Felicidad Raymundo, ASKI Client

8/14/2019 Felicidad Raymundo, ASKI Client

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OPPORTUNITY INTERNATIONAL AUSTRALIA

ASKI Community Group Progress ReportJulyDecember 2009

Felicidad Raymundo, ASKI client


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OPPORTUNITY INTERNATIONAL AUSTRALIA

ASKI Community Group Progress ReportMessage from the CEO

When a woman receives a small loan, it is not simplya financial transaction. Its much more than that. Foreach client, the loan will represent somethingdifferent: for a young woman, it may be anopportunity to gain independence. For a mother, itmay be a chance to enrol her child in school. For a

grandmother, it may be a way to plan for herretirement.

For our clients, many of whom have enduredincredible hardship in their lives, a small loan is a voteof confidence in their ability to forge their ownfuture. When a person has established a successfulsmall business and can do the things we take forgranted afford nutritious food, pay for an electricityconnection, send their children to school we seethat microfinance does not just improve cash flow. Itcan also change peoples lives.

Our partner in the northern Philippines, Alalay SaKaunlaran Sa Gitnang Luzon, Inc. (ASKI), is providingclose to 60,000 clients with microfinance andsupport services. In October last year, typhoonsdevastated the homes and businesses of many ASKIclients. ASKIs dedication to the communities inwhich they work was at the forefront of their disasterrelief and rehabilitation programs.

Opportunity International Australias work is onlymade possible through the generosity of our loyalsupporters. At December 2009, our partners in India,Indonesia and the Philippines were serving over twomillion clients. In 2010, we want to let more peopleknow about the life-changing impact ofmicrofinance in the lives of the poor. Your continuedsupport and advocacy will help us to create moreawareness, harness more support and reach out tomore people in desperate need of a hand up.

Thank you for your support of the inspiring men andwomen who are our clients.

Kind regards

Robert DunnChief Executive Officer

Report summary

In September and October 2009, typhoonsdevastated the northern Philippines. Manyclients homes and businesses were destroyed.ASKI led a comprehensive relief effort and is nowworking with affected clients on a one-to-onebasis.

ASKIs clients have increased by more than1,700.

From July to December 2009, 126 new

Community Groups were formed, benefiting1,362 clients and their families. ASKIs Ok Ka loan pilot is continuing successfully,

with excellent client and staff feedback.

This report is an update on ASKI CommunityGroups from July to December 2009.

Elvira Beniosa, ASKI client and sari-sari (variety) store owner. Sheused her loan to purchase extra stock for her store, which hasattracted more customers and increased her income.


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Every week when ASKI Community Group membersmeet to make loan repayments, the process is not

just financial. At group meetings, clients receivebasic business training, provide support to eachother and share what it means to be a small businessowner.

In the northern Philippines where ASKI operates,many people live in rural communities whereopportunities for employment are scarce. Villagers

often work as farm labourers or move to cities oroverseas to earn enough to support their families athome.

When people join an ASKI Community Group, theyare joining a network of clients and staff whosupport each other in difficult times. This wasparticularly evident in September and October 2009,when typhoons caused flooding and landslides inhundreds of villages throughout the northernPhilippines. ASKI clients and staff worked together toassist their communities to recover from the disaster(more information on page 3).

In the second half of 2009, 1,362 clients formed 126groups. The average initial loan was Php. 5,000(A$122), while the most common businesses weresari-sari (variety) stores, vegetable selling and pigraising.

In the same period, ASKI established four newbranches in Aparri, Bambang, Caburraguis andRosales. These new branches will allow ASKI to bringtheir community-focused microfinance to morepeople.

Opportunity Australias ongoing technical assistance,which has focused on building ASKIs internalcapacity, has contributed to the current expansion.

2 OPPORTUNITY INTERNATIONAL AUSTRALIA - ASKI Community Group Progress Report

ASKI Community Group update

Through the program I am able topurchase one pig which will serve as mysource of income. My loan from ASKI reallychanged my way of living.

Domingo Nicer, ASKI Community Group client

Edgargo with his motorcycle taxi, repaired with a small loanfrom ASKI.

Edgargo's storyIn the small village of Santa Cruz, transportation isneeded to get from home to school, markets or theworkplace. Early every morning, villagers catchpublic motorcycles to the town. Every morning,Edgargo Dela Cruz gets up early to take them.

Edgargo, 39, lives with his wife and seven-year-oldchild. As a young man and high school graduate,his options for employment were limited, so hestarted a motorcycle transport business. Althoughhis business did well, the costs of upkeep of hismotorcycle limited his income.

As a father, Edgargo decided he had to make moreof his business. He heard about ASKI from a friendand took the opportunity to join a group. Currentlyon his third six-month loan cycle of Php. 7,000(A$171), Edgargo invests the extra capital in therepair and maintenance of his motorcycle. He alsoused a small portion of his last loan to pay forschool fees for his child.

Before joining ASKI, Edgar earned Php. 1,200 (A$29)a week. Now, his motorcycle is more reliable and hisweekly income has increased to Php. 1,500 (A$37).

He has spent his additional income on his child'sschool fees and some household appliances.

"I am proud with my business because I am able todeliver my passengers in their workplace or at theirschool safely. Aside from that I am able to earn formy family through a decent job," says Edgargo.

Edgargo has big plans for his small business. He iscurrently saving to purchase additionalmotorcycles, so he can employ his brothers. Hewould also like to establish a store to sellmotorcycle spare parts. ASKI's support is giving

Edgargo the opportunity to make the most of hisentrepreneurial abilities.


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On 26 September 2009, Typhoon Ondoy hit thePhilippines. After 12 hours of torrential rain andlocalised flooding, people began to rebuild theirhomes. However, typhoon Pepeng soon followedwith greater intensity. From 3 to 9 October, TyphoonPepeng followed an irregular path, crossing overCentral and Northern Luzon three times. Rainfallexceeded 1,000mm in some areas, with winds of upto 230km/hr.

Approximately 9.3 million people were severelyaffected by the typhoons, out of an estimatedpopulation of 43.2 million living in the region. Over

950 people died and many more were injured.

Close to 6,000 ASKI clients were directly affected.Sadly, one client in Talavera lost her life in the floods.Many clients homes and belongings were washedaway.

The newly established Rosales branch had justopened its doors in September when the typhoonhit. The ground floor of the office was flooded. Branchstaff acted quickly to move all computers andimportant equipment to the second floor of thebuilding.

Following the typhoon, ASKI pooled its resources(including emergency donations from supporters ofOpportunity Australia and other OpportunityInternational partners across the world) to run a reliefoperation, with staff distributing goods, includingfood, clothing and mattresses, to more than 400villages.

ASKI recognise that affected clients need ongoingsupport. A rehabilitation plan was implemented,including an evaluation of affected clients to

determine the extent of damage and a moratoriumon their loan repayments. Some client loans havebeen restructured and refinanced.

Sources: ASKI, Philippines Development Forum

ASKI CEO Rolando Victoria assisting in the relief operations.

Aileens storyI decided to keep calm despite the bad weathercondition. I was worrying too much that my piggerymight be affected. I prayed hard that my brother,who is taking care of my piggery, wont be harmed.

Unfortunately, my piggery was one of thedevastated belongings affected by the typhoon.

Even my [fattest pig] died because my brother wasnot able to save them, but I am glad that he [mybrother] is alive and nothing happened to him.

I realised how lucky we were that we are still alivetoday. Despite what happened, we still survived. Irealised that I must move forward and continuewith my life I am very much thankful that ASKIextended their help.

Aileen NarajosASKI client, San Jose Patag


Responding to disaster

We didnt mind getting wet, tired orhungry, just to make them feel that theyare not alone.

Mary Grace CachoASKI bookkeeper, on helping in the relief efforts

My husband and I tried to save some ofour belongings but unfortunately we werenot able to save even a single thing.

Angela CalausASKI client , Macayo

Ongoing flooding made ASKIs relief efforts difficult.


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ASKIs Training Unit is responsible for providingquality training to clients and staff. Prior to joiningASKI, many clients lack the confidence and necessaryskills to run a successful small business. ASKIstraining seeks to fill these gaps in a clientsknowledge, while also making them feel empoweredto change their lives.

Recent client training has included: Team building Cogon (grass) weaving Soap making Cooking course

Farm budgeting

ASKI staff also need ongoing training to ensure theycan fulfill their roles effectively and efficiently. Aparticular focus of ASKIs staff training is leadership,equipping the loan officers today with the skills theyneed to become the branch managers of tomorrow.

Facilitated by ASKIs HR department, recent stafftraining has included: Leadership Understanding entrepreneurship Delinquency management for group and

individual loans Branch operations and planning Practical research methodologies

ASKI has facilitated several staff workshops onentrepreneurship. As most loan officers have neverrun their own business, this training helps themunderstand the mindset of their clients.

ASKI staff often come from similarly impoverishedbackgrounds to their clients, and are motivated togive back to their communities. In 13 locations, ASKIstaff are currently supporting a feeding program,

which provides free meals to undernourishedchildren at primary schools.

Staff profile: Ellen PascualProviding reports on ASKIs programs and clients is alengthy process, involving clients, loan officers andoccasionally translators. ASKI communication officerEllen Pascual manages the process so that donorscan witness the impact of their support.

Ellen, 21, lives in Cabanatuan City, where ASKIshead office is located. She has worked for ASKI sincecompleting her Bachelor of Arts in Development

Communication. She has a very supportive familywhom she visits on weekends.

Ellen occasionally travels to ASKI branches tointerview clients, but usually this is done by loanofficers. Ellen is grateful she has the opportunity tomeet clients, who she finds inspiring. She ispassionate about understanding the challengeswhich these clients face in their everyday lives.

Sourcing client information from loan officers canoften be difficult, as their main priority is managingthe disbursement and repayment of loans. Ellen

addresses this by giving loan officers plenty ofnotice when she needs them to gather informationfor reports.

Ellen was motivated to join ASKI to help needypeople in her country, while developing her skillsand knowledge. ASKI employees, like Ellen, play avital role in sharing the great stories from ASKIsclients with the Australian donor community.

Ellen Pascual (centre) with her ASKI colleagues Racquel Borjaland Kristine Victoria at ASKIs head office in Cabanatuan City.


Investing in people

Primary school children receive a free, nutritious meal at afeeding program supported by ASKI staff.


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Susana's storyIn the village of Capas Binalonon, Susana Almeroland her husband Juanito, a construction worker,work hard to support the needs of their family.Susana, 51, has six children between the ages of 11and 30: Jasmine, Jennelyn, Jessamine, Armilinda,May-Ann and Bobseil.

Susana is a tailor and makes bed sheets, curtainsand dresses. She buys materials at the local marketand from 8am to 5pm each day makes and sellsher products. When she has completed a set ofitems, she travels through the neighbouring

villages, selling them from door to door.

Susana is currently in her sixth loan cycle with ASKI.With each loan, she buys more materials, whichallows her to produce more items for sale. Before

joining ASKI, Susana earned a net income of Php.250-500 (A$6-12) a week. Now, she earns Php. 750-1,500 (A$18-37) a week.

Susana has spent her increased income on herchildren's school fees, improvements to her houseand purchasing a motorcycle, which is the family'smode of transport. She is now saving to send her

youngest child to university.

In Capas Binalonon, Susana participates invegetable planting and volunteers at the childfeeding program at the local health centre.Susana's successful journey with ASKI hasmotivated her to share her success with the localcommunity.

Culinary course

A 40-foot container van is bringing expert cookingclasses to ASKI clients around Luzon island.Accredited by the Philippines Governments

Technical Education and Skills DevelopmentAuthority, the Kaalaman Sa Kusina Karavan hasalready provided 70 people with training in Hot andCold Kitchen skills, pastry making and baking.

The three-week course was designed for ASKI clientswho cannot afford formal training courses. Thetraining provides ASKI clients and relatives with skillswhich can be used in their own small businesses or inemployment. At the end of the course, participants

undergo a written and practical assessment andreceive a Certification of Competency from TESDA.

Farmers cooperativeFor small-scale farmers in the Philippines, one of thechallenges of earning a steady income is dealing withfluctuating market demand. Months can be spentcultivating a crop, only to find there are virtually nobuyers following harvest. Working as a collective cangive farmers bargaining power and income security.

A group of 30 onion farmers in Nueva Ecija wereselected by a food corporation to become major

produce suppliers. However, they lacked capital toscale up their operations. ASKI loaned the group offarmers Php. 870,000 (A$21,220) to allow them to takeadvantage of the food corporations offer. Now, 30farmers and their families are earning stable incomes.

Ok Ka updateASKI is currently piloting the Ok Ka loan, designed tobridge the gap between the current group andindividual loans. Ok Ka offers larger loan sizes, no co-guarantees and flexible repayment schedules.

Two hundred and eighty two clients are currently

participating in the program, which has received verypositive feedback from clients and staff. To date, allloans have been disbursed within 24 hours andrepayment and retention rates have exceededexpectations.

Susana, at her sewing table, with her husband and grandchild.


Adding value

ASKI clients participate in the cooking course at Talavera.


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Performance indicators Jun 2009 Dec 2009Active clients 58,053 59,795Branches 21 25Average first loan size A$ 218 212Portfolio (funds with clients) A$ 10,121,847 10,862,353Portfolio at risk (PAR) > 30 days 6.8% 4.8%Percentage of loans to women 79% 80%Operational sustainability 111% 108%Financial sustainability 108% 104%

Exchange rate used is A$1: Php. 41. This figure includesall Individual and Group clients on their first loan cycles.Group loans are usually smaller.

GlossaryPortfolio at risk (PAR) is a stringent measure of anMFIs loan portfolio quality. It calculates the total valueof outstanding loan balances for loans with at least onepayment being overdue by more than 30 days. PAR isused to highlight potential future repaymentproblems.

Operational sustainability is the ability of anorganisation to cover the costs of its lendingprogram with the revenue earned from its lendingprogram.

Financial sustainability is the ability of anorganisation to cover the costs of its lendingprogram with the revenue earned from its lendingprogram including the cost of its capital, inparticular inflation.

DisclaimerThis report provides information about Opportunity InternationalAustralias program activity. Information is provided to us by ourimplementing partners and we believe it is a true and accuratereflection of program activity at the time of writing. Programsmay change in scope or be discontinued where our coreoperations are no longer fulfilling the intended outcomes. In thiscase, Opportunity International Australia may redirect funding to

a suitable alternative program.

Camaraderie and friendship are beingdeveloped in the program, thus I reallylike it.

Emily Del Rosario, ASKI Community Group client


ASKIs performance

Philippines Renewal ProgramA mentoring program for entrepreneurs. Twenty-fourhours from applying for a loan to receiving it. Flexiblerepayment schedules to match income streams.

The Philippines Renewal Program is helping ourpartners to serve their clients more effectively.

By supporting the Philippines Renewal Program youwill enable the provision of expert technical supportto ASKI, TSKI and TSPI. Opportunity Australia staff andspecialist consultants work alongside the partners tobuild their capability.

Your impact will be doubled, as each dollar youdonate will be matched by the AustralianGovernments Overseas Aid Program, AusAID.

The program will help our partners move fromproduct-driven to client-responsive services.Ultimately, they will be able to deliver innovativefinancial solutions to poor people now and in thefuture.

As their families watch, clients participate in a soap making

workshop, part of ASKIs livelihood training program.

Introducing Community Groups

Our partners in Indonesia and the Philippines haverecently improved how they serve clients. This hasincluded a movement away from the traditional co-guarantee system to more flexible loans. This changehas been driven by client feedback and recognisesthat clients have varied financial requirements. Toreflect this fundamental change in client service, TrustGroups have been renamed Community Groups.

This name reflects how a poor community can beempowered when a group of clients and theirbusinesses improve the local economy.


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1. Invest in the future of microfinanceBecome an Opportunity Investor and walkalongside Opportunity Australia as we implementand improve services to the working poor in India,Indonesia and the Philippines.

Invest in InnovationSupport OpportunityAustralias Social Performance Management program.$25,000 delivers expert consultants and practicaltools to provide more people with betteropportunities.

2. Sponsor clients in their journey outof poverty.You can sponsor 25-50 microfinance clients for$10,000. These clients will start or expand their ownsmall businesses and in doing so, bring hope to theircommunities. You can choose to support clients inIndia, Indonesia or the Philippines with life-changing loans.

3. Support the people who make

microfinance workWalking with TLM - Our partner TLM is building itscapacity to provide flexible, innovative financialservices and training to poor people in West Timor.

Double your impactPhilippines RenewalProgram -Three microfinance institutions and long-term partners of Opportunity Australia, ASKI, TSKI and

TSPI, are transforming into dynamic organisationsequipped to achieve greater social impact now andin the future. AusAID will match each dollar youdonate, doubling your impact.

How do you want to

change lives?

Thank you for your generous support.

Opportunity Australia needs your help to expandour community of supporters and continuechanging lives in India, Indonesia and thePhilippines. We would like to connect with morepeople like you.

Sharing your report with family, friends andcolleagues is an easy way to increase the impact ofyour commitment. You can inspire others to join uson the journey as we give a hand up to those livingin poverty.

To discuss how you might share your journey withothers, contact your local Donor Relations Manageror contact us on [email protected] 812 164.

More exciting opportunities tosupport clients and their families arecoming soon.

Share the journey

Microfinance can help parents give their children a chance ata brighter future.

Your support can provide the poor with enough capital to kick

start their businesses and work their way out of poverty.

Be the change you want to seein the world.

Mahatma Gandhi

PH2TBED0310

Felicidad Raymundo, ASKI Client

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