Financial Services

Treasury and Credit

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.

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Payment Services

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.

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