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the official e-newsletter of the microfinance council of the philippines, inc. Issue 4 2010
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MCPI Special General Meeting MicroFinance Transparency Training
March 24, 2011 Workshop on Transparent Pricing
Thursday, 3:00-5:00 pm March 24, 2011
Hyatt Hotel, Malate, Manila Thursday, 8:30 am – 2:30 pm
The Microfinance Council of the Philippines, Hyatt Hotel, Malate, Manila
Inc. (MCPI) will hold a Special General Meeting MCPI members are encouraged to participate
(SGM) on March 24, 2011. The main agenda of in the Manila leg of the Training Workshop on
the meeting is the ratification of the proposed Transparent Pricing where new industry stan-
amendments in the Articles of Incorporation dards for calculating interest rates on micro-
and By-Laws of MCPI. credit products will be shared. The workshop is
part of the Transparent Pricing Initiative in the
Philippines of MicroFinance Transparency and
is being conducted in partnership with MCPI.
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BSP, Citibank and
MCPI declare
2010 Citi MOTY
Awardees
Citibank Philippines and the Citi
Foundation, in partnership with the
Bangko Sentral ng Pilipinas (BSP) and
the Microfinance Council of the Phil-
ippines, Inc. (MCPI), recognized 11
outstanding Filipino microentrepre-
neurs during the 2010 Citi Microen-
trepreneur of the Year Awards held at
the Metropolitan Museum of Manila
last November 17, 2010.
Now on its eighth year, the awards
have succesfully promoted microfi- Tessie Sy-Coson, Dr. Darwin Yu and This year’s National Awardee for the
nance while providing incentives for Fernando Zobel de Ayala. Maunlad category is Visayan Nora
microentrepreneurs to enhance tech- Bagaforo, fisher and sari-sari store
nology, improve production, and ac- Through the years, stories of success- owner. The Island Group winners
celerate income-generating activities. ful microentrepreneurs have inspired are: farmer Elma Gabriel from Luzon;
and motivated individuals in other organic farmer Enrico Jingco from the
According to Citibank Philippines’ fields. This year, Citibank and the Citi Visayas; and owner and manager of a
Country Head, Sanjiv Vohra: “The Foundation gave more than P1 million manpower services company Letecia
Citi Microentrepreneur of the Year pesos to awardees in the following Tabotabo from Mindanao.
awards was introduced here in the categories:
Philippines in 2002. Its success led Special Awards of Ph75,000 each are
to the rollout of similar recognition The Masikap Award is given to micro- also given to three microentrepre-
programs in other markets starting in entrepreneurs who successfully start neurs engaged in agriculture, green
2005, and today, it is held in 26 coun- a business that becomes a reliable or sustainable enterprises, and busi-
tries. While we’ve done more than source of income for the family. The nesses operating in hard-to-reach ar-
our fair share of transporting (the) business’ asset size must fall below eas.
best practices from our shores, I [am] PhP300,000. The National Awardee re-
extremely proud for having been the ceives PhP200,000, while three Island The agriculture category prize was
catalyst for spreading this particular Group Awardees receive PhP100,000 awarded to Herminigildo Dularte, the
goodwill to other countries.” each. This year’s National Awardee is prize for green enterprise to Ismael
Visayan Ester Lumbo, a manufacturer Adiaton, and the prize for a business
Each year, the selection process be- of bags made of pandan leaves. The operating in a hard-to-reach area to
gins with nominations from different Island Group winners are: Zenaida copra harvester Lourdes Acuna.
local microfinance networks. These Avellaneda, pawid trader and duck
entries, once submitted to MCPI, are raiser from Luzon; Mary Jane Reyes, “The program was designed to honor
then screened by the Country Team, turmeric tea grower and trader from the best Filipino microentrepreneurs,
composed of BSP officials, senior Visayas; and Analiza Candole, a carin- to raise awareness of microfinance
representatives from Citibank Philip- deria owner from Mindanao. and its benefits …, create role mod-
pines, and MCPI. The Country Team els, and inspire others,” said Sanjiv
later convenes to choose finalists, af- The Maunlad Award is given to mi- Vohra. “After eight years, they con-
ter which the final screening is com- croentrepreneurs whose business tinue to inspire us all at Citibank.
pleted by the National Selection Com- generates employment for people If you are looking for stories of real
mittee. outside of the family or household. courage, passion, commitment, hard
The business’ asset size must be be- work, you don’t have to go further
BSP Governor Amando M. Tetangco, tween PhP300,000 to PhP1 million. than the microentrepreneurs we are
Jr. and Vohra co-chairs the National Similar to the Masikap category, one toasting today here in this room.” ◊
Selection Committee which includes National Awardee gets P200,000,
community and business leaders: while three Island Group Awardees
Antonino Alindogan, Jr., Joey Concep- receive P100,000 each.
cion, Atty. Felipe Gozon, Marixi Prieto,
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Mcpi Presents New Logo FROM PAGE 1
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Smart sums of cash to and from where loans Smart Communications
are disbursed and to their place of boosts local economy
Communications, business. In the future, Smart looks toward the
improvement of their own infrastruc-
MCPI’s Newest Smart Money also allows users to ture in order to accommodate more
make transactions such as the receipt information and widen its outreach
Member and payment of loans and even the by bringing these services to more re-
payment of salaries in the safety mote areas. Currently, Smart is servic-
Smart Communications, the leading of their own homes at their own ing 16 islands and aims to expand to 40
telecommunications company in the convenience. This makes it more islands with the help of microfinance
Philippines, recently joined forces convenient for users to accomplish institutions. According to Mr. Elmer
with the Microfinance Council of the important business transactions “Jojo” Malolos, head of the Financial
Philippines to promote microfinance faster and with less risk. Also, since it Services of the Wireless Consumer
in the country. Holding a total of allows users to receive funds and pay Division of Smart Communications,
52% of the market share with 44 to their amortizations through Smart the coverage of microfinance orga-
45 million subscribers, Smart aims to Money, this eliminates the need to nizations will double in the coming
utilize one of their ongoing services in travel to and from the places their years through sustaining and devel-
a manner that will benefit more than loans are disbursed. oping microventures that will further
just the average user.
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Training of MCPI attends Strategic Planning
Trainers (TOT) Asia Microfinance in Paglaum
on SPM Strategy Forum and Asia Multi-Purpose
Workshops for Network Summit Cooperative
Networks On October 11-15, 2010, officers Ms. (PMPC)
Mila M. Bunker (President of the
Microfinance Council of the Philip- Board of Trustees), Ms. Lalaine M. Paglaum Multi-purpose Cooperative
pines (MCPI) in partnership with Joyas (Executive Director), Mr. Allan (PMPC) invited 3 networks - MASS-
Oikocredit conducted a Training of Robert I. Sicat (Deputy Executive Di- PEC Cooperative Development Center
Trainers (TOT) course on Social Per- rector), and Ms. Aileen P. Paglinawan (MASS-SPECC), National Confedera-
formance Management Strategy (Office Coordinator) represented tion of Cooperatives (NATCCO) and
Workshops for microfinance insti- MCPI at the Asia Microfinance Forum the Microfinance Council of the Phil-
tutions last October 25 – 28, 2010 in and Asia Network Summit in Colom- ippines Inc. (MCPI) to assist them in
Cebu City. The course was facilitated bo, Sri Lanka. their strategic planning workshop.
by Noemi Bonaobra of the Bicol Mi-
crofinance Council, Inc., Meldy Pelejo The Asia Network Summit, was a With PMPC’s thrust to balance its
of Oikocredit, Kakay Rico of MCPI, 2-day roundtable meeting comprised financial and social performances
and Marghieth Garcia, consultant for of representatives from different for the next 5 years, PMPC revisited
MCPI. Asian microfinance associations. De- its mission and made improvements
signed for the Citi Network Strength- with its goals and objectives using
The course aims to provide partici- ening Program (NSP) by the Banking the Vision–Mission–Objectives-Key
pants the following: an appreciation With the Poor Network (BWTP) with Result Area-Performance Indicators-
on Adult Learning Cycles; an under- support from the SEEP Network, dis- Strategies–Programs–Activities-Tasks-
standing on Social Performance; and cussions included the crucial role of Resources (VMOKRAPI SPATRES) and
Social Performance Management and networks in client protection. In re- Social performance frameworks.
Social Responsibility. sponse to this, MCPI along with Oiko- MASS-SPECC and NATCCO provided
credit and Smart Campaign hosted a financial strategies, while MCPI facili-
The trainees participated in learning forum on client protection principles tated the social performance session.
sessions and were provided hand- for Philippine MFIs last December 13-
outs, workbooks and slides as tools 14. Also discussed during the meeting PMPC aims to be a multi-awarded,
for them to use in conducting future were the SEEP Network Tools that ACCESS-branded, 1-Billion coopera-
workshops for microfinance insti- will aid national and regional associa- tive owned by 100,000 members
tutions in creating their own Social tions in encouraging growth and de- who are able to improve their lives
Performance Management systems. velopment of the local microfinance through the quality products and
The learning tools discussed and industries. services available in the 24 offices of
given from the workshop will equip PMPC that will be operating in 4th to
the trainees in guiding microfinance Directly after the summit followed 6th class cities and municipalities of
institutions organize and align their The Asia Microfinance Forum, Northwestern Mindanao and Central
mission into practice and in achiev- themed “Financial Inclusion—Achiev- Visayas. This will be managed by com-
ing three critical goals: reaching tar- ing Asia’s Potential”. Also organized petent and motivated personnel, and
get clients, meeting those target cli- by the BWTP, the forum was hosted guided by dedicated and passionate
ents’ needs, and contributing to the by the Hatton National Bank with leaders.
positive change in their clients’ lives. support from the Foundation for De-
Trainees who complete the TOT will velopment Cooperation (FDC) and The strategic planning was held last
undergo a certification process by the Citi Foundation. The 3-day event November 30 to December 1, 2010 in
Imp-Act Consortium. sought to achieve greater financial Plaridel, Misamis Occidental, and was
TURN TO PAGE 7 inclusion within the Asian region attended by its senior management
by tackling issues on policy-making, headed by General Manager Mr. Gad-
win Handumon. ◊
TURN TO PAGE 7
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New Developments
Day two and three of the conference
in 2010 Annual featured various workshops that
tackle key issues around areas such
SEEP Conference as risk management, responsible mi-
crofinance, value chain development,
Microenterprise practitioners and microfinance business models, and
SEEP network members from all over integrated solutions through trans-
the world converged in Sheraton Na- parent pricing, appropriate collection
tional Hotel, Arlington, Virginia USA practices, ethical staff behaviour, cli-
last November 1-5, 2010 for its annual ent privacy, and mechanisms for re-
SEEP Conference. The 5-day confer- dress of grievances.
ence is the premiere microfinance
event for practitioners in the indus-
try. The conference is an opportunity
MCPI is one of the leading promoters
of Social Performance Management FPIF’s Tenth
to connect diverse sectors to come
share their experiences and discuss
in Asia, therefore, during the breakout
session on Solutions for Networks
Quarterly Steering
current developments to strengthen to Define Strong Social Performance Committee
their collective global efforts to im- Strategy, Mr. Sicat gave a presentation
prove lives in undeveloped communi- on MCPI’s social performance strategy Meeting
ties. that was further developed with
its collaboration with some of the The Financial Product Innovations
President Ms. Mila Bunker and Deputy industry’s key players: Microfinance Fund (FPIF) held its tenth Steering
Executive Director Mr. Allan Sicat Centre, Grameen Foundation and Committee meeting last October
represented MCPI during the event. Oikocredit. 27, 2010 at the Malayan Plaza in
Ortigas Center, Pasig City. Augusto
On its first day, members of the Day four and five featured the Global Camba and Rob van den Bogart,
SEEP Network held its annual Network Summit, an event designed working as the local representative
General Meeting electing new board exclusively for representatives of and East Asia’s Programme Officer
members, Deborah Drake of ACCION microfinance associations that for Financial Services respectively,
International and Lynn Exton of focused on the main trends in the are both from the Interchurch
Opportunity International. SEEP also microfinance sector across different Organisation for Development
released the results of their member regions and touching on other issues Cooperation (ICCO) who attended the
satisfaction survey of its services that are currently affecting the quarterly meeting. Other attendees
hitting a 93% rating of satisfied sector’s growth such as deterioration from the Steering Committee were
members. Members then participated of portfolio quality, and over- Oikocredit Philippines, the National
in working group meetings to discuss indebtness of clients. ◊ Confederation of Cooperatives
Communities in Practice, a new (NATCCO), the Microfinance Council
program based on three established of the Philippines (MCPI), and Mr.
aspects: Financial Services, Enterprise Mcpi Attends AFM FROM PAGE 6 Antonio Hernandez, former officer of
Development and Associations that social performance, credit risk man- the Land Bank of the Philippines and
benefits practitioners to collaborate agement, human resources, financial independent member of the Steering
on shared interests of it’s programs literacy, youth entrepreneurship and Committee.
with communities. consumer protection. Other key is-
sues included microfinance growth, The fund planned to be a driving
the promotion and implementation force for microfinance institutions
Training of Trainers FROM PAGE 6
of responsible lending, and catering in testing services for poor remote
Participants of the training are Djan households, and for agricultural and
to the bottom of the pyramid by of-
Angelo Capinpin and Jennifer Rodil of fisheries sectors. It was then launched
fering savings, housing, and different
the Mindanao Microfinance Council, in 2007 with the joint efforts of the
loan sizes while taking measures to
Evelia Tizon and Rodolfo Villanueva NATCCO, ICCO, MCPI, and Oikocredit
minimize geographic exclusion. Dur-
of the National Confederation of to further stimulate microfinance
ing the forum, the attendees were
Cooperatives (NATCCO), Manolita product and service innovations to
also given the opportunity to visit lo-
Gonzales of Oikocredit, and Abelardo remote areas. FPIF grants funds to
cal Sri Lankan MFIs in order to learn
V. Padios, Patricia Marie A. Pelayo, NGOs, cooperatives, and rural banks
and observe. ◊
Ma. Socorro N. Bartolome, Suzzette that promote microfinancing, and
M. Gellangcanao, Mary Tiezel G. innovations in product and service
Rufin, Marcos Perez, Marlowe Baring development. ◊
and Carlos Ani of the SEED Finance
Corporation. ◊
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Rise of Participants
in the 2010 Social
Performance
Awards
The Consultative Group to Assist
the Poor or CGAP is an independent
policy and research center dedicated
to advancing financial access for the What impacts have MFIs made to its The awards feature three levels of recognition:
world’s poor and one of the world’s staff and its clients? How effective • GOLD AWARD: Awarded to MFIs that
largest civil movement on the aid are they in addressing poverty? And complete the report, provide data on poverty
to ending poverty and inequality. how has social dynamics of poor measurement, and have a social rating that
includes auditing of the poverty tool used by
CGAP has founded and established communities changed through these the MFI.
in 2009 the Social Performance microfinance institutions? As MFI’s • SILVER AWARD: Awarded to MFIs that
Reporting Awards with the help of services continually expand over the complete the report, and also provide data
the Social Performance Task Force decade, such questions surface to on poverty measurement.
• CERTIFICATE: Awarded to MFIs that complete
and Microfinance Information bring back the focus not only on the the Social Performance Standards Report.
Exchange or MIX in collecting financial innovations of its services,
data and standardizing the social but also its direct social impact on To qualify, MFIs provide reports on a
performance indicators for MFI’s. In the poor people they serve. set of social performance monitoring
its first year, they have awarded some indicators that have been developed
Microfinance Institutions all over “A few years ago, the focus was and refined by the Social Performance
the world in recognition for their on improving financial reporting,” Task Force. One of the most important
efforts in providing solutions to poor said Xavier Reille, head of CGAP’s indicators is the degree to which MFIs
communities. Transparency is the transparency work. “Today the focus are measuring the poverty level of
core of the awards pushing MFI’s to is shifting to social performance their clients.
submit reports based on their actual reporting since for a microfinance
performance. business to operate effectively it Microfinance networks or associa-
must take account not just the tions that have more than 50 percent
In 2010, an overwhelming number of financial bottom line, but also the of their affiliates participated in re-
microfinance institutions submitted impact it is having on its clients and porting on social performance to MIX
their social performance reports to the community. Institutions that were also recognized. This year, the
the second annual Social Performance can demonstrate benefits for the following networks have been rec-
Reporting Awards (SPR) headed by community will be able to attract ognized for having more than 50% of
CGAP together with the Ford Founda- socially-responsible investment.” their affiliates report on social perfor-
tion, Michael & Susan Dell Founda- mance to MIX:
tion, and the Social Performance Task Rise in Membership • Red ACCION
Force (SPTF), and administered by the • FINCA - FINCA International
The rise of participants came from • MCPI – Microfinance Council of the Philippines,
Microfinance Information Exchange MFIs from Latin America and Asia. Inc.
(MIX). The number of MFIs reporting from • PMN - Pakistan Microfinance Network
• ASOMIF - Asociación Nicaragüense de Institucio-
Latin America leapt to 157 from 81 a nes de Microfinanzas (Nicaragua)
MIX gathered around 200 reports year earlier, while in Asia the figure • MFC - Microfinance Centre (MFC) for Central &
from microfinance institutions that climbed to 90 from 41. Another Eastern Europe and the New Independent States
participated in 2009 with 350 reports • REDCAMIF - Red Centroamericana de Microfi-
67 MFIs applied from Europe and nanzas
the following year. The increase in Central Asia, up from 51 a year ago. • COPEME - Consorcio de Organizacines privadas
number presents the significance of In contrast, only 18 MFI’s from Africa, de promocion al desarrollo de la micro y peque-
transparency and accountability as ña empresa
the Middle East and North Africa • RFR - Red Financiera Rural
important aspects to the awareness of regions submitted. The majority of • MFN - MicroFinance Network
MFI’s codes of conduct and policies on MFIs reporting to the MIX on their • RADIM - Red Argentina de Instituciones de Mi-
their clients, the organization and the crocrédito
social performance were medium- • MICRA
environment. The award encourages sized or large institutions, which • AMFA - Azerbaijan Micro-finance Association
openness and accountability in together represented 64 percent of all
reporting. It brings more significance applicants. In the 2010 SP Standards Report-
on how MFIs assess and disclose their ing Awards, 19 MFIs received Gold
performance, not only financially but Awards, 32 won Silver, and 122 were
also on its social performance. recognized with certificates. ◊
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