BACKGROUND

The Microfinance Council of the Philippines, Inc. (MCPI) evolved out of a USAID-funded project entitled, Developing Standards for Microfinance Project (DSMP) that started in mid-1996 and continued until the end of 1999. In June 1999, the MFIs who were part of the DSMP decided to form an association or network. The resulting organization, MCPI, was registered with the Securities and Exchange Commission (SEC) as a non-stock corporation in June of 1999. In 2004, MCPI merged with PHILNET, a microfinance association focused on Grameen replicators in the Philippines. MCPI is currently comprised of 45 institutions, including 38 practitioners and 7 service providers. Membership among the 38 practitioners is currently dominated by NGOs engaged in microfinance, but there are nine rural banks, one thrift bank and two cooperatives in the membership. Together, it is estimated that MCPI members account for 60% of the total active outreach of the microfinance sector in the Philippines.

Vision, Mission and Goals

MCPI’s vision is to be a world-class national network of microfinance institutions advocating  sustainable, innovative,  and client-responsive solutions to poverty eradication in the Philippines.

MISSION:

 “We are the national network of microfinance practitioners and allied service institutions committed to: Advocate the eradication of poverty in the Philippines by providing ethical and inclusive financial and non-financial services. Advance the capacity of members to serve poor households in a sustainable, innovative, and client-responsive manner. Achieve the highest global standards of excellence in governance, stewardship, and service towards staff, clients and communities served.”

Specifically, the goals of MCPI include:

1. To advocate for a policy environment that is conducive to the growth and development of a market-oriented microfinance sector;

2. To help members serve significant number of poor households with financial and non-financial services;

3. To help build members’ capacity for innovation that enhances the development of client responsive products, services and social development programs;

4. To increase the take-up of social performance management among MFIs for improved achievement of social goals and objectives;

5. To promote the adoption of and adherence to international performance standards;

6. To increase the availability of industry information, microfinance best practices, and innovations;

7. To mobilize resources and to network with government, donors, funding agencies, investors and financial markets in order to enhance the development of the microfinance sector;

8. To strengthen the operational, technical and financial capacities of MCPI

MCPI’s 2006-2009 program is funded by two Netherlands-based funding agencies—ICCO and Cordaid.

The funded programs include:

1. Scaling-Up Social Performance Management (SPM) in the Philippines and Southeast Asia;

2. Promoting the delivery of Agri Microfinance services;

3. Performance Monitoring and Benchmarking;

4. Advocating for increased private sector investments in microfinance;

5. Research and documentation of microfinance practices in remote hard-to-reach areas.

A Product Innovation Fund started in the first quarter of 2008. The fund has an initial funding of 130,000 euros provided by ICCO.