1. 1 Impact Assessment ASA Philippines

2. 2 Presentation Impact assessment of the microfinance program Financial performance assessment of microfinance operations Capacity building needs of the management staff to achieve its strategic goals Recommendations to improve the microfinance operations

3. 3 Impact Assessment Impact assessment to existing clients used 95% sampling error Enough sample for microinsurance and dropouts for 90% sampling error Sample SegmentTarget Sample(n)Actual Sample(n) Existing clients383527 Microinsurance100113 Remittance Receiver3071 Dropouts100149

4. 4 Demographics ASA clients closely resemble clients of other MFIs in terms of sex, age, civil status and educational level ASA clients are generally younger in the microfinance program compared to other MFIs Almost 9 out of 10 ASA clients are involved in petty trading A significant number of respondents were able to finish tertiary education. This implies that many ASA Phils clients are those who were able to finish schooling, but are unable to find employment.

5. 5 Demographics ASA Phils n% Urban 17433% Rural 35367% Total 527100%

6. 6 Income Trend ASA Phils n% Increased greatly 61.2% Increased 19438.5% Stayed the same 20941.5% Decreased 6312.5% Decreased greatly 326.3% Total 527100% Main reasons for increase in income were increase in sales and expanding existing business Decrease in income caused by poor sales; natural disaster and economic reasons

7. 7 Use of Loan Proceeds Loan UseASA Phils n% Income generating activity 50696.7% Food 37270.7% Kept for emergency 24746.9% School 22343.1% Clothes/HH items 11121.1% Pay other debts 10920.7% Extend credit 8616.3% HH improvement 6913.1% Celebration 244.6%

8. 8 Economic Well Being: Rating ASA rating from 3.36 to 3.72 Other MFI rating from 2.75 to 3.18 RatingDescription 1Unable to provide basic needs of the family 2Unable to consistently provide basic needs of the family 3Able to provide basic needs of the family 4Able to provide basic needs and spend for recreation 5Able to provide basic needs, spend for recreation, and save

9. 9 House Improvement

10. 10 Diet Improvement Diet improvement: Able to eat more meat, rice and vegetables

11. 11 Impact on Education 11% of ASA clients have at least one child not in school 85.7% expressed that the microfinance program helped them in sending their children to school. The program helped them to provide daily allowance; pay tuition fees; provide for projects, assignments and other school requirements

12. 12 Impact on Education MFI helped in education ASA Phils SEDPI (2009) % Yes 68.5%69.9% No 12.9%17% Not Applicable 18.6%13.1% TOTAL 100%

13. 13 Impact on Education How MFI helped in education ASA Phils SEDPI (2009) % Daily Allowance 49.5%45.3% Tuition Fee 23.9%37.3% School Supplies/projects 19.2%24.8%

14. 14 Gender CausesASA Phils n% Discussed loan access with spouse 44093.8% Foregone HH exp. 24847.1% Shared part of loan with spouse 19842.5% Forgone bus. opportunity 15730.2% Spouse used loan to benefit HH 13367.1% Spouse got insecure 194.2% Of those who shared the loan with their husbands, 99% used the loan to benefit the household

15. 15 Cash Savings Trend 89.5% have cash savings that could be withdrawn anytime Main purpose for saving: prepare for emergency; education of children; and pay for loan Majority of clients save at home

16. 16 Business Improvement ASA clients have better business improvement compared to other MFIs: expanded business; and added new product or service ASA clients purchased more equipment for their business compared to clients of other MFIs There is a significant decrease in the number of clients without business after joining the program. Better business condition rating compared to other MFIs from 5.78 to 7.09 versus 5.03 to 6.09 ASA clients spent for food, utilities and schooling from their business income

17. 17 Client Satisfaction Features that clients like best: accommodating staff; other financial services such as insurance and savings; faster and efficient service Features that clients like least: loan amount is too small; no other loan window; guarantee policies Client satisfaction rating of 9.24 compared to 9.16 of other MFIs Other services that clients want: better insurance; access to health services and scholarship ASA clients have higher multiple membership (27%) compared to other MFIs (20%)

18. 18 Delinquency ASA has lower percentage of clients with one missed payment (17% versus 25%) Causes of delinquency include: selling on credit; sickness; unprofitable business; used for consumption; and disaster

19. 19 Client Resignation ASA has higher group/center retention rate (51%) compared to other MFIs (16%) Existing clients say that other clients resign because they are no longer able to pay and they migrate

20. 20 Dropouts Majority of dropouts only lasted for one to two loan cycles Majority of dropouts used their savings to fully pay their remaining balance Majority of dropouts made their decision themselves to leave ASA The reasons of the clients for leaving ASA are business-related and economic-related reasons – matches existing clients’ view.