news - Micro-finance revolution in Philippines

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Micro-finance revolution in Philippines
February 11, 2010

Manille, February 11, 2010 (The Independent) - The Philippines is a very prospective country for microfinance in the world. Naturally, the Philippines is a country of thousand islands. There are seven thousands or above number of islands in the whole Philippines. Total population in the Philippines is more than 80 millions. Out of total population, 70 per cent lives under below poverty. Moreover, people in this country are always faced by natural disasters, like flood, cyclone, volcano, typhoons, and others. But people in this country are very hard working and challenge-loving. The Filipinos live in many countries of the world. People of this country know very well how to overcome the problems in any situation. A lot of non-government development organisations in this country are working on women empowerment. Most of the women of the developing and under-developed countries even developed countries are not empowered. But especially, in Philippines, every woman is involved in any development sector. And women contribution and empowerment in the Philippines is better than many other countries in the world. For this reason, they have a good will in the whole world. Many NGOs (Non-government Organisations) are working in the Philippines for the development of socio-economic condition of the Filipino people. Huge number of private and non-government banks is operating their financing programme in the whole Philippines. But in most of the cases their target is commercial. They can't reach their service in the root-level of the country. As a result, most of the landless and financial helpless poor people and middle class people especially poor women don't get proper financial assistance from these commercial banks. Moreover, huge number of MFIs (Micro Finance Institution) is implementing their programme for the financial development of the Filipino people. CARD-MRI (Centre for Agriculture and Rural Development-Mutual Reinforcing Institution) is one of them that are the biggest MFI in the Philippines. Actually, that's a multi-purpose group-wise development organisation in the Philippines. They have been serving to the Filipino helpless and landless poor people for the development of their socio-economic status since 1986. At the present time, CARD is composed of a group of six mutually reinforcing institutions. The members are-The CARD NGO, The CARD Bank, The CARD Mutual Benefit Association (MBA), The CARD MRI Development Institute (CMDI), CARD Micro Insurance Agency (CAMIA) and The CARD Business Development Services (BDS). All these institutions are dedicated and committed to empower the poor people especially the helpless poor women, imbibing the core values of competence, excellence, integrity, family spirit, humility and simplicity. Especially CARD NGO and CARD Bank are concerned two members of them playing a vital role to the empowerment of the poor people and poverty alleviation from the country by the implementation of micro financing programme. Another member of groups giving them another services and assist them how to become as a self-sustainable institution by the implementation of micro financing programme. In 1986, the CARD NGO was established in response to the increasing poverty in the country. For this reason, by the 10 years operations, the Board of Trustees started discussion plans to set-up a Bank. Lastly, in 1997, CARD Bank was granted by Filipino Central Bank and the authority gave them the license to operate. CARD MBA was becoming the micro insurance provider for the poor people. Now, life insurance schemes cover more than 2.5 million individuals. CARD MBA accounts for about 14 per cent of the total number of insured persons in the country. It is wholly owned and governed by client-members. CMDI is a training institute of that group. They offer both degree and non-degree programmes that address primarily the learning need of staffs and members of the CARD-MRI. Credit-with-education courses were adapted by CMDI for the members of CARD-MRI. CARD BDS is serving as the marketing arm of the CARD-MRI. It caters to the increasingly sophisticated needs of members with growing business. In cooperation with Micro ventures Inc. (MYI), the HAPINOY stores comprising of a large network of small convenience stores are being linked by CARD BDS to supplies for higher price discounts and more attractive promotional offers. CARD-MRI has consistently maintain a near perfect repayment rate since 1990 which keeps it financially viable. For the sector of micro loan program, CARD NGO Inc. and bank's recovery rate always 99 per cent above. In this short time, the institution already achieved l (One) million or above number of members by the served of micro financing programme. The institution made a plan, after serving the poor people in the country they will expand their micro finance programme in other countries of the world. For this reason, beginning in 2007, CARD-MRI started to spread its wings to the rest of Southeast Asia by forging strategic partnership with institutions in Cambodia, Vietnam, Indonesia and Hong Kong. Sir Dr. Jaime Aristotle B Alip is the pioneer of micro financing revolution in Philippines. He is the founder and managing director of CARD-MRI. The beginning period of CARD-MRI was so historical and dramatic. Dr. Alip traced the humble beginning of CARD involving an initial capital of twenty pesos (p20) and a second hand typewriter lent by his father. His next initiatives are really a historical and dynamic. Dr. Alip was introduced to micro finance as a young staff member at Philippine Business for Social progress. After years of hard work, along with Dolores M. Torres, the president of CARD Bank, Lorenza de Torres Banez, the Executive Vice President of CARD Bank, Flordeliza L. Samiento, the Executive Director of CARD NGO and other rural development workers, rounded CARD to assist landless rural women working on the coconut plantations of Laguna Province of Philippines. With a short-up found of twenty pesos and Alip's "magic" typewriter-for writing grant proposals the group set to work. After that hard working and in the long run, now CARD Bank is operating their micro finance programme to the helpless and landless poor people by 297 Units under their 33 Branch Areas in the whole Philippines. Its need to tell here, CARD Bank is the first micro finance-oriented rural Bank in Philippines. Especially, they assist in the many prospective sectors such as raising chicken, goats, Cows, Pigs, and fish; operating tricycles and street-side restaurants; and working as tailors, market vendors and mini-storekeepers. As a result, the Trustees of the Ramon Magsaysay Award Foundation (RMAF) of Philippines made the announcement bestowing CARD-MRI the 2008 Ramon Magsaysay Award for Public Service in Philippines. Ramon Magsaysay Award is known to all in the whole world as a Nobel Prize of Asia. In addition, especially CARD-MRI wants for the development of agricultural sector and small entrepreneurs in the Philippines. For this reason, they bring 7 consultants from ASA-Bangladesh to make a policy and guideline and also for the assistance to the implementation of programme in the field area. CARD Bank and NGO are operating three types of specialised programmes in Philippines. Small Business Loan (SBL) and Micro Agri Financing Programme (MAFP) for the CARD NGO and Agri Loan Programme (ALP) only for the CARD Bank. All programmes have been implementing very nicely in the field level of the Philippines. Assistant Director of ASA-Bangladesh Mr. Sohail Ahmed is the team leader of seven consultants. CARD-MRI authority visited big MFls of Bangladesh several times for taking assistance how to build-up a successful and self-sustainable Institution in Philippines. For this reason, the biggest MFI in the world, ASA-Bangladesh always worked with CARD-MRI and gave them technical assistance how to implement a "Cost-effectiveness micro finance programme" in the Philippines. As a result, after long hard working, they have implemented a modified and individual micro finance model especially their computerised e-system methodology is very easy and flexible for accounts. So, CARD-MRI has created an individual and modern micro financing programme in the whole Philippines. Now they want to explore their programme in other countries of the world for the poverty alleviation and empowerment of the poor.

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