WHO’S WHO IN MICROFINANCE: Center for Agriculture and Rural Development (CARD) Inc. of the Philippines

The Center for Agriculture and Rural Development (CARD) Inc. was established in December 1986 as a social development fund. In 1997, it became the first NGO to transform into a licensed rural bank. CARD was founded by Dr. Jaime Aristotle B. Alip, and organized by 15 rural development practitioners as a response to the growing poverty rate in Regions IV and V of the Philippines. Their vision was to establish a bank created for, and owned and managed by landless rural women. In 1989, a group-lending pilot was launched by CARD, based on the Grameen Bank’s methodology. A year later, CARD launched its credit arm, the Landless People’s Development Fund (LPDF) [1].

Today, CARD Mutually Reinforcing Institutions (MRI) include CARD Bank, CARD Mutual Benefit Association (MBA), CARD MRI Development Institute (CMDI), CARD Business Development Services (BDS), and CARD MRI Insurance Agency. According to the MIX Market, the microfinance information clearinghouse, as of December 31, 2008, CARD Bank had total assets of approximately USD 49.7 million, a gross loan portfolio of USD 36.6 million, a debt to equity ratio of 3.28, an ROE of 27.6%, and an ROA of 6.63% [2].

CARD Bank, officially established in September 1997, is headquartered in San Pablo City, Philippines. CARD Bank provides credit and savings for rural clients. As of July 31, 2009, the bank was serving 338, 796 active borrowers, and reported a total portfolio of approximately USD 25, 643, and total assets of USD 34,189,940 [3].

CARD MBA was established in April 1994. Today it serves as an in-house microinsurance service provider for loan redemption in case of death of CARD member-borrowers, as well as burial benefits for members and their legal dependents. CARD MBA is a distinct legal entity owned and managed by CARD member. CARD MBA has sixteen provincial offices across the Philippines. As of July 31, 2009 CARD MBA had 863, 032 active members and total assets of USD 33,066,609 [4].

CMDI was established in April 2005. CMDI provides five main competency development services, including internal training for CARD MRI staff; training and exposure for CARD members; training and exposure for external organizations interested in development; a Bachelor’s degree in Microfinance Management, and a Master’s degree in Microfinance Management for practitioners. CDMI expects to reach 650, 000 members by the end of 2009 [5].

CARD BDS was established in July 2005. It is the main vehicle for delivering business services to clients. CARD BDS serves two markets, primary clients who are ready and willing to expand their business, and member institutions of the CARD-MRI group. As the number of CARD clients increase, opportunities to deliver additional services increase, require effective and efficient delivery. CARD BDS is responsible for managing this delivery. Products and services offered by CARD BDS include printing press, solar home system, housing, bulk sourcing/distribution system, and customized business services. For more information, please visit http://www.cardbankph.com/bds/index_pbds.php [6].

Dr. Jaime Aristotle B. Alip is the founding president CARD Inc and is now the Chairman and CARD MRI Managing Director. He has over thirty years of experience in the financial sector focused on microfinance, microinsurance and rural development [7]. Dr. Alip obtained his bachelor and masters degrees in agricultural economics and marketing from the University of the Philippines at Losa Banos in 1978 and 1983 respectively. In 1999, he attended the Executive Program in Global Management at the Weatherhead School of Management in Cleveland, Ohio, U.S. He went on to complete his doctorate degree in Organizational Development from the Southeast Asia Interdisciplinary Development Institute in Manila, Philippines in 2002. In 2007, Dr. Alip completed the Owner President Management (OPM) Program at Harvard Business School, receiving the Excellence Award on Strategy [8].

Dr. Alip has served in various key positions in the Philippine Government: Undersecretary of the Department of Social Welfare and Development (2002-2003); Assistant Secretary of the Department of Agrarian Reform (1996-1998); Deputy Executive Director of the Agricultural Credit Policy Council (1988-1992). He has extensive international experience in the field of microfinance and rural development in Vietnam, Laos, Cambodia, China, Myanmar, Bhutan, and East Timor, serving in various capacities as advisor, expert and/or consultant [7].

By: Diya Chopra, Research Associate

Bibliography:

[1] CARD MRI

http://www.cardbankph.com/index_history.php

[2] MIX Market

http://www.mixmarket.org/mfi/card-ngo/data

[3] CARD Bank

http://www.cardbankph.com/bank/index_bank.php

[4] CARD MBA

http://www.cardbankph.com/mba/index_mba.php

[5] CDMI

http://www.cardbankph.com/cmdi/index_cmdi.php