Microfinance In The Philippines Habaradas Umali Final 2013

CBRD
Center for Business Research & Development

Working Paper 2013-05

The microfinance industry in the
Philippines: Striving for financial inclusion in the midst of growth

Dr. Raymund B. Habaradas
Mr. Mar Andriel Umali
September 2013

CBRD

Working Paper
2013-05

Center for Business Research & Development

The microfinance industry in the
Philippines: Striving for financial inclusion in the midst of growth
Dr. Raymund B. Habaradas
Mr. Mar Andriel Umali
De La Salle University
September 2013

The CBRD Working Paper Series constitutes studies that are preliminary and subject to further revisions. They are being circulated in a limited number of copies only for purposes of soliciting comments and suggestions for further refinements. The studies under the Series are unedited and unreviewed. The views and opinions expressed are those of the author and do not necessarily reflect those of the Center. Not for quotation without permission from the author(s) and the Center.

© 2013 DLSU-CBRD

The microfinance industry in the Philippines:
Striving for financial inclusion in the midst of growth1
Abstract

Several factors have contributed to the growth of the microfinance industry in the Philippines – the adoption of a sound business model – patterned after Grameen Bank – that caters to a large untapped market, assistance from government and / or donor agencies, a supportive policy and regulatory environment, and innovations based on Internet and mobile technology. However, microfinance institutions (MFIs) continue to face challenges that could affect their ability to reach more poor people even as they strive to achieve financial sustainability. To better understand the challenges faced by MFIs in meeting both their social and economic goals, we propose a research program that addresses the gaps in measuring the ‘quality’ and ‘welfare’ dimensions of financial inclusion, and that complements the development-economics literature by examining MFIs from a business-strategy

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