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
8/3/2019 MICRA DAR MALP ICT Partnership MFI Presentation Dec2011
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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.
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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
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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
8/3/2019 MICRA DAR MALP ICT Partnership MFI Presentation Dec2011
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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
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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
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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
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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
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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
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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
•Product ReviewMFI3
•Pilot Testing
•Product ReviewMFI4
•Pilot Testing
•Product ReviewMFI5
•Pilot Testing
•Product ReviewMFI6
• 500 New ARB
household,
including
rural women
• Php5Million
outstandingloan
(cumulative)
• Php300,000
savings
generated
frommembers
Targets
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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
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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
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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
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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
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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
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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
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“Agriculture not only gives riches to a nation,
but the only riches she can call her own”
~ Samuel Johnson