CARD Banks Vision for an Individual Loan Product by Dr. Jaime Aristotle B. Alip CARD MRI Managing Director 26 April 2005, MABS, Davao City

CARD MRI CARD is a group of mutually reinforcing institutions that aims to transfer ownership, management, and control of resources to landless poor women. CARD is committed to provide continued access to microfinance services to an expanding client base by organizing and empowering landless rural women.

CARD MRI ORGANIGRAM CARD MRI CARD NGO Microfinance (1987) CARD Bank (1997) CARD MBA (1999) CARD Training Institute (2003) CARD Marketing (2006) CARD Housing (2008)

CARD MRI ACHIEVEMENTS As of December 2004 Total outreach 132,249 clients Geographical presence 14 Provinces Outstanding loan portfolio P 700 Million Repayment rate 99.00% Total assetsP 1.5 Billion Total no. of staff> 900 No. of branches/offices100 Financial strength116%

Factors that Motivated CARD Bank to Offer Individual Loan Product Group liability does have a threshold Demand from prospective clients Competition Partnership with MABS Zero-tolerance for loan delinquency is incorporated in the new product

Steps/Processes in Developing an Individual Loan Product Identify area/areas where to pilot the new product Selection of a complete team to be trained on the new product Top management must be knowledgeable enough on the mechanics and features of the new product Conduct series of market research activities

Steps/Processes in Developing an Individual Loan Product Joint analysis of market research results Preparation of launch materials and documents (e.g. orientation kits/brochures) Establish a Credit Committee for loan evaluations and approvals Client orientation Dry-run of the Credit Committee

Challenges/Issues Encountered There were a very limited variety of microenterprises (mainly retail trading) in the initial selected pilot area Banks existing MIS needed to be upgraded/enhanced Development of a Product Champion Development of staffs attitudes, skills and expertise in managing an individual lending scheme

Challenges/Issues Encountered Lack of a point person to greet and pre- screen walk-in applicants Intensive monitoring of pilot test implementation

Lessons Learned Ensure readiness of staff and management before implementing a new product Importance of Cash Flow Analysis If the clients like your product features, they will perform well

Future of CARD Bank Operations The SIPAG Loan product is being implemented in each branch of CARD Bank

Thank you very much & Mabuhay!!!