Ms. Vivian Lim of First Valley Bank shares their bank experience on using the EAGLE Scorecard to optimize the bank's microfinance operations during the 2012 RBAP-MABS National Roundtable Conference on June 7.

1. Session
2:
“SCORECARD”
Incentive Remuneration System for
Microfinance
Vivian Lim
1st Valley Bank, Inc.
2012 RBAP-MABS National Roundtable Conference
June 7-8, 2012
Hyatt Hotel Manila

2. Why Scorecard?
• To reward our Account Specialists for
outstanding performance
• To meet the Bank’s set target(s)
1st Valley Bank, Inc.

3. Background
• Introduced in 2003
• Dubbed as Account Specialist’s “Report
Card” (like a student’s report card in school
& MABS Eagle Scorecard for RBs..)
• A tool for performance management
1st Valley Bank, Inc.

4. Scorecard
• an individual progress report card for account
specialists handling microfinance loans
§ serves as a tool in giving incentives to account
specialists
1st Valley Bank, Inc.

5. Indicators
• Loan Portfolio
• Number of clients
• Number of Disbursement
• Portfolio-At-Risk
• Target
1st Valley Bank, Inc.

6. How did we do it?
• Defined indicators and parameters
• Set weights and scores for each indicator
• Pilot-tested the “scorecard” and modified
some parameters
• “Sold” the scheme to the staff
• Monitored the scheme’s performance and
made adjustments
1st Valley Bank, Inc.

7. Impact
• Regular documentation and monitoring of AS
monthly performance
• Organized system in weeding out
“unproductive” AS from the “performers”
• Healthy competition among employees and
team effort is encouraged
• Use of scorecards in other loan products
1st Valley Bank, Inc.

8. Selected Microfinance Indicators
December 2002 December 2011 Net Change
(Start of Scorecard-2003)
Indicators 2002 to 2011
No. of Branches 6 25 317%
No. of Account 11 40 264%
Specialists
No of Supervisors 1 4 300%
Total Micro Loans P 5.7M P55.6M 875%
No. of Clients 849 5,063 496%
Total loan disbursed 3,331 9,770 193%
Total disbursements P 31.4M P220.6M 602%
Average accounts/ 77 126 64%
AS
Average loan/AS P 0.5M P1.4M 180%
1st Valley Bank, Inc.

9. This is how it looks like (front)
1st Valley Bank, Inc.

10. This is how it looks like (back)
Microfinance
Unit
Scoring
System-­‐
Monthly
Weighted
Indicators Weight,
%
Value
A.
NUMBER
OF
CLIENTS 20% 1.00
50
to
70 1 0.20
71
to 90 2 0.40
91
to
110 3 0.60
111
to
120 4 0.80
a b o ve
120 5 1.00
B.
LOAN
PORTF OLIO 40% 2.00
u p
to
600,000 0 0.00
600,001
to
800,000 1 0.40
800,001
to
1,300,000 2 0.80
1,300,001
to
1,700,000 3 1.20
1,700,001
to
2,000,00 4 1.60
Ab o ve
2
mi l l i o n 5 2.00
C.
PORTF OLIO-­‐AT-­‐RISK
(%) 30% 1.50
0.00
to
1.00 5 1.50
1.01
to
2.00 4 1.20
2.01
to
3.00 3 0.90
3.01
to
4.00 2 0.60
4.01
to
5.00 1 0.30
a b o ve
5% 0 0.00
D.
NUMBER
OF
DISBURSED
LOAN 10% 0.50
0
to
4 0 0.00
5
to
10 1 0.10
11
to
15 2 0.20
16
to
20 3 0.30
21
to
25 4 0.40
Ab o ve
25 5 0.50
TOTAL 25 100% 5.00
B ONUS
POI NTS
F OR
EXCEED I NG
MONTH LY
TAR GET
ON
LOANS :
Exce s s S co re
u p
to
50,000 0.25
50,001
to
150,000 0.50
150,001
to
300,000 0.75
a b o ve
300,000 1.00
1st Valley Bank, Inc.

11. Sample
JANUARY FEBRUARY MARCH APRIL MAY JUNE
Indicators Performance Performance Performance Performance Performance Performance
Score Score Score Score Score Score
Data Data Data
Data Data
A.
Number
of
Clients 121 1 124 1 125 1 118 0.8
B.
Loan
Portfolio 2,074,022.12 2 2,069,487.22 2 2,284,030.30 2 2,258,923.58 2
C.
Portfolio-­‐a t-­‐Risk
(
%
) 0.00% 1.50 0.00% 1.50 0.00% 1.50 1.69% 1.20
D.
Number
of
Disbursement 33 0.5 42 0.5 42 0.5 26 0.5
Target
on
Loans 2,175,658.53 2,210,344.17 2,279,715.45 2,314,401.08 2,349,086.72 2,383,772.36
BONUS
POINTS
(
Exceeding
target
)
(101,636.41)
0
(140,856.95)
0
4,314.85
.25
(55,477.50)
0
TOTAL
SCORE,
Monthly 5.00 5.00 5.25 4.50 0.00 0.00
Average
Score,
Quarter 5.08 Average
Score,
Quarter 1.50
1st Valley Bank, Inc.

12. Success stories of 1st Valley
• Effective tool because indicators are
objectively measured
• Used the scorecard not only for micro but also
for other loan products
• Designed another scorecard to measure branch
performance based on 2012 Target
• Allows additional compensation for deserving
employees
• Encourages team work, a spirit of collaboration
and social cohesion among employees in a
branch
1st Valley Bank, Inc.

13. THANK YOU
1st Valley Bank, Inc.