility. The NATCCO Central Fund offers competitive yields for deposit products. The quality of service and security that co-ops receive in their transactions also serve as the reasons why the NATCCO Central Fund has become a Php 639M strong facility. Our highly qualified fund managers invest the pooled funds from co-ops in government securities and in other quality investments to ensure maximized profits. Due in large part to the success of the Central Fund, numerous government agencies and funding donors are selecting NATCCO to be their fund conduits of their selected projects for the cooperative sector and certain non government organizations (NGOs) as well.Read More
Co-ops are stewards of the hard-earned money of their members. Their foundation is trust. The Stabilization Fund System (SFS) is a “solidarity fund” patterned after the models in Germany, Netherlands, Canada and South Korea, where membership for co-ops is mandatory. The NATCCO Network established the SFS in 2008 with 3 elements that ensure sound business operations, and maintain depositors’ trust and confidence: 1) SUPERVISION & MONITORING; 2) OFF-SITE MONITORING AND FOLLOW-THROUGH; and 3) FINANCIAL ASSISTANCE as last resort. 2018 saw the highest membership growth rate, bringing membership to 73. Risk-Based Evaluation (RBE) began in 2017 with billionaire co-ops. In 2018, Annual RBEs were conducted and will soon be automated. Risks covered are Compliance, Credit, Financial, Governance, Operational, Security, and Strategic & Organizational. Offsite Monitoring Process Flow has been established, and will enable the issuance of a Network-wide Annual Performance Report With the Stabilization Fund System as the core of co-op self-regulation, the NATCCO Network will lobby with the Cooperative Development Authority and with Legislation for participation of co-ops SFS to be included in co-op requirements.Read More
The NATCCO Central Fund was established in November 2002 as the pool of funds of the cooperatives placed in various investment outlets. It is composed of the Liquidity Fund, Loan Fund and the Investment Fund. Liquidity Fund is invested in fixed income investments such as time deposits and government securities. Loan Fund is used for re-lending to other member co-ops. Co-ops needing funds, can in turn, avail of our credit facilities such as Revolving Credit Line, Term Loan, and Real Estate Loan. NATCCO accomplished 87% of its 2018 target despite stiff competition and maintained its Php 2.2 Billion Deposit Portfolio, paying Php 117 Million in interest versus Php 108 Million in 2017. Towards the end of 2018, the Group offered a promo rate between 0.05% to 1% above prevailing at a maximum of 90 days just to capture the excess liquidity in the primary cooperative. External borrowings was maintained at Php 270 Million at year-end against its Php 2.0 Billion approved credit facility from Land Bank. The Board also approved the inclusion of the two top credit patrons in the Investment Committee to have a more balanced perspective in Treasury and Credit. Loan Portfolio remained at Php 1.6 Billion level for the past two years. 60% of the Total Portfolio came from Luzon; 22% from Visayas, and Mindanao had 18%. It was a challenge since volatility on the interest rate was very much felt towards the last quarter. Nevertheless, Loan Releases reached Php 1.049 Billion, 10% higher from 2017.Read More