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ABOUT THE COVER RAFI Microfinance, Inc. (RAFI MFI) remains steadfast after 26 years of service, staying true to its mission of elevating microentrepreneurs by providing financial and non-financial support that drives real, lasting impact. The 2024 Annual Report, themed Kaagapay in Action: Driving Impact with Microentrepreneurs, reflects its unwavering commitment to empowering the least, the last, and the lost. Kaagapay in Action highlights RAFI MFI’s active role as a true partner in empowering microentrepreneurs. Kaagapay—which means “partner” or “supporter”—reinforces that RAFI MFI is more than just a financial service provider; it stands alongside its clients, ensuring their progress and resilience. In Action signifies a hands-on approach, engaging with clients beyond loans by offering guidance, training, and resources to help them succeed. Driving Impact captures the transformative effects of RAFI MFI’s efforts. Through accessible financial products, capacity-building initiatives, and community support programs, the institution creates opportunities for microentrepreneurs to improve their livelihoods, expand their businesses, and uplift their communities. The measurable success of its clients reflects the effectiveness of this mission-driven approach. As the organization moves forward, RAFI Microfinance remains committed to fostering inclusive growth—ensuring that every microentrepreneur it serves experiences meaningful progress and sustainable success.
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GREETINGS
BOT Chairman and CEO Messages
FOUNDATION OVERVIEW
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10
Building Better Futures Together
OUR PURPOSE
Vision, Mission, and Core Values
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OUR MILESTONES 16 OUR JOURNEY OF 29 EMPOWERMENT EMPOWERING LIVES, ENABLING CHANGE OUR SOCIAL PERFORMANCE MANAGEMENT
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44
RISK MANAGEMENT
47
STAKEHOLDER ENGAGEMENT
48
BUGSAY 3.0
49
BRINGING OUT THE BRAND
51
OUR LEADERS
53
FINANCIAL STATEMENTS
71
MNRC
79
AWARDS
80
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GREETINGS
CHAIRMAN’S MESSAGE Mauswagong Adlaw! I am honored to assume the role of Chairman of the Board as we move through 2024, succeeding our esteemed former Chair, Mikel Alberto Aboitiz, whose strategic leadership has played a pivotal role in shaping our organization.
GREETINGS
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The past year was a defining chapter
in accountability and innovation, and
for RAFI Microfinance (RAFI MFI)—one
continued
marked by resilience, transformation,
technology and digitalization, we are
and
renewed
poised to redefine financial inclusion
face
of
momentum.
post-pandemic
In
the
challenges
strategic
investments
in
for the next generation.
and natural disasters, we emerged stronger: with a more agile structure,
Most
reinforced
foundations,
communities remain at the heart of
and a clear, forward-looking vision.
everything we do, as we stay true to our
Embracing change, we streamlined our
role as a Kaagapay. Together, through
operations,
collaboration,
collaboration and shared purpose, we
our commitment
will build a brighter future—one where
financial
deepened
and
strengthened
to
innovation.
Through
importantly,
our clients
and
our
financial empowerment drives lasting,
transformational programs, we touched
positive change for those who need it
over 3.5 million lives across our 308
most.
branches throughout the Philippines. These efforts not only accelerated our
Padayon ta sa pag BUGSAY!
growth but also expanded our positive impact on the communities we serve. As we look ahead to 2025 and beyond, we remain focused on sustainable growth and meaningful transformation. With a strengthened leadership team— led by Thomas Kocsis as CEO and President—a culture grounded
Carlos Ramon C. Aboitiz
Chairman of the Board of Trustees
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GREETINGS
PRESIDENT’S MESSAGE 2024: A Year of Transformation and Resilience 2024
was
a
RAFI
Microfinance—a
transformative
pivotal progress
year
for
period
of
following
the challenges of the post-pandemic era and the aftermath of Typhoon Odette. With renewed purpose and focus, we continued our operations and implemented key improvements, laying the groundwork for long-term success. A major milestone was the inclusive restructuring
of
our
organization.
Streamlining decision-making across all functions increased our efficiency, while the strengthening of our finance and risk teams enhanced financial management,
forward-looking
business analytics, and control over our portfolio and enterprise risks.
GREETINGS Charting the Future With
this
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Insights from the Ground foundation,
One of the most rewarding aspects
we took bold steps toward sustainable
of 2024 was visiting nearly all 13
growth.
strengthened Strategic
enhancements
helped us refine an ambitious vision for RAFI Microfinance by 2030. Through thoughtful
strategy
reviews
and
districts and engaging directly with our teams and clients. These visits offered valuable
insights
and
opportunities
collaborative “blue-sky” sessions with
for continuous improvement. Meeting
our leadership team, we charted an
clients at their businesses was especially
inspiring path forward.
inspiring—their stories of resilience and
These
initiatives
position
us
for
continued progress. Our optimism for the future is grounded in a clear strategic direction and a deep commitment to the
growth reaffirmed our mission. A particularly moving experience took place in Bicol after Typhoon Kristin.
communities we serve.
Despite the devastation, I witnessed
Embracing Change to Drive Impact
extraordinary resilience and unity. In
Navigating
change
was
Canaman, where our branch had been the
defining
submerged,
the
community’s
swift
challenge of 2024. Since I joined RAFI
recovery and unbreakable spirit stood
Microfinance in April, I introduced a
as a powerful testament to the strength
leadership style that demanded both
of those we serve.
adaptation and resilience. Clear and open communication became the cornerstone of this transition, fostering collaboration and breaking down silos. The results are evident: faster execution, stronger alignment, and a more unified impact.
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GREETINGS
Operational and Financial Success
Harnessing Technology for Transformation
In 2024, our loan portfolio grew by 11%,
With the appointment of a new Vice
exceeding our annual targets despite
President for Information Technology,
typhoon-related challenges. Portfolio
we
quality remained stable, reflecting our
and established a dedicated Digital
strategic focus and agility.
Transformation team. This group is
streamlined
our
IT
functions
actively shaping our digital future, Our finance team made a notable
from piloting cashless payments to
streamlining accounting systems and
exploring AI-powered, self-service loan
identifying cost-saving measures. As a
applications, which is pushing into an
result, we achieved both gross and net
exciting new era for RAFI Microfinance.
interest income targets, reinforcing our financial stability and setting the stage for future investments.
Steadfast Commitment to Our Social Mission Even
amid
transformation,
our
commitment to social impact remains unwavering. In 2024, we expanded our
community
outreach,
delivering
essential health services and financial literacy training. During times of crisis, we mobilized quickly to provide relief packages, demonstrating our ongoing dedication to uplifting lives.
GREETINGS
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Partnerships for Greater Impact
We are equipping leaders with tools for
Collaboration remains central to our
data-driven
decisions
success. Stronger partnerships with
leadership
development
insurers
that foster sustainable growth. At the
have
and
enhanced
technology
providers
our client
services
and fortified our capabilities for the future. Together, we are creating more
and
launching initiatives
heart of this evolution are empathy and
communication,
ensuring
RAFI
impactful solutions for the communities
Microfinance’s leadership remains both
we serve.
effective and human centered.
2025 and Beyond: A Vision for Innovation
With renewed energy and a shared vision,
As we look ahead, our focus is clear: enhance client services, nurture a culture
we are ready to deliver even greater value to our clients and team members. Our
of innovation, and build an inspiring
strategy is grounded in collaboration and
workplace. With a solid foundation in
built for impact. Improving lives is not
place, we are poised to scale—empowered
just our mission, it’s a shared journey, and
by our greatest asset: our people.
we are proud to lead the way forward.
Thomas Kocsis
CEO and President
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FOUNDATION OVERVIEW
BUILDING BETTER FUTURES
TOGETHER
FOUNDATION OVERVIEW
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RAFI Microfinance, Inc., formerly known
RAFI Microfinance offers a diverse
as Cebu Micro-Enterprise Development
range of products. Whether it is life
Foundation
Inc.
was
financing,
established
in
the
other financial need, RAFI Microfinance
(CMEDFI), 1998
under
to
micro-insurance, provide
or
any
Microfinance & Entrepreneurship focus
strives
comprehensive
area of the Ramon Aboitiz Foundation
solutions to support the success of
Inc. (RAFI). It is a social enterprise with
microentrepreneurs.
the aim of enhancing the economic and social well-being of communities by
Moreover,
offering holistic microfinance services
above
to underprivileged entrepreneurs. Microfinance
operations
across
expanded Luzon,
Microfinance
beyond
by
goes
expanding
its focus to provide a wide range of
RAFI
and
RAFI
its
Visayas,
non-financial
services.
These
services are designed to empower microentrepreneurs
through
access
and Mindanao. It has established 308
to education, knowledge, technology,
branches, serving as beacons of hope
markets, and support for health, social,
for over 600,000 microentrepreneurs in
and environmental well-being.
underserved communities nationwide. The impact of RAFI Microfinance was extensive, touching the lives of over 3.5 million individuals. What sets RAFI Microfinance apart from
other
microfinance
NGOs
is
its commitment to accessibility and flexibility.
Recognizing
the
unique
business requirements and financial needs
of
each
microentrepreneur,
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OUR PURPOSE
VISION AND MISSION
VISION
MISSION
Empowered clients who have elevated their lives and their families
We are Social Entrepreneurs providing financial & nonfinancial services to empower the poor & elevate their lives.
OUR PURPOSE
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CORE VALUES GOD-CENTEREDNESS
We believe we are part of a greater whole. We respect the dignity of the human being and promote the greater good in all that we do.
INTEGRITY
We act with honesty and fairness. We honor our commitments no matter how difficult.
RESPECT
We treat all people, cultures, and the environment with respect. We care for, listen and extend empathy to one another always.
SERVICE
We are called to serve those who need us the most. Keeping to the Bugsay Principle, we contribute our resources to elevate the lives of the people and communities we serve.
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OUR MILESTONES
EXPANDING OUR FOOTPRINT
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TOTAL BRANCHES
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OUR MILESTONES
FINANCIAL SERVICES PRODUCTION LOANS
315K+
Mauswagon Loan is a primary loan that gives the client additional capital for the development of their business.
BORROWERS
An improved business loan product that aims to give financial support to Micro and Small Entrepreneurs in all productive sectors of the economy for the growth and development of their businesses for more employment generation and economic growth.
6K+
BORROWERS
2K+
BORROWERS
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.
OUR MILESTONES
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FINANCIAL SERVICES SUPPLEMENTAL LOAN
76K+
Housing Improvement Loan assists clients with their home improvement needs, such as ensuring access to safe water and decent toilet facilities.
Education Loan helps families by financing school-related expenses and ensuring that clients and/or their children are able to go to school or attend virtual and/or distance learning and finish their studies.
BORROWERS
150+
SAGIP Loan is a unique loan product that offers financial assistance to clients during health or calamity-related emergencies.
BORROWERS
BORROWERS
1K+
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OUR MILESTONES
FINANCIAL SERVICES MICRO-INSURANCE
CLAIMS
Family Relief Plan assists families with burial services and provides them with financial aid in times of death.
Loan Redemption Fund is a mandatory micro-insurance products which provides financial coverage for liabilities in the event of a debtor’s death so liability will no longer be inherited by the next of kin.
1,500+
19,600+
The enhanced Kaagabay provides comprehensive financial protection for the family in cases of accidental injury and death.
1,100+
CLAIMS
CLAIMS
OUR MILESTONES
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FINANCIAL SERVICES MICRO-SAVINGS
479K+
4,600+
A mandatory savings product designed
A voluntary savings product on top of
to help clients build a consistent savings
the CBU and tied to a supplemental
habit, with the goal of generating
loan that offers a high interest rate. This
equity
ventures
product empowers clients financially by
bridge
providing protection in the event of a
financing needs. In addition to fostering
financial emergency, fostering a greater
financial discipline, this product also
sense of financial freedom and literacy.
ACCOUNTS
and
for
ACCOUNTS
entrepreneurial
creating
reserves
for
supports clients in establishing their creditworthiness.
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OUR MILESTONES
CLIENT ENGAGEMENT AND DEVELOPMENT SERVICES
Sustainable Livelihood Training Program This
program
provides
clients
with
Scholar si Nanay Program the
In
line
with
its
mission
to
create
new
opportunity to develop valuable skills for
opportunities for deserving individuals, RAFI
creating alternative livelihoods and income-
Microfinance offers access to NC II-accredited
generating
businesses.
Through
hands-on
training, participants will acquire practical, marketable skills that can be applied within
courses. These courses equip participants with essential skills to build sustainable livelihoods,
their communities. This empowerment enables
ultimately
them to expand their economic opportunities
strengthening their families, and positively
and contribute to local development.
impacting their communities.
4,300+
clients trained with livevlihood initiatives
improving
their
quality
50
clients graduated from TESDA-accredited courses
of
life,
OUR MILESTONES
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CLIENT ENGAGEMENT AND DEVELOPMENT SERVICES Client Capacity Building This
program
enhances
the
micro-
CO as Faculty Center Officer (CO) as Faculty
entrepreneurial skills of RAFI Microfinance (RAFI MFI) clients by providing printed learning
The
modules that offer practical Negosyo tips and
empowers Center Officers by equipping them
essential business concepts. These resources
with the skills to effectively facilitate Financial,
help strengthen their knowledge and boost
Digital, and Entrepreneurial Literacy training
their confidence as entrepreneurs.
for their members.
300+
COs capacitated
32,700+
clients educated in Finlit via CMA
14,600+ clients
with improved business proficiency
Center
Officer
as
Faculty
initiative
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OUR MILESTONES
CLIENT ENGAGEMENT AND DEVELOPMENT SERVICES
Business Registration Services
TNN Online Tindahan
Ni
Nanay
Online
empowers
entrepreneurs through digital marketing-starting
“Empowering clients to be legally recognized entrepreneurs”
as a Facebook group, launching on Shopee, then shifting to a Facebook page to expand support.
To support financial inclusion and formal business practices, a business registration campaign was
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clients assisted
implemented, offering Business Name and TIN registration across branches with assistance provided. This initiative aids in formalizing microenterprises and fostering business growth.
432
clients assisted
business name registration and ORUS account creation for TIN
149
clients trained
on Business Registration
OUR MILESTONES
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CLIENT ENGAGEMENT AND DEVELOPMENT SERVICES Clustering for Livelihood Program
One Branch One Product (OBOP)
The Business Incubation Program, through the
One Branch One Product (O.B.O.P) is a non-
Clustering for Livelihood Program (CLP), provides
financial effort under the RAFI MFI Tindahan Ni
support and ongoing monitoring for selected micro-
Nanay program that highlights the proud products
entrepreneurs. By utilizing a Clustering Approach,
of the RAFI Microfinance client members. This
members work collaboratively to foster business
program allows the respective districts and
growth and sustainability, benefiting from tailored
branches of RAFI MFI to bring in unique and
interventions throughout their development journey.
handmade products of the Ates and Kuyas.It aims
4
clusters graduated
(Pinamungajan, Dumanjug, Daanbantayan, and Aloguinsan Cluster)
20
clients assisted
(Daanbantayan and Aloguinsan Cluster)
47K
sales generated
(Daanbantayan and Aloguinsan Cluster)
to provide support in terms of product marketing and be able to introduce these selected products to the mainstream market.
108
403
for the year
for the year
RELEASE of Product Catalogue 2024
clients trained
curated products nominated products
149
on Product Enhancement and Resiliency Training (PEER)
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OUR MILESTONES
CLIENT ENGAGEMENT AND DEVELOPMENT SERVICES Trade Fair
Business to Business
(Market & Linkages)
(Market & Linkages)
This initiative aims to connect curated merchants
Business-to-Business (B2B) connects selected
to
merchants to partner organizations for curated
buy-and-sell
events,
partnering
with
organizations and local units to foster business
product
sustainability.
opportunities that foster long-term business
118
clients assisted
Through Trade Fair engagements
6.08M
sales generated
Through Trade Fair engagements
52
trade fairs completed
Within Cebu, Bohol, Leyte and Negros
requests/orders,
creating
linking
sustainability.
40
clients assisted through Business-toBusiness engagements
3.39M
sales generated
through Business-toBusiness engagements
OUR MILESTONES
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CLIENT ENGAGEMENT AND DEVELOPMENT SERVICES MEA 2023 ADVANCE Program (Livelihood Resiliency Program)
5
client graduates MEA Awardees 2023
5
business plan completed MEA Awardees 2023
8
modules completed MEA Awardees 2023
IPIFI Trash to Craft Project (Livelihood Resiliency Program)
The Trash to Crafts Livelihood Project aims to
promote
ecological
waste
management
practices, providing livelihood skills training, and creating sustainable products from discarded backing paper.
2
trainings completed In Cebu and Bohol branches
30
clients trained
Both in Cebu and Bohol branches
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OUR MILESTONES
CLIENT ENGAGEMENT AND DEVELOPMENT SERVICES Kaagapay Mo Bugsay Scholarship Program (BSP) BSP contributes to the national effort to reduce poverty by increasing the number of higher education graduates from low-income households and ensuring their employment in high-value jobs. The program specifically
PROJECT WASH
155,800+
individuals educated on WASH and health
3K+
WASH Education Campaign
supports incoming college students who are children of RAFI Microfinance (RAFI MFI) clients.
107
active scholars
18
scholars graduated from the 1st batch
DACF Tigom Panglawas
500
clients and children
increase education about Nutrition
OUR MILESTONES
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CLIENT ENGAGEMENT AND DEVELOPMENT SERVICES Community Outreach Program
6,100+
clients participated in COP
EJACC Barangay Panglawas
1K+
cancer awareness reached
Center Performance Incentive The center plays a crucial role in the microfinance industry. As such, providing timely rewards to center leaders reflects RAFI MFI Management’s appreciation for their service.
59K+
Total number of Qualified Center Officers
₱5.9M
Total incentive amount distributed
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OUR JOURNEY OF
EMPOWERMENT
EMPLOYEE FEATURE STORY
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MICRO OPERATIONS
Vemanda Bransuela Working with RAFI Microfinance for over 21
climate. Over time, his farm stabilized, and his
years has profoundly shown me the true meaning
income gradually returned.
of being a “Kaagapay”—a genuine partner in our clients’ journeys. Being a Kaagapay goes
This experience reinforced my belief in the
beyond offering financial solutions; it involves
essence of being a Kaagapay. After 21 years
walking alongside our clients during their most
with RAFI, I remain deeply committed to helping
challenging times and providing the support
more microentrepreneurs build resilience, adapt
they need to overcome obstacles and grow.
to change, and thrive in their businesses. By
This realization has significantly shaped my
continuing to provide not only financial support
approach to work and has been integral to my
but also guidance and encouragement, we can
mission of helping microentrepreneurs achieve
empower them to create lasting positive change
stability and success.
in
their
families, In my fieldwork, I often engage in what we call “Kamustahan”—a conversation where we check in with our clients. I vividly recall speaking with a farmer in one of Cebu’s mountain barangays whose livelihood was severely impacted by unpredictable weather patterns. For years, he relied on his crops to support his family, but the weather conditions made his farm an unreliable source of income. Many of his neighbors were forced to abandon their farms, but this farmer refused to give up. With RAFI MFI’s products and services, we provided him with the support to diversify his crops and adapt to the changing
lives, and
communities.
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EMPLOYEE FEATURE STORY
MICRO PLUS OPERATIONS
Danny Banol
Working with RAFI Microfinance, I have
unsure if he could ever rebuild. That’s when
witnessed firsthand how we have become a
we stepped in. We provided the financial
true partner to our microentrepreneur clients,
support and guidance he needed to start
especially
challenging
anew. With RAFI MFI’s help, he was able to
times. One client’s story stands out. His small
rebuild, regain his confidence, and gradually
business, which he had spent years building,
restore his business. Today, he runs a
was devastated by a fire that destroyed his
successful operation, provides for his family,
factory, taking away everything he had worked
and contributes to his community.
during
their
most
for, including his equipment and raw materials. Left with nothing but the ashes
This experience embodies the essence of
of his livelihood, he
what we do—being more than just a financial
felt devastated and
service provider. As a Kaagapay, we actively
uncertain
about
engage with our clients, offering not only
how
move
financial solutions but also emotional and
to
forward,
practical support to help them rebuild and grow. It’s not just about providing loans; it’s about standing by our clients in their journey toward financial stability and success. Looking ahead, my goal is to continue expanding our reach and assist even more
microentrepreneurs
facing
their own challenges. By offering steadfast support, we can ensure their success and contribute to the broader growth of our community.
EMPLOYEE FEATURE STORY
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INFORMATION TECHNOLOGY
Maria Cecilia Palileo As part of the IT team, I have witnessed how our
outreach programs to raise awareness and help
digitalization initiative can transform the lives
more people realize the benefits of our digital
of our Nanay and Tatay microentrepreneurs.
tools.
One of the most fulfilling moments in my work was assisting a Nanay in learning how to use the
For me, ‘Kaagapay’ is more than just a name—it’s
Kaagapay platform. Initially, she was hesitant
a promise. It’s about being there for our clients
to install the app on her phone, but after I
every step of the way, especially when they
explained its features, she came to understand
encounter difficulties. We don’t just provide
its value. The Kaagapay platform allowed her
financial services; we walk alongside them,
to easily view her loan balances, transaction
ensuring they have the support they need to
history, and savings account details. With better
succeed. This sense of partnership drives me
access to this information, she was able to make
every day in my work,
more informed decisions and streamline her
and it’s what makes
business operations.
Kaagapay special.
However, this journey hasn’t been without its challenges. Many of our clients face difficulties with digital literacy and internet connectivity, which can slow the adoption of our digital tools. To address these challenges, we have focused on training our staff to fully understand and utilize the app so they can, in turn, support our clients. Additionally, we actively engage in community
truly
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EMPLOYEE FEATURE STORY
CLIENT ENGAGEMENT & DEVELOPMENT SERVICES
Ian Kith Dehayco Each program within RAFI Microfinance is
Despite our efforts to deliver health assistance
carefully designed to meet the needs of micro-
directly to communities, some clients find it
entrepreneurs, their families, and communities.
challenging to leave their businesses for a day to
Our Community Outreach Program (COP),
participate in these initiatives. To address this,
led by the Client Engagement Development Services team, provides micro-entrepreneurs and their families with access to essential health services, including free interventions, consultations, and medications.
we have collaborated with various programs to schedule more COPs across Luzon, Visayas, and Mindanao. Through these collaborations, we have maximized resources and expanded our impact. During our community outreach programs, I witness the joy and happiness of our clients as they receive health and medical assistance that was previously difficult for them to access. This truly embodies the spirit of “kaagapay.” The value of God-centeredness inspires me to serve others wholeheartedly. My personal goal is to equip myself with additional knowledge and skills to better serve our community. I believe that to create a greater impact, we must continue to engage with our clients, be present on the ground, and become more visible to them.
EMPLOYEE FEATURE STORY
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HUMAN CAPITAL
Nenito Gonzales Jr. RAFI Microfinance has established a robust
The core value I embody in my work
foundation and strategic vision by empowering
is
microentrepreneurs
through
“respect,”
which
fosters
inclusivity,
resources,
professional communication, and a supportive
technology, and financial support, thereby
environment. As I look ahead, my primary goal
fostering business growth and stability. As
is to enhance my skills as a trainer and help
part of the learning and development team,
individuals achieve their full potential.
we are running the ACE Leadership Bootcamp, a program designed to prepare employees to
RAFI
play a more pivotal role in our organization.
sustainable and wide-reaching impact
Microfinance by
can
enhancing
The challenges we have faced in developing
personalized
and deploying potential employees have
tailored to the unique
significantly impacted the delivery of our
needs
services. To address these issues, our team
microentrepreneur.
provides
comprehensive
training
courses
for all employees, ensuring they possess the necessary skills and knowledge to be deployed effectively when needed. Collaboration
across
teams
is
essential
for achieving our mission of elevating and empowering clients and their families. Our brand essence, “Kaagapay,” represents RAFI Microfinance as a trusted partner, emphasizing collaboration, responsibility.
mentorship,
and
shared
services
of
every
create
a
more
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EMPOWERING LIVES,
ENABLING CHANGE
MEMBER FEATURE STORY
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MAUSWAGON LOAN
Virgilia Bonghanoy From a struggling mother of five, striving
it’s more than just financial support—it’s the sense
to provide for her family’s basic needs, to
of community and unwavering guidance that make
becoming a thriving entrepreneur, Virgilia’s
me proud to continue being part of this network.”
journey is a testament to resilience and success. With an initial investment of just ₱5,000 and the support of RAFI Microfinance, Inc. (RAFI MFI), she launched her first general merchandise store while living in a single room with her children. Over time, she expanded her ventures, now owning four general merchandise stores, an agrivet shop, and a bakery. RAFI
Despite facing challenges such as store closures during the COVID-19 pandemic, she remained determined and reopened her businesses to support her family. Her perseverance earned her numerous awards, including the Leader of Decent Work and Economic Growth Award at the 2023 RAFI Microfinance Entrepreneurs Summit. Looking to the future, she hopes to
MFI
not
only
provided
financial
retire and leave behind
assistance through the Mauswagon Loan but
a legacy, ensuring
also empowered her with valuable training
a
stable
and
opportunities. She completed a six-month
comfortable
life
business program at the University of San
for her children.
Carlos through the Boost Accelerator Program and attended a bakery training in Iligan, which helped her establish her bakery. Virgilia expressed her gratitude, saying, “I am deeply thankful for the lessons RAFI Microfinance has taught me. My friends often ask why I remain with RAFI MFI when I now have sufficient capital to stand on my own. However, for me,
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MEMBER FEATURE STORY
MICRO-INSURANCE
Romulo Castro When Romulo lost his beloved wife, life became an overwhelming challenge. She had been a dedicated member of RAFI Microfinance, Inc. (RAFI MFI), and through the insurance benefits provided, Romulo and his family received muchneeded financial support during this difficult time. RAFI MFI not only helped cover funeral expenses but also ensured that his family wouldn’t
struggle
in the aftermath of their loss.
Romulo shared, “The financial support we received helped not only with the funeral expenses but also in rebuilding our livelihood and sustaining our life after our loss. As a poor family, we wouldn’t have overcome this challenge on our own. Now, as a RAFI MFI member, I have peace of mind knowing that when my time comes, I won’t leave a burden on my children.” With the assistance they received, Romulo made sure the money was put to good use. He purchased a small piece of land to build a farm, secured funds for their daily needs, and sustained their merchandise store—a business they had built together. Most importantly, the support helped in the education of their children, ensuring a brighter future for them. Now, Romulo encourages other members to see the value of RAFI MFI beyond just financial support. He believes that the benefits they provide are a true lifeline, offering security during life’s toughest moments. Despite having a small business, he prays that it will continue to thrive with divine guidance. His message is simple: be responsible borrowers, because RAFI MFI’s support extends beyond business—it helps protect and uplift families when they need it most.
MEMBER FEATURE STORY
37
HOUSING IMPROVEMENT LOAN - WASH
Jelly Laride
As a dedicated mother of five and a passionate entrepreneur, Jelly juggles multiple businesses to provide for her family. Despite her hard work, their way of living has not improved, and access to different kinds of renovations to their home, such as clean water facilities, has remained a challenge. Through RAFI Microfinance (RAFI MFI), she secured a supplemental loan called the HIL-WASH Loan, which is designed to help clients improve access to safe water and sanitary toilet facilities. With this support, she was able to upgrade their water well into a fully functional faucet system, making water more accessible for daily use, improving its quality and flow, and making life easier for her family. Jelly shared, “My greatest wish in life is to see all my children complete their education. Once that happens, I can finally relax and maybe scale down to just one or two businesses. Without the support of RAFI MFI, I wouldn’t have been able to send my kids to school or experience the security that comes from their insurance and benefits.”
Beyond household benefits, Jelly acknowledges that this opportunity and support has contributed to her businesses by ensuring better hygiene and convenience and creating a healthier environment for both her family and customers. With this type of access, she is more confident and empowered to continue sustaining her family’s needs and continue to strive for their future.
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MEMBER FEATURE STORY
SCHOLAR SI NANAY
Joseph Sanchez When Joseph joined RAFI Microfinance (RAFI
“I was given the opportunity to join the Scholar
MFI), he never imagined that this opportunity
Si Nanay Program, a community-based training in
would come his way, especially in a field
cakes and pastries, which perfectly aligned with
traditionally dominated by women. However,
my passion for baking,” Joseph said. “Through this
his journey proved that dedication and
program, I not only acquired technical skills but
passion can transcend boundaries.
also discovered my creative and innovative side.”
During the pandemic, Joseph was among
More than just the training, Joseph opened
those who struggled with unemployment and
his eyes to new possibilities, inspiring him to
uncertainty. It was a difficult time, but he has
embark on his food business journey and even
described RAFI MFI as a turning point in his
look forward to opening his own store.
life—a
providence,
as he put it, that
Joseph lives by the belief that every journey—
gave
a
whether successful or not—paves the way to
chance to rise
success. He has learned to persevere through
again.
multiple business setbacks, understanding that
him
each failure brings valuable lessons. “Don’t be discouraged,” he advises, embracing every challenge as a steppingstone toward growth. Today, Joseph runs a successful venture, turning his once-hobby into a livelihood. He is grateful for the opportunity that not only honed his skills but also empowered him to build a brighter future for himself and his family.
MEMBER FEATURE STORY
39
BUGSAY SCHOLARSHIP
Niciel Arenilla
Neciel Arenilla has always aspired to pursue higher education in college, but her family’s financial constraints have consistently hindered her ability to achieve her dreams. However, with the introduction of the Bugsay Scholarship Program by RAFI Microfinance, this became a pivotal moment in her journey. The Bugsay Scholarship Program (BSP) of RAFI Microfinance, Inc. (RAFI MFI) is an initiative designed to provide financial assistance to deserving children of active RAFI MFI clients. This program empowers scholars to pursue quality tertiary education, break the cycle of poverty, and contribute meaningfully to their communities. Thanks to this support, Neciel was able to focus on her studies without the burden of financial stress. Moreover, beyond the financial assistance,
the
Bugsay
Scholarship
Team
provided her with a sense of encouragement and motivation. “The greatest lesson I’ve carried from being a scholar to becoming an employee is that success stems from consistency and commitment,” Neciel said. “This scholarship was a once-in-a-lifetime opportunity, and it gave me a true sense of purpose—the drive to support my family and
provide a better life, something we had never experienced before.” Neciel is now one of the select scholars who had the opportunity to join Philinsure, a partner of RAFI MFI in this scholarship program. As she embarks on her new journey as an employee, she lives by the motto, “We will never know unless we try.” She believes that if she hadn’t taken the chance to apply for the scholarship, she wouldn’t have gained the opportunity that transformed her and her family’s livelihood for the better.
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CENTERFOLD
CENTERFOLD
41
42
FEATURE STORY
THE KAAGAPAY POWER OF COMMUNITY OUTREACH PROGRAM At RAFI Microfinance (RAFI MFI), elevating
breast cancer screening; business permit
lives
means
more
than
supporting
assistance via Tindahan ni Nanay; and access
businesses—it’s
about
holistic
care
for
to the KaagAPPay Mobile App. Children also
families.
enjoyed the Children’s Corner, where they
microentrepreneurs
and
their
The Community Outreach Program (COP)
received free toys and fun activities.
brings this mission to life by partnering with like-minded organizations to deliver free
Dr. Rommel Sabig, Municipal Health Officer
essential services to clients, their families,
of La Carlota City, praised the initiative.
and the community.
“Napakaimportanteng programa ito para sa mga negosyante at sa komunidad,” shared
For Jovita Replan of Candelaria, Quezon, COP
Dr. Sabig.
was a blessing. She and her family received free medical consultations and medicines.
Through COP, RAFI Microfinance reaffirms its
“Sa RAFI Microfinance lang may ganitong
commitment to not only building businesses,
serbisyo,” she shared. In Valencia, Bukidnon,
but to elevating lives and empowering
Baby Jean Achivida was able to address her
communities.
child’s vision needs without financial strain.
In
2024,
COP
beneficiaries—5,299
served clients
and
6,627 1,328
non-clients—across the country. Services included medical, dental, and optical care;
FEATURE STORY
43
EMPOWERING MICROENTREPRENEURS FOR GROWTH AND SUCCESS RAFI Microfinance (RAFI MFI) goes beyond financial support to help microentrepreneurs grow sustainable businesses. Launched during the COVID-19 pandemic, Tindahan ni Nanay (TNN) was created to connect clients to markets, enhance their products, and support business expansion through digital platforms and innovative programs. “Tindahan ni Nanay is the steppingstone to every microentrepreneur’s success,” says Chantal Castanares, Client Business Services Supervisor for Incubator and Accelerator Services.
• Clustering
for
Livelihood
Program:
Mentored 20 clients in Bantayan and Aloguinsan toward business success. • Market and Linkages Program: Enabled participation in trade fairs across Visayas and boosted online visibility through TNN’s digital marketplace. • Livelihood Resiliency Program: Trained clients in ecological waste management and sustainable product creation. • Advanced Training Program: Graduated five
2023
Mauswagon
Entrepreneur
Awardees, strengthening their leadership and business skills.
In 2024, TNN impacted 7,900 lives, created 820 market linkages, and generated ₱10.6 million in sales. Key initiatives included: • One Brand One Product (OBOP): Trained 149 clients to market handmade products
For microentrepreneur Perigrina Arquio of Daanbantayan, Cebu, TNN was a gamechanger. “Nakasali ako sa trade fair na libre, at dumadami ang aking mga customers,” she shares.
across districts. • Business Registration Services: Helped 422 clients to formalize their businesses for long-term sustainability.
With its holistic approach, Tindahan ni Nanay continues to uplift small business owners, equipping them with the tools, knowledge, and support to succeed.
44
SOCIAL PERFORMANCE MANAGEMENT
OUR SOCIAL PERFORMANCE MANAGEMENT
OUR SOCIAL PERFORMANCE MANAGEMENT
45
DEEPENING COMMITMENT THROUGH SOCIAL PERFORMANCE At the heart of RAFI Microfinance’s mission
assessment using the Universal Standards for
is a deep and enduring commitment to
Social Performance Management (USSPM)
responsible financial inclusion—where every
and the Client Protection Pathway (CPP)
client is seen, heard, and supported. In 2024,
assessment tool—reinforcing its dedication to
RAFI MFI advanced further on its Social
continuous learning and transparency.
Performance journey, guided by a resolute belief that true empowerment means going
3. Institutional Commitment: To strengthen
beyond financial services to uphold dignity,
our commitment to client welfare, RAFI
equity, and lasting change in the lives of the
Microfinance established a dedicated Social
entrepreneurs and communities it serves.
Performance Management Unit and a crossfunctional Working Group. These teams were
Staying
true
to
Performance
formed to address gaps identified during the
Management (SPM) Roadmap and its vision
USSPM and CPP assessments and to build
of
achieving
a strong foundation for CPP certification in
sustainable growth with dignity, RAFI MFI
2025. In parallel, we initiated key process
made significant strides that reflect both
improvements, conducted product reviews,
strategic intent and heartfelt commitment. In
and
2024, it achieved the following milestones:
with international standards. Beginning in
empowered
its
Social
entrepreneurs
enhanced
client
services
to
align
2024, Social Performance reporting has 1.
Refined
Focus:
The
organization
been institutionalized and is now regularly
streamlined its Social Performance Indicators
presented up to the Board level, ensuring
from 15 to 6, allowing for more targeted,
strategic oversight and accountability.
impactful tracking that centers the most meaningful outcomes for clients.
2.
Self-Reflection
and
Accountability:
RAFI MFI conducted a comprehensive self-
46
OUR SOCIAL PERFORMANCE MANAGEMENT
These efforts are guided by RAFI MFI’s
goal, but a moral imperative. That is why, in
Impact Model, which stands on three
2025, RAFI MFI looks ahead to achieving
pillars of transformation:
Client Protection Pathway certification— not as an end, but as a testament to the
1. Enhancing the well-being of clients and
organization’s
unwavering
promise:
to
their families,
protect, empower, and uplift the lives of
2. Supporting sustainable and growing
microentrepreneurs and their families.
enterprises, and 3. Empowering clients and their businesses
Because for RAFI MFI, social performance
to positively impact their communities
is not just a strategy—it is a commitment to being our clients’ and their families’
Each step taken in 2024 reflects more than just process—it reflects purpose. The drive to put client welfare at the core of every decision is not just an operational
Kaagapays.
RISK MANAGEMENT
47
STRENGTHENING RISK MANAGEMENT:
RAFI MFI’s Strategic Initiatives
RAFI
Microfinance
Inc.
(RAFI
MFI)
has
undertaken significant steps to enhance its risk management framework, ensuring resilience
308 branches in Luzon, Visayas, and Mindanao,
and sustainability in the face of evolving
coupled with the finalization of the Incident
challenges.
Management Plan to enhance responsiveness to business disruptions.
One of the key initiatives is the formation of District Risk Senior Officers, a pragmatic
To mitigate fraud risks, the organization has
approach aimed at fortifying risk oversight at the
formalized the Red Flags Monitoring System
district level. Additionally, the Risk Management
while initiating a thorough review of its credit
Team has been restructured to report directly to
risk capabilities, with further enhancements
the CEO and President, reinforcing its strategic
planned for 2025. Additionally, the company
importance within the organization.
has identified its Top Risks for 2030, aligning them with its strategic direction.
RAFI MFI has also established its independence from RAFI in terms of Information Security
Furthermore, RAFI MFI has renewed and
and
strengthening
enhanced its non-life insurance policies while
its governance and compliance structures.
refining its Total Cost of Risk (TCOR) threshold,
A Business Continuity Management (BCM)
ensuring a balanced approach to risk exposure
Awareness campaign was conducted across all
and financial sustainability.
Data
Privacy
Policies,
48
STAKEHOLDER ENGAGEMENT
CSAT
4.58/5.00 Satisfaction Score (VERY SATISFIED)
With its continued commitment to serving as a Kaagapay for micro entrepreneurs, as well as their families and communities, RAFI Microfinance Inc. (RAFI MFI) conducted its 2024 Customer Satisfaction (CSAT) study through its Research and Knowledge Management team. The study aimed to assess overall borrower satisfaction and gather insights for enhancing RAFI MFI’s products and services.
The results of the 2024 CSAT reveal that RAFI MFI has sustained strong performance, with active clients expressing high satisfaction with the services and products they receive. These findings reaffirm RAFI MFI’s dedication to delivering quality financial solutions that empower entrepreneurs and support economic growth.
BUGSAY 3.0
49
2024 PROJECT SUMMARY:
Process Improvements & Cost Savings This 2024, major process improvements
cost savings of PHP 45,156,822.08 and the
and cost-saving initiatives were successfully
completion of 46 process improvements,
implemented, enhancing efficiency, speed,
including Standard Operating Procedures
and
(SOPs) and procedural manuals.
quality
while
reducing
operational
expenses. These initiatives resulted in total
Key Achievements by Workstream Bugsai 3.0 OPS (PAR, Fraud, Client Retention)
Bugsai 3.0 HC (TA & L&D)
PHP 3.8M+
PHP 5.2M+
24
8
Cost Savings
Process Improvements
Bugsai 3.0 STRAT – Phase 1 OCR
PHP 34M+ Cost Savings
10
Process Improvements
Cost Savings
Process Improvements
50
BUGSAY 3.0 K-App
CAS Phase 1
PHP 1.5M+
PHP 50K+
Cost Savings
Cost Savings
3
1
Process Improvements
Process Improvement
Impact & Benefits These enhancements streamlined operations,
improvements.
reduced
fraud
risks,
optimized
Digital
innovations
via
learning
K-App and CAS have further strengthened
and development strategies, and achieved
operational efficiency, ensuring a strong
cost reductions through IT subscription
foundation for sustained excellence.
management, asset policies, and procurement
BRINGING OUT THE BRAND
51
Strengthening Brand Presence Across All RAFI MFI Branches The Brand Development Group (BDG) and
brand
the Operations team across Luzon, Visayas,
message, image, and experience resonates
and Mindanao successfully completed the
deeply with Kaagapay.
final phase of the Brand Cascade in November 2024. This initiative embodies RAFI MFI’s
and
values,
ensuring
that
every
52
BRINGING OUT THE BRAND
Together, BDG and the Operations team transformed
the
organization’s
mission
into compelling Kaagapay stories—stories that inspire hope, foster connection, and drive
transformation.
Through
strategic
campaigns, community engagement, and targeted outreach, they not only enhanced the visibility of the RAFI MFI brand but also strengthened its emotional impact— amplifying its influence and honoring the aspirations of those they empower.
OUR LEADERS
BOARD OF TRUSTEES
53
54
OUR LEADERS
BOARD OF TRUSTEES
OUR LEADERS
55
BOARD RISK MANAGEMENT AND COMPLIANCE COMMITTEE
56
OUR LEADERS
BOARD AUDIT COMMITTEE
OUR LEADERS
MANAGEMENT COMMITTEE
57
58
OUR LEADERS
MANAGEMENT COMMITTEE
OUR LEADERS
EXECUTIVE OFFICE
59
60
OUR LEADERS
MICRO OPERATIONS
OUR LEADERS
MICRO PLUS OPERATIONS
61
62
OUR LEADERS
BUSINESS EXCELLENCE
OUR LEADERS
HUMAN CAPITAL
63
64
OUR LEADERS
FINANCE, PROCUREMENT, GENERAL ACCOUNTING
OUR LEADERS
65
CLIENT ENGAGEMENT AND DEVELOPMENT SERVICES
66
OUR LEADERS
BRAND DEVELOPMENT GROUP
OUR LEADERS
INTERNAL AUDIT
67
68
OUR LEADERS
GOVERNANCE AND COMPLIANCE
OUR LEADERS
RISK MANAGEMENT
69
70
OUR LEADERS
INFORMATION TECHNOLOGY
71
FINANCIAL STATEMENTS
72
FINANCIAL STATEMENTS
73
FINANCIAL STATEMENTS
74
FINANCIAL STATEMENTS
75
FINANCIAL STATEMENTS
76
FINANCIAL STATEMENTS
77
FINANCIAL STATEMENTS
78
FINANCIAL STATEMENTS
MNRC ACCREDITATION
79
80
K-App Triumphs at the Asian Tech Excellence Awards In a remarkable achievement, the KaagAPPay
including savings and loans. This innovative
(K-App) mobile application, developed by
app has gained widespread recognition for
RAFI Microfinance, Inc. (RAFI MFI), won the
its role in empowering RAFI MFI clients
prestigious Philippines Technology Excellence
by offering them easy access to financial
Award for Fintech – Financial Services at
services directly on their smartphones.
the Asian Technology Excellence Awards in Bangkok, Thailand, on September 5, 2024.
The award highlights K-App’s significant impact on financial inclusion. Its user-
Launched in 2022, K-App was designed to
friendly design and secure platform enable
provide microentrepreneurs with a convenient
microentrepreneurs to effectively manage
and paperless way to manage their finances,
their finances, thereby giving them greater control over their economic future. Winning this prestigious award is a testament to the success of K-App and RAFI MFI’s commitment to driving digital empowerment. It marks a significant milestone in the journey of improving financial accessibility for RAFI
Philippines Technology Excellence Award for Fintech Financial Services Asian Tech Excellence Awards, Bangkok, Thailand 2024 September 5, 2024
MFI’s clients, including the “Nanays and Tatays,” who are integral to the organization’s mission.
AWARDS
81
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