MICROCAPITAL BRIEF: Social Security System (SSS) of the Philippines Extends Services through Partnership with the Center of Agricultural and Rural Development (CARD) Bank

The Center for Agricultural and Rural Development (CARD) Bank, a non-governmental organization that provides lending and voluntary savings for poor and landless women in the Philippines, reportedly has partnered with the Social Security System (SSS) of the Philippines, a government-run social insurance program that provides retirement and health benefits, in an effort to extend the program’s outreach to workers in the Philippines’ informal sector.Through the partnership, CARD Bank members will be able to register for the SSS program as well as apply for SSS services such as salary loans, natural disaster loans and funeral benefits. As of 2013, it is reported that CARD Bank serves 900,000 low-income women entrepreneurs in the country.

SSS president and CEO Emilio De Quiros Jr. was attributed with the following statement regarding the partnership: “Servicing partner agents such as [CARD Bank] enable us to bring SSS services closer to informal sector workers, particularly those in rural areas with limited access to SSS offices. The agreements also help our partner organizations to look after the welfare of their own members.”As of year-end 2012, CARD Bank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 96.6 million, a gross loan portfolio of USD 68.2 million, and total deposits of USD 62.6 million.  SSS has 38 million members and 162 branch offices as of 2012.

By Brian LeBlanc, Research Associate

About the Center for Agricultural and Rural Development (CARD) Bank

The Center for Agricultural and Rural Development (CARD) Bank is a microfinance bank based in the Philippines. It was established in 1997 and is part of the CARD group of mutually reinforcing institutions, which is made up of CARD Development Bank, CARD NGO, CARD NGO Microfinance, CARD Training Center, CARD Development Institute, CARD Mutual Benefit Association and CARD Insurance Company. Card Bank offers loans, insurance, voluntary savings, training and consulting. As of year end 2012, CARD Bank reported to the reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 96.6 million, a gross loan portfolio of USD 68.2 million, and total deposits of USD 62.6 million.

About the Philippine Social Security System (SSS)

The Philippine Social Security System (SSS) is a government-run social insurance program for Philippine workers. Established in 1957, SSS provides retirement and health benefits to all enrolled workers in the Philippines and allows members to take out “salary loans” equal to the employee’s weekly salary, or “calamity loans,” which are loans available to members in times of natural disasters. SSS has 38 million members and 162 branch offices as of 2012.

Sources and Additional Information

PhilStar.com article, “SSS Partners with Microfinance Institution,” http://www.philstar.com/business/2013/02/15/908881/sss-partners-microfinance-institution

MicroCapital.org story, February 9, 2013, “MICROCAPITAL BRIEF: Microfinance Credit Bureau, MiDas Launched by Microfinance Institutions in Philippines,” https://www.microcapital.org/microcapital-brief-microfinance-credit-bureau-midas-launched-by-microfinance-institutions-in-philippines/

MicroCapital.org story, September 3, 2009, “MICROCAPITAL BRIEF: Philippines-Based CARD Raises $10.4 Million in a 5-Year Privately Placed Bond Issue Supported by Grameen Growth Guarantee Program and ‘A(-)’ Rating by Planet Rating to Expand Its Microfinance Business,” https://www.microcapital.org/microcapitalorg-story-philippines-based-mfi-card-raises-104-million-in-a-5-year-privately-placed-bond-issue-supported-by-grameen-growth-guarantee-program-and-a-rating-by-planet-rating-to-ex/

MicroCapital.org story, April 30, 2007, “MICROCAPITAL BRIEF: President Arroyo Urges Philippines Social Security System to Move Into Microfinance Investment after Overcoming ‘Seemingly Insurmountable’ Challenges,” https://www.microcapital.org/president-arroyo-urges-philippines-social-security-system-to-move-into-microfinance-investments-after-overcoming-seemingly-insurmountable-challenges/

MicroUniverse Profile: Center for Agriculture and Rural Development (CARD) Bank https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Center+for+Agricultural+and+Rural+Development+%28CARD%29+Rural+Bank

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