Metro Pacific Iloilo Water takes home Innovation of the Year - Philippines at Asian Water Awards 2024

MPIW expanded payment channels and automated billing processes, improving customer satisfaction and operational efficiency.

Metro Pacific Iloilo Water (MPIW) has been lauded in the Innovation of the Year - Philippines category of the Asian Water Awards 2024 for transforming its billing and collection process.

This recognition underscores MPIW’s successful implementation of digital technology to enhance customer experience, improve operational efficiency, and address longstanding challenges in the water service industry in Iloilo.

MPIW, a joint venture between Metro Iloilo Water District (MIWD) and Metro Pacific Water, began its operations in 2019 with the critical task of supplying potable water to households, businesses, and institutions in Iloilo, Philippines.

However, MPIW faced significant hurdles, including outdated infrastructure, manual billing processes, and limited payment options. These issues were further compounded by the COVID-19 pandemic, making payment collection more difficult and affecting customer service.

At the time, customer interactions were primarily conducted through call centres and Facebook, and customers had to visit MPIW offices or partner banks for over-the-counter (OTC) payments. This reliance on manual processes often resulted in delays, billing errors, and customer dissatisfaction.

Expansion of payment channels

Recognising the urgent need to modernise, MPIW embarked on a digital transformation journey, to create a more efficient and user-friendly billing and payment system.

MPIW’s digital transformation initiative introduced several strategic measures aimed at improving both the customer experience and internal operational efficiency.

Given that limited payment options were a major bottleneck in customer satisfaction, the company expanded its network of payment centres, growing from just 22 OTC collection agents in 2019 to an impressive 370 by 2024. This expanded network included banks, mobile online wallets, retail outlets, payment centres, and community-based “sari-sari” stores (local convenience shops).

This diversification of payment channels allowed customers to make payments conveniently at various locations and times, which significantly reduced the burden of paying water bills. The increase in payment options led to a 60% decrease in late payments and boosted on-time collections by PHP21.7m (US$389,916). The result was a notable improvement in customer payment habits and overall financial management.

With regard to digital transformation and automation, MPIW partnered with a fintech company to launch an Automated Billing System, aiming to modernise billing and eliminate manual errors. This innovation featured a “Read and Bill” system, which transformed the billing process by billing customers based on real-time, actual water consumption rather than estimated values.

This automation brought about significant benefits. First, the manual billing process, which once took 30 days, now only requires 30 minutes.

Administrative costs were also reduced by an impressive 90%, as automation streamlined operations, whilst MPIW significantly reduced revenue losses from errors or inaccuracies.

The automation also enhanced cash flow management for MPIW and allowed customers more transparency into their water usage, contributing to greater trust in the company’s services.

Impact on customer satisfaction and operational efficiency

These digital transformations have had a profound impact on customer satisfaction. By expanding payment options and automating billing, MPIW reduced customer complaints by 72% and drastically improved overall operational efficiency.

Customers now benefit from multiple payment channels, making it easier and more convenient to pay water bills whilst reducing the stress of delayed bills or payment challenges. They also enjoy real-time insights into their water usage, which provides transparency and helps customers manage their consumption.

MPIW’s improvements have laid the groundwork for future developments, including the upcoming My Bill Feature and a mobile app, which will further enhance accessibility and ease of use for customers.

MPIW’s success in transforming its billing and collection system demonstrates how digital innovation can solve long standing industry challenges. By putting customer needs at the forefront and leveraging modern technology, MPIW has redefined the customer experience in water services, setting a new benchmark for the industry in the Philippines.

Winning the Innovation of the Year - Philippines award at the Asian Water Awards 2024 solidifies Metro Pacific Iloilo Water’s position as a leader in water service innovation. The company’s focus on digital transformation, customer-centric solutions, and operational efficiency has not only improved the lives of its customers but has also strengthened its role in addressing water management challenges in the region.

The Asian Water Awards, now in its second year, is a prestigious award programme that recognises outstanding achievements in the water sector throughout Asia. It is a platform for highlighting innovative projects, initiatives, and companies that have significantly contributed to the region's water management, conservation, and sustainability. The awards inspire and promote best practices, facilitate knowledge sharing, and encourage collaboration amongst water professionals, organisations, and communities.

The Asian Water Awards is presented by Asian Power Magazine. To view the full list of winners, click here. If you want to join the 2024 awards programme and be acclaimed for your company's revolutionary innovations and initiatives in the water industry in Asia, please contact Danica Avila at [email protected].