#UsapangPera: Mga Tips sa Pagyaman with Sir Vince tackles money issues such as savings, loans, budgeting, and investing among others. Visit Sir VInce's website: www.vincerapisura.com. How to join SEDPI Coop: 1. Join SEDPI Foundation at bit.ly/SEDPIOnlineSRI by clicking “Register” and filling out the form 2. Take the online Pre-Membership Education Seminar (PMES) at bit.ly/SEDPICoopPMES 3. Pay membership fee and initial share capital bit.ly/SEDPIPay Simulan ang pagiinvest the socially responsible way sa: bit.ly/SEDPIOnlineSRI Sagot sa mga Frequently Asked Questions: https://bit.ly/sedpi-sri-faq Isubmit ang ibang pang inquiries o requests sa: https://bit.ly/sedpi-inquiry Pag-IBIG MP2: * Watch the play list: https://www.youtube.com/playlist?list... * How to invest: https://m.me/vincerapisura?ref=w13160758 SSS Retirement: Watch the playlist https://www.youtube.com/playlist?list... How to invest 100K: https://youtu.be/dxHRZn7uP-4 Celebrity guests include venus Raj (Season 1); Nicole Cordovez and

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Improving financial literacy of SEDPI kanegosyo members through capacity building.

Education can be a powerful tool for breaking the cycle of poverty and economic mobility,

as it can increase individuals' earning potential and provide them with the skills and knowledge

needed to secure better-paying jobs. It can also play a role in promoting social change

by fostering critical thinking, promoting cultural understanding,

and teaching individuals about their rights and responsibilities as citizens.

Education also plays a vital role in addressing issues of inequality and discrimination by

providing marginalized and disadvantaged groups with the tools and resources they need

to succeed and participate fully in society. A financial literacy training can provide

individuals with the knowledge and skills they need to manage their finances effectively

and make informed decisions about saving, investing, and spending.

This can help to increase their earning potential and promote economic activity.

By teaching individuals about money management, a financial literacy training can help individuals

make better financial decisions and avoid financial pitfalls that can trap them in a

cycle of poverty. It can also empower individuals to take control of their finances and make

informed decisions about their financial future, which can promote social change by

helping to level the playing field for marginalized and disadvantaged groups who may have

historically been excluded from financial services and opportunities.

CEDPI, a group of social enterprises in the Philippines, uses financial literacy as a

strategy to enact social change. It envisions the empowerment of Filipinos worldwide in

a manner that they live dignified lives and productive members of society.

As a social enterprise, CEDPI provides innovative financial services and effective

financial education to nano-enterprises and social investors.

One of the goals of CEDPI is to contribute to local economic development of nano-enterprises,

recognizing nano-enterprises as a pillar of inclusive growth.

Education as a strategy is embedded in CEDPI's second goal in providing continuous

education for community empowerment. The third goal is to provide social welfare

protection to nano-enterprises in times of calamities and emergencies through the use

of indigenous coping mechanisms. Lastly, it aims to develop a movement of social

investors that puts social and environmental agenda over profits.

To ensure that these goals are achieved, the following are CEDPI's inputs and activities.

It will conduct financial literacy trainings to its members to ensure that members have

the capacity to manage their money. Providing ethical financing products and

services will further give CEDPI members the chance to create and accumulate wealth

with due regard to social and environmental costs.

Performance of members are closely monitored and evaluated to ensure that their accumulating

savings have adequate insurance protection coverage and are less dependent on debt.

With the activities, the following are the expected outputs.

Through financial education, CEDPI members have effective money management behaviors.

They are able to increase their savings and have positive accumulation of business and

personal assets. Members also have easy access to social

safety nets against emergencies and disasters, not just from CEDPI, but more importantly

from the government. The expected outcomes are as follows.

CEDPI members have manageable debt levels and are able to use savings and insurance

as more effective financial products versus dependency on debt.

Their livelihoods are sustainable and member nano-enterprises also have diversified income

sources. CEDPI members also have a robust financial

preparedness against disasters through savings and insurance consistent with disaster

risk reduction strategies. Finally, the impact would be an overall

improvement of the quality of life of CEDPI members as they are able to break the cycle

of poverty and move up the socioeconomic ladder.

The overall threat of disasters is mitigated through disaster risk reduction.

Since 2017, CEDPI provided capacity building to its members on financial literacy in the

form of trainings, orientations, small group meetings, and the development of information

and campaign materials. The following are examples of topics covered.

Importance of savings and insurance through Damayan.

Good versus bad uses of loans. Buying non-productive assets through savings,

not loans. Plan for increasing business capital through

savings and reducing loan. This is an example of a visual aid used to

differentiate CEDPI's financial empowerment strategy versus other microfinance institutions.

Instead of loans, CEDPI enters into a joint venture with its members.

The goal of a traditional microfinance institution is to collect repayments,

which puts the organization's financial sustainability over the members.

Under CEDPI, the main goal is to assist its members grow their livelihoods.

Thus, CEDPI treats its members as equals as it enters into a business partnership

arrangement versus a traditional creditor-debtor relationship,

where the creditor usually takes the upper hand. In most microfinance institutions,

their goal is to increase the loan amount of clients, making them more dependent on debt.

In CEDPI, we teach our members to save so that they reduce their dependency on loans.

We emphasize, and the members agree, that a sustainable livelihood is one that has

capitalization coming from income saved rather than through loans.

In traditional microfinance institutions, interest is continuously charged to the client,

even if the reason for non-repayment is due to calamities, sickness, and other external

emergencies. In some instances, penalties are even charged in addition to the interest.

CEDPI, in stark contrast, only collects service charge which is fixed. No interest or penalty is

charged, even on late payments. The principle is not to enrich ourselves due to the misery of

others. Instead of charging punitive interest and penalties, CEDPI will assist its members

find ways in order to repay and recover. As business partners, CEDPI and its members

help each other so that no one gets left behind. Microfinance institutions provide

insurance to their clients that usually takes months to process claims. CEDPI,

through the use of indigenous insurance practice called damayan or dayong,

pays out claims within one week. This is for members to avoid getting into debt in times of

emergencies. Most microfinance institutions provide lime insurance coverage only. CEDPI's

damayan provides more comprehensive coverage that includes life, sickness, calamity, fire,

funeral, and accident benefits. CEDPI endeavors to revive indigenous money management practices

that has proven to be effective since these are embedded in our cultural heritage. The main goal

of savings mobilization in microfinance institutions is to function as collateral

to loans of members as well as main source of fund to finance their loan portfolio.

For CEDPI, savings of members function as a collateral to the joint venture but more

importantly this can be used for emergency purposes. Traditional microfinance institutions

also typically offer loans to their clients to purchase non-productive assets. This will make

these purchases almost twice as expensive due to the interest. In CEDPI, delayed gratification

is emphasized. Members are encouraged to save for what they intend to purchase through a layaway

program. This way members pay the items at the suggested retail price while CEDPI earns through

the discount it gets due to bulk buying. We emphasize in all our financial education efforts

that life is more convenient when savings is increased and loans are reduced. The following

are the results of CEDPI's capacity building program which began in 2017. As of December 2022,

CEDPI has expanded its branch network from 2 to 14 covering the provinces of Agusan del Sur,

Davao de Oro, Davao del Norte, Surigao del Sur, and Zamboanga City. It has outreach of 15,000

members. The standard client growth rate of the microfinance industry is 5% per year. CEDPI's

compounded growth rate is 25% which is 5 times higher than the industry standard. This indicator

shows how CEDPI is able to achieve its mission to reach low-income nano enterprises. CEDPI's

joint venture portfolio with nano enterprises grew from 43.3 million in 2020 to 76 million in

2022. The standard portfolio growth rate of the microfinance industry should be at par with the

GDP growth. In the past six years, the average GDP growth is at 4.2%. CEDPI's compounded portfolio

growth rate is 21% which is four times faster than GDP growth for the same period. The portfolio

at risk rate measures the probability of non-collection. The standard portfolio at risk

ratio in the microfinance industry is less than 5%. CEDPI's portfolio at risk ratio is below 1%

for 2021 and 2022 which reflects stellar portfolio quality performance. Overall,

accumulated savings of members rose from 7.37 million in 2017 to 29.45 million in 2022.

Insurance claims extended to members also rose from 1.59 million in 2017 to 5.87 million in 2022

with an average turnaround time of 1.25 days. The growth in membership and improving portfolio

quality signals member loyalty and increasing marketability of CEDPI ethical financial products

and services. The growth in savings also signals less dependency on loans to finance livelihoods

and household needs among nano enterprises. The increase in insurance claims is a sign

that CEDPI places protection of nano enterprises against emergencies and disasters. Overall,

financial literacy reinforced ethical financing to make nano enterprises become less dependent

on debt, grow their livelihoods and be disaster resilient. In conclusion, CEDPI's model of

capacity building on personal finance together with ethical finance as a tool for socioeconomic

development of nano enterprises is effective. Monitoring and evaluation is key to ensure

that nano enterprises implement what they learn.