The Need for Microfinance in the Philippines

The Philippines is one of the fastest-growing countries in Asia, yet economic growth is not equally shared. Access to capital remains restricted, and 44% of Filipinos lack access to a bank. Women face additional barriers, both social and economic. In fact, only 37% of Filipino women have bank accounts. Additionally, the female labor force participation rate is 50.7%, reflecting structural and cultural constraints. These disparities limit economic independence, resilience, and opportunities for women in rural areas.

In addition to the financial inclusion challenges, climate change and natural disasters have a damaging impact on the rural areas in the Philippines. In 2013, Super Typhoon Haiyan, locally known as Yolanda, was recorded as the strongest tropical cyclone ever to make landfall anywhere in the world. Just three weeks before Super Typhoon Haiyan struck the region, Bohol, an island located in the central part of the country, was hit by a powerful earthquake. It was the deadliest earthquake in the Philippines in 23 years.

Making Loans on the Island of Bohol

Our program on Bohol was run through satellite credit unions, which existed under the VICTO umbrella. VICTO is a large, central Philippines credit union with numerous satellites under its control. We worked with the Carmen Multi-Purpose Cooperative and the Bohol Community Cooperative. The program was designed to help rural communities impacted by natural disasters. The programs in Bohol were extremely successful, assisting the rural poor in starting new businesses. Over $200,000 in loans were successfully made and repaid, enabling women to launch or expand businesses, increase household incomes, and improve community resilience. The Bohol program was closed by mutual agreement with VICTO after the demand for small loans became too small. All of the money was recovered and transferred to our partners on Panay. Our Bohol program demonstrated that targeted microfinance interventions can create tangible and sustainable opportunities for those most disadvantaged.

Making Loans on the Island of Panay

Our program on Panay began in 2022, when money formerly allocated to Bohol was transferred there. Panay is the sixth-largest by area and fourth-most populous island in the Philippines. The City of Iloilo is its largest city, and the home to our two partner credit unions. Iloilo serves as the economic center of the island. As with any larger metropolitan area, there are centers of poverty within the larger city. Our partners both target those living in extreme poverty in what we would call the slums.

Meet Our Partner UPDC

WorldWise Microfinance works with the Urban People’s Development Cooperative, or UPDC. UPDC is a satellite credit union under the VICTO umbrella. UPDC’s mission is to improve the quality of life for the urban poor by providing resources and support to enable them to stay in their communities without being uprooted from their homes, jobs, and social support systems. UPDC facilitates the dispersal of microloans, financial education, and guidance for borrowers, ensuring that funds reach female entrepreneurs who are excluded from the traditional financial sector. Together, we aim to reduce gender inequities in economic participation and strengthen rural communities.

Meet Our Partner PANDEVCO

Our second partner is the Panay Negros Development Workers Cooperative, or PANDEVCO for short. PANDEVCO is also a satellite credit union of VICTO, and was suggested as a new partner for us by VICTO. Their general mission is to provide socio-economic opportunities, promote inclusive growth, and empower their members and communities. All of the loans made by both PANDEVCO and UPDC are targeted at women.

Microfinance is not charity. It is business: business with a social objective, which is to help people get out of poverty.

—Muhammad Yunus

Support our Philippines program

The success of the Philippines program is largely attributable to great in country partners who are committed to the success of the loan recipients. Please consider supporting them today!

Donate now