As part of its official launch activities upon formal incorporation, MICRA Philippines convened a roundtable discussion on February 3, 2009 for all key microfinance stakeholders to identify the core issues currently confronting the sector in the Philippines as well as future trends, opportunities, and possible directions.
Participants included senior leadership from:
- BSP (Bangko Sentral ng Philippines, the central bank)
- RBAP (the Rural Bankers Association of the Philippines)
- MCPI (Microfinance Council of the Philippines)
- PCFC (People’s Credit and Finance Cooperative)
- MABS (Microenterprise Access for Banking Services)
- NATCCO (National Confederation of Cooperatives)
- SEEDFINANCE
Among the priority needs identified:
For end clients:
- Financial literacy education to protect microfinance clients and help them make most productive use of financial tools.
- Stronger microinsurance products – to serve the sector with appropriate and actuarially sound insurance products that meet the specific needs of the poor.
- Better credit and savings services – tailored to client needs beyond the “one size fits all” approach, with urgent priority for deposit savings services.
For institutions:
- Holistic approaches to technical assistance: practical, real world TA that looks at the institution overall instead of addressing discrete problems in isolation.
- Human resources challenges: designing a senior career executive officer certificate program which can credential the institution’s leadership.
- Change management strategies: to facilitate smooth transitions (e.g., transformation into regulated entity) and manage corporate governance issues.
For the sector:
- Reducing information gaps by setting up central credit reporting bureaus and regularizing use of ratings and assessments.
- Incentivizing credit ratings and adherence to performance standards: for example by subsidizing first-time rating and formalizing approvals/accreditations from regulatory agencies, networks, or donor agencies.
- Supporting creation and roll-out of innovative business models: whether upscaling (in terms of volume) of MFIs, downscaling (in terms of market segment served) commercial banks, or other promising business models that can deliver high-demand financial products efficiently at mass scale.
