The Social Enterprise Development Partnerships, Inc. (SEDPI) conducted an impact assessment research for Vision Bank, Inc. last July 8-12, 2013 in Virac, Catanduanes. The goal of the research is to quantify the impact of Vision Bank loans to its regular and microfinance borrowers—mostly local government unit employees, public school teachers and microentrepreneurs. The results of the study are slated to be incorporated in the institution’s strategic planning for years 2013 through 2015.
SEDPI staff surveyed more than 100 respondents comprised of Vision Bank’s regular and microfinance borrowers including dropout clients. Considering the large number of Overseas Filipino Workers (OFWs) in Virac, SEDPI interviewed 30 remittance receivers intended for Vision Bank’s development of financial products for OFWs and their families.
Initial impact assessment results show that a majority of Vision Bank’s clients use their loans for purposes of education, household improvements and income generating activities (IGAs) like food vending and raising livestock. The most common attributable impact of loans to clients’ IGAs is the purchase of new products and equipment for business. On the household level, the top three expenses are food, IGA expenses and to education. It is notable that many microfinance borrowers attribute the education of their children to Vision Bank.
In terms of operational performance, respondents state what they liked best: fast release, an accommodating staff and generally good policies by the institution. On the other hand, many respondents feel that the loan interest is high and that the particular policy of co-maker appearance should be adjusted. The latter sentiment holds true especially for public school teachers that have difficulty leaving their weekday classes. Group liability also ranks as one of the policies least liked by clients as their own records are affected by the non-quality performance of another member. Overall, respondents desire more loan windows for emergencies, housing and medical purposes.
The results also show an increase in competition for Vision Bank, given the rise of more cooperatives and financial institutions offering lower interest rates in the area. It is noteworthy to mention that giveaways or souvenirs are also important factors that maintain client patronage and loyalty.
With this research, SEDPI hopes that better and user-centric financial products can be developed further to fit the needs of clients and render them financial empowerment in the near future.