nokia cellphone financing program
DESCRIPTION
Nokia cellphone financing program. objectives. To complement Mobile Phone Banking Services To increase loan portfolio To provide flexible payment facility to clients without credit cards. Brief History. Signed MOA last July 11, 2008 Partners: Nokia, Altus, Presnet & Megacellular - PowerPoint PPT PresentationTRANSCRIPT
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To complement Mobile Phone Banking Services
To increase loan portfolio To provide flexible payment facility to
clients without credit cards
objectives
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Signed MOA last July 11, 2008 Partners: Nokia, Altus, Presnet &
Megacellular Launched in pilot branches last August
2008 Pilot Branches: Ibaan, Batangas,
Mabini Rolled out to other branches last
September 2008 At present: 217 clients, sold 349
cellphones, disbursed P3.1M in loans
Brief History
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Process Flow
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An Account Officer (AO) offers the product to an eligible borrower
AO computes for maximum loanable amount.
AO prepares a Notice of Loan Approval (NLA) in triplicate.
AO keeps a copy of the NLA. The 2 other copies will be given to the Nokia retailer hand carried by the client.
Client presents NLA to retailer.
Own-a-
Nokia
Cellphone
Loan
Retailer
NLANLANLANLANLANLA
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Client picks a cellphone and signs Sales Invoice.
Retailer verifies identification of client by asking for an ID and calling the BOH.
Retailer keeps both copies of NLA.
Retailer sends billing statement, sales invoice and one copy of NLA to the bank.
Bank processes the loan release. Bank deposits loan proceeds to the account of the retailer.
Retailer issues an OR once payment is received.
Retailer
BillBill
S.I.S.I.
NLANLA
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Number of clients & cellphones sold
0
10
20
30
40
50
60
70
Aug Sep Oct Nov Dec Jan Feb Mar
Clients
Phones
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Loans disbursed
0.00
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
Aug Sep Oct Nov Dec Jan Feb Mar
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More than 70% of clients are individual MF borrowers. Regular loan clients may have access to cheaper financing through credit cards.
Clients prefer mid-range models.
Reason for purchase is for personal use.
A good number of clients buy more than 1 cellphone.
observations
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Easy & simple terms
Affordable
No documentary requirements
Quick processing
Feedback from clients
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Simple process flow
Low risk because offered to borrowers with existing relationship
Good marketing tool (incentive for good borrowers)
Feedback from bank
![Page 12: Nokia cellphone financing program](https://reader036.vdocuments.mx/reader036/viewer/2022062517/56813a2c550346895da2136b/html5/thumbnails/12.jpg)
3 branches cannot participate due to lack of nearby retailers
Effects of business slow down felt at the start of the year
Repair of cellphone
Areas of concern
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Support & Strategy of Branch Manager and Account Officers
Location of Retailer
Cooperation from Retailer
Marketing Collaterals
Factors of success
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