Transcript Slide 1

Jaime Aristotle B. Alip, Ph.D.
Founder and Managing Director, CARD MRI
May 7-8, 2007
Sheraton Rio Hotel, Rio de Janeiro, Brazil
CARD MRI is the global leader in the
microfinance industry owned and led by
members upholding the core values of
excellence, competence, integrity, family
spirit, humility, and simplicity.
CARD MRI Mission
CARD MRI is committed to:
• Build sustainable financial and capacity building
institutions owned and led by socially and
economically challenged families;
• Provide
continued
access
to
integrated
microfinance and social development (credit with
education,leadership with a heart, innovative
community programs) services to an expanding
membership base by organizing and empowering
women and their families; and
• Continue upholding the highest standards of
stewardship of financial, human and institutional
resources.
CARD MUTUALLY REINFORCING INSTITUTIONS
CARD
BDS
CARD
MRI
Housing
Company
CARD NGO Branches are the “marines” of
the CARD MRI and when it matures, they are
transferred to the bank as part of the
structure of the bank.
All members of the CARD NGO and CARD
Bank branches are insured under the CARD
MBA.
CMDI is the capacity building arm and
supplies staff for all the CARD MRI: the
CARD NGO, CARD Bank, and the CARD
MBA.
CARD MRI OPERATIONAL STRUCTURE.
CARD MBA
BOT/BOA
CARD BANK
BOD
CARD NGO
BOARD
MRI
MANAGING
DIRECTOR
EXCOM
CMDI
BOT
2
3
SUPPORT UNITS
MBA GENERAL
MANAGER
INSURANCE
OPERATIONS
PRESIDENT/
CEO
BANKING
OPERATIONS
EXECUTIVE
DIRECTOR
CARD NGO
MICROFINANCE
OPERATIONS
4
INSTITUTE
DIRECTOR
COURSES AND
DEGREE
PROGRAMS
CHIEF EXEC.
OFFICER
BUSINESS
DEVELOPMENT
SERVICES
1.
CARD MRI borrows legal personality from CARD NGO as its mother organization
2.
The CARD MRI Managing Director is also the CARD NGO President, CARD BANK Chair, BOA Chair of MBA and CMDI President
3.
The members of EXECOM are the Managing Director of CARD MRI, President/CEO of CARD Bank, CFO of CARD Bank/NGO, CARD NGO Executive Director,
CARD NGO Associate Director, CARD MBA General Manager, CMDI Institute Director, CMDI Training Director and CARD BDS CEO.
4.
Support Units provide common services and assistance to CARD MBA, CARD Bank, CARD NGO, CMDI and CARD BDS.
CARD MRI SUPPORT UNITS
MD
Comptrollership
Department
Audit
Legal
Personnel
CorPlan
&
Treasury
Research
MERP
BDS
RMU
CARD MRI Performance as of December 2006
Operations Update
•
•
•
•
•
•
•
•
Total No. of Clients Served for the Year
300,487
No. of Active Members including Savers
263,873
No. of Active Clients with Loans
247,782
No. of Insured Persons
1,486,692
Amount of Loans Disbursed
P 2,989,188,200.00
Amount of Loans Outstanding
P 1,124,603,838.00
Amount of Savings
P 600,406,552.00
Repayment Rate
98.51%
• No. of Staff
Employees
MBA Coordinators
• No. of Offices
Branches
Office Units
Head Offices
BDS Office
1,709
1,539
170
296
232
50
4
1
Partners
2
Provincial Offices 5
MRI Office
1
Liaison Office
1
(Cambodia)
$59.80M
$22.49M
$12.00M
CARD MRI Performance as of December 2006
Financial Update
•
•
•
•
•
•
•
Total Asset
P 1,777,946,051.00 $35.56M
Total Liabilities
P 1,245,816,192.00 $24.92M
Total Equity
P 532,129,858.00 $10.64M
Operational Self-Sufficiency
116.53%
Financial Self-Sufficiency
108.13%
Return on Assets
5.29%
Return on Equity
11.03%
•Early 1990’s – a survey was conducted by CARD
Inc. to assess the potential new services that
members wanted which resulted as the access to
life insurance as the most favored.
•April 1994 - Members’ Mutual Fund (MMF) to
provide loan balance coverage plus burial
assistance in the case of death of the borrower
amounting to US$55-91 based on the weekly
premium of US$ 0.04
•1998 – CARD’s External Auditors advised the
management that the pension situation was
financially unsustainable.
•September 1999 – CARD MBA was registered
with the SEC
•May 22, 2001 – CARD MBA was officially
licensed by the Insurance Commission
CARD Mutual Benefit Association, Inc.
WHY MICROINSURANCE ?
1. MICROINSURANCE is another weapon for poverty alleviation.
2. MICROINSURANCE is a SAFETY NET for micro-entrepreneurs.
3. In most cases, some commercial insurance companies dare not
to touch the micro-entrepreneurs because of the size of
THEIR BUSINESS.
CARD Mutual Benefit Association, Inc.
HOW MICROINSURANCE WORKS ?
R
E
S
O
U
R
C
E
S
DEATH
Without Microinsurance…
(+)
0
(-)
TIME
CARD Mutual Benefit Association, Inc.
HOW MICROINSURANCE WORKS ?
R
E
S
O
U
R
C
E
S
DEATH
With Microinsurance as
SAFETY NET .
100 K
(+)
0
(-)
THIS PORTION WILL BE LEFT
FOR THE BENEFICIARY
TIME
In-house Microinsurance
Cooperative
Microinsurance
The CARD MBA Model
Commercial
Microinsurance
Commercial Insurance
Agent Model
CARD Mutual Benefit Association, Inc.
WHY MUTUAL BENEFIT ASSOCIATION?
MUTUAL BENEFIT ASS’N
(MBA)
PARTICULARS
POLICY MAKING
BODY
ORIENTATION

CONTRIBUTIONS /
PREMIUMS


NO CLAIM
CATASTROPHIC
LOSS

COMMERCIAL INSURANCE
COMPANY
BOARD OF TRUSTEES
BOARD OF DIRECTORS
COMPOSED OF MEMBERS WHO
KNOW THE NEEDS OF THEIR
CO-MEMBERS
COMPOSED OF PRIVATE
INDIVIDUALS
(MOSTLY THE RICH)
SERVICE TO THE MEMBERS
PROFIT
PAID CONTRIBUTIONS STAYED
WITH THE ASSOCIATION
LEVEL CONTRIBUTIONS,
LEVEL BENEFITS
FUNDS WILL GROW
FUNDS OF THE ASSOCIATION
CAN BE A SOURCE OF FUND
FOR LENDING ACTIVITIES



PAID PREMIUM IS GONE FOREVER
THE HIGHER PREMIUM YOU PAY,
THE HIGHER BENEFIT
YOU CAN GET
WILL BE RICHER AT THE EXPENSE
OF THE HARD EARNED MONEY OF
THE CLIENTS
HAS TO SHELL OUT LOT OF FUNDS BUT BANKRUPTCY
CAN BE AVOIDED THRU REINSURANCE FACILITIES
CARD Mutual Benefit Association, Inc.
WHY MUTUAL BENEFIT ASSOCIATION?
PARTICULARS
PAYMENT
OF CLAIMS
COVERAGE
MUTUAL BENEFIT ASS’N
(MBA)
COMMERCIAL INSURANCE
COMPANY
 CAN BE DONE AS EARLY AS 1
 MOST INSURANCE COMPANIES CAN
TO 3 DAYS FROM THE TIME OF
SETTLE CLAIMS AS EARLY AS ONE
NOTIFICATION BUT NO LONGER
MONTH
THAN ONE WEEK IF CLAIMS
 SEVERAL DOCUMENTS ARE
DOCUMENTS ARE COMPLETE.
REQUIRED AND VARY FROM ONE
 SIMPLIFIED DOCUMENTATION
INSURANCE COMPANY TO ANOTHER
ALL LEGAL DEPENDENTS OF
THE MEMBERS ARE COVERED
ONLY THE POLICY HOLDER WITH
OPTION TO COVER FAMILY MEMBERS
BUT WITH ADDITIONAL PREMIUM
MBAs CAN WORK WELL WITH THE
COMMERCIAL INSURANCE COMPANIES
THROUGH REINSURANCE TREATIES