Gilda E' Pico LANDBANK President and CEO

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Banking on the Base of the Pyramid
Gilda E. PicoLANDBANK President and CEO
Rural Bankers Association of the Philippines
52nd Charter Anniversary Symposium October 8, 2009
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RBAPs 52nd Charter Anniversary Symposium

• Theme in 2006
• Back to the Future
  Perspectives in the Next 50 Years

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RBAPs 52nd Charter Anniversary Symposium

• Banking on the Base of the Pyramid

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The Origins of the Great Pyramids?
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Modern Day Pyramids
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The Pyramid

• Endurance
• Balance
• Reliability
• Magnificence
• Strong base

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The Pyramid as a Symbol
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The Pyramid and its Base 3 Ideas

• The pyramid approach to development and wealth
• Rural banks as the base of the Philippine
  development pyramid
• The rural banks and LANDBANK in a pyramid setup

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The Pyramid Approach to Development and Wealth
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The Pyramid Approach to Development and Wealth

• Describes the structure of a typical national
  economy

Gradual development of sectors
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The Pyramid Approach to Development and Wealth

• The Philippines is still nurturing its base
• Agri, fisheries, forestry account for a
  significant portion of the GDP
• Generate greater value
• Greater benefits for people
• Expand contributions to economic growth
• Rural banks are closer to the people making up
  the base

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The Rural Banks as the Base of the Philippine
Development Pyramid

• Foundation for progress
• Typical Philippine rural setting

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The Rural Banks as the Base of the Philippine
Development Pyramid

• The rural banking sector has the largest physical
  network nearly 1,500 branches
• Nearest to
• Farmers
• Fisherfolk
• Microentrepreneurs
• SMEs
• OFWs and their families
• Other small depositors

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The Rural Banks as the Base of the Philippine
Development Pyramid
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The Rural Banks as the Base of the Philippine
Development Pyramid

• The strength of RBs reflects the state of health
  and stability of most of, if not our entire,
  financial system
• RBs mirror the state of development of our country

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Rural Banks and LANDBANK in a Pyramid Setup

• Through the years, LANDBANK has been steadfast in
  our commitment to help strengthen the rural
  banking sector
• Long-standing relationship between LANDBANK and
  RBs is built upon our common mission of
  countryside development

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Rural Banks and LANDBANK in a Pyramid Setup

• LANDBANK as an apex organization to the rest of
  the countryside financial institutions
• RBs are effective channels of credit funds for
  priority sectors
• Capital and technical support, opportunities for
  business complementation

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Rural Banks and LANDBANK in a Pyramid Setup

• In the future, RBs will play roles currently
  played by commercial banks
• In other countries, services offered by
  commercial banks are being rendered by
  organizations that began as small banks catering
  to countryside folks

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CHALLENGES TO THE RURAL BANKS

• Reinforcing your roles in the industry and the
  economy
• Challenges are not insurmountable, but require
  resolve and an open frame of mind

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Reinforcing Your Roles in the Industry and the
Economy

• Further increasing competencies by
  professionalizing the management of rural banks
• Prepared academically and technically
• Immersed in the business
• Lessons from the experiences of the most
  successful businesses in the Philippines

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Reinforcing Your Roles in the Industry and the
Economy

• Lessons from the experiences of the most
  successful businesses in the Philippines
• Steered by professionals who dare
• Explore other strategies
• Provide different perspectives
• Pursue alternative ways of reaching the goals

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Reinforcing Your Roles in the Industry and the
Economy

• Strive to expand capital base and gain financial
  strength
• Important for complying with stricter regulatory
  requirements
• Factors for gaining confidence of more customers
• Banking is a business of trust
• It is easier for people to entrust their finances
  to an institution that is of the right size

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Reinforcing Your Roles in the Industry and the
Economy

• Put premium on good governance
• It is in small communities that reputations are
  magnified
• Ethics, integrity, honesty and fairness come to
  the fore
• Customers are more likely keen in checking
  whether your shareholders are fair in your
  business dealings

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Reinforcing Your Roles in the Industry and the
Economy

• Continue improving systems and enhancing customer
  service
• Maintain and expand client base
• Efficiency and effectiveness

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Reinforcing Your Roles in the Industry and the
Economy

• Expand product and service offerings
• The keys to remaining relevant, viable and
  profitable
• Ability to deliver on what bank customers need
• Providing these at the most convenient,
  reasonable or beneficial way possible

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Building an Enduring Structure
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Building an Enduring Structure

• It is our task to each serve as a building block
  to the foundation for true and lasting
  development in our country

To be a man is to feel that one's own stone
contributes to building the edifice of the world.
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Building an Enduring Structure

• If we succeed, we are assured of a good
  structure, a strong pyramid, upon which our
  people will prosper and thrive

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• THANK YOU.

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Banking on the Base of the Pyramid
Gilda E. PicoLANDBANK President and CEO
Rural Bankers Association of the Philippines
52nd Charter Anniversary Symposium October 8, 2009