top of page

FREQUENTLY ASKED QUESTIONS (FAQs)

A list of frequently asked questions/answers to help rural banks (RBs) and microfinance institutions (MFIs) better understand the FIT Program and its requirements.

ELIGIBILITY

Can RBs with more than 3 branches apply?

Yes, but they may receive a lower matching grant. 

​

​

​

Can rural banks outside of BSP supervision and microfinance institutions which are not members of MCPI apply for the FIT Program?

No, the FIT Program only caters to BSP-supervised rural banks and microfinance institutions members of MCPI.

If a financial institution has a strong profile but lacks certain requirements, will they still qualify for the FIT Program?

It depends, the Evaluation Committee (EC) and Steering Committee (SC) will ultimately decide whether to allow certain requirements to be complied with at a later date.

Are rural banks subject to the BSP's Rural Bank Strengthening Program (RBSP) eligible for the FIT Program?

Yes, RBs covered under BSP's RBSP under Tracks 1, 2, and 4 are eligible for the Program.

Is the FIT Program open to financial institutions outside of the Philippines?

No, the program is only limited to Philippine rural banks and microfinance institutions serving local clients.

​

​

Can rural banks not subject to the RBSP apply?

Yes, the FIT Program targets small and mid-size rural banks aiming increased footprint on financial inclusion through digital transformation.

Can a rural bank already undergoing digital transformation still apply the same project to the FIT Program?

Yes, as long as the ongoing digital transformation meets the eligibility criteria.

​

APPLICATION

How will a financial institution know if its application is eligible?

The financial institution will receive an email from the FIT Program email indicating that its application has been approved and will progress to business proposal review and due diligence procedures. 

Is there assistance provided in building business proposals?

Yes, depending on strength of business case and meeting eligibility criteria, applicants may be provided with technical support to strengthen its proposal.

​

How will the financial institution access the required templates?

The financial institution will send an email to the Program’s designated email with “Request for Templates” as the subject. Templates will be provided after the request has been received.

PROPOSALS

What projects/services are covered/eligible under the matching grant?

While the main purpose of the FIT Program is to help rural banks to transition to a digital cloud-based system for their core-banking systems, the Program may also consider funding different methods such as developing innovative digital products, offering tech-related services, and use of new delivery channels through technology.

Is there a maximum number of projects that an applicant can propose? 

There is no limit to how many projects the rural banks and microfinance institutions can propose, as long as they are within the scope of purposes covered by the program. 

Is there a minimum amount for the project proposals? 

FIs can request a minimum of PHP250,000.00 for their proposals.

Will ADB cover the costs incurred for a financial institution's undergoing digital transformation?

While the Program accepts FIs that are still in the process of implementing their digital transformation, the grants should not be used as reimbursement. ADB will still match the grant provided by the FIs, to help build their capacity in completing their implementation.

​

 

Can the applicant use the financial grants for financing overseas services? 

No, the financial grants are only to be used for the development of local services/projects. 

​

​

​

Will the FIT Program cover the entire cost of the digital transformation project or only a portion of it?

The Program will only provide a matching grant that will complement the other funding source of the applicant to implement its digital transformation. The more financially capable an applicant is, the lower matching grant they can be awarded. 

​

​

Can the applicant tap foreign service providers for the digital transformation project? 

Yes, this is allowed in order to widen the potential options of rural banks and microfinance institutions.

​

​

TIMELINE

When will the program start accepting applications?

The program will start accepting applications on June 8, 2023 for rural banks.

​

Microfinance institutions can start applying for the program on June 21, 2023.

How long will the program run?

ADB's FIT Program will run until October 2023.

 

However, AFD's Technical Assistance (TA) Program for chosen financial institutions, such as capturing learnings and capacity development program will extend beyond December 2023.

How long will each application be reviewed?

The duration will vary with each application ranging from 1 to 2 weeks.

​

​

​

​

When is the deadline for application? 

The program will be accepting applicants until July 21, 2023 only.

​

​

​

 

​

MONITORING & EVALUATION

When will the awarded financial institutions receive the financial grant?

The disbursements of funds will be from August 28, 2023 to September 8, 2023.

​

​

When will the chosen financial institutions report about their progress? 

The chosen financial institutions shall report on fund utilization starting September 25, 2023, on a weekly basis to the Program Manager. Reporting on outcome of digital transformation based on key performance indicators will be made subsequent to December 2023. 

Will the disbursement be released once or at every request?

The program will provide the financial grants in one go to ensure that the rural banks and microfinance institutions can start investing it as soon as possible.

Will there be follow on support after the initial disbursement? 

Yes, this will be covered by AFD, which will provide Technical Assistance to chosen rural banks and microfinance institutions.

​

bottom of page