micra dar malp ict partnership mfi presentation dec2011

8/3/2019 MICRA DAR MALP ICT Partnership MFI Presentation Dec2011

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Microfinance Agricultural

Loan Program (MALP)

Al B. Isles

Senior Project Manager MICRA Philippines

December 2011



MICRA Philippines• Replication of Mercy Corps’ success with MICRA Indonesia,

established in 2006• VISION/MISSION:

Build the institutional strength and outreach of the Philippinemicrofinance sector, by providing a full range of high-quality,

best-practice technical inputs and support to all industrystakeholders, in a sustainable and demand-driven manner.

• GOAL:

In pursuit of our vision, we work with MFIs and other MFstakeholders in the development of microfinance models

that embody success in operations, finances, internalprocesses and knowledge management.



Poverty Action Center -- MICRA Grassroots Program

PAC 2009 2010

MFIs Served 195 226

Regions covered 4 6

MFIs that signified interest on Micro Agri Loan ProgramArea Region Provinces

Visayas 6 Aklan

7 Bohol

8 Easter Samar and Northern Samar

Mindanao 9 Zamboanga del Norte, Zamboanga del Sur

and Zamboanga Sibugay

10 Misamis Oriental, Misamis Occidental,

North Bukidnon and South Bukidnon

13 Agusan del Norte and Surigao del Norte



Regional ProfileArea Region Provinces ARBs Crops

V i s a y a s

6 Aklan 25,275 Abaca, banana saba 7 Bohol 41,283 Banana Cavendish, mango, mango carabao, camote,

cassava, eggplant, peanut, tomato, rainfed palay 8 Easter and

Northern Samar

79,172 Rainfed palay, abaca,coconut, banana saba, pineapple,

camote, cassava, garlic

M i n d a n a o

9 Zamboanga del

Norte anddel Sur and Zamboanga

Sibugay

177,026 Rainfed palay, corn, white corn, coconut, coffee

Arabica, coffee excels, coffee liberica, rubber, tobacco,tobacco native, banana Cavendish, banana lacatan,

banana saba, calamansi, mango, mango carabao,

pineapple, cassava, onion, tomato, palay 10 Misamis Oriental

andOccidental,

North and South

Bukidnon

189,274 Corn, white corn, coconut, coffee excels, rubber,

tobacco, tobacco native, banana, banana Cavendish

13 Agusan and

Surigao del Norte

51,681 Banana Cavendish, cassava, coconut, banana lacatan,

banana saba



MFI Benefits through MALP

MarketResearch

• Program Orientation &Market Research Workshop• Market Research Fieldwork

Product Design

• MALP profitability and funding requirements diagnosis

• MALP manual for testing

Pilot Testing &Product Review

• Rollout plans for MALP in other areas

• Final MALP manual



Stage 1: Market Research

Program Orientation & Planning Workshop (1 day)

Orientation of officers of the participating financial institutions (PFIs) on the product

development process, opportunities and risks in micro-agri lending, and emergingpractices in micro-agri lending.

Organization of micro-agri product development team, and final schedules of their

various training and TA activities.

Training (2 days)

Training on micro-agri product development teams on market research procedures

for micro-agri loans

Fieldwork (2 days) Two days fieldwork will enable participants’ appreciation of the theoretical learning

and implement market research activities on their own.

Key Output

MFI At least 4 MFI representatives in training

Market Research Result

MICRA Market Research Training Modules

6 MFIs trained on MALP market research

Process documentation



Stage 2: Product DevelopmentTraining (5 days)

PFIs product design & features, lending procedures of their respective micro-agri loanproducts;

Assessment of their MIS and staffing requirements;

Determine the profitability and funding requirements of their new micro-agri loan

products.

Training on farm appraisal procedures, borrower cash flow analysis, product and

client monitoring, staff performance management, product marketing, and risk control

procedures, as well as field application of client appraisal procedures. Draft manual on the micro-agri products for testing in their pilot ARCs to support their

operation.

Key Output

MFI At least 4 MFI representatives in training

Draft product manual

MICRA

Product Development training modules 6 MFIs trained on MALP Product Development

Process Documentation



Stage 3: Pilot Test

On-site coaching (5 man-days per MFI) Participation in the initial branch credit committee meetings to

help the PFIs review the initial micro-agri loan applications, and

help resolve any operational issue or problem that may appear

during the pilot test.

Pilot test period equal to the length of one loan cycle or 4 months.Key Output

MFI Pilot test product

Monthly product performance reports

MICRA Monthly Monitoring &Evaluation report

6 MFIs roll-out MALP

Process documentation



Stage 4: Product Review

On-site coaching (5 man-days per MFI) Review the performance of PFIs’ micro-agri loan products and lending

procedures (in terms of outreach, profitability and client satisfaction) and

introduce refinements to both product and procedures, if necessary. Key Output

Final product manual

Rollout plans of 6 MFIs

Monthly Monitoring &Evaluation report Process Documentation Terminal report

Staff capacity building



MICRA Approach

(Visayas and Mindanao)

Market Research

•3 MFIs in Visayas

Product Development

•3 MFIs in Visayas

Market Research

•3 MFIs in Mindanao

Product Development

•3 MFIs in Mindanao

•Pilot Testing

• Product ReviewMFI1

•Pilot Testing

•Product ReviewMFI2

•Pilot Testing


•Pilot Testing


•Pilot Testing


•Pilot Testing


• 500 New ARB

household,

including

rural women

• Php5Million

outstandingloan

(cumulative)

• Php300,000

savings

generated

frommembers

Targets



Work PlanProject Stages Sep 2011

Sep –

Oct 2011

Dec-

2011

Jan-

2012

Apr-

2012

May-

2012

MFI Selection 6 MFIs

Module Development 4 Modules

Stage 1: Orientation &

Market Research (3

MFIs at a time)

6 MFIs

Stage 2: ProductDesign and

Management

(3 MFIs at a time)

6 MFIs

Stage 3: Pilot Testing

(1 MFI at a time)

6 MFIs

Stage 4: Product

Review(1 MFI at a time)

6 MFIs

Project Evaluation 6 MFIs



MFI Commitment

MarketResearch

• MALP Manager &/or Officer/s (max 4 reps)• Market Research Fieldwork (data gathering)

Product Design

• MALP profitability and funding requirements

• MALP manual approved for testing

Pilot Testing &Product Review

• Final MALP approved manual

• Php5Million MALP loan portfolio, Php300K savings, 500 ARBS



MICRA ICT Mobile Banking Partnership

• Market Research –gathering and analysis of

microfinance institutional and farmer data

• Product Development – maximization of MALP

through technology utilization and use of

Department of Agriculture’s Nutrient Manager

• Network Linkages – increased outreach

through partnership



Market Research• Gather data on farmer credit worthiness, planting

behavior and challenges in rice farming – looking

for opportunities for Mobile apps for rice farmers

• Identify mobile banking applications for rice

farming – Develop a feedback mechanisms fromthe farmers

• Strengthen weak links in the agricultural value

chain – feasibility studies related to mobile appsfor micro-finance



Product Development• Integrating mobile banking application in

micro agri loan products – improving thequality and reach of micro mobile bankingapps

• Test and recommend improvement on themobile banking technology used. Determiningthe factors associated with the M-finance

• Monitor and evaluate MFI and farmerbehavior towards micro loan developed



Network Linkages

• Scale up MFI adoption of MALP with MobilePhone application in other regions

• Adopt social media and community

mobilization in promoting MALP progress• Host a Micro Agri Mobile Phone Banking Asia

Pacific Regional Conference for sharing of best

practices and opportunities



“Agriculture not only gives riches to a nation,

but the only riches she can call her own”

~ Samuel Johnson

http://www.worldofquotes.com/author/Samuel+Johnson/1/index.html

http://www.worldofquotes.com/author/Samuel+Johnson/1/index.html

micra dar malp ict partnership mfi presentation dec2011

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