The Microfinance Council of the Philippines, Inc. (MCPI) is the national network of microfinance institutions working towards sustainable, innovative and client-responsive solutions to poverty in the country. MCPI is currently comprised of 47 institutions, including 39 practitioners and 8 support institutions. Its regular members include 23 non-government organizations, 12 rural banks, 1 thrift bank, 2 cooperatives, and 1 regional network. The key programs of MCPI include advocacy, social performance management and consumer protection in microfinance, capacity building for microfinance institutions, performance monitoring and benchmarking, and the establishment of a knowledge and research center for microfinance.
PROGRAMS & SERVICES
ADVOCACY
As a major industry player, MCPI serves as the voice of the microfinance community in advocating for policies that will promote a more inclusive, gender responsive, and client-friendly environment for microfinance. MCPI also promotes consciousness on the social value of a holistic approach to poverty eradication.
MCPI works closely with the Bangko Sentral ng Pilipinas on matters relating to the regulation of microfinance institutions, particularly banks and NGOs. MCPI also spearheaded the formulation of a Code of Practice for MFIs, initiated the drafting of the Standard Chart of Accounts for NGOs and promoted the MF Performance Standards for all types of institutions.
Currently, MCPI’s advocacy agenda is focused on tax issues, client protection and social performance.
CAPACITY BUILDING
MCPI’s capacity building program is geared towards helping member-MFIs serve significant numbers of poor households with financial and non-financial services and ultimately facilitate the reduction of poverty in the country. Specifically, it offers support in the areas of market research, product development, and social performance management. In addition, it organizes training workshops and exposure visits based on identified needs of MFIs.
At present, MCPI has directed its programs to strengthen the capacity of regional networks; to assist MFIs in transforming their informal microinsurance schemes into legal and formal microinsurance; and to deepen understanding of agriculture-microfinance models and practices.
SOCIAL PERFORMANCE MANAGEMENT
MCPI is committed to scale up the practice of social performance management and mainstreaming it into the overall performance management of MFIs by improving the understanding and appreciation of SPM; gathering and improving the state of practice; increasing the body of knowledge and information on social performance; and enhancing transparency on social performance. In order to do this, MCPI has been engaged in advocacy and promotion, capacity building and social performance reporting and has formed strategic partnerships with institutions that put social performance and client protection high on their agenda.
PERFORMANCE MONITORING & BENCHMARKING
MCPI monitors the financial and outreach performance of MCPI members and other microfinance industry players such as NGOs, rural banks, thrift banks, and credit cooperatives. Performance monitoring enhances the transparency of financial transactions of MFIs and encourages accountability and adherence to international accounting standards and common reporting formats. Transparency and adherence to standards in turn attracts the support of providers of capital from the private sector.
In this regard, MCPI has partnered with the Microfinance Information eXchange (MIX) for its benchmarking tool. It works closely with regional networks in promoting the use of tools from MIX. Lastly, MCPI promotes the use of Customized Performance Reports (CPRs) to help MFIs assess their strengths and weaknesses in terms of financial and operational performance. This will also enable the MFIs to compare their performance vis-à-vis their peer groups.
KNOWLEDGE & RESOURCE CENTER
MCPI sees itself as the knowledge and resource center on Philippine microfinance. It hopes to achieve this by increasing the availability of industry information, microfinance best practices, and innovations in microfinance.
In line with this, MCPI circulates benchmark data and reports, publishes microfinance industry reports and puts forward a microfinance research agenda. It also conducts various forums and conferences to facilitate knowledge sharing that will encourage MFIs to engage in activities and services that would address the basic needs of poor clients and improve their quality of life.
NETWORK STRENGTHENING
Recognizing that the microfinance landscape is constantly changing, MCPI shall regularly review and improve its internal systems and processes to ensure its effectiveness in functioning as the voice of microfinance in the Philippines. MCPI regularly reviews its membership criteria and processes; participates in discussions and working groups to constantly increase awareness on microfinance issues; evaluates members’ level of satisfaction of MCPI services; and participates in peer exchange visits to get exposed to good practices for microfinance associations.