Cash Agad is the solution for cash problems of residents in far-flung areas in Visayas and Mindanao who, for decades, have been burdened by minimal, if not outright lack of access to banks and ATMs.
It’s not unusual for residents to travel many kilometers just
to get cash from a bank or ATM. They need to spend half a day, or even an
entire day in some cases, to transact with banks in distant urban areas. Some
of them may need to travel by land and even by boat, spending hundreds of pesos
in the process.
That situation has been slowly changing for distant
communities that now have the Cash Agad service. Cash Agad, which has been operating in both far-flung
and semi-urban communities for the past several years, is allowing residents to
make cash withdrawals, receive remittances and government cash subsidies, make
balance inquiries, and get access to calamity funds and loan releases.
Essentially, Cash Agad is a service that turns
community-based shops and similar establishments into a neighborhood ATM. It was BDO Unibank Inc. that first originated
the idea for such a service and has been expanding the Cash Agad network in the
countryside ever since.
Cash Agad is one example of a bank’s faith in the resilience
and resourcefulness of Filipinos in the countryside; it’s a vision realized into
a service that has become crucial to the survival of communities during this
pandemic.
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| Elsa Pardo, owner of ECY Store and a Cash Agad partner agent in Lantapan, Bukidnon facilitating a withdrawal transaction for a pensioner. |
Cash Agad and LGUs
The Cash Agad service transforms communities for the better when
entrepreneurs and local government work together for the common good. The service
accepts ATM cards, whether debit or prepaid cards from all banks in the
Philippines.
According to Cash Agad partner agent Elsa Pardo of Lantapan,
a municipality in Bukidnon Province, Mindanao, until today there’s just one
single bank operating in their community.
When the bank’s ATM runs out of cash or is in need of
repair, people will have to wait and endure a few days without cash. Those who
can’t afford to wait would have to go to the nearest urban area which is some 14
kilometers away. Transport fares can get quite expensive.
According to Elsa, sometimes even these other ATMs also run out of cash or go offline. In such cases, people would have to return home and go back the following day. This situation got even worse when quarantines were imposed due to COVID-19.
“Mahirap dito noong nagka-quarantine. Hindi makalabas yung mga tao. Kaya sabi nila, it’s a good thing there’s Cash Agad. Kasi mas madali na sa kanila mag-withdraw ng pera. Kung pupunta pa sila sa malayo, madami pang aasikasuhing requirements. Kailangan pa ng quarantine pass. Travel pass. Very inconvenient. Pag dito sa Cash Agad, malapit lang tapos makukuha pa agad yung pera. Sandali lang ang queueing time,” Elsa explained.
Elsa runs her Cash Agad service at her store in their
municipality’s public market. When the pandemic hit and community quarantine
was declared, she worked with the local government so that Cash Agad transactions
could be done safely and in compliance with physical distancing regulations.
“Kaming mga nasa public market, nag-meeting kami with DSWD,
the municipal health office, and the mayor. We discussed and set how to process
transactions so that we could still provide our services to the people during
quarantine,” she said.
With the help of the LGU, protocols were set on how Cash
Agad could provide services to its customers. Elsa’s customers include not only
workers but also beneficiaries of 4Ps program (who receive monthly cash
assistance from the government), and members of indigenous peoples (IPs) sector
who also get cash assistance.
“Yung LGU po, they already set a schedule for withdrawals
for 4Ps and assistance to IPs. So, these people already have set days and times
when they can queue for withdrawals. They are also informed on how much money
they are set to receive. Kaya hindi na nila kailangan mag-balance inquiry.
Withdraw na agad using their ATMs,” Elsa explained.
The LGU with the help of policemen also established a
protocol for those queueing to use Cash Agad. Since Elsa’s Cash Agad kiosk is
in the public market, measures were taken to avoid crowding.
“May (outdoor) gym po malapit sa public market. So that was the
holding area for those waiting for their turn. Tumulong po yung mga pulis para
mag-maintain ng physical distancing. May
mga traffic enforcers. May thermal scanning.
“People were glad that we had this system because they felt
safer and they were able to inquire about their balance, withdraw their
salaries and remittances, and even get their loans and calamity assistance from
the SSS and Pag-Ibig. Marami kasing nag-apply ng calamity loan during
quarantine,” she said.
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| Roselyn Abela, owner of FBA Merchandise and a Cash Agad partner agent in Pitogo, Bohol assists in a withdrawal transaction for a local security guard. |
Spark for growth
Another Cash Agad partner agent, Roselyn Abela of Pitogo municipality
(now renamed officially as President Carlos P. Garcia municipality, although
residents still use the old name informally), said that her Cash Agad kiosk has
been contributing to the local economy.
“Before I started the Cash Agad service in Pitogo, people
had to go to the nearest city to transact with a bank or use and ATM. But the
nearest city is so far; it’s at another island.
People have to ride the habal-habal (passenger motorcycles) and then
cross the sea on a pump boat. After getting to the island, they have to ride
another habal-habal. A two-way trip
costs 550 pesos. And each trip takes two hours to the island, and then two
hours again for the ride back to Pitogo,” said Roselyn.
According to Roselyn, residents in Pitogo were used to spending
half a day or even the entire day on a trip to the city. Due to the high cost
of transport and the travel time consumed, people would maximize their city
jaunts. They go the bank, transact at the ATM, and then buy essential goods but
they also make it a leisure trip as well: they eat at fast food restaurants and
bond over some shopping and other activities.
When the pandemic hit and with community quarantine imposed
in March, however, Pitogo residents were forced to stay put. It was then that Roselyn got more customers
for her Cash Agad service. As a result, people were spending their cash right
there in Pitogo instead of at the city.
“People had no choice but to buy goods here. I noticed that during the months in
quarantine, more small businesses were set up.
A lot of new eateries and stores cropped up,” she said.
Roselyn’s experience is not unique. Other Cash Agad partners
in other localities report the same thing. This shows that by giving more
people in more communities ready access to cash, the local economy benefits
from the increased spending and capital flow.
“Financial inclusion in far-flung communities is a driver
for economic growth. Some places are too far away or located in terrain that
make it difficult, logistically, to build a bank branch. Take for example some
islands or mountainous regions. That’s why innovative services like Cash Agad
are a way to bridge the gap. As more spending occurs in a community, the better
for residents and businesses,” said Jim Nasol, Head of Agency Banking, BDO.
As we face a public health and economic crisis, it’s evident
how crucial Cash Agad is for people’s survival. They would otherwise not be
able to get money for their essential needs. Cash Agad provides convenience but
it can be a literal lifeline to those who depend on it. We’ve seen that during
quarantine but the truth is, Cash Agad has become essential to communities
whether there’s a pandemic or not.
For more information about Cash Agad and how it benefits
Cash Agad partner agents and their communities, visit www.bdo.com.ph/cash-agad or email cashagad@bdo.com.ph.
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