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Impact Assessment

ASA Philippines

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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

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Impact Assessment

• Impact assessment to existing clients used 95% sampling error

• Enough sample for microinsurance and dropouts for 90% sampling error

Sample Segment Target Sample(n) Actual Sample(n)

Existing clients 383 527

Microinsurance 100 113

Remittance Receiver 30 71

Dropouts 100 149

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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.

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Demographics

ASA Phils

n %

Urban 174 33%

Rural 353 67%

Total 527 100%

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Income TrendIncome Trend ASA Phils

n %

Increased greatly 6 1.2%

Increased 194 38.5%

Stayed the same 209 41.5%

Decreased 63 12.5%

Decreased greatly 32 6.3%

Total 527 100%

• 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

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Use of Loan Proceeds

Loan Use ASA Phils

n %

Income generating activity 506 96.7%

Food 372 70.7%

Kept for emergency 247 46.9%

School 223 43.1%

Clothes/HH items 111 21.1%

Pay other debts 109 20.7%

Extend credit 86 16.3%

HH improvement 69 13.1%

Celebration 24 4.6%

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Economic Well Being: Rating

• ASA rating from 3.36 to 3.72• Other MFI rating from 2.75 to 3.18

Rating Description

1 Unable to provide basic needs of the family

2 Unable to consistently provide basic needs of the family

3 Able to provide basic needs of the family

4 Able to provide basic needs and spend for recreation

5 Able to provide basic needs, spend for recreation, and save

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House Improvement

n %Repairs 146 28.00%Expansion 68 13.10%Water/Sanitation System 68 14.00%Lighting and Electricity 24 5.10%

Changes ASA

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Diet Improvement

n %Improved 133 25.8%The Same 355 68.9%Worsened 27 5.2%

Diet ASA

• Diet improvement: Able to eat more meat, rice and vegetables

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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

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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% 100%

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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%

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GenderCauses ASA Phils

n %

Discussed loan access with spouse 440 93.8%

Foregone HH exp. 248 47.1%

Shared part of loan with spouse 198 42.5%

Forgone bus. opportunity 157 30.2%

Spouse used loan to benefit HH 133 67.1%

Spouse got insecure 19 4.2%

• Of those who shared the loan with their husbands, 99% used the loan to benefit the household

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Cash Savings Trend

n % Increased greatly 9 1.7%Increased 224 43.0%The same 239 45.9%Decreased 42 8.1%Decreased greatly 7 1.3%

Savings Trend ASA

• 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

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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

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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%)

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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

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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

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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.