Mariel Vincent Rapisura, Author at Social Enterprise Development Partnerships, Inc.

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.

AFCCO gets PDTF grant

The People’s Development Trust Fund (PDTF) – a government initiated program centered on capability building of microfinance institutions and microenterprises – approved Abuyog St. Francis Credit Cooperative’s (AFCCO) the grant proposal. The grant aims to facilitate development of AFCCO to match the growing and evolving needs of its stakeholders.

AFCCO is focused on further strengthening its microfinance operations. The grant fund will be used to develop financial products that will meet the needs of its members. The cooperative sought the assistance of Social Enterprise Development Partnerships Incorporated (SEDPI) for product development. AFCCO and SEDPI’s partnership started in 2008. Since then, the two organizations implemented several programs and strategies that provided strategic direction to AFCCO and streamlined its microfinance operation.

This renewed partnership, along with the fund provided by PDTF, is hoped to provide AFCCO with financial products that will capture the needs of its members. Through this, the cooperative is expected to reach out to more number of people in Leyte and Southern Leyte.

SEDPI’s TAMA Assists Partner MFI Uncover Fraud

SEDPI once again proved the effectiveness of its capacity building services after a partner microfinance institution (MFI) detected and solved fraud in its ranks. SEDPI delivered Technical and Mentoring Assistance (TAMA) to its partner MFI. TAMA is delivered on a mentor-learner approach as SEDPI social entrepreneurs closely supervise and monitor an institution’s progress towards sustainability. MFIs that undergo TAMA show marked improvement in their financial performance and organizational development.

According to the institution’s internal auditor, TAMA helped a lot in detecting fraudulent activities. He particularly identified several procedures like zoning and color-coded bookkeeping system (CBS) as the most helpful in their crusade against fraudulent activities in their institution. SEDPI also assisted the MFI partner in crafting policies to mitigate the risk as well as put in place systems and policies to avoid fradulent events to happen again.

“It’s really helpful because it becomes easier for us to track down the performance of our account officers in collecting loans. Through zoning, a single account officer does not handle an account alone because there will be rotations from time to time” the Auditor expressed, as he explains how the fraudulent activities were traced and discovered.

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.

SEDPI’s Newest Partner Launches Delinquency Task Force

Community Rural Bank of Catmon, Inc. (CRBC), with the assistance of Social Enterprise Development Partnerships, Inc. (SEDPI) recently established its own Delinquency Management (DQ) task force as a way to strengthen its crusade to manage its delinquent accounts.

During the Cebu leg of SEDPI’s Technical and Mentoring Assistance (TAMA) tour in Visayas and Mindanao last November 14, CRBC and SEDPI jointly conducted a technical mentoring and process mapping workshop to identify and establish operational standards and strengthen the bank as a microfinance institution. It was also in this workshop that CRBC introduced its own DQ task force team.

Delinquency Management is a microfinance institution’s comprehensive plan to manage and lessen its delinquent loan borrowers. It is important to manage the delinquent accounts to protect the bank’s portfolio and also ensure institutional growth. The DQ Task Force is a team established to monitor and manage delinquency among its loan borrowers.

CRBC is SEDPI’s newest MFI TAMA partner. It is a rural bank established in 1973, headquartered in Catmon town and has 4 branches in different towns in Cebu. T o date, SEDPI and CRBC partnership continuously grow as more joint programs will be established, which includes establishing a training hub in Cebu.

To know more about SEDPI’s technical and mentoring assistance partnership, you may visit www.sedpi.com or email info@sedpi.com

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

BSP Hails Katipunan Bank’s Portfolio Quality

During the recent Rural Banker’s Association of the Philippines (RBAP) Annual Convention, Bangko Sentral ng Pilipinas (BSP) hailed Katipunan Bank (KB) as best practice in terms of past due with a rate of 2.3%. This arduous feat in the microfinance industry is a manifestation that the rural bank has come a long way since its establishment 32 years ago.

With more than three decades of working tirelessly to uplift the economic condition of communities in Zamboanga Del Norte, Katipunan Bank is now reaping the rewards of the organization’s dynamism and aggressiveness. From its humble beginnings with only four employees, the organization is now home to 416 staff and over 41,000 clients. In 1997, BSP allowed Katipunan Bank to open its first branch in Dipolog City and eventually purchased Plaza Rural Bank in 2001, making it its first subsidiary company. As Katipunan Bank compellingly strives to participate in poverty reduction and women empowerment, it launched its microfinance program in 2003. The program aims to provide financial assistance to the poor sector in Zamboanga del Norte.

Due to the rapid growth of the organization primarily brought by its widely received microfinance program, Katipunan Bank decided to seek assistance from other organizations that would enable them to competently adapt to changes. As a result, KB sought the assistance of Social Enterprise Development Partnerships, Inc. (SEDPI) in 2008 to facilitate and craft its strategic plan. The 5-year strategic plan provided KB with revitalized strategies to strengthen its operation. These strategies include market protection strategies, market expansion, resource mobilization, product innovation, and organizational development strategies.

In 2010, SEDPI and Katipunan Bank renewed its partnership through the SEDPI-Katipunan Bank Microfinance Strategic Partnership Innovation. The partnership established Katipunan Bank as a training hub of Ateneo De Manila University Microfinance Capacity Building Program. By establishing Katipunan Bank as a training hub in Mindanao, capacity building through trainings is brought closer to microfinance players in the area. To date, a total of nine trainings were already conducted, from which hundreds of practitioners have benefitted.

These milestones are just a few that Katipunan Bank achieved through the years. The organization also received recognition for its efforts in gender development and employee welfare. In the coming years, Katipunan Bank will continue its pursuit as a development catalyst through maintaining a balance in its financial and social mission.

SEDPI Trains 106 OFWs on Financial Literacy

Last February, SEDPI conducted five financial literacy trainings in Switzerland and Italy. SEDPI’s President-CEO Vincent Rapisura and Chairman Edwin Salonga conducted the trainings. A total of 106 OFWs attended the training. The training was made possible through the support of Pilipinas-OFSPES in Italy and Samahang Pilipina in Switzerland.

According to the Philippine Overseas and Employment Agency and the Central Bank of the Philippines, Switzerland and Italy are among the European countries that sent the most amount of remittance to the Philippines. In relation to that, the training provided by SEDPI aims to equip the OFWs with knowledge and tools that will help them manage their earnings effectively so that they could realize their dreams. Mr. Salonga said, “During our workshop, we ask the participants to draw their dreams and aspirations. We do this to remind them of the reason why they left the Philippines in the first place and endure living in a foreign place.” To add to that, Mr. Rapisura points out to the participants that there is stage in attaining financial freedom. He said, “Achieving financial freedom is not easy, especially for migrant workers. Gaining insight on financial literacy is a step that could take them nearer to their aspirations.”

One participant, Ms. Ginafe Sison said that she attended the training in order to have knowledge on handling her finances. She hopes that this could help her start a business once she returns to the Philippines. Most participants expressed that their intention to attend the training is to gain personal growth to help them achieve their dreams.

This project is a spin off from the previous literacy training program funded by the Catholic Organization for Relief and Disaster Aid (CORDAID). Today, SEDPI provides a counterpart of one percent of the mobilized social investment from OFWs to fund the trainings. In the future years, SEDPI hopes to continue this initiative in order to contribute to the welfare of Filipinos working abroad.

SEDPI Chairperson Presents Paper in London

Mr. Edwin Salonga is one of the nine (9) selected speakers at the international conference on Global Partnerships in Microfinance. The conference is organized by the University of Greenwich, in collaboration with the University of Birmingham and Burgundy School of Business. Mr. Salonga is the Chief Executive Officer (CEO) of the Social Enterprise Development Partnerships, Inc. (SEDPI) and a concurrent lecturer at the Ateneo de Manila University’s Development Studies Program.

The conference held on 6-7 September 2010 at the University of Greenwich in London. Her Royal Highness Princess Máxima of the Netherlands was the guest speaker. The conference intends to look at all potential partnerships in microfinance and to discuss their accomplishments in meeting the microfinance goals. The conference will focus on the following topics a) Strategic Partnerships; b) Enhance New Partnerships; c) The Role of Institutions Involved; d) Collaborative Relations; and e) Global versus Local Partnerships.

The paper of Mr. Salonga is entitled “Fund Guarantees with Clear Exit Strategy: Donors Building the Confidence of Commercial Banks in Funding Microfinance Institutions.” It delves on how the partnership of international donor agencies and commercial banks may support the operations of microfinance institutions (MFIs). One of the major challenges of MFIs is access to commercial funds to increase their loan portfolio, which in turn will be utilized to carry out their mission to reach out to more poor people. However, commercial banks view microfinance as a risky investment due to the traditional banking approach they are more familiar with. It is in this context that international donors at present establish partnerships with commercial banks to build the confidence of the latter on microfinance through a risk-sharing mechanism by virtue of fund guarantees. It is through this scheme that a portion of the funds released by commercial banks to MFIs is guaranteed by the donors. In case that the MFIs fail to pay off their loans to the commercial banks, the respective donors would cover such payments. The challenge however for the donors is to map out a clear exit strategy, in terms of timeframe or milestones, that the MFIs need to observe as this guarantee scheme is a financial intervention that will have to be discontinued over time.