My name is Eric Miller and I had the pleasure of working with the USAID-supported RBAP-MABS Program this summer as I continue my business and public policy graduate studies at the University of Maryland, right outside of Washington, DC. You may have heard from me over the past few months – I wrote a number of blog articles under the title “Guest Blogger”. I wanted to share a few thoughts and reflections from this extraordinary experience.
I never heard of microfinance before starting business school last year. However, after attending numerous panel sessions and discussions on the topic, including a Muhammad Yunus speech, I began to believe in the power of credit in fighting poverty. But I wanted to see it for myself.
The first week of my internship, I attended the RBAP annual convention and the MABS national roundtable. What an introduction to microfinance in the Philippines! One of the first important lessons that I learned during that week is that microfinance is not just about providing micro-loans to underserved entrepreneurs. It is about including them in all aspects of financing – deposit services, insurance, housing loans, micro-agri loans and financial education. Another fascinating part of USAID’s RBAP-MABS program is the innovative technology it has introduced with the help of its partner companies. For instance, GCash provides micro-entrepreneurs¬ with the ability to conduct their banking through mobile phones via SMS messages. This service is truly expanding the bank’s microfinance services. It is easier, cheaper and safer to make transactions using mobile technology. Finally, I immediately was impressed by the supportive regulatory environment that the Bangko Sentral ng Pilipinas provides the microfinance industry, encouraging innovation and private sector involvement.
