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GRASSROOTS TO GROWTH 2019 Annual Report

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ABOUT THE

The RAFI Micro-finance Annual Report 2019 Issue sets the theme of “Grassroots to Growth,” embodying RAFI MFI’s preparations to take a great leap for the growth of the foundation and showcasing improvements in internal systems, processes of the expansion, culture building, and organizational readiness. Over the years, RAFI Micro-finance has served its clients through testing program effectiveness and efficiency and transitioning to bigger and bolder initiatives as we continue the journey to elevate their lives and their families’ lives. Our luminaries are nothing but determined and persistent to become successful. They embody this year’s theme as they are living testimonies of individuals who started small— from the grassroots—and were able to grow their businesses and thereby improve conditions for their families and their communities. From top left to bottom right: Jiovy Espinosa, Mary Grace Bayalas, Jelyn Elemino, Virgilia Bonghanoy, Esperanza Gonzaga, Zenaida Nuñez, Claudia Celis, Merlina Mejias, Maria Medequillo, and Norma Carreon.

TABLE OF CONTENTS 1

CORE VALUES

MESSAGES

OPERATIONAL HIGHLIGHTS

PROGRAMS AND SERVICES

YES, SHE DID

LUMINARIES

ENTREPRENEURS SUMMIT

15 17 19 23

MAUSWAGON ENTREPRENEUR OF THE YEAR

NUMBER OF MANPOWER YEARLY

ALL IS NOT LOST

RAFI MFI STAFF DIARIES

NURTURING NEOPHYTES

PARTNERSHIP AND SYNERGY

SOCIAL PERFORMANCE MANAGEMENT

MANAGEMENT DIRECTORY

AUDITED FINANCIAL STATMENTS

ABOUT RAFI MFI

RAFI MFI RAFI MFI JINGLE PROCESSES AND SYSTEMS

CORE VALUES

GODCENTEREDNESS Places God at the center of all activities and undertakings, and embodies this in all aspects of social, professional, and personal life.`

RESPECT Maintains respect for all people without prejudice to status as they appreciate, recognize, and encourage innovations and contributions of other people by keeping an open mind.

INTEGRITY Aims to achieve the highest work performance according to the standards of RAFI wherein transparency, proper communication and adherence to ethical procedures are delivered in all transactions.

SERVICE Provides services that create impact to RAFI and the communities we connect with, by actively giving ideas, innovative solutions and talents.

M Core Values | 2019

Every day, we are presented with great challenges and unique opportunities. We have the choice to succumb to the former or take hold of the latter. In RAFI Micro-finance, we salute all the women who chose to see the opportunity amidst the adversities that they have to battle through every single day. These women are not only instigating change in their own personal lives; they are also at the forefront of a new wave of empowered entrepreneurs that will soon take the country by storm. When the program first started, we had less than a hundred clients. Following over 20 years of ceaseless efforts to drive our micro-entrepreneurial initiatives to even the most remote towns and provinces in the Visayas, our client base has finally pushed past the 300,000 mark. In the coming years, we are expected to gather up to 450,000 clients as we expand further to Luzon and Mindanao. Our social impact—the crux of our organization—has risen significantly. The programs and initiatives of RAFI Micro-finance have touched the lives of 1.636 million people, increasing our social impact by up to 96%. With the growing number of people who wanted to rise above their challenges, we welcomed more members into our team to help us see through our goals. RAFI Micro-finance is now a family of over 2,123 dedicated and passionate architects of change. But beyond numbers and figures, we want to make sure that all our efforts and projects are still anchored on our values. We stand for positive change, but considering the nature of our organization, we must also be incredibly loyal to our promise of elevating lives. This is why in 2019, we chose to take the opportunity to go back to our roots.

“All these achievements and more made 2019 more than just a year of development—it was also foundation building as we strengthened our roots to prepare for what’s ahead.”

This is not a step backward. Instead, it is a calculated stride to lay the groundwork for the growth that lies ahead. To be able to successfully expand outside the Visayas, we needed to strengthen our operational processes. Hence, the subscription to Instafin and the creation of INSTAFIN and the deployment of fool-proof systems to make sure that our clients get the services that they deserve. The client engagement activities we conducted in 2019 included a number of comprehensive feedback management reports, center performance incentives, community mobile doctors, and many more. We met exceptional individuals whose stories have inspired faith and motivation to countless others. To these individuals, I have nothing but admiration and gratitude for taking these opportunities and turning them into something life-changing. The merit also goes to the RAFI Micro-finance family for making all these happen. Your loyalty and commitment have touched more than the lives of our clients. It has touched their families as well. Now, brace yourselves for this is only the start of something even greater. As we gear up for the years ahead, may you stand strong and never falter.

RAFI MFI CHAIRMAN OF THE BOARD

MIKEL ALBERTO 2

From a simple idea of helping underprivileged households in the community, RAFI Micro-finance has grown into a stable force that has gone above and beyond its original purpose. Aside from providing a lifeline to the communities that we serve, we were able to help countless families maintain a lifestyle that is financially stable as well. This opened up many financial and educational avenues for them. Now their dreams are now within reach and no longer impossible. Hearing the success stories from inspiring people we have helped should be more than enough incentive for us to continue what we have started. However, progress doesn’t have to mean abandoning the values that have led us here in the first place. With this in mind, RAFI Micro-finance began an exciting journey in 2019. The organization has redirected its efforts to achieve the goal of “going back to its roots.” Going back to our roots was important to strengthen our foundation. This allowed us to assess all the things that needed improvement and to fortify the pillars that held our organization together— necessary steps to support the strategic expansion of RAFI Micro-finance in the next five years. To do this, we needed to rally mission-driven and happy people to join RAFI Micro-finance’s cause. With a solid team behind every project, we were able to create responsive products that served our market, streamline automated systems and processes, and most importantly, ensure the future of a sustainable organization.

changes that these projects will bring about. It is also heartwarming to see that RAFI Micro-finance, a program unit that started with less than a hundred clients, has grown our reach to serve over 300,000 clients. The real heroes, however, are the Nanays (and Tatays) who were steadfast in their will to rise above their dire circumstances. They did not have the means to start on their own, but with sheer grit and determination, they were able to find their way to RAFI Micro-finance. Helping these people is the reason for our existence. For now, take comfort in the fact that we have changed lives—something that has always been the core of who we are, the essence of our roots. All I ask is for us to remember where we came from and keep this passion burning in the next years to come.

“The real heroes, however, are the Nanays (and Tatays) who were steadfast in their will to rise above their dire circumstances.”

In 2019, RAFI Micro-finance installed significant initiatives to operationalize its strategies. Among the many milestones of 2019 was the subscription to Instafin for the new core banking system. We have also formally installed a learning and development structure that ensures people’s competency and well-being. We have established a client journey system to ensure client convenience and satisfaction. To top things off, a dedicated research unit was also deployed to continuously monitor our clients’ product needs. All these would not have been possible without the loyalty of all the people who made sure these ideas were translated into reality. The entire RAFI MFI team has been tireless in their support for all our initiatives. Since day one, the Board of Trustees has been looking forward to the positive

RAFI PRESIDENT/ CHIEF EXECUTIVE OFFICER

DOMINICA B. CHUAJ

“The foundation of a building determines the height of the building.” In other words, in order to go higher, one must be able to go deeper. This truth is not just applicable in individuals but is also an important principle to adopt in every organization. This principle became the mantra of RAFI Micro-finance, Inc. in 2019. For the past three years, we have seen the rapid growth of our organization—expanding our reach and touching more lives and families. However, our rapid growth has also posed a challenge in preparing the groundwork for the organization as we embark on our new strategic direction of 2–5–10—that is, to serve 2 million clients in 5 years, touching 10 million lives. Year 1 in reaching this 2-5-10 goal was 2019. With that in mind, we chose to take a deeper look into our foundation—our core processes, our people, and our clients—and assessed areas we need to further strengthen and improve on. Thus, 2019 allowed us to set the groundwork, look at the loopholes and gaps, and provide the necessary interventions to prepare us for the greater heights that we plan to reach in the next five years. Last year, we embarked on several process improvement projects. One of these is the Bugsay 2.0 Project together with the Renoir Consulting Group, which focused on operations improvement and organization transformation for RAFI MFI. The project helped improve RAFI MFI’s current processes, procedures, and systems for all areas of business, including operations and departments under shared services.

“Together with the growth we expect in the next five years and the aim of building a national presence, may we not lose sight of our foundation and our core reason for doing this—all for our Nanays and Tatays.”

In order to support process improvements for operations, we have also improved our core banking system through Go Instafin. This enabled us to further refine our branch core processes, especially in documentation and loan applications. The support units’ processes were also streamlined in order to provide more efficient and effective assistance to the operations team. Firstly, the branch expansion strategy was strengthened through the establishment of a Branch Expansion team and the standardization of the branch expansion process. Additional support interventions include the establishment of the Operations Excellence team, implementation of client engagement services, strengthened cybersecurity, provision of agile and digital solutions, improvement of touchpoint marketing and customer path, establishment of the RAFI MFI persona, institutional readiness drive, strengthened compliance, and effective fund management systems. There was also a focus on manpower development. Initial improvements on the internal and external hiring process were put in place as well as training and development programs for managers and second-liners and an improved on-boarding program. We ended the year with over 2,000 happy and competent staff. Lastly, market driving products and services were also developed for the clients. Among these was the pilot implementation of the SBL (Small Business Loan) product which caters to big-ticket and individual lenderclients. Client development services—including General Assemblies (GA), Community Outreach Programs (COP), and client trainings—were also implemented. For 2019, we trained about 667 center leaders and reached more than 13,000 beneficiaries with the GAs and COPs. By expanding our client reach, we are able to serve more than 300,000 households, educate more than 900,000 children, sustain more than 300,000 livelihoods, and create more than 600,000 jobs. All these achievements would not be possible without our key asset—the RAFI MFI management team and the employees. Thank you for your dedication. Our Year 1 was faced with several challenges as a result of the changes that took place. However, this did not stop us from pushing ourselves to the limit and achieving the goals for the year. May we continue to have the same passion and dedication. Together with the growth we expect in the next five years and the aim of building a national presence, may we not lose sight of our foundation and our core reason for doing this—all for our Nanays and Tatays. May we continue to anchor ourselves on the core values of God-centeredness, Integrity, Respect, and Service as we build RAFI Micro-finance towards becoming a preferred MFI and a model social enterprise. Lastly, to our Nanays and Tatays who have trusted us for the past 20 years, thank you. We share RAFI MFI’s growth and milestones with you. Your life stories continue to fuel our passion to serve and reach even more vulnerable and disadvantaged individuals and their families. Here’s to reaching 20 years and beyond of elevating lives! And here’s to reaching our 2-5-10 goal! Bugsay!

RAFI MFI CHIEF OPERATING OFFICER

JONAR B. DORADO

â€œ Ang iyong hangarin ang aming inspirasyon upang patuloy na gumabay at tumulong. â€œ

Annual Report | 2019

OPERATIONAL HIGHLIGHTS

327,371 CLIENTS

258,040 BORROWERS

654,742

JOBS CREATED

1.636 M

LIVES TOUCHED

982,113

CHILDREN BENEFITED

327,371

LIVELIHOOD SUSTAINED

SOCIAL AND FINANCIAL SCOREBOARD 2019 13,106 CLIENTS WHO HAVE IMPROVED THEIR HOUSEHOLD DWELLINGS

917 CLIENTS ASSISTED FOR EDUCATION LOAN

18,675 CLIENTS WITH BETTER ACCESS TO POTABLE WATER HYGIENE, AND IMPROVED SANITATION

2019 | Operational Highlights

260,821 CLIENTS WITH IMPROVED SOCIAL PROTECTION THROUGH MICRO-INSURANCE COVERAGE FOR THEM AND THEIR FAMILY MEMBERS

13,106 NUMBER OF MICRO INSURANCE CLAIMS

667

CENTER LEADERS TRAINED

GENERAL ASSEMBLIES ORGANIZED

COMMUNITY OUTREACH PROGRAMS

7000+

BRANCHES

CLIENTS WHO ATTENDED THE GENERAL ASSEMBLY

6,203 CLIENT BENEFICIARIES OF MEDICAL SERVICES

TOTAL OF

174

BRANCHES FOR 2019

BRANCHES

Loan Portfolio Target: 94% Portfolio at risk: 2.37% ASSETS 1.8 B

1.7B

1.6 B

2B 1.8 B

1.4 B

1.6B

1.6 B

1.3B

1.4 B

1.2 B 1B

CAPITAL BUILD UP

1.2 B

925M

800 M

868M

800 M 600 M

600M

600 M 400 M

400 M

200 M

249M

200 M 2017

2018

2019

LOAN PORTFOLIO 7

470M

2017

2018

2019

ASSETS AND CAPITAL BUILD UP Operational Highlights | 2019

PROGRAMS AND SERVICES FINANCIAL SERVICES PRODUCTION LOAN The Small Business Loan (SBL) is intended to add to the capital of our MSE clients in the purchase of additional business machinery or equipment, business diversification, or capitalizing new business ventures. Charmaine Gasatan, Cebu City: “Because of RAFI MFI, we have a bigger space for our restaurant. Now our customers can eat more comfortably. Thank you for your constant help, and I hope you help more entrepreneurs like me. God bless and congrats!”

The Kabuhayan Loan is made for hog raisers. It can be used for purchasing feeds and additional piglets, for the construction of pig pens, and for other necessary materials. Erlinda Patulilic, Bohol: “If it was not for the Kabuhayan Loan that RAFI MFI provided for me, I would not be able to succeed in my business and be able to live comfortably. I am thankful to RAFI MFI for helping me.”

The Mauswagon Loan is a primary loan that gives the client additional capital for the development of their business.

2017 2018

Lilibeth Patula, Negros Oriental: “The Mauswagon Loan has helped me buy items to stock up my store. Because of this, we can live comfortably every day. Thank you so much, RAFI MFI, because you have helped us, especially for our livelihood. I hope you help more Nanays like me.”

2019 The Maneho Loan is for micro-entrepreneurs in transport services like pedicabs and tricycles. Alcris Dutosme, Negros Oriental: “RAFI MFI was able to help me through the Maneho Loan. I was able to maintain my unit and use it to generate income as a habal-habal driver. Thank you so much, RAFI MFI, for giving me and other clients the chance to be successful.”

2019 | Programs and Services

SUPPLEMENTAL LOAN The Education Loan helps clients in ensuring the education of their children. Marigen Delos Reyes, Cebu North: “I was able to send my child to school. I am very thankful to RAFI MFI for giving me the chance to make it happen because all I want is for my child to be educated.”

The Housing Improvement Loan helps clients improve their houses for comfortable living. Evelyn Catarig, Cebu North: “Some serious progress has been made in our house and it’s almost done. Thank you so much, RAFI MFI, in helping us finance our home repair. I cannot thank you enough.”

The WASH Loan aims to assist clients in their water and sanitation hygiene. Lucia Bonsubre, Lapu-Lapu City: “Because of RAFI MFI, I was able to provide a better sanitation system for me and my family. Thank you, RAFI Micro-finance!”

HOUSING IMPROVEMENT LOAN AND WASH LOAN SPECIAL OFFER More than 2,000 clients in the Visayas can safely drink water and sleep in a safe shelter because affordable financing and a successful promo empowered them to have access to drinking water, sanitation, and a safe home. RAFI Micro-finance, Inc. launched the promo for the Housing Improvement Loan (HIL), and the Water, Sanitation, and Hygiene (WASH) in October 1, 2019. This initiative benefited 2,073 clients for HIL and 1,855 clients for WASH Loan.

Programs and Services | 2019

NON-FINANCIAL SERVICES RAFI Micro-finance chose 15 clients to attend the four-day Start Up! Training, which was in partnership with the University of San Carlos (USC) and the Sta. Clara University. The program aimed to teach aspiring and startup micro-entrepreneurs to learn more about the fundamentals of business. The training involved lectures, practical examples, and tools and templates.

START UP! TRAINING

Client Advisory Board (CAB) is a program that helps enhance leadership potential, strengthens and develops skills, and supplements business knowledge through workshops and training. Through the program, center leaders were able to learn from experts who shared important tips and advice that went beyond just the operational aspect of a business.

CAB 2019 | Programs and Services

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Cras id libero tortor. Donec lacinia mattis quam et aliquam. Fusce ultricies tincidunt sem, vel condimentum quam gravida at. Sed libero ligula, malesuada One of RAFI MFI’s notable activities is the Community Outreach Program (COP). As a year-long activity, in sem eu, ultrices pellentesque it aims to deliver medical services, adult and pedia consultation, optical services and blood typing and risus.to vulnerable Pellentesque gravida lobortis seminars and underserved individuals in its area of operation. ipsum. Integer tincidunt purus maximus eros iaculis COPs mollis. Duis at In 2019, RAFI MFI conducted in 19 branches located in various provinces with the help of partner tortor sit amet purus mattis suscipit doctors, mentors, and communities. The COP has also benefited 6,203 client beneficiaries for the vel services. vel lorem. Cras pellentesque, medical quam eget porttitor mollis, ligula nulla molestie odio, sit amet finibus felis lorem eu purus. Ut a tellus at.

COMMUNITY OUTREACH PROGRAMS

GENERAL ASSEMBLY The General Assembly (GA) is part of RAFI MFI’s engagement initiatives, which aims to bring clients across the area of operations together. It is a way of giving micro-entrepreneur clients a “day-off” to have fun, be pampered and learn.

Programs and Services | 2019

Yes

She Did Jelyn started with a small lot she inherited from her parents which she cultivated in order to make a living by planting vegetables. She started her farming business back in 2004 when she had one employee to maintain and assist her and her husband in farming. On the side, she did food vending with the locals in Sitio Lapa, Mantalongon, Dalaguete, Cebu. Fast forward to 2013, when Jelyn decided to look for better opportunities in the city. Everything was going well—until her mother got an eye operation and her brother was involved in a vehicular accident. She was unable to pay the bills, so she decided to borrow some money. Unfortunately, her mother died in 2014 and was followed by her brother. “It was really hard to accept,” she shared. “I faced many problems, but what broke my heart is that both of my loved ones left me. But I never lost hope because life must continue.” With that, Jelyn decided to go abroad to earn enough to pay off her debts. In 2016, the local attraction, Osmeña Peak, saw a rise in popularity, and Jelyn began her journey with RAFI Micro-finance, Inc. with a Php 5,000 loan. The money was used as capital to support her farming. “In farming, we face a lot of challenges. It is because we are bound by many factors such as climate, the seasonal growth of vegetables, and the demand and supply of the customers,” Jelyn explains. “That is the reality, but we must survive.” Jelyn’s determination and hard work has paid off. Aside from being a proud client of RAFI MFI, she also plays an integral role in running Osmeña Peak as a member of the Osmeña Peak Eco Guide Association.

With her perseverance and dedication, Jelyn was recognized as one of the nominees of the 2019 Citi Micro-Entrepreneur Award (CMA) which is headed by Victoria Tolentino, program officer of the Microfinance Council of the Philippines Inc. (MCPI). She was given the chance to share her story in pursuing her business. “I am very thankful to RAFI Micro-finance, Inc. because if not for them, I would not be standing here right now. RAFI MFI is always willing to help those businesses who are striving to be better,” she shared in an interview before thanking the others that have helped her in her journey. “To MCPI, for giving me the chance to show aspiring Nanays who want to do business, to my employees who never left me, to my family, and most especially to the God Almighty, for giving me more blessings that I was able to share with other people.” After the interview, Jelyn received a cash prize from MCPI for being a nominee. Apart from Jelyn, other nominees who shared their core values, techniques, and business journey also received this. Her success didn’t end there. Jelyn also received the RAFI MFI Mauswagon Entrepreneur Award in the Micro-Business Category on December 10, 2019. She shared that one of her plans and interests was to promote tourism and to explore more opportunities in business to better serve her customers. Jelyn considers 2019 to be one of the best years of her life. In a span of a year, she was nominated for the Citi Micro-Entrepreneur Award and was an awardee of the RAFI MFI Mauswagon Entrepreneur Awards. And still, she continues to persevere and grow alongside her business with the hope of elevating her life and the lives of others.

2019 | Yes, She Did

s e i r a n i Lum

“Every parent wants a comfortable life for their children. If you want a better life, you should help yourself and others—this is the secret of our family. I am very thankful for RAFI Micro-finance for all the help they have given us.”

ESPERANZA GONZAGA

2016 Most Outstanding Client “RAFI Micro-finance has made a big difference in my life. I thank them for helping me live a comfortable life. I was able to send my children to school, sustain my business, and now I can buy things that I couldn’t before. They have also guided me on how to improve my business. I have learned that we should have patience and love for what we do because if we don’t, we won’t succeed. Among all of these, don’t forget to pray every day for the Lord’s enlightenment.”

VIRGILIA BONGHANOY

“Serving others is like serving the Lord—this is the principle that I follow for the improvement and success of my business. I want to thank RAFI Micro-finance for giving me the opportunity to grow my business.”

ZENAIDA NUÑEZ

2016 Most Outstanding Client

“The success of a business starts with what kind of business owners we are. If we start on the right path, it will result in a brighter future. I want to thank RAFI Micro-finance for visiting our barangay because if it was not for them, we wouldn’t have this now. And also, I want to thank the Lord for making RAFI Micro-finance, Inc. as the instrument for us to achieve what we have now.”

MARIA MEDEQUILLO

2016 Most Outstanding Client

2018 Mauswagon Entrepereneur Awardee (Small Business Category)

“Hopefully RAFI Microfinance will be here for a long time. For my business, there will always be trials that will test it, but if you have the perseverance and commitment along with prayers, it will pass. Choose what to do with your money wisely and always be righteous in your business ethics.”

“I can attest that with hard work, all businesses—even coming from trash—will succeed. I want to thank RAFI Micro-finance because they gave me the opportunity to live a comfortable life and to have a successful business.”

JIOVY ESPINOSA

2018 Mauswagon Entrepreneur Awardee (Micro-Business Category)

“Coming from nothing, we now live a more comfortable life than before. Let us always pray to the Lord, have discipline, and trust ourselves because the trials will pass.”

“You should love what you do so the outcome of your plans will become productive. I never settle for less. I always seek ways to improve and let myself grow as a person and as a businesswoman because that is what every micro-entrepreneur should always have in mind.”

2016 Cebu-South Most Outstanding Client of the Year

MERLINA MEJIAS

2016 Most Outstanding Client

CLAUDIA CELIS

MARY GRACE BAYALAS

2018 Youth Micro-entrepreneur of the Year 13

Luminaries | 2019

Entrepreneurs Summit

Embracing Technologies, Digital Transformation for MSME’s

As the culminating activity of its 21st-anniversary celebration, RAFI Micro-finance, Inc. held its 2nd Entrepreneurs Summit last December 11, 2019, at the City Sports Club Center. The summit was attended by more than 200 of RAFI MFI’s client-entrepreneurs from across the Visayas. The one-day summit hoped to bring together RAFI MFI clients to be inspired, learn, and build networks with other entrepreneurs and possible business partners. With the theme, “Embracing Technologies: Digital Transformation for MSMEs,” this year’s summit aimed to teach clients how to leverage the changes and opportunities posed by digitalization. “The entrepreneurs of yesterday are no longer the entrepreneurs of today, and even tomorrow,” Mikel Aboitiz, RAFI MFI’s Chairman of the Board, said in his opening remarks. “As the world is now tech-driven, everyone—whatever status or age you belong—has to adapt to the disruption caused by digitalization.” The summit was also graced by Unionbank SME Banking Head Jujut Enriquez who was the keynote speaker. He enthusiastically shared the importance of MSMEs to embrace digitalization and the different platforms available for them. “Digitize or perish” was the challenge he posed among the micro-entrepreneur attendees. Experts on digital technology and innovations were also invited to talk about the current trends and innovations available for MSMEs through the DigiTalks. The resource speakers were: Te Jay Luna, AVP of Alliance End to End Solutions, Inc.; Jet Ong, CEO and co-founder of Fishers & Changemakers Inc.; Bunny Pages, CEO of Pages Holdings, Inc.; Mark Philip Geniston, CEO of Kevlo Skin Clinic; Edrian Belongilot, Head of Social Media of the Republiq Group of Companies; Edilberto L. Paradela, Regional Director of DOST Region 7; and Ma. Elena Arbon, Assistant Regional Director of DTI Region 7.

2019 | Entrepreneurs Summit

Of course, the summit would not be complete without recognizing RAFI MFI’s valuable resource—its client-entrepreneurs. First, the notable RAFI MFI clients who were also former client awardees were recognized as Client Luminaries. “Their legacy of resilience, courage, and grit as micro-entrepreneurs serve as a beacon of light and inspiration to our clients,” VP for Operations Ma. Theresa Catipay stated. In this heartfelt ceremony, the following clients were acknowledged: Merlina Mejias, Jiovy Espinosa, Virgilia Bonghanoy, Esperanza Gonzaga, Zenaida Nuñez, Maria Medequillo, Claudia Celis, and Mary Grace Bayalas. The second was the much-coveted Mauswagon Entrepreneur Awards (MEA). The MEA recognizes RAFI MFI’s most outstanding clients in the Micro-Business, Small Business, and Youth Entrepreneur categories. For this year, two clients were recognized: Jelyn Elemino of the Mantalongon Branch for Micro-Business and Norma Carreon of the Barili Branch for Small Business. Both Nanays were awarded Php 50,000, a plaque, and a portrait. In his closing remarks, RAFI MFI COO Jonar Dorado thanked the clients for their undying support and trust in the program for the past 21 years. He also posed a challenge for clients to embrace the growth and opportunities brought by digitalization. “As I pose this call to action, it goes with a commitment that RAFI MFI will be with you in your journey towards transformation,” Dorado assured the clients. The Entrepreneurs Summit ended with the launch of the RAFI MFI jingle “Walang Iwanan,” which echoes the organization’s commitment to always being there for clients through every step of their journey. Together, RAFI MFI clients, employees, and guests capped off the day with a resounding, “Mauswagon ka!”

Mauswagon

ENTREPRENEUR OF THE YEAR

For any business to prosper, it has to provide service beyond what others offer. In 2019, two women micro-entrepreneurs proved to be at an advantage because apart from their incomegenerating businesses and their roles in promoting entrepreneurship, they are also actively involved in the betterment of their respective communities. As RAFI Micro-finance, Inc. celebrates its 21st anniversary, it is only fitting that it recognizes these women micro-entrepreneurs as recipients of the Mauswagon Entrepreneur Award (MEA) in two categories, the Micro-Business and the Small Business categories. More than their excellent entrepreneurial skills, RAFI MFI also acknowledges and recognizes their significant contributions in improving the lives of their families and the communities they belong to. These attributes make them excellent representatives of the values the organization upholds. Jelyn Elemino of the Mantalongon Branch was the MEA Micro-Business Awardee for her farming and food vending business, while Norma Carreon of the Barili Branch was the MEA Small Business Awardee for her weaving and handicrafts business. They both brought home Php 50,000, a plaque, and a portrait, awarded by the RAFI Executive Committee Chairman Mikel Aboitiz, RAFI President and Chief Operating Officer Dominica Chua, and RAFI MFI COO Jonar Dorado during the Entrepreneurs Summit on December 11, 2019. Letâ€™s get to know these two amazing women. 15

Mauswagon Entrepreneur of the Year | 2019

“No matter how hard the challenges are, you carry on.” This is the mantra of Norma Carreon, a notable supplier of handwoven items from Barili, Cebu. Her meticulously woven products such as bags, hats, wallets, placemats, and coasters made of buri, pandan leaves, and seashells have already reached countries like the US, Netherlands, Switzerland, and Turkey.

NORMA CARREON 2019 MEA Small Business Category Awardee

Even when she faced different obstacles and challenges in running her business, she was not deterred from achieving her goals. “In my life, I have had my ups and downs. There were challenges thrown at me, pero padayon lang (but just keep going),” Norma said. “I don’t ask for anything else from the Lord except for my business to stand forever. Just give me good health and long life so I can continue to provide and help my community.” Currently, Norma has 320 weavers in Barili and another 180 weavers in Dumanjug. These women micro-entrepreneurs believe that giving back to your community is an opportunity to touch people’s lives and that even the tiniest good deed can ignite real change. As the RAFI Micro-finace battle cry goes, “Mauswagon ka!”

2019 MEA Micro-Business Category Awardee

JELYN ELEMINO

In all her business ventures, Jelyn Elemino has shown her strength in understanding market trends and the needs of her customers. “My business started with farming—that’s been my basic business since 2004. I went abroad but didn’t stay long and came back in 2016 when Osmeña Peak just started getting popular,” Jelyn shared. “A lot of people would ask where’s the nearest place they can eat and that was when it hit me. That’s why I built [a restaurant] in 2017.” Like many micro-entrepreneurs who often have limited working capital to rely on, Jelyn joined RAFI MFI with a starting loan of Php 5,000. Having started with just a single employee, she now has eight—three of whom are out-of-school youth and one is a student who comes to work when school is off. Jelyn invested her time and resources into helping her community as she believes doing so will have a ripple effect in the future. In her acceptance speech for the MEA, she said, “Daghang salamat, RAFI Micro-finance. Kamo ang naghatag nako og kusog. Kamo ang naghatag kanako kung unsa ang anaa nako karun. (Thank you so much, RAFI Micro-finance. You have given me strength. Whatever I have now is all because of you.)” 2019 | Mauswagon Entrepreneur of the Year

â€œUmulan, umaraw o bumagyo, sama sama tayo.â€? 17

Annual Report | 2019

20 Years and Beyond of Elevating Lives

Since its establishment on December 10, 1998, RAFI Micro-finance, Inc. has touched the lives of more than 300,000 individuals and their families. Being true to its promise of elevating lives through sustainable and rewarding livelihood, RAFI MFI continues to deliver tailor-fit products and services to its clients who are also called the Nanays and Tatays.

To further support the organization’s growth, manpower development was also prioritized. In 2019, the Human Capital team further strengthened its Learning and Development programs to ensure that employees are equipped to accomplish their duties and responsibilities. Besides that, a dedicated Branch Expansion team was also put in place to improve the expansion strategy of the organization.

In 2019, RAFI MFI culminated its 20-year journey in the industry. For the past two decades, RAFI MFI has seen itself evolve into the social enterprise it is today. When its operations started in 1999, RAFI MFI only had two branches—Argao and Minglanilla—and about 646 borrowers. This year, RAFI MFI operations have spread across the Visayas region with 174 branches and more than 300,000 borrowers—a great leap indeed.

With all these changes in place, RAFI MFI also acknowledges that clients’ welfare should never be left behind. Thus, 2019 saw the creation of market-driving products and services. One particular milestone is the establishment of the Small Business Loan (SBL) unit and the pilot implementation of the SBL product. The SBL loan product is intended for micro, small, and medium enterprises, offering diminishing rates for loan amounts ranging from Php 51,000 to 300,000. The SBL project was piloted in six Cebu branches.

Apart from this growth, 2019 was yet another pivotal year for the organization. A review of the strategic direction was conducted and the five-year strategic plans were put in place. RAFI MFI has redefined its mission of becoming “social entrepreneurs providing financial and non-financial assistance to empower the poor and elevate their lives,” anchoring on the vision of seeing empowered clients who have indeed elevated their lives as well as their families’. This is known as RAFI MFI’s 2-5-10 strategy, which is to serve 2 Million Clients, in 5 Years, touching 10 Million Lives. In order to ensure that this 2-5-10 goal is achieved in the next five years, several process reviews and improvements were done in 2019. RAFI MFI embarked on the Bugsai 2.0 project with the Renoir Consultancy Group. The project aimed to implement the operational management systems, standardize processes, and create a holistic management system for the Operations and Shared Services departments. As a result of the project, existing operations processes were streamlined. The Operational Excellence (OE) team was also established to ensure that new processes are strictly implemented and continuous process reviews and improvements were done.

2019 | RAFI MFI

A dedicated Client Development Services team was also established which will mainly focus on providing quality customer service and client engagement activities. Social Performance Management (SPM) was placed as a top priority of the organization as it also reviewed its existing policies, processes, and protocols to ensure that client protection principles are adapted and implemented. Not only that but RAFI MFI has also started to develop its RAFI MFI Persona with the creation of the RAFI MFI jingle, “Walang Iwanan,” emphasizing RAFI MFI’s commitment to journey with the clients through every step on their way towards prosperity. These changes, process improvements, and interventions are intended to start the ball rolling as RAFI MFI’s moves to achieve its 2-5-10 strategic goal. As it aims to reach more clients and their families, RAFI MFI is not just thinking about the next five years. Going beyond that— seeing their clients unleash their maximum potential, grow their enterprises, and elevate the lives of their families—is the ultimate goal of the organization. Here’s to 20 more years and beyond of elevating lives!

Jingle

RAFI MICRO-FINANCE

WALANG IWANAN

Hangad namin ang magandang buhay para sa’yo Maayos na kinabukasan para sa pamilya mo Di ka na mahihirapan, kasama mo kami sa laban Ano man ang ating pagdaanan, walang iwanan Ang iyong mga hangarin ang aming inspirasyon Upang patuloy na gumabay at tumulong Gaganda ang buhay mo, sabay tayong aasenso Umulan, umaraw, o bumagyo, Samasama tayo KORO: MAAABOT MO NA ANG ‘YONG MGA PANGARAP SASAMAHAN KA SA ‘YONG MGA PAGSISIKAP BABAGUHIN NATIN ANG BUHAY MO, AANGAT KA DITO HAHARAPIN NATIN ANG BAWAT HAMON SABAY TAYONG AAKSYON AT SUSULONG SA RAFI MICROFINANCE, WALANG IWANAN Tulay: Itatayo ang iyong dangal Samahan natin ng dasal Iaangat ang kabuhayan Ngayon natin simulan KORO: MAAABOT MO NA ANG ‘YONG MGA PANGARAP SASAMAHAN KA SA ‘YONG MGA PAGSISIKAP BABAGUHIN NATIN ANG BUHAY MO, AANGAT KA DITO HAHARAPIN NATIN ANG BAWAT HAMON SABAY TAYONG AAKSYON AT SUSULONG SA RAFI MICROFINANCE, WALANG IWANAN

RAFI MFI Jingle | 2019

“

Babaguhin natin ang buhay mo, aangat ka dito.

“

2019 | Annual Report

PROCESSES SYSTEMS

and

With the strategic goal of serving two million clients in five years and touching ten million lives, RAFI MFI has improved its processes and systems to serve the RAFI MFI Nanays more efficiently. On June 3, 2019, RAFI MFI partnered with Renoir Consulting to initiate the Bugsay Project 2.0. Active in over 30 countries, Renoir is an implementation consultant that helps to execute change in management processes to improve productivity and boost financial results. RAFI MFI had worked with Renoir on a previous project which made a very positive impact on our operations. Meanwhile, to further improve our core banking system, RAFI MFI began working with Oradian on July 1, 2019, to develop Instafin as a replacement for the previous BIJLI system. Bugsay Project 2.0 The Bugsay Project sought to evolve RAFI MFI processes by improving the Management Control System (MCS); developing modules, new critical functions, standardized reports, dashboards, and templates; establishing Center Officer and TS incentives; and improving Branch and Center tools. This was intended to give the RAFI MFI main office and branches a clearer view of their roles and responsibilities by removing barriers to communication, reducing caseload and activities, smoothing the flow of meetings, streamlining processing and approvals, and avoiding redundancy in the reports generated. Although these changes affected all departments, the RAFI MFI Main Office saw the most benefit because the changes most closely touched the core of the operation and RAFI MFI Shared Services, especially the Human Capital and Marketing groups. The improvements that Renoir brought enhanced the processes of these departments.

Instafin Project The Instafin Project was implemented to improve RAFI MFI’s core banking system to be more flexible and scalable which can support our expansion plans. This system handles all of RAFI MFI’s operational transactions from the client approach to the loan application until the disbursement of the loan. In 2019, the Instafin Project team conducted the gap analysis and presentation, defined the processes involved in the system, performed a series of user acceptance tests, and completed the system setup in preparation for the pilot testing that took place in January of 2020. With Instafin, real-time reports can be generated both in the branch and in the Main Office. Compared to the previous system, Instafin has a reduced processing lead time since it has fewer manual processes, more streamlined branch transaction processing, and a data structure that can be easily extracted, understood, and interpreted. Instafin was mainly developed to provide better service to our Nanays. By reducing the processing lead time, it will also reduce the waiting time in receiving loans.For our employees, Instafin will make it easier to log personal data securely and generate accurate up-to-date balances and other records. Change management processes are being implemented to provide support and coordination across the teams that will be affected. In just over a year, the Bugsay Project 2.0 and the Instafin Project have greatly improved RAFI Microfinance’s processes and systems. With better overall performance, we can look forward to providing better service in transforming the lives of each of our micro-entrepreneurs.

Alongside the changes in RAFI MFI’s internal processes, the Bugsay Project also aimed to provide better services to the Nanays. On-time loan releases and smooth center meeting flow have motivated clients and developed stronger client-staff engagement. These results have clearly addressed the issues and problems previously encountered by our Nanays.

Processes and Systems | 2019

2019 | Processes and Systems

â€œ Haharapin natin ang bawat hamon, sabay sabay tayong aaksyon at susulong. â€œ

Annual Report | 2019

NUMBER OF MANPOWER YEARLY 2019

2035

2018

1649

2017 2016

1056

460

500

1000

1500

2000

2500

549 26.98%

1486 73.02%

GENERATION X 1.08%

549

GENERATION Z 25.45%

518

MILLENIALS

73.46%

2019 | Number of Manpower Yearly

1495 26

All Is Not

Lost

and claimed that it was her bag. The police verified this and turned the bag over to her,” he shares. “Out of her gratefulness, she handed me some bills and insisted that I take it as a reward for the good deed I had done, but I kindly declined it because I believe that the reward for a good deed is having it done. In this world, someone should be a model for others to follow and pay the kindness forward.”

We’ve all heard lots of stories from different walks of life. They are sometimes tragic and sometimes victorious, and once in a while, we hear a story that truly inspires us. Such is the story of Romnick Sanchez, a 26-year-old from Mabinay, Negros Oriental, and a proud RAFI MFI Trust Staff in Dumaguete. Recently, Romnick faced a dilemma that could have challenged his personal values, but instead, he proved that in his heart, he truly wanted to do the right thing. “I was raised by my parents to be full of love, compassion, and discipline,” shared Romnick. Although he did admit that at times “life is really full of surprises and events that will challenge your dignity and integrity as a person.” “One day, I went to the money center to do a transaction. As I approached the door, a bag on the bench caught my attention,” Romnick narrates. “After completing my transaction, I decided to bring the bag with me and headed back to the office. My curiosity really rose which led me to open the bag. To my surprise, I saw a lot of bills inside!”

Romnick believes that his act of kindness is something that has built his character in his daily duties. He also shares that his values had been further strengthened as an employee of RAFI Micro-finance. “They taught me how to be confident in anything that you do in your life, to always display care and concern to everyone—not just to our Nanays but for everyone—and to be yourself under any circumstances,” he said. “I only dreamed to be successful, and I know that RAFI MFI will also play a great part in revealing my future and how my life should be.” No matter what happens in life, Romnick believes that everything we go through helps us in becoming the people that we are meant to be. “I believe that as I cross this journey, a lot of things will come into my way—much like what I have encountered—and they are, in fact, life’s lessons for me,” he shared. “To my fellow Trust Staff, I’ll say it clearly, always pay it forward! Never expect something in return. As long as we do things from our hearts, all will be worth it. Let us live what we say—bugsay!”

This might have been a tempting situation for many people, but Romnick saw it as an opportunity to set an example. “I felt overwhelmed, so I contacted my manager and immediately informed him about what I discovered. We then went to the police station and filed a blotter. I could have hidden the money and kept it a secret, but I have always believed that money should be honestly earned,” he continued. “I have big respect for my family and for RAFI MFI. I believe they are all blessings to me, and I thought that it was the perfect time to also be a leading example to my fellow Trust Staff and fellow collectors in this industry.” Upon arriving at the police station, Romnick saw a girl who had also come in to report her lost bag. “She looked troubled

All Is Not Lost | 2019

“As an employee, I am very happy with what we have achieved. Yes, there will be a lot of challenges to face in order to reach our goal, but as one of the employees, what I can say to myself is that I will be doing my part and my best to contribute for the future success of RAFI MFI. I will continue to provide services to the Nanays, and bring them hope. I will help in the mission of RAFI to elevate their lives.”

NAOMI NAVACILLA DISTRICT HEAD

RAFI MFI “As long as we practice good communication with our clients, it will always give the impression that they are special to us. I will do my best to motivate my team members, and give out the best service we can deliver. Thank you to my team, my supervisors, from the area heads and district heads, for always motivating me. Lastly, thank you RAFI MFI for giving me this award. This will always serve as a motivation to be better than I was yesterday.”

JASON TUAZON BRANCH MANAGER

2019 | RAFI MFI Staff Diaries

With RAFI, I could say that we are all heroes. We are here to help our Nanays, who are just like us. We give light, we build, we touch and elevate their lives. We have such a big effect in their lives—that is why I can say that we are heroes in our own ways. I am very much thankful to RAFI, in behalf of everyone that they’ve helped, including me and the other staff. Thank you for the opportunity, and for not only thinking of our Nanays, but the employees as well. If you continue to love your job, RAFI returns it a thousand-fold!

MICO PUTON TRUST STAFF

STAFF Diaries “Working for RAFI has been the product of a long-held belief in finding something meaningful, something that benefits a greater swath of society, is one of the most fulfilling jobs there is. While working for RAFI, I saw the impact of working for an organization that exists not for its own benefit, but for the benefit of the less fortunate, of the sick, of the children, and of the youth. It is with RAFI that I saw a mix of talents from a diverse set of people, held together by a common belief that there is something each one of us can do to make our society better, where true and lasting impact can be made. Personally, I feel like in my two and a half years at RAFI, I was able to fully realize the limits of what I can do. I was stretched out of my comfort zone, into what I now know is my core zone. It is with RAFI that I was able to learn to readily accept new challenges and new roles that required new competencies. RAFI takes care of building you up competency-wise, while at the same time giving you the freedom to draw up your own strategy and develop ideas on your own, and fostering confidence through mentoring and coaching from able leaders and co-workers.”

CHRISTIAN ANUTA HEAD, RESEARCH & PRODUCT DEVELOPMENT

RAFI MFI Staff Diaries | 2019

“Happy and contented. In RAFI, I feel that I am working with professionals that I can learn from, and that they will push me to take on new and challenging opportunities. The organization allowed me to learn new skills, and meet new people that I now consider as family.”

SCOTT RAGO

TALENT ACQUISITION SPECIALIST

Working in RAFI is both an honor and a responsibility. This is one of the organizations I looked up to when I was still a student. So when I was given the opportunity to be part of RAFI, I grabbed the chance—luckily, I got it. There is no perfect job and perfect colleagues in this complex and pressured world, but RAFI allows room for improvement, and nurtures and molds you to be the best person that you can be. Despite the things I don’t know, I am not hesitant to ask for guidance from every individual on my team. RAFI turned my perspective in a different dimension, that I can work and help the community by providing services. I can contribute to RAFI’s vision, and that is to be an architect of change and to nurture people. In the future, I hope that we will be able to elevate the lives of our clients, and our own as well.

EDMAR ABELGAS CLIENT DEVELOPMENT OFFICER

2019 | RAFI MFI Staff Diaries

It’s rewarding and challenging, in a good way. This job doesn’t require sitting in my workstation all day long—I am traveling to one city after another so that I can reach vulnerable communities, and make sure that help reaches them. It also gives me a front row seat to the real aspirations of people, to them learning and growing—especially since I interact closely with the Nanay-entrepreneurs of RAFI Micro-finance, Inc. There’s nothing more satisfying and rewarding than seeing them happy and smiling as they receive their awards for being outstanding clients. Being able to help people—the Nanayentrepreneurs—through the organization’s financial and non-financial services, is a reward in itself. I enjoy the variety of work that I get to do. No two days are the same, and I even get to wear many hats, so to speak.

INNA MEJIA

MARKETING SERVICES SPECIALIST

“For all the RAFI MFI staff, let us continue our dedication to our work. Stay honest, so that the company will trust us, because our work is very risky handling money. Let us not breach the core values, and cooperate with our Team Leader’s decisions. We will not be able to reach our goal if we don’t work as a team. I want to thank RAFI Micro-finance for giving me a chance to be a part of a team that inspires other people.”

EDWARD BUTAL AREA MANAGER CEBU

RAFI MFI Staff Diaries | 2019

CHRISTMAS BAG OF JOY RAFI MFI has supported the campaign “Christmas Bag of Joy,” spearheaded by the Dolores Aboitiz Children’s Fund (DACF). With the aim of spreading the Christmas spirit, RAFI MFI distributed 800 bags full of educational materials, hygiene kits, toys and goodies to underserved children in the community. Spreading the joy, goodwill and Christmas spirit has reached Cebu, Bohol, Negros, Iloilo, Leyte and Samar.

The RAFI Toastmasters Club (RTMC) during their Induction and Installation of New Members last, August 2019.

RAFI MFI team dance to the RAFI MFI Jingle entitled “Walang Iwanan” launched last December 2019.

2019 | RAFI MFI Staff Diaries

The 2019 Micro-finance Council of the Philippines Inc. (MCPI) Annual Conference talked about Digitalization, Improving Systems, and Processes. The MFI Exchange discussed how embracing digital technology provides opportunities to micro-entrepreneurs as well as strategic planning to all MFIs. For the next conferences, RAFI MFI aims to invite key micro-entrepreneurs to join and learn from the event.

#TeamBaskog and #TeamMasigasig during the completion of their 20-day On Boarding last October 2019.

RAFI MFI Staff putting out a fire during the Emergency Response Training & Drill organized by the RAFI Risk Management Team held last October 2019 at Ormoc City.

RAFI MFI Staff dance â€œBudotsâ€? during the General Assembly last July 2019.

RAFI MFI Team during the Bugsay Project 2.0 Team Building at Cebu Yacht Club.

RAFI MFI Staff Diaries | 2019

NURTURING

Neophytes

Imagine a room of 20 people—all strangers with different personalities, from different cities, and with different job positions.

This is how the onboarding process for newly hired staff usually starts—a group of 20 strangers, uncertain of what to expect or what lies ahead but excited for the days to come. They’re all seated in a comfortable session space, waiting for their lives to change. “Dako gyud og impact nga ikaw emplayado ka, nga niapil ka’g training (There really is a big impact for you as an employee to be able to attend pieces of training).” This was the statement of 26-year-old Cherwin Ado, a Trust Staff from Capoocan Branch of the District of Leyte, when asked about his experience with RAFI Micro-finance. Cherwin has only been in RAFI MFI for four months, but he already has fond memories of the training culture in the organization. In fact, during his 20-day onboarding, organized by the Human Capital team for all new staff, he was voted President by his batchmates. “Nasuod mi tanan kay aligri kaayo (We all became close because all had fun),” he shared, adding that he still communicates with his newfound friends in a Messenger group chat. Marketing specialist for Negros Island, Iloilo and Panay, Daisy Sartoria has been with RAFI MFI since November 2019 and also expressed her appreciation for the onboarding activity she attended. “Masaya siya na puno ang utak mo ng impormasyon (it was fun that you brain is filled with loads of information),” she shared. Of course, it was more than having fun and meeting new friends. Both RAFI MFI neophyte staff shared what their onboarding experience introduced them to and equipped them for their new positions. According to Cherwin, the 20-day process made him see clearly what his job entailed. It also helped him understand RAFI MFI and learn its mission, vision, and core values, which he shared were constantly repeated during the session. “Kinahanglan gyud nga ang vision and mission sa RAFI kay maabsorb gyud nimo sa imo kaugalingon (It is important that you really internalize RAFI’s vision and mission),” he said. Meanwhile, Daisy had been with branch staff during her onboarding and had an immersion in one of the branches. She shared that the experience helped her understand not only what her work entails but also what the job of the branch staff is all about. The Learning and Development Director for RAFI Micro-finance Erasto Panes says that the implementation of a 20-day onboarding training for new staff started in the last quarter of 2019. The four-week process includes five days of classroom orientation, five days of observation in the branch or the main office, five days of actual application in the branch or the main office, and lastly, another five days of classroom discussion to validate learnings. “We did this para pag-deploy sa ila, kay ready na gyud sila. Gi-tailor-fit namo to the needs of RAFI MFI and its Operations (We did this so when the staff is deployed, they are really ready. We tailor-fitted the onboarding process to the needs of RAFI MFI and its Operations),” added Rasty, as he is fondly called by his colleagues. As a testament to the effectiveness of the onboarding process, Nicomedes Niñolas, an Area Manager of the Bohol District, shared that he had observed the dedication of his new staff. He shared how the staff that underwent the 20-day process were more confident in dealing with clients. “Taas-taas na ang ilang competency. Inig deploy nimo sa area kay maka-produce na og results (The new staff members are highly competent. When you deploy them to an area, they can already produce results),” he added. For the staff, learning doesn’t just stop during the onboarding. One of the Learning and Development Team’s missions is to produce outstanding training participants in a way that they would be fully equipped, responsible, productive, and self-directed employees. After the onboarding activities, when the staff members are already working with their teams, Human Capital guides them through various integration programs and pieces of training that are based on a staff’s length of stay in the company, their competencies and needs, and their position. The year 2020 is also the expected launch of the RAFI MFI Workplace Learning and Development, an online platform where staff can access pieces of training and modules at the tip of their fingers. According to Rasty, the goal is to make sure that all staff members attend a minimum of 40 training hours a year, equipping them to be “sundalo ng RAFI MFI sa pagtulong sa mga mamamayan (soldiers of RAFI MFI in helping the community).” 2019 | Nurturing Neophytes

â€œItatayo ang iyong dangal, sasamahan natin ng dasal.â€? 35

Annual Report | 2019

PARTNERSHIP AND SYNERGY

The national network of microfinance institutions that collectively work towards providing sustainable, innovative and client-responsive solutions to poverty in the country

Capacitating the serving Entrepreneurial needs of SMEs (both RAFI MFI clients and non-clients)

Fire and calamity assistance to clients, and group life and accidents coverage of clients in case of emergencies

Alternative distribution channel for loan releases

Conduct of special recruitment activities (SRAs)

Conducted skills and livelihood trainings to clients during the Community Outreach Programs (COPs)

Provision of access to better and improved water, sanitation, and hygiene (WASH) facilites to clients through WaterCredit

2019 | Partnership and Synergy

A tripartite agreement for the Boost Accelerator Programs that aims to train micro-entrepreneur in becoming a Social Enrepreneur

â€œIaangat ang kabuhayan, ngayon natin simulan.â€? 37

Annual Report | 2019

SOCIAL PERFORMANCE MANAGEMENT RAFI Micro-finance, Inc. (RAFI MFI) has been empowering its clients by providing access to finance with the hope of helping them explore opportunities for the future and break the cycle of poverty. To create value for nanays and tatays and monitor their progress in achieving the social goals, RAFI MFI has established the Social Performance Management (SPM) and adopted the client protection principles.

PATHWAY TO IMPROVE SPM PRACTICES In translating the RAFI MFIâ€™s social mission into practice, the management used this guide to implement and achieve the compliance of the SPM. Below are the identified action plan implemented to align the SPM practices of RAFI MFI.

2019 | SPM

Action Plan to Achieve and Comply with SPM Standards

Definition

Update

Understand SPM and its importance.

• March 2018 – The Coordination Committee was oriented about the SPM and CPP Standards and its importance by the SPI4 Auditor and SPM Experts from MCPI.

Assess

Use of SPI4 social audit tool to understand the SPM practices.

• March 12-15, 2018 – RAFI MFI had an audit and assessment on the practices of SPM conducted by the SPI4 Auditor. • Presented the social audit result to the Coordination Committee.

Plan

Use the assessment result to create an action plan and prioritize the areas for implementation.

• Used the result of the assessment to prioritize areas for implementation. • Created the RAFI MFI SPM Action Plan.

Implement

Use of the identified action plan to align and improve the SPM practices.

• Ongoing implementation of the identified action plan to align and improve the SPM practices of RAFI MFI.

Report

Provide an update to both internal and external stakeholders about the improved practices and the client outcomes.

• Provide report to the internal and external stakeholders of the improved SPM practices. • To attain Client Protection Principles Certification. • To pass the SPI4 Social Audit Assessment.

Learn

SPM | 2019

RAFI MFI ACTIVITIES THAT PROMOTES SPM Kick-off of SPM Champions When RAFI MFI Management approved the SPM Governance Structure, the Operational Excellence Team immediately established the SPM Committee and SPM Champions. SPM Committee. The SPM Committee, composed of all Group Heads, is accountable for making progress towards the defined social goals. Its composition ensures that all efforts in institutionalizing SPM are aligned. After the champions were identified by the Committee, the Operational Excellence team, headed by Miraflor Enecio, immediately kicked off the SPM Champions. SPM Champions. The SPM Championsâ€™ core responsibility is to carry out the SPM implementation plan and deliverables from review to solutions development, to drive implementation, and to enforce compliance.

2019 | SPM

SPM Champions Kick-off, October 9, 2019

1st SPM Champions Meeting, November 4, 2019

Incorporate SPM Orientation in the New Hire Onboarding and Integration Training

SPM Champion Setting in the Project Groups

HERE ARE THE OTHER ACTIVITIES THAT PROMOTE SPM

Microfinance NGO Regulatory Council Cascading of Data Privacy to the Employees by Risk Management Team

Accreditation of RAFI MFI as MFI NGO to MNRC

Entrepreneurs Summit

Strengthen Feedback Management Channels

Cascading of RAFI MFI House to the different units particularly to the branches.

Implement Zero Interest Rate on all Production Loans

SPM | 2019

SOCIAL PERFORMANCE MANAGEMENT TOOLS POVERTY PROBABILITY INDEX (PPI) • Is a proven poverty measurement tool which measures the poverty likelihood of the RAFI MFI clients and track its progress. • It also improves the social performance intervention of the RAFI MFI to its clients. • This survey is conducted to all the clients during the CI/BI process which will provide RAFI MFI a proper assessment on what products or services are suitable to the client.

SOCIAL IMPACT SURVEY • Is an assessment of the level of social impact RAFI MFI has on its clients based on the identified social outcomes, which are classified into Business Outcomes, Household Outcomes, and Personal Outcomes. • This survey is being conducted to clients annually.

CLIENT EXIT SURVEY (CES) • Is a survey that enables RAFI MFI know the client’s reasons for leaving the program and uses this feedback to improve the existing product and services in order to provide an appropriate product design and delivery. • This survey is being conducted to those clients who wants to leave or exit RAFI MFI.

CUSTOMER SATISFACTION SURVEY (CUMSAT) • This survey measures the client’s overall satisfaction on the products and services of RAFI MFI • This survey is a way of managing and improving its products and services to cultivate happy and loyal customers. • It is a way of managing and improving its products and services to cultivate happy and loyal customers.

2019 | SPM

Management Directory | 2019

BOARD OF TRUSTEES

Mikel Alberto Aboitiz

Carlos Ramon Aboitiz

Fr. Ernesto O. Javier

Atty. Manuel S. Go

Dominica B. Chua 2019 | Management Directory

EXECUTIVE COMMITTEE CHAIRMAN

MEMBERS Mikel Alberto Aboitiz

Ana Aboitiz-Delgado 45

Carlos Ramon Aboitiz Management Directory | 2019

Eduardo Alfred Aboitiz

David Aboitiz

Dominica B. Chua 2019 | Management Directory

MANAGEMENT COMMITTEE

Dominica Chua PRESIDENT

Jonar Dorado COO, RAFI MFI

Ma. Theresa Catipay OPERATIONS, HEAD

Ailyne May Lim EXPANSION HEAD

Management Directory | 2019

Riella Mae Christa Guioguio CFO & COMPTROLLER

Anthony Jimenez

DIRECTOR, MARKETING

Michael Godinez

CHIEF PEOPLE OFFICER

Atty. Jasmine Cuizon

LEGAL AND COMPLIANCE HEAD

Florentino Villa, Jr. CORPORATE SOLUTIONS MANAGER

2019 | Management Directory

Edwin Marfil

CHIEF TECHNOLOGY OFFICER

Ramonchito Jaca

CHIEF AUDIT EXECUTIVE

Pet John Rom RISK MANAGER

MANAGEMENT COMMITEE WITH OPERATIONS TEAM

Management Directory | 2019

THE RAFI MFI TEAM MAIN OFFICE

RAFI MFI Team during the Entrepreneurs Summit

TACLOBAN STAFF

RAFI MFI Team during the Client General Assembly held in Tacloban

CARIGARA STAFF

RAFI MFI Team during the Client General Assembly held in Carigara, Leyte

DULAG STAFF

RAFI MFI Team during the Client General Assembly held in Dulag, Leyte 2019 | Management Directory

RAFI MFI Team during the Client General Assembly held in Tagbilaran

RAFI MFI Team during the Client General Assembly held in Alegria, Cebu

RAFI MFI Team during the Client General Assembly held in Bais, Negros Oriental

RAFI MFI Team during the Client General Assembly held in Asturias, Cebu RAFI MFI Team during the Client General Assembly held in Bogo, Cebu

Management Directory | 2019

INFORMATION TECHNOLOGY TEAM

AUDIT TEAM

2019 | Management Directory

CORPORATE SOLUTIONS TEAM

STRATEGY MANAGEMENT OFFICE

Management Directory | 2019

BRAND DEVELOPMENT GROUP

HUMAN CAPITAL TEAM

2019 | Management Directory

FINANCE, COMPLIANCE AND RISK TEAM

Management Directory | 2019

Sa RAFI Micro-finance,

Walang Iwanan

2019 | Annual Report

AU D I T E D F I N A N C I A L S TAT E M E N TS