ASA Philippines: Making financial inclusion possible

• Main Authors: GHOSH, Aurobindo, CHAN, CW
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: technological innovation; Social networks; Interpersonal relationships; Community-based organizations; Asian Studies; Finance; Finance and Financial Management; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/493; https://cmp.smu.edu.sg/case/6156
• Institution: Singapore Management University

Kamrul Tarafder was the President and CEO of ASA Philippines Foundation, a social enterprise dedicated to empowering women by providing microloans for them to start or run small businesses. Unlike traditional microfinance models, these loans are underwritten by able family members and disbursed in groups to reduce administrative costs. The organisation’s prudent approach to screening, delivery and collection, which includes starting repayment before the tenure of the loan is over, has made ASA Philippines shape a successful model which aims to solve some challenges of the Grameen cooperative model. Throughout challenging economic periods, Tarafder maintained a strong commitment to financial inclusion by extending the loan duration or waiving loans to support borrowers during difficult times. He operated a sustainable business model by raising funds in the capital markets and ensuring timely repayments to build a positive track record and a credible reputation with lenders. Tarafder hoped to share his insights and strategies with other stakeholders in the industry in order to amplify the impact of microfinance on poverty alleviation and economic empowerment. This case may be used for graduate, postgraduate and executive education classes. Learning objectives for the students are to understand the importance of financial inclusion, differentiate the impact of various types of financing and understand the importance of personal interactions in a digital age.