SEDPI strives to make its provision of capacity building interventions affordable and accessible particularly to small and medium microfinance institutions. Although it offers the most affordable capacity building services, it is not dependent on subsidies to ensure the continuous provision of services. It has employed the following strategies to make this happen: (a) employing brilliant, young and Philippine-based human resource; (b) integrate research in its consulting services to locally adapt training materials; (c) partner with market players, particularly wholesale funding sources and donors, that would gain mutual benefit in the conduct of capacity building services.
The overall objective is to increase the number of microfinance institutions that are able pass standards of commercial funding sources to access funds. In the capacity building cooperation, Cordaid will provide funds for capacity building to microfinance institutions through SEDPI. This will be done in several options: (1) provide grants for capacity building applicable to challenged microfinance institutions; (2) provide 0% interest capacity building loans to emerging microfinance institutions; and (3) provide interest-bearing capacity building loans to strengthened microfinance institutions through the Bank of the Philippine Islands.
Challenged Microfinance Institutions are those that are facing financial and organizational challenges to attain microfinance standards. The board and management of Challenged MFIs are committed to attain microfinance standards in the next two to three years and are willing to undergo intensive capacity building. One major obstacle of Challenged microfinance institutions is their inability to afford capacity building services. On the other hand, Emerging microfinance institutions are defined that are in the process of reaching a scale of operations to attain microfinance industry financial performance standards. The board and management of Emerging MFIs are committed to attain the microfinance industry standards in the next 12 months and will undergo intensive capacity building. Lastly, strengthened microfinance institutions are small and medium-sized MFIs that have attained microfinance industry financial performance standards that plans to expand its operations or introduce new innovations in its operations. Both emerging and strengthened microfinance institutions usually have difficulty to access funds from the market or are able to access funds but these are not enough to meet their financial needs.