Improving CARD bank operational efficiency through provision of need based financial services

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Southern New Hampshire University
As stated in the thesis project, "The case of poverty in a third world country is more pronounced and widespread because it comprised mainly of low educational attainment of the heads of the family, topographical location, inequity, and unpredictable economic mobility. During the last few years microfinance had grown rapidly and as poverty is continuously growing the role of microfinance institutions has become more crucial and significant in functions. The emergence of microfinance industry gradually transformed economic horizons where small enterprises and self-employment, particularly household women, are noticeably sprouting. Microfinance is one of the effective tools in poverty alleviation. In the Philippine one of pioneering microfinance institutions is Center Agriculture and Rural Development (CARD). From an NGO doing mere microfinance and community development, CARD was the first NGO to obtain a bank license from the Bangko Sentral ng Pilipinas (BSP) in 1997; the CARD Bank Inc. formerly known as the CARD Rural bank was established. CARD humbly started from PhP 20 capital with 5 community development practitioners in the municipality of San Pablo City located in the province of Laguna. Since 1989, CARD is refining methodology from its micro lending Grameen-style to achieve triple bottom line objectives of outreach, sustainability and impact in the lives of the clients, their families and communities. At present, CARD is positioned to be a global leader in the MFI industry which has the growing demands that directs the management to continuously innovate to address the changing needs of the poor. SIPAG loan is the newest financial service which CARD Bank offers. It was initially provided in year 2004 to graduate and non-graduate members. However, the evaluation of the management showed that this resulted to increase in PAR. Thus, the SIPAG loan is now exclusively given to graduate members in San Pablo Branch as part of conducted pilot testing. The main purpose of this paper is to lay out the valuation and monitoring result from the pilot testing of SIPAG program. However, the main objective of management is to bring micro-entrepreneur clients with their business into stability, make their profit grow, and extent their capabilities parallel to the main stream of current economy flow thru launching of more efficient new products and services." (Library derived description)