Category: Financial Literacy

SEDPI, ASoG and OFSPES Launch Program for OFW Families

Last October 27, 2012, the first batch of FLSE in the Philippines was launched at the St. John Nuemann Migrants’ Center at the National Shrine of Our Lady of Perpetual Help, Baclaran, Paranaque City.  FLSE stands for Financial Literacy, Leadership and Social Entreprneurship (FLSE) Training Program. The co-implementors of the program are Ateneo de Manila University School of Governance (ASoG), Overseas Filipinos Society for the Promotion of Economic Security (OFSPES), and Social Enterprise Development Partnerships, Inc. (SEDPI). The programs envisions Filipino migrants and their families united towards supporting each other in becoming empowered and highly respected members of society, consciously contributing to nation building.

FLSE lasts for six months. It aims to empower families of Overseas Filipino Workers (OFWs) towards economic security and become agents of transformation. It focuses on key areas of leadership, financial literacy and social entrepreneurship towards local community and national development. Cristina Liamzon, President of OFSPES, said that the FLSE course is an integrated program to bring together knowledge and skills building in the three subject areas. One of the concrete end goals of the program is the development and presentation of a social enterprise business plan, which is a requirement to receive the certificate of completion of the course. The business plan will serve as the avenue for the participants to apply knowledge and skills gained from the program. FLSE is also established to complement the remittance-sender focused Leadership, Social Entrepreneurship (LSE) training program, which is now on its 14th run with batches from Europe, Dubai and Hongkong.

FLSE has a total of 24 participants from different areas in Metro Manila. Majority of the participants have relatives and families working overseas while some used to work as OFWs and has returned in the country.

Financial Literacy and Remittances

“Financial literacy taught me to think long term and make the most out of the remittance I receive from my daughter”, said Mrs. Concepcion Adviento, one of the 18 participants of the Financial Literacy for Remittance Receivers training held last November 10, 2012 in Baclaran. She also added that the training helped her enhance her skills in budgeting by learning how to focus on the right things which will ultimately help not only her family here in the Philippines but my son who works in Dubai as well.

As a core component of the FLSE Program, financial literacy intends to provide the foundation of personal finance through topics on remittance management, savings, debt management, and insurance.  The financial literacy training also discussed the stages of migration, importance of remittance and the cost of dependency on it. Also highlighted in the discussions were savings, developing financial goals, debt management and insurance. From these topics, participants were provided with tools that they can readily use for proper personal finance management. In addition, choosing appropriate remittance providers and money transfer organizations was also presented in one of the sessions. During the training, the participants shared the difficulties and challenges they experienced as well as those experienced by their relatives working abroad. They identified primary concerns such as communication problems, managing income and expenses and achieving their plans. Through the topics discussed, these issues are hoped to be addressed. Mr. Rowaldo Zapata said the he learned how to budget money and spend wisely. Ms. Lea Nicol added that financial literacy would help her become self sufficient which would allow her to depend less on remittance and at the same time become a role model for the community.  Furthermore, Ms. Letlet Bondal mentioned that she learned more about the process of budgeting that helped her become more systematic and detailed in drawing out her financial plans. All of these are geared towards achieving their own dreams as well as that of their relatives working abroad.

ADMU, OFSPES and SEDPI hope that by 2013, FLSE can be conducted in other key cities in the country with high concentration of OFW families. The program is also implemented in collaboration with the Department of Labor and Employment and the Overseas Workers’ Welfare Administration (OWWA).

SEDPI Showcases Financial Literacy Program in Rome

The Global Filipino Diaspora Council (GFDC) in collaboration with the Filipino-Italian Members of the Global Filipino Diaspora Council (GFDC), the International Organization for Migration (IOM), the Scalibrini Institute of Migration Onlus (SIMIONLUS), the Commission on Filipinos Overseas (CFO) and the Philippine Embassy in Rome, as co-convenor, hosted the Diaspora-to-Dialogue (D2D): 1st Conference of Filipinos in Europe on 27-29 September 2012 in Rome, Italy.

The objective of D2D in Rome is designed to provide a forum for Europe-based Filipino organizations and associations on issues regarding migrant socio-economic integration and re-integration in host and home country processes thereby empowering Filipino migrants for development both in their host country and in the Philippines.

SEDPI shared its experience on financial literacy and channeling migrant investments to rural development during the conference. Mr. Mariel Vincent Rapisura, SEDPI GSE President and CEO showed the financial snapshots of migrants under the Leadership and Social Entrepreneurship program that it implements with the Ateneo School of Government and OFSPES. He also showed the impact of financial literacy to migrants.

The audience during the conference were wowed when Mr. Rapisura shared the success story of SEDPI GSE. He shared that the current PhP150 million portfolio invested in various microfinance institutions and social enterprises in the Philippines only started with a PhP45,000 investment. Mr. Rapisura also reported that SEDPI has conducted financial literacy trainings to almost 2,000 Overseas Filipinos in 14 countries worldwide.

After his presentation, Mr. Rapisura recommended that the governments both the Philippines and host countries to support financial literacy programs for migrants and their families; establishment of an endowment fund to continuously provide financial literacy trainings; and the Philippine government to provide incentives for the establishment of social enterprises.

SEDPI Speaks on First BanKO Financial Education Roadshow

“Sa produkto ng BPI-Globe BanKO, pinapadali ang mag-save, kumuha ng insurance at soon maka-loan para sa negosyo”. These were words imparted by Vincent Rapisura to over 200 BanKO current and potential clients in its first Financial Education Roadshow, held in Barangay Holy Spirit, Quezon City on September 1, 2012.  This event aimed to help BanKO’s clients be more financially empowered.  It also highlighted the benefits of having a BanKO account.

BPI Globe BanKO is the Philippines’ first mobile phone-based, microfinance-focused savings bank.  BanKO was established in partnership between Bank of the Philippine Islands (BPI), Globe Telecom, and Ayala Corporation.  It delivers financial services to communities through mobile banking and its network of partner outlets that performs cash in and cash out transactions.

BPI-Globe BanKO President, Ms. Teresita Tan, welcomed audience of the Financial Education Roadshow.  Vincent Rapisura, the guest speaker, posed questions that assessed the audience’s financial standing.  A financially literate individual is one who a) has adequate savings and insurance coverage; b) budgets; c) uses credit for productive purposes; and d) sets financial goals. In the following module, he shared ways on how to increase savings and income, and lessen expenses.  Lastly, he discussed the definition and importance of insurance.

People learned more about BanKO’s services through videos and advertisements shown.  Throughout the event, interested individuals opened their BanKO accounts in BanKO booth.  In between modules, audience got the chance to win prizes through games and raffle draws.  Some won additional deposit to their BanKO accounts, while top winner received a cellular phone unit.

Vincent Rapisura also conducts financial literacy trainings to Filipino migrants based in countries abroad.  He is currently the President and CEO of SEDPI Group of Social Enterprises, a faculty of Ateneo de Manila University, and Program Manager of Ateneo Microfinance Capacity Building Program.

SEDPI’s Financial Literacy Training Inspires 1,459 High School Students

On June 13, 2012, SEDPI facilitated its “Financial Literacy for Teens” training to approximately 1,459 fourth year high school students in Silang, Cavite. The Sisters of Mary Schools (SMS), a non-stock, no-paying, live-in institution for the marginalized poor in the Philippines houses the students.  The school chooses students from poor families all over the Philippines and reside in either the Boystown or Girlstown.

In partnership with PTC-CSJ Foundation, SEDPI trained a total of 890 girls and 569 boys. The participants were divided into two training events: one was conducted in Boystown and another in Girlstown. Each training event was composed of a plenary of participants, who were eventually divided to six breakout groups. The training focused on the importance of personal finance, budgeting, managing expenditures, setting financial goals and creating a savings plan. By using the life of Mr. Edwin Salonga as an example, SEDPI stressed that financial literacy can help the youth have better control of their future. It also provided the students with knowledge and tools which they could use to better manage their finances once they start working.

For four years, the students are enrolled in an educational program that includes an intensive vocational and technical skills development.  Towards the end of their education, the students start their on-the-job training to practice their knowledge and skills.  Sister Laresa Morasa, the principal of the Girlstown, said that from the moment the students entered the school, all their basic needs are provided for.  They stay in the campus for an entire year except for the annual two-week vacation after each school year. Also, the students are not allowed to bring money once they enter the school.  As such, the students are not familiar with handling money. Sister Moresa added that, “since the students are about to graduate, financial literacy training is very important because it prepares them for when they leave the school and the support it provides.”

The students received the training well. Many commented that financial literacy will indeed be an important step towards achievement of their goals. In one of the breakout sessions, participants shared that the training will be of great help, not only for themselves, but also for the journey of their families to move out of poverty. One student even said that, “I am so inspired… I want to become an entrepreneur!” Another added that she was inspired by the life of Sir Edwin through the examples that the trainers shared. The trainers – SEDPI’s Program Manager, Emilenn Kate Sacdalan and SEDPI’s Program Officers, Florence Adviento, Enid Madarcos, Denise Subido, Cherryl Si, Charmie Lising and Romeo Arahan, Jr. – were all rated excellent in terms of delivery, knowledge and overall skills as resource persons. In particular, the students commended the trainers for making the discussions lively, easy to understand, and relevant.

SEDPI Presents Achievements in Jerusalem

On June 11-13, 2012, the Government of Israel and the Jewish Distribution Council held its inaugural biannual conference on Diaspora-Homeland Partnerships in Jerusalem. Some 150 delegates from 40 countries participated in the conference. The conference spotlights policies and programs that have proven effective in mobilizing and engaging diasporas, as well as providing insights into the experience of Israel and other countries with their diasporas.

On the first day of the conference, SEDPI’s President and CEO, Mariel Vincent Rapisura and SEDPI’s adviser on migration and development, Leila Rispens-Noel presented the Leadership, Financial Literacy and Social Entrepreneurship (LSE) Program as a case study. The LSE was showcased as a program that have proven effective in promoting trust and accountability among migrants. LSE is a capacity building program that empowers Filipino migrants with leadership skills to be an agent of change and transformation; financial literacy knowledge and skills to improve economic well being; and social entrepreneurship to explore their options in changing their current livelihood. View the full case study here.

On the second day, SEDPI Group of Social Enterprises (SEDPI GSE) presented its experience and achievement in supporting Microfinance Institutions (MFIs) and Social Enterprises (SEs) through financial literacy to and investment mobilization from migrants. SEDPI’s President emphasized in his presentation that capacity building is the main challenge and strategy in effectively harnessing the diaspora for development. Unfortunately, the government nor international development organizations, do not provide enough support for capacity building. SEDPI GSE’s core strategy is to build the capacity of migrants on financial literacy so that they are able to invest in socially responsible investment in the long run. This is coupled with technical and mentoring assistance to MFIs and SEs to strengthen them to effectively absorb investments to maximize social impact and financial sustainability. With these, SEDPI GSE’s total portfolio invested in MFIs and SEs reached PhP135 million (USD3 million) reaching at least 500,000 poor households in the Philippines. View presentation here.

Ekaterina Miroslavkaya, one of the conference participants, wrote in her email to SEDPI after the conference, “It is always very inspiring to meet outstanding personalities who strive for making a difference and who are professionals in what they are doing.” This statement encapsulates how SEDPI GSE has transformed into a highly professionalized institution in the course of eight years.

SEDPI Conducts Financial Literacy Trainings to LSE Students in Italy

“Marami akong natutunan. Yung pagbibigay pala ng sobra-sobra sa Pilipinas mali pala,” says Ms. Analou Gamutan. (I learned a lot. I learned that giving too much remittances in the Philippines is wrong.) Analou is one of the 96 students of the Leadership and Social Entrepreneurship (LSE) Program for Overseas Filipino Workers. The training she attended on “Financial Literacy” is part of the 12 training courses she will have to attend to complete the program.

One of the immediate results of the LSE program is strongly felt in the financial literacy classes that SEDPI delivers. The financial literacy trainings were delivered in two batches – Turin, Italy (LSE-10) and in Milan, Italy (LSE-11). The training emphasizes the need to take care of ones personal finances first before helping others. Analou adds, “Magsisimula na akong mag-budget. Sa pinapadala ko, dapat ang covered na lang ang nanay ko, tatay ko at ang anak ko. Tapos yung sa kapatid ko… dapat mag-trabaho na siya.” (I will start to make a budget. The remittance I will send should only cover for my parents and child. My sibling should look for a job.)

The financial literacy training provides practical suggestions on how to manage remittances. Through this, the program hopes to break the cycle of dependency on remittances. The training covers topics such as the stages of the migration process; importance of personal finance; setting financial goals; managing expenditure; creating a savings plan; and debt management.

Mr. Leo and Raquel Ramos, LSE graduates, explain that they started to consolidate their debt after attending the financial literacy class. They charted a clear path to paying their debt and started accumulating savings. “Gumastos kasi kami nang malaki sa aming kasal at bakasyon kaya lumaki an gaming utang,” he explains. (We spent a lot on our wedding and vacation that’s why our debt grew.) “Mali pala ang gagastusin mo na ang kikitain mo pa lang,” he adds. (It is wrong to spend now what you will earn tomorrow.) According to the couple, the things they learned in LSE are not new but reinforced their commitment to face the challenge and change their lifestyle for the better. They are now half way into paying their debt in full, earlier as planned.

The Leadership and Social Entrepreneurship Program is implemented by a consortium of organizations – Ateneo School of Government, OFSPES, SEDPI and various government agencies. Almost 400 Filipino migrants from Italy finished the program. It is currently implementing the 10th and 11th batch in Turin and Milan, Italy. Last week, the 12th batch was launched in Hong Kong.

SEDPI has conducted over 45 financial literacy trainings to Overseas Filipino Workers in 14 countries worldwide. It has trained close to 1,800 participants. It also runs an online platform on financial literacy for migrants.

OFWs from Bern, Switzerland use “Paluwagan” to Invest

SEDPI’s President and CEO, Mariel Vincent Rapisura, trained 18 Overseas Filipino Workers in Bern, Switzerland on May 26, 2012. Samahang Pilipina in Switzerland organized the training on Financial Literacy for Remittance Senders. The training aims to identify the current financial status of the participants; define their financial goals and provide suggestions on how to attain their financial dreams.

At the end of the session, SEDPI Capital Credit, Inc.’s (SCCI) Sustainable Investment Fund (SIF) was introduced. The SIF aims to mobilize socially responsible investments from migrants that SCCI will use to fund microfinance institutions and social enterprises in the Philippines. It is an alternative investment platform made available to migrants. SIF gives a return of 7.5% to investors with a term of one year. To date, SCCI has mobilized approximately PhP12 million SIF that are invested in 11 microfinance institutions and 12 social enterprises reaching an estimated 500,000 poor households in the Philippines.

The participants in Bern, Switzerland were inspired of the SIF and took it upon themselves to be proactive and invest in SCCI. Ms. Maria Teresa Eviota, President of Samahang Pilipina, initiated to use “paluwagan” to enable them to invest. Paluwagan is a rotating savings and credit scheme widely used in the Philippines. Each participant in the paluwagan will contribute CHF120 every month. The total amount collected will then be used to invest in SCCI assigned to a particular person. There are 12 participants in the scheme. “This is our way to enable us to invest because it is easy and affordable for the members,” explains Ms. Eviota.

 

SEDPI Fosters the Season of Sharing

Annually, Social Enterprise Development Partnerships Incorporated (SEDPI) celebrates Christmas season through a series of activities that aim to give back to communities in simple yet meaningful ways. SEDPI’s 2011 Christmas celebration was started with an afternoon spent with the orphans and street children living at Tanglaw House of the Virlanie Foundation.  The activity – which was held last December 15 – was attended by a total of 43 children with age range of 6 to 12 years old. The afternoon was filled with games and dance numbers which all the kids and the staff members of SEDPI enjoyed.  As gifts, SEDPI provided the children with school supplies and other basic needs such as rice and toiletries.

The celebration continued with a Christmas party for the staff. It was held last December 16 at the Phillip’s Sanctuary in Antipolo. Phillip’s Sanctuary is a nature park that features amenities for relaxation and team building activities for organizations.  The staff happily participated and finished all the challenging games and team building activities conducted by the official facilitators of the sanctuary. The Christmas party was highlighted by the annual exchange of gifts between the staff members.

The tragedy that struck Northern Mindanao barely a week before Christmas dampened the spirit of the holiday season. Typhoon Sendong ravaged the cities of Cagayan De Oro and Iligan as well as other neighboring municipalities.  It left on its wake thousands of dead bodies, hundreds of missing individuals and billions of properties destroyed. SEDPI reached out to the victims through donating PhP10, 000 to the Ateneo Disaster Response and Management (DReaM) Team. The donations were primarily used for relief efforts for the victims.  In the same way, SEDPI also donated PhP20, 000 to Ateneo DReaM Team when typhoon Pedring devastated Northern and Central Luzon last September, 2011.

SEDPI Speaks at The Global Microcredit Summit 2011

SEDPI’s President and CEO, Mr. Mariel Vincent Rapisura, was one of the speakers in a workshop for the fifth Global Microcredit Summit 2011. This year’s summit was held on November 14 to 17 in Valladolid, Spain. It focused on sharing best practices and reviewing the progress of efforts to attain the goals of the Microcredit Summit Campaign.

In the summit’s workshop titled “Remittances and Microfinance: Using Remittances for Productive Investments that Contribute to Sustainable Community Development”, Mr. Rapisura presented relevant SEDPI research results on remittances and microfinance. He shared SEDPI’s strategies geared towards improving the current situation of migrants and microfinance clients.

SEDPI conducts financial literacy to migrants. To date, it has conducted 45 financial literacy trainings to 1,678 migrants in 14 countries worldwide. Through its financing arm, SEDPI Capital Credit, Inc. (SCCI), it mobilizes investments from migrants. SCCI mobilized USD 300,000 from migrants. These migrant investments are then invested to local MFIs. SCCI has provided USD 2.5 million wholesale loans to 16 MFIs reaching 131,219 households in the Philippines. Most of these MFIs have operations in the rural areas. To protect migrant investments, SEDPI strengthens MFIs through extending capacity building and continuous monitoring and mentoring. SEDPI also conducts financial literacy to family members of remittance senders. A total of 575 remittance receivers in the Philippines were already trained. SEDPI also developed a comic book for remittance receivers and  conducted training of trainers (TOT) to enable staff of MFIs to deliver the trainings to remittance receivers.

Through its programs and services, SEDPI is able to share in the attainment of Microcredit Summit Campaign’s goals for 2015. These goals are to 1) ensure that 175 million of the world’s poorest families, especially the women of those families, are receiving credit for self-employment and other financial and business services and 2) ensure that 100 million families rise above the USD 1.25 a day poverty threshold. Given the current demographics and pressing needs of both migrants and MFI clients, SEDPI is all the more passionate in improving the delivery of its services for the migrants, MFIs and its clients, and remittance receivers.

ABS-CBN Features SEDPI Study on OFW Financial Status

SEDPI’s study on the financial status of Overseas Filipino Workers (OFWs) was the highlight of an ABS CBN report. ABS CBN’s Europe News Bureau posted the report which covered SEDPI’s training on Financial Literacy for Remittance Senders in Oslo, Norway last November 5. (Read ABS-CBN Article) Eighty five participants, mostly au pairs in Oslo and neighbouring cities of Norway, attended the training. Au pairs work in European households as babysitters and household workers and live with the host family.

The study reveals that 1 in every 10 OFWs is financially broke even after years of working abroad. Moreover, 8 in every 10 OFWs also do not have savings. Of all the OFWs who participated in the study, only 20% save regularly. OFWs and families also tend to be dependent on regular remittances and invest on idle assets. They also lack financial preparation for retirement.

The figures affirm SEDPI’s commitment to continue implementing its financial education program. The training is part of the financial literacy program that aims to equip migrants and their families on how to save, spend, budget, craft financial goals and manage debt. To date, SEDPI trained close to 2,000 OFWs in 14 different countries on financial literacy. For more details on how to partner with SEDPI to conduct financial literacy trainings, you may send an e-mail to info@sedpi.com