The Alalay sa Kaunlaran Inc. (ASKI) is now in talks with automated teller machine (ATM) operators to simplify further the lending process for its 49,000 individual and institutional clients.
ASKI is a non-government organization (NGO) specializing in microfinance, mostly inspired by the Grameen model. It presently has a 21 eco-socio branch network spread out from Regions I to III.
Establishing an ATM network will ultimately allow access to all ATM network thus simplifying access to credit, and remittances.
Recently, ASKI signed an agreement with PetNet, a partner of money transfer specialist Western Union. PetNet has been active in forging remittance partnerships with the country’s rural banking system, and the alliance with ASKI marks its venture into non-bank financial institutions.
“The arrangement will allow our members, and even non-members, access to remittances sent by overseas Filipino workers (OFWs) and migrant Filipinos (MFs),” Rolando B. Victoria, ASKI executive director said, adding that microhousing programs are also in the pipeline.
Remittances had been growing by an estimated annual rate of 15 percent, and it is estimated to breach the $15 billion level this year. This figure however represents remittances passing through the formal or banking sector. Total remittances reached $17 billion last year.
Victoria said that ASKI does not only extend credit to its members but also facilitate processes to bring the credit to microentrepreneurs in the countryside.
Aside from microfinance, the NGO also extends microinsurance through its ASKI Mutual Benefit Association. The program assists clients in time of death and dissability. Clients pay a certain amount (roughly P120 a month) upon release of loan as insurance premium. ASKI tapped the services of insurance provider, Sun Life Philippines.
The loan portfolio of ASKI has ballooned to P240 million from P460,000 in 1986. Loans types include salary loans, agri loans, personal, and small market vendors. Total assets amounted to P409 million.
It has forged partnerships with financial institutions including the Development Bank of the Philippines (DBP), the Peoples Credit and Finance Corp. (PCFC), the Sustainable Economic Activity Development Inc. (SEAD), the Center for the Development of Human Resources in Central Asia (CENDHRRA), and the National Livelihood Support Fund (NLSF). — TPT