RAFI Microfinance 2022 Annual Report: KAAGAPAY SA BAGBABAGO

y a p a g Kaa babago g a P sa RAFI MFI ANN U A L R EP OR T 2022

i

About The Cover

ABOUT THE

Kaagapaybabago sa Pag RA FI MFI A N N UA L R EPOR T 20 22

The cover represents RAFI Microfinance Inc. (RAFI MFI)'s aspiration to cultivate hope and drive change in these challenging times. We are all embracing the new normal and the age of digitalization. The cover symbolizes the pursuit of a brighter future for both our clients and employees as we stand hand-in-hand in disaster recovery.

The yellow circle serves as the guiding light for our beneficiaries throughout their journey with us. It reflects that despite life's challenges, our clients embrace positive change through digital transformation, fueling their determination to progress and recover in their businesses. RAFI MFI stands as their ally, offering guidance and support to help them pursue and achieve their dreams.

RAFI MFI is committed to being a Kaagapay sa Pagbabago, supporting our clients throughout our journey towards digital progress and disaster recovery, helping them achieve their aspirations every step of the way.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Table of Contents

TABLE OF

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3

4

6

Chairman’s Message

President’s Message

COO’s Message

Foundation Overview

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9

31

34

Heartwork: Mision and Vision Statement Core Values

Snapshots Over The Year

Touching Lives and Creating Change

24 Taon Bilang Kaagapay Sa Paglalakbay

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50

63

67

KaagAPPay

Kwentong Kaagapay

Scaling Up For Better Impact

Risk

69

85

87

Management Directories

Audited Financial Statements

MNRC Proof of Accreditation

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Chairman’s Message

CHAIRMAN’S The RAFI Microfinance (RAFI MFI) remains committed to its mission of improving the lives and economic well-being of individuals, despite adapting to the new normal brought about by the COVID-19 pandemic and faced additional challenges when Super Typhoon Odette struck in December 2021, disrupting recovery efforts. Nevertheless, we responded by providing relief to affected clients and employees. We emphasized the importance of hope and service during such crucial times.

The organization expresses gratitude to its team, partners, Board of Trustees, and clients for their dedication, support, and trust in RAFI Microfinance's mission of empowering and elevating the lives of those in need to build a better future. Padayun kita sa pag bugsay!

Mikel Alberto Aboitiz Chairman

In 2022, realistic targets were set, and digital transformation was embraced to adapt to the changing circumstances. We also continued to implement existing programs, making necessary adjustments, all while ensuring safety and accountability. The organization's efforts yielded positive results, exceeding our goals in terms of jobs created and lives touched.

RAFI Microfinance expanded its services beyond financial assistance, offering non-financial programs that include free medical consultations, psychosocial support, financial aid, and education scholarships. We also provided support to our employees and their families, including vaccination, health monitoring, and relief assistance.

RAFI MFI recognizes the importance of continually improving its systems and processes to better serve its clients and promote sustainability. With over 3.8 million lives touched and 293 branches opened all over the Philippines, we are grateful for the growth and achievements we have seen after 24 years of operation.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Mikel Alberto Aboitiz Chairman’s Message

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President’s Message

PRESIDENT’S

Amaya Cristina Aboitiz-Fansler President’s Message

The RAFI Microfinance (RAFI MFI) remains unwavering in its dedication to elevating the well-being and economic prospects of individuals. By focusing on its core values, namely God-centeredness, Integrity, Respect, and Service, the organization has been resiliently adaptive when it comes to helping the community.

Challenges like the COVID-19 pandemic devastated both clients and employees alike, leading RAFI MFI to shift its ways and carry on its mission and core values. By embracing digital transformation, the organization was still able to continue providing both financial and non-financial services to its beneficiaries.

Obstacles have always been inevitable, and this was evident when Super Typhoon Odette struck the province last December 2021, disrupting post-pandemic recovery efforts. In response, the organization provided relief to affected clients and employees while heightening the significance of hope and service during these tough times.

As the organization is about to reach its silver year in service, it only motivates us to continue RAFI MFI's heartfelt work and give back even more to the people who have trusted us all these years.

Allow me to express heartfelt gratitude and appreciation to RAFI MFI's dedicated team, partners, Board of Trustees, and loyal clients for their steadfast commitment, support, and trust in RAFI Microfinance's mission of elevating the lives of those in need and advancing the creation of a promising future for everyone. Bugsay!

Amaya Cristina Aboitiz-Fansler President

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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COO’s Message

COO’S In 1998, The Ramon Aboitiz Foundation Inc. (RAFI) launched the Cebu Micro-Enterprise Development Foundation, Inc. (CMEDFI) as its microfinance arm. It built upon the foundations established by the Small Business and Social Development Assistance Program (SBASDAP), initiated in 1979. Today, it is known as RAFI Microfinance Inc. (RAFI MFI). The organization continues to uphold its vision, aiming to be the only customer-focused social development organization that empowers micro-entrepreneurs throughout their business journey.

Jonar B. Dorado COO’s Message

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Over time, RAFI MFI has grown versatile in terms of its services, responding to various needs by offering a comprehensive range of financial and non-financial services tailored to specific needs. RAFI MFI adapted to the 'new normal' after the pandemic through digital transformation. It improved its strategies to serve and improve the lives of its clients and their families through technology— launching a mobile app called ‘KaagAPPay’. It also focused on disaster recovery when the unexpected super typhoon Odette devastated most of Cebu, requiring the organization to readjust its ways to assist its clients and their families during these tough times. Both financial and non-financial services, such as calamity assistance, loans, training and development among others, were offered so clients could recover from the disaster.

COO’s Message

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On top of that, the organization also set sail to refresh the look and feel of RAFI MFI, aiming to reach new potential clients, standing out from competitors, showcasing its brand story, expanding the influence and reach of products and services, and highlighting the true essence of being a Kaagapay – being hand-in-hand with clients, employees, and the communities it serves by launching the new RAFI MFI brand.

Today, RAFI MFI operates in numerous regions across the Philippines, boasting an impressive network of 293 branches established between 2015 and 2022. As a transformative microfinance organization, RAFI MFI aspires to become the preferred microfinance choice throughout the Philippines. Its commitment lies in providing holistic and innovative financial and non-financial services to its clients, aiming to strike a balance between its social mission of enhancing the quality of life for small entrepreneurs and maintaining sustainable economic growth.

RAFI MFI is beyond grateful to its clients who have trusted the organization in elevating their lives, their families, and even their business. To the dedicated individuals responsible for assisting our clients' dreams, thank you. Thank you for upholding RAFI MFI's vision, mission, and core values. Padayun kita sa pag bugsay!

Jonar B. Dorado COO

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Foundation Overview

FOUNDATION OVERVIEW

STARTING SMALL,

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Foundation Overview

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In 1998, RAFI launched the Cebu Micro-Enterprise Development Foundation, Inc. (CMEDFI) as its microfinance arm, building upon the foundations laid by the Small Business and Social Development Assistance Program (SBASDAP) initiated in 1979. Today known as RAFI Microfinance Inc. (RAFI MFI), the organization remains dedicated to meeting the credit and savings needs of small women entrepreneurs.

Over the years, RAFI MFI has grown its services, responding to various needs by offering a comprehensive range of financial and non-financial assistance tailored to specific concerns. Expanding its reach beyond Cebu, Bohol, Leyte, and Negros, RAFI MFI now operates in numerous regions across the Philippines, boasting an impressive network of 293 branches established from 2015 to 2022.

As a transformative microfinance organization, RAFI MFI aspires to become the preferred choice throughout the Philippines. Its commitment lies in providing holistic and innovative financial and non-financial services to its clients, aiming to strike a balance between its social mission of enhancing the quality of life for small entrepreneurs and maintaining sustainable economic growth.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Heartwork: Mission and Vision Statement

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MISSION STATEMENT We are social entrepreneurs providing financial and non-financial services to empower the poor and elevate their lives.

VISION STATEMENT Empowered clients who have elevated their lives and their families

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Heartwork: Core Values

CORE VALUES GOD-CENTEREDNESS Living and practicing values that respect the dignity of the human being and promote greater good

INTEGRITY Aiming to achieve the highest work performance according to the standards of RAFI wherein transparency, proper communication, and adherence to ethical procedures delivered in all transactions

RESPECT Maintaining respect for all people without prejudice to status as they appreciate, recognize, and encourage innovations and contributions of other people by keeping an open mind

SERVICE Providing services that create impact to RAFI and to the communities we connect with, by giving ideas, innovative solutions and talents

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Snaphots Over The Year

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OVER THE YEAR

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snapshots Over The Year

CLIENTS

REACHED

637,853

RAFI MFI clients are empowered and equipped to start, grow, and sustain their own businesses.

RAFI MFI employees continue fulfilling their life-long mission to elevate lives by empowering micro-entrepreneurs and their families.

MANPOWER

COUNT

2,876

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snaphots Over The Year

FINANCIAL SERVICES

MICRO-FINANCE FOR LIVELIHOOD

Mauswagon Loan The Mauswagon Loan is a primary loan that gives the client additional capital for the development of their business.

354,726

955

BORROWERS

BORROWERS

Mauswagon Plus Loan An improved business loan product that aims to give financial support to Micro and Small Entrepreneurs in all productive sectors of the economy for the growth and development of their businesses for more employment generation and economic growth

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snapshots Over The Year

Kabuhayan Loan The Kabuhayan Loan is made for hog raisers. It can be used for purchasing feeds and additional piglets, for the construction of pig pens, and for other necessary materials.

1,412

264

BORROWERS

BORROWERS

Maneho Loan The Maneho Loan is for micro-entrepreneurs in transport services like pedicab/trisikad, tricycle, and habal-habal/motorcycle.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snaphots Over The Year

FINANCIAL SERVICES

MICRO-FINANCE FOR LIVELIHOOD

Housing Improvement Loan The Housing Improvement Loan assists clients with their home improvement needs, such as ensuring access to safe water and decent toilet facilities.

73,618

492

BORROWERS

BORROWERS

Education Loan The Education Loan helps families by financing school-related expenses and ensuring that clients and/or their children are able to go to school or attend virtual and/or distance learning and finish their studies.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

EDUCATION LOAN

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Snapshots Over The Year

Sagip Loan as Odette Response SAGIP Loan is a unique loan product that offers financial assistance to clients during health or calamity-related emergencies.

18,901 BORROWERS

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snaphots Over The Year

FINANCIAL SERVICES

MICRO-FINANCE FOR LIVELIHOOD

CBU Capital Build-Up Capital Build-up helps clients develop the habit of saving for their financial security and have a safety net in cases of emergency. Through their thrift and mandatory savings, clients can generate capital fund for their businesses without any assistance from financial institutions.

354,923

2,178

CLIENTS

CLIENTS

MyIpon Mylpon helps clients with their journey toward financial empowerment by providing protection in cases of financial emergency. It also seeks to help clients pay for large purchases to avoid debts and reduce financial stress, thereby providing a greater sense of financial freedom.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snapshots Over The Year

FINANCIAL SERVICES

MICRO-FINANCE FOR LIVELIHOOD

Kaagabay The enhanced Kaagabay provides comprehensive financial protection for the family in cases of accidental injury and death.

Family Relief Plan The Family Relief Plan assists families with burial services and provides them with financial aid in times of death.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snaphots Over The Year

FINANCIAL SERVICES

MICRO-FINANCE FOR ANCILLARY SERVICES

PROtectSure PROtecSure ensures your home is protected in the event of damage or destruction due to natural calamities and other fortuitous events.

LRF Loan Redemption Fund The Loan Redemption Fund is a mandatory micro-insurance product which provides financial coverage for liabilities in the event of a debtor's death so liability will no longer be inherited by the next of kin.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snapshots Over The Year

FINANCIAL SERVICES

MICRO-FINANCE FOR ANCILLARY SERVICES

QuikRemit QuikRemit offers complementary domestic remittance and money transfer services, allowing clients to send money to loved ones or pay suppliers at competitive transaction costs.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Snaphots Over The Year

SERVICES

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snapshots Over The Year

NON-FINANCIAL SERVICES

Client Capacity Building

CLIENT ENTERPRISES DEVELOPMENT

Client Capacity Building This program strengthens the micro-entrepreneurial skills of RAFI MFI clients through the distribution of printed learning modules containing Negosyo tips and concepts hat can further boost their knowledge and self-esteem as entrepreneurs.

2,788

2,400

clients educated on financial and digital literacy

active clients and 24,000 engaged clients

Learning Hub This is an exclusive Facebook group for RAFI MFI clients where they can access learning modules that can help boost their businesses. Clients are driven toward bridging digital transformation and maximizing the opportunities brought about by technological advancements.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snaphots Over The Year

NON-FINANCIAL SERVICES

Sustainable Livelihood Training Program

CLIENT ENTERPRISES DEVELOPMENT

Sustainable Livelihood Training Program This program aims to improve clients' business segments through face-to-face training, allowing them to explore more income-generating opportunities. It also provides support services, builds capacities of target communities, and enhances their capabilities based on marketable skills within the community.

294

295

clients hands on training on food processing, textile and agriculture

client merchants generated 4.4 million sales from their business

Tindahan Ni Nanay This inivintive helps our clients sell and offer their products through social media. Within this Facebook group page, RAFI MFI client showcase their products such as food, clothing, and accessories.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snapshots Over The Year

Clustering For Livelihood Program

Clustering For Livelihood Program

Initiated through the Client Enterprise Development Team, this is a pilot program that provides access to learning opportunities through training interventions, and for product marketing and linkages to support sustainability.

309,307

10

gross sales thru partnerships and linkages with trained 20 cluster-beneficiaries

Clients were validated while 33 applicants were endorsed and signed up for the webinar

Scholar Si Nanay Program Scholar Si Nanay Program and Project Aida.

10 Clients were validated while 33 applicants were endorsed and signed up for the webinar.

Scholar Si Nanay Program

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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SnapshotsOver Snaphots OverThe TheYear Year

NON-FINANCIAL SERVICES

CLIENT RETENTION & ENGAGEMENT SERVICES

This is the scholarship program of RAFI Microfinance INC., in partnership with Philpacific Insurance Brokers & Managers Cebu (Philinsure), which is exclusively granted to and used for the tertiary education of the underprivileged but deserving students of RAFI MFI clients belonging to indigent households.

55 Clients' Children college education scholarship grantee

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snapshots Over The Year

NON-FINANCIAL SERVICES

CLIENT RETENTION & ENGAGEMENT SERVICES

Center Performance Incentive (CPI) recognizes qualified center officers who outstandingly performed their key role in strengthening their respective center groups, as well as their other duties and responsibilities. On the other hand, Loyalty Tokens are awarded to clients that reached a specific year in RAFI Microfinance. Aside from celebrating the client's anniversary dates, it is also a way of showing gratitude for their loyalty and support of our products & services.

18,576 Center Officers

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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SnapshotsOver Snaphots OverThe TheYear Year

NON-FINANCIAL SERVICES

CLIENT RETENTION & ENGAGEMENT SERVICES

In synergy with RAFI Dolores Aboitiz Children's Fund (DACF), Tigom Project is a community project that educates RAFI MFI clients and their kids to help them understand the value of saving and becoming financially prepared and resilient, especially in this time of pandemic.

500 Clients' Children educated on Financial Literacy with the TIGOM Storybook and Coin Bank

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snapshots Over The Year

NON-FINANCIAL SERVICES

CLIENT RETENTION & ENGAGEMENT SERVICES

In synergy with RAFI Eduardo J. Aboitiz Cancer Center (EJACC), the Cancer Care project provides clients in Cebu Province with access to cancer screening assistance for early detectionand treatment assistance.

485 clients educated on cancer awareness, treatment and diagnosis assistance

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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SnapshotsOver Snaphots OverThe TheYear Year

NON-FINANCIAL SERVICES

Special Client Kumustahan - This aims to provide intervention about concerns, queries, and updates on products and services where Center Leaders reinforce the importance of support group and may share it also to their respective center members. This session also provides an overview of the RAFI MFI products and services both financial and non-financial services to be aware of all RAFI MFI programs and partners.

2,598 Special Client Kumustahan

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snapshots Over The Year

NON-FINANCIAL SERVICES

WASH Education – To ensure that the branch staff shall be WASH advocates, WASH education are conducted during client onboarding and client refresher courses, emphasizing the importance of WASH for the clients’ health and wellbeing. Other WASH activities such as World Toilet and World Water Day are also celebrated to emphasize the organization’s WASH campaign.

15,321 Clients Reached for awareness and hygiene promotion

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Snaphots Over The Year

OUR FOOTPRINT 8.5B

Total capital for

293

Total branches in the

26

Total provinces

MICRO-ENTREPRENEURS

PHILIPPINES

REACHED

3.2M

+

Lives touched

CLIENTS & FAMILIES

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Snapshots Over The Year

BRANCHES NEWLY OPENED LUZON BRANCHES Atimonan Gumaca Mauban Lucena Catanauan San Juan Pagbilao Batangas Rosario

VISAYAS BRANCHES Bacolod Buenavista Canaman Calabanga Sipocot Tobias Fornier

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Touching Lives and Creating Change

TOUCHING LIVES AND

I acquired knowledge about Siomai, Tocino, and Skinless Longganisa through my participation in the Sustainable Livelihood Training Program. The Client Training and Development (CTD) team, a division of the Business Development Unit, collaborated with Cebu Technological University (CTU) to offer a Livelihood Training on Food Processing, an opportunity I eagerly participated.

During this program, we gained knowledge in creating siomai, tocino, and skinless longganisa, all of which are in-demand food staple to Cebuanos. This training significantly expanded my skills, which I can now apply to my own business endeavors. I extend my gratitude to RAFI Microfinance for facilitating this program, which is dedicated to enhancing the quality of life for entrepreneurs like me.

Mary Joy Sobri Client and SLTP 2022 Participant

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

I joined the Sustainable Livelihood Training Program with the intention of expanding my knowledge and leveraging the skills gained to gain more income. Having run a lending business for the past 9 years, I now aspire to explore fresh avenues with regards to income generating intervention.

The collaboration with Cebu Technological University (CTU) in the Livelihood Training proved instrumental in equipping us with the ability to produce Ngohiong, Siomai, and Buko Pandan Juice. This type of training enables us to grow our business and earn more. I extend my gratitude to RAFI Microfinance for spearheading this initiative, demonstrating their commitment to supporting aspiring entrepreneurs such as myself.

Catherine Inot Client and SLTP 2022 Participant Lapu-Lapu 1 Branch

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Touching Lives and Creating Change

Earning money has always been a struggle to me and my family. I looked and tried everything I can to earn money. It came to a point where I would beg from our neighbors for some money because there were a lot of debts to pay as our mother got ill and was hospitalized. Our circumstances were so poor that my siblings and I endured hunger for days to keep up with the bills.

Amidst this unfortunate event, we were not forsaken by the Lord God. Through the kindness of Sir Gerwin, the branch manager of Guadalupe branch, we were able to claim the Family Relief Plan. This program extended its support to cover the essential expenses for our mother’s funeral following her passing, including necessities such as the coffin, provisions, and flowers for the wake. I am deeply grateful to RAFI Microfinance and its initiatives, including the Family relief Plan, which not only alleviate financial concerns for bereaved families but also grand them the space to grieve their departed loves ones without apprehension.

I honestly had no idea about the loans my late wife had obtained from RAFI Microfinance. I would simply accompany her to meetings and activities without fully understanding the details. When my wife, Riza Soliga, passed away, I was left feeling lost and unsure about what to do next.

Fortunately, RAFI Microfinance patiently guided me through the necessary steps. It was during this time that I discovered the numerous benefits available to RAFI Microfinance members, as well as to family members like me, which we can claim such as the Family Relief Plan. This program covered expenses ranging from the coffin to groceries and even the flowers needed for my wife's wake. Moreover, they provided me with the opportunity to continue the small business my beloved wife had started. I also chose to become a member of RAFI Microfinance to carry on the path she had paved.

Roger Soliga Beneficiary, Family Relief Plan

Prience Supapo Beneficiary, Familly Relief Plan

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Touching Lives and Creating Change

TOUCHING LIVES AND

The RAFI Microfinance Bugsay Scholarship Program (BSP) has had a beneficial impact on me, both in terms of my education and personal development. My educational needs, particularly my semester fees, are no longer a concern since I applied to be a BSP scholar.

The BSP team regularly conducts Kumustahan Sessions to stay in touch with the scholars and holds a General Assembly, where we get the chance to virtually meet other BSP scholars. They also guide and support us in our self-development efforts. I was inspired by their heartwarming encouragement, which became one of my motivations to strive harder for self-improvement and a better future.

Padayun sa pag bugsay!

Kyla May Luciano Bugsay Scholarship Program (BSP) Scholar

Since joining RAFI Microfinance way back in 2015, I never expected I'd be given the chance to avail the Housing Improvement Loan. I have five children, and it was no easy task to provide for such a large family. It's always been my dream to give them a stable home where we all could relax, without having to worry about it being destroyed by natural calamities.

Our main source of income was baking Pan Bisaya and selling items at our sari-sari store, while my husband is a farmer. Alongside our children, we lived in a house mainly made of bamboo. I've always wanted to have our home renovated. Now, with the help of the Housing Improvement Loan from RAFI Microfinance, I was able to have our home transformed into a concrete structure. Small renovations have been progressing since then, and I couldn't thank RAFI Microfinance enough for their programs like the Housing Improvement Loan, which assist those who wish to have a stable roof over their heads. I am a proud member of RAFI Microfinance!

Isabelita Migallan Housing Improvement Loan

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Snapshots Over The Year

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TAON BILANG KAAGAPAY

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

24 Taon Bilang Kaagapay Sa Paglalakbay

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TAON BILANG KAAGAPAY

RAFI MICROFINANCE’S SCHOLAR NI NANAY PROGRAM RAFI Microfinance's Scholar si Nanay Program is dedicated to offering scholarships to deserving individuals, empowering them to rebuild their lives and create new opportunities through formal TESDA NC II accredited courses. These courses enable participants to develop sustainable alternative or additional livelihoods, leading to improved lives for themselves, their families, and their communities.

In collaboration with the Banilad Center for Professional Development (BCPD), the program successfully implemented a pilot initiative for nine Nanays. Through this partnership, six Nanays were able to transform their businesses, resulting in a substantial

45%

increase in their incomes.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

BCPD has proven to be a reliable partner in capacity building, working closely with the nanays to co-create the Scholar si Nanay Program. Understanding the nanays' responsibilities towards their businesses and families, BCPD devised a hybrid learning model that combines onsite instruction with flexibility, eliminating the need for daily face-to-face schedules. This initiative places a strong emphasis on the value of learning while accommodating the nanays' unique circumstances.

Following their graduation from the program, an impressive 89% of nanay graduates reported enhanced leadership and business confidence. As most of the Nanays are high school graduates, they recognize the lifelong commitment to learning. By providing access to TESDA NC II certification, RAFI Microfinance continues to support the Nanays in their ongoing learning and development journey, serving as a steadfast Kaagapay by their side.

24 Taon Bilang Kaagapay Sa Paglalakbay

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Being the Vice President of Business Development posed numerous challenges.

Odette made me realize the importance of agility in such a role. Adapting meticulously crafted plans to prioritize client rehabilitation and recovery became imperative. Our ability to respond swiftly, including adopting an all-hands-on-deck approach to support our micro-Insurance team in reviewing and evaluating claims, and rapidly developing lightweight products, was crucial. Monitoring our on-ground team proved challenging, given that some team members were personally affected by the circumstances.

Confronting these obstacles made me realize how fortunate I am to have a resilient and passionate team that possesses a genuine dedication to service. They were willing to adjust and lend assistance, using both on-site and through alternative means. We were also fortunate to have reliable partners as we expanded our search for individuals willing to contribute to the rebuilding of Cebu.

It filled me with immense pride to witness how nonfinancial services have become profoundly significant for our clients.

My dream and hope are to continue serving the most marginalized individuals by providing them with opportunities. I hope to be able to witness my children embrace that same love for service as they grow up.

Thus, I envision a stronger and larger RAFI MFI, an institution that serves a greater number of Filipinos.

PADAYUN SA PAGBUGSAY!

Iris Dorado Vice President for Business Development

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24 Taon Bilang Kaagapay Sa Paglalakbay

TAON BILANG KAAGAPAY The aftermath of Odette had a significant impact on our planned programs, prompting us to swiftly adjust our initiatives and revise our timelines for the year. Although we were aware of the impending typhoon, we were unprepared for the extent of its destruction, resulting in the disruption of many of our plans. We now find ourselves in the position of needing to strategize anew and provide more relevant support to our clients who were also affected by the typhoon.

Restructuring our strategies within the limited time available has proven to be a formidable challenge. These changes have presented our team with a series of obstacles to overcome.

Furthermore, with the growing demand for digitalization, balancing the need to stay current with trends while effectively assisting our clients has proved to be quite demanding.

Not only are we accustomed to providing traditional support, but our clients, too, find it challenging to adapt. Managing both our own challenges and those faced by our clients has compelled us to work diligently to achieve our objectives Despite these challenges, our team promptly identified strategies to address the changes.

We restructured our approach to align with our clients' needs and reprioritized initiatives that were originally planned for the year.

I am immensely grateful that the initiatives and plans we devised for our clients have already been piloted and implemented. As an agent of change, I am filled with joy witnessing our ideas materialize. Observing the effective impact of these programs on our clients is already a testament to our success.

My life motto has always been: "Do your best in whatever you do." This guiding principle urges me to consistently give my utmost effort, regardless of the task's scale or simplicity. I firmly believe in never settling for mediocrity. The fruits of our labor serve as a reflection of the passion we invest in everything we undertake.

Chantal Castañares Client Business Services Supervisor RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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24 Taon Bilang Kaagapay Sa Paglalakbay

Over the course of nearly four years, my tenure within the organization has transformed me into an individual deeply driven by the desire to serve others. As a member of the Client Training & Development (CTD) team, our primary focus is on educating and empowering our clients.

We achieve this through the implementation of the Client Capacity Building (CCB) Program, which utilizes physical modules to provide training on various topics encompassing Financial, Entrepreneurial, and Digital Literacy. Furthermore, we conduct face-to-face training sessions as part of the Sustainable Livelihood Training Program (SLTP).

RAFI MFI has left an indelible impact on the lives of numerous individuals and remains unwavering in our commitment to enhancing the well-being of our esteemed clients. Our team is resolute in upholding our mission and fostering an environment where everyone can strive and flourish. Together, let us forge ahead and continue making progress.

Padayun sa pag bugsay!

Kathleen C. Rayla Client Training and Developement Specialist

To cater to clients who have internet access but are unable to attend our SLTP and CCB programs, we have created the Learning Hub, an online platform where they can access uploaded Learning Modules. Additionally, we have introduced the Learning Hub Kusina, which synergizes with the CCB and SLTP initiatives.

In the present year, we have forged partnerships with institutions that have significantly expanded our outreach, attracting interested clients to enroll in our programs. Nonetheless, with growth comes challenges, particularly in the aftermath of the devastating typhoon Odette. Many of our clients have experienced substantial losses, including their primary sources of income, such as sari-sari stores, and even their homes.

In response, we have remained steadfast in providing support and assistance to aid them in rebuilding their lives after the storm. This involves programs like SLTP, CCB, as well as conducting post-assessments following the completion of these initiatives.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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TAON BILANG KAAGAPAY One of the major challenges I face as District Head is how to help and support for the recovery of our clients who have been severely affected by two typhoons, namely Odette and Agaton. These natural disasters have caused significant damage to their lives and livelihoods, leading to difficulties in meeting their weekly amortization payments with our organization.

To tackle this challenge, I maintain a positive mindset, believing in the capabilities of my team and the support of higher management.

Drawing from years of experience working with my team, I collaborated with them to develop recovery interventions encompassing both financial and non-financial aid. Taking charge of the execution on the ground, I worked closely with my proactive Area Managers.

Witnessing the devastation firsthand, my heart goes out to our clients as they strive to rebuild their lives after the typhoons. I am aware that our support has limitations, but I placed my faith in a higher power, viewing these hardships as tests of our strength as RAFINIANs in fulfilling our mission to positively impact people’s lives. The unwavering commitment and dedication of my team provided me with strength, as a firmly believe that with collective collaboration, nothing is insurmountable.

Furthermore, my family’s unwavering belief in my capabilities reinforced my determination.

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24 Taon Bilang Kaagapay Sa Paglalakbay

Beyond quantitative performance, I am proud to have created opportunities for career growth and advancement within my team. According to records, we currently hold the highest number of promoted District Heads, which I consider a personal milestone as their team leader, witnessing their success.

Throughout my nine years as a RAFINIAN, I have encountered both challenges and exciting experiences. The challenges arise from the high expectations placed on me as a middle manager overseeing the largest district in terms of size and coverage.

However, it is also exciting because successfully empowering my team members allows me to cultivate more future leaders.

This has always been my goal when leading a team. The larger my team becomes, the more opportunities I can provide.

Although we may not have achieved all our Key Performance Indicators (KPIs) by the end of the year, we have managed a significant portion of them effectively, despite the operational challenges brought about by the typhoons (such as Loan Portfolio, Loan Releases, Interest Income, OSS, and Audit Rating, etc.).

Looking ahead, my goals are as follows: First, I will continue to meet the expectations of the management in my current position and remain an invaluable asset to the organization through continuous learning and self-development. Second, I will persist in inspiring and nurturing leaders, preparing them to meet the evolving needs of the organization. Third, I will wholeheartedly dedicate myself to upholding the mission and vision of the organization, striving for the betterment of our operations and RAFI's interests. Lastly, I aspire not only to witness transformation in the lives of our clients and staff but also to undergo personal and familial transformation.

Junrey Bugsocan District Head

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24 Taon Bilang Kaagapay Sa Paglalakbay

TAON BILANG KAAGAPAY Mauswagon Plus Unit (MPU), formerly known as Small Business Loan (SBL), was launched in November 2019 and initially piloted in 7 branches. Its objective is to assist aspiring entrepreneurs and micro to small enterprises by providing them access to financing.

During the period of Odette, our team faced significant challenges in collections and recovery. Our clients were experiencing difficulties in maintaining their businesses due to reduced supplies and increased focus on essential goods. Some were also prioritizing the rehabilitation of their homes and businesses, while unfortunately, others had to close. To overcome these challenges, our team collaborated with the Strategic Management team to devise strategies. We conducted individual client visits to assess their needs and explore potential loan interventions that RAFI MFI could offer. Our aim was to provide our clients with the necessary support to recover and regain momentum in rehabilitating their businesses.

An important achievement for us was being part of the Branch Expansion Team, which allowed us to open 293 branches nationwide.

This expansion enabled us to extend our reach and implement the Mauswagon Plus Program in 15 additional base branches across the country.

I firmly believe in the saying "lihok tao kay buligan ko ikaw", which means that if you act, I will assist you. I have entrusted all my plans and achievements to Him, and my responsibility is to perform my job diligently, knowing that someone out there is seeking assistance.

A motto I strongly believe in is the Triple Cs of Life: Choices, Chances, Changes. It emphasizes the importance of making choices and taking chances to bring about positive changes in our lives.

Serwin Yongco Mauswagon Plus Unit Supervisor RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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In 2013, I began my journey as a Branch Manager. In 2022, I was transferred to Cebu 5, an area that needed to undergo rehabilitation. Embracing the challenge, I took charge and dedicated myself to managing the "most problematic area" in Cebu North. I actively listened to the concerns of the community, helped, and motivated them to strive for excellence. Cebu 5 had earned its reputation as the "most problematic area" due to fraud incidents at four branches and numerous clients falling behind on payments.

I am sincerely grateful for the opportunity RAFI MFI has bestowed upon me during my tenure of 10 years. The organization has not only provided me with a rewarding career but has also given me a sense of purpose in life. I am deeply fulfilled by the meaningful work I do at RAFI, as well as the compensation I receive. Working for such an incredible company, alongside wonderful colleagues and under exceptional leadership, brings me immense joy. I am genuinely delighted to be part of this organization, and I cherish the relationships I have built with my colleagues.

To further enhance my skills, I participated in the District Head Bootcamp and successfully completed the District Head revalida.

However, my journey took an unexpected turn when Typhoon Odette struck Cebu on December 16, 2021. I was stationed in Cebu 7, where my clients were severely affected.

The towns of Sibonga, Argao, Alcoy, Matalongon, and the mountainous regions faced significant challenges, including the loss of livelihoods, such as farming, and damage to their homes.

Lafe Cano Area Head

In the face of adversity, I asked myself, "How can I assist them?" Thankfully, with the grace of God, I actively engaged in the assessment process and facilitated our affected clients' access to the RAFI MFI program called the Sagip Loan as Odette Response (SLOR). I take immense pride in witnessing the recovery of numerous businesses, particularly in the farming sector, within the Cebu 7 area.

Throughout my journey, I have held onto the quote, "Behind the clouds, the sun still shines." This mantra has guided me to maintain a positive mindset, think beyond limitations, seek assistance when needed, and remember that I am not alone. As a devoted Christian, I surrender all my challenges to God, believing that His plans for me and my family are grander than I can imagine.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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TAON BILANG KAAGAPAY I am a member of the Client Training & Development Team, specifically focused on Social Media Attraction. Our goal is to bridge the gap for our clients and embrace digitalization. As part of this role, I manage our Facebook Group called "Learning Hub," where we provide online training and support to our clients. In 2022, our main objective was to attract more clients to join our online learning platform through Facebook. Our FB Group serves as a valuable tool for interactive learning with animated modules, engaging games, and inspiring stories through SAYRI. During the first quarter of 2022, I volunteered for relief operations, distributing goods to affected municipalities in Cebu. I also assisted in encoding claims for the Odette Response. This was particularly challenging as Cebu was heavily impacted by the situation, leading to temporary disruptions in our FB Group's activities due to unstable power and internet connectivity.

Once the restoration and recovery phase began, we resumed connecting with our clients through the FB Group. We continued to post updates about our activities and attract new members. Additionally, we conducted online onboarding sessions and our District Community Organizers visited branches to promote the Learning Hub Facebook Group.

Amidst the pandemic and the aftermath of typhoon Odette, the word "resilient" resonated deeply. As a Cebuano and a RAFInian, resilience is ingrained in our character.

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Seeing the smiles on the faces of our beneficiaries during the relief operations provided me with strength and hope.

Witnessing their gratitude and appreciation, despite the challenges we faced in reaching them, was a heartwarming and humbling experience.

The year 2022 brought several milestones for me personally and professionally. Firstly, I successfully achieved the target of increasing the number of members in the Learning Hub Facebook Group, thanks to the assistance of our District Community Organizer. Secondly, we launched SAYRI, a platform that showcases the success stories of clients who have benefited from our Non-Financial Services. Lastly, I had the opportunity to participate in various company-initiated activities, including the General Assembly, Summer Outing, Gabii Sa Kabilin, and PRIDE. I was deeply touched by RAFI's recognition of its employees' capabilities and its celebration of uniqueness and diversity.

"Let Go and Let God" is a motto I hold dear. I hope that RAFI MFI will continue its mission of uplifting the lives of our community. I aspire for our initiatives, particularly our Non-Financial Services, to grow stronger, enabling us to reach and positively impact more clients. May our interventions be implemented efficiently, bringing more joy to our clients' lives. Lastly, I hope to maintain the strength and determination to continue my lifelong dream of serving the community.

Janjan Rae Arnejo Client Training and Development Specialist

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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TAON BILANG KAAGAPAY "There is nothing more beautiful than someone who goes out of their way for others," a quote fearlessly believed by one of RAFI MFI's Trust Staff, Archie Dela Cruz.

Archie, in service for around 24 years, has always shown compassion to his clients, by giving assurance and motivation for them to continue their business despite having to face the disaster, Odette.

During Typhoon Odette, it was a significant challenge for clients to sustain their businesses, as their focus shifted towards survival and coping with the increased demand resulting from the hardships brought about by the typhoon. Although in a seemingly hopeless situation, Archie provided hope to the clients by consistently delivering his service throughout their journey. Signal problems and the inability to visit clients' houses didn't deter Archie's dedication to communication and service, showing his commitment in both challenging and adverse circumstances.

"As a Trust Staff, during challenging times, it is essential to remain calm and strategic, especially when dealing with our clients.

Recognizing that everyone is facing a difficult situation, we should communicate with compassion.“, Archie said.

With eagerness shown by clients, the Mauswagon Plus Loan was implemented.

MPL is a program of RAFI MFI that gave small to micro-entrepreneurs a chance to grow their business with bigger loan options that will help sustain their business and elevate their lives.

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24 Taon Bilang Kaagapay Sa Paglalakbay

As one of the trust staff to offer MPL to Argao Branch, it has been of great help to the Ates and Kuyas throughout their hardships and their hardwork.

Inspired by his family and loved ones, most of all God, he has been guided all throughout his heartwork that whatever he does, he does with commitment, truthfulness and dedication.

After being jobless for quite some time, Archie was hopeful about finding a job that aligned with his principles and values. He then joined RAFI Microfinance and has never looked back since.

"I learned a lot in RAFI MFI. My experiences, although challenging, have shaped me into who I am today. I consider my passion to help and serve our clients as one of the main reasons for my success. RAFI MFI has provided financial stability for me and my family, giving me the potential to make a difference in people's lives.“ To make a difference, Archie strives to advance in his career, aiming to become an asset to his mission of improving the lives of others through his knowledge and skills.

Archie H. Dela Cruz Mauswagon Plus Loan Staff

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

KaagAPPay

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KaagAPPay

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Through the help of the internal and external partners, KaagAPPay was launched last December 2022, during the RAFI 24th Founding Anniversary with the official mascot, “K’app”.

“With the full implementation of KaagAPPay, I hope and dream that we can achieve an enhanced customer experience, improved operational efficiency and revenue generation, data integrity and process agility and operational productivity that will better serve our clients even without going to the branches,” Raffy said.

Great works are accomplished not only by strength, but with one’s perseverance.

This is what Raffy Baladjay has shown towards his heartwork in RAFI Microfinance, Inc. Raffy Baladjay has undergone a remarkable journey throughout his 13 years at RAFI MFI. Beginning as a Trust Staff, his dedication to continuous learning and upskilling has led him to his current role as the Business Excellence Officer-in-Charge.

In line with his mission to support the digital transformation journey of the Ates and Kuyas, the project "KaagAPPay" was born.

KaagAPPay is a mobile application that empowers our clients to succeed in their businesses by providing them with the convenience of accessing our services online from the comfort of their own homes. This eliminates the need to visit any RAFI MFI branch and provides them with real-time access to their loan balances, savings transactions, and insurance coverage.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

KaagAPPay While the implementation was successful, challenges were inevitable, particularly when providing services to traditionally inclined clients. The main issue was the initial lack of internal capability to develop the app, but this was resolved through a partnership with an external provider. Since then, the app has been designed from the users' perspective, addressing ground-level pain points early on, making it easier to meet our clients' needs and demonstrate the benefits.

“Since we live in an era of unmatched innovation where digital innovation is crucial component to our daily lives, RAFI MFI has continuously drive in adapting changes in the financial sectors’ services, which are constantly evolving.

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It is also about how we make them and what social impact we create on our clients and the communities we serve,” added Raffy.

Technology has been a great factor in our lives, including new products, ideas, work processes, leisure activities, and innovation that can make our products and services unique and implemented for our client’s needs.

Faced with challenges every year, Raffy has always believed in trying, failing and improving, rather than losing the opportunity to become better than who he was before.

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KAAGAPAY SA PAGSUBOK Leonida Panares Valmoria Sagip Loan Client

Sagip Loan stands as a distinctive financial product, providing essential support to clients during health or disaster-related emergencies. This valuable service offered hope to Nanay Leonida Valmoria, who faced devastation when typhoon Odette wrecked their livelihood but found assurance in the available assistance.

The financial aid offered by RAFI proves immensely beneficial for clients like Nanay Leonida Valmoria. Depending on her income from crafting crab nets and ready-to-wear clothes, she suffered a loss when typhoon Odette ravaged her province. Gratefully, she acknowledges RAFI Microfinance's Sagip Loan program, which addresses specific needs during calamities.

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Since becoming a part of RAFI Microfinance, her life has taken an unforeseen positive turn.

As a member of the organization, she feels confident that regardless of future disasters, RAFI will stand by her and her family by providing assistance. She expresses her earnest desire for RAFI Microfinance to continue offering programs like Sagip Loan, which not only supported her during difficult times but also improved her business prospects. Now, Nanay Leonida's family strives as she continues to navigate through life's challenges, with RAFI Microfinance supporting her along the way.

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KWENTONG KAAGAPAY

Maricel Paco Scholar ni Nanay

Maricel Paco's journey with RAFI MFI began when she learned about it through a friend who was already benefiting from their services. Intrigued and convinced by her friend's success, Maricel decided to give it a try, hoping to secure additional capital for her businesses.

Maricel's entrepreneurial ventures encompassed a diverse range, including a Sari-Sari Store, a PC dealership, and food vending. However, the aftermath of the devastating typhoon Odette in 2022 compelled her to adapt and find new avenues of income to sustain her family. Determined to overcome the challenges, Maricel turned to selling food, preparing nourishing viands to meet her family's needs. Prior to the calamity, their reliance solely rested on her sari-sari store.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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The SNP also played a crucial role in honing Maricel's marketing strategy skills, equipping her with valuable knowledge and empowering her to navigate the digital landscape effectively.

In the year 2022, Maricel's most significant achievements lay in her ability to conquer the daunting obstacles that came her way. She unwaveringly continued selling food, tirelessly procuring ingredients from the market and preparing meals, even when exhaustion threatened to overwhelm her.

Fortunately, her children extended their helping hands, amplifying the strength of their united efforts.

Throughout the trying times, Maricel displayed unwavering resilience, driven by her deep concern for her children's well-being. Her faith in the Lord provided solace and strength in the face of adversity.

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According to Maricel, RAFI MFI has been an invaluable source of support, offering assistance that surpassed her wildest imagination. With their help, she could afford her children's tuition and invest in her business, propelling her towards a brighter future.

As an aspiring entrepreneur, Maricel dreams of enhancing her business offerings, nurturing the vision of establishing her own eatery someday. Grateful for the opportunities she has received, she holds a deep sense of indebtedness to RAFI MFI. Maricel firmly believes that life is a precious gift, urging everyone to pursue endeavors that bring joy and satisfaction, such as engaging in business and forging meaningful connections with people.

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The most challenging aspect of healing isn't only losing someone; it's the process of recovering the part of yourself that vanished with them. This is the experience shared by one of our clients' son, Prience Supapo, as he recounts a story to cherish the memory of his dearly beloved mother, Mary Jane Supapo.

Mary Jane Supapo, a former member of RAFI MFI for nearly 5 years, owned a sari-sari store and worked as a street vendor. In 2022, her health began to deteriorate, and she developed complications related to her gallbladder. Although faced by hardships, Mary Jane was a loyal and committed member of RAFI MFI and has continued her membership to continue aid for her medications whilst handling her business.

Unfortunately, on August 13, 2022, she passed away.

Prience Supapo Family Relief Plan Beneficiary RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Prience Supapo, her eldest son, was left to care for his four siblings. He faced challenges during her burial and had to figure out how they could carry on with their lives without the support of their single mother.

"Before she passed away, she had already mentioned to me that we should stop our loan with RAFI MFI due to our difficult situation. However, I strongly advised her not to do so. I was aware of the insurance and the assistance provided by RAFI MFI, and I believed that this support will not go to waste," Prience said.

Although he was struggling, Prience was persistent. He sought financial assistance from other family members and, as a last resort, had begged money from their neighbors.

“I almost lost hope. We did not have food, we did not have money to pay for our needs, and I lost all energy and will to survive and continue for my siblings,” Prience added.

Indeed, his trust in RAFI MFI did not go in vain, as he was able to avail the Family Relief Plan. Guided by the Branch Manager, he received burial assistance, a coffin, groceries, and burial flowers during his challenging times.

The Family Relief Plan is a modest monthly insurance premium. It is a benefit provided to our micro-entrepreneurs who seek assistance in the event of a family member's death. This initiative was established to help alleviate the financial burden of burial expenses for family members.

It is a benefit provided to our micro-entrepreneurs who seek assistance in the event of a family member's death. This initiative was established to help alleviate the financial burden of burial expenses for family members.

During these times, I always remind myself that the Lord has entrusted me with this burden because He believes I can overcome it. I was given the chance to make a fresh start through the financial aid for her burial, and now I can bounce back and begin my life anew," Prience said.

Faced with uncertainty and fear, Prience has dedicated his small wins and ongoing motivation to his mother, with the aim of supporting his other siblings and ensuring they can lead meaningful lives of their own.

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KAAGAPAY SA PAGSUBOK Ma. Marlyn Deniega Arañas Mauswagon Loan Client

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

The Mauswagon Loan is a primary loan that provides clients with additional capital for the development of their businesses. Nanay Ma. Marlyn D. Arañas took the opportunity and availed herself of the Mauswagon Loan.

Nanay Ma. Marlyn D. Arañas, from the Naga 2 branch, sought out the Mauswagon Loan from RAFI Microfinance to boost her small businesses, including a junk shop where she purchases scrap materials, plastic, and bottles, as well as a sari-sari store. When the province was hit by the devastating Typhoon Odette, Nanay Marlyn faced significant challenges. Fortunately, RAFI Microfinance stepped in and not only supported her business but also assisted in rebuilding her home, which was destroyed by the typhoon.

The timely assistance, including calamity loan claims, allowed her and her family to recover after the storm.

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Like any successful business, Nanay Marlyn's ventures had humble beginnings. She firmly believes in trusting in God, doing her best, and maintaining a good relationship with RAFI Microfinance, which has been a crucial support throughout the years. She lives by the motto "Try and try until you succeed," acknowledging that determination and the courage to take risks are essential for achieving her dreams. Joining and availing the loan from RAFI Microfinance marked the beginning of her growth as both a business owner and an individual.

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One Branch One Product (OBOP)

Amy Bulan Rattan Products

The One Branch One Product (OBOP) initiative, also known as OBOP, is a non-financial endeavor within the RAFI MFI Tindahan Ni Nanay (TNN) program. It aims to showcase the exceptional homemade and handmade products crafted by RAFI Microfinance client members. This program enables various districts and branches of RAFI MFI to introduce unique and handcrafted products created by talented individuals.

Ritazo Association led by Maylin Ligad

San Rem Native Basket - Annie Felicano

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Bread and Pastries – Josephine de Lara

The primary objective of OBOP is to provide support in terms of product marketing and to introduce these selected products to the mainstream market. It was in 2022 when we first piloted the One Branch One Product Initiative, driven by the question of how we could support our individually curated products. We sought interventions beyond simply connecting them directly to the market, aiming to maximize their product potential and develop top-quality offerings.

Thus, the OBOP project was born, focusing on providing product development and enhancement support to these individual products. Throughout the pilot phase, our focus was identifying potential products and establishing connections with our market partners. This approach enabled our clients to forge new partnerships, expand their reach, increase brand awareness, and, most importantly, generate sales.

As a pilot project, we were aware that potential program risks and implementation constraints could arise. Personally, it was also a challenge for me to lead the implementation of a newly developed initiative without established frameworks and processes.

We were able to successfully navigate program challenges by maximizing our available resources, capitalizing on opportunities that arose, and fostering teamwork and collaboration in task delivery.

Additionally, our unwavering determination and passion to provide relevant services to our clients played a crucial role in accomplishing our goals.

The OBOP initiative has allowed us to engage a broader network of market partners who assist us in distributing our clients' products. In 2022, while during the pilot phase, the clients' products became sought-after purchases. We also established a partnership with the Casa Gorordo Museum where OBOP products are currently displayed and sold.

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We're thrilled to unveil our refreshed brand identity. The biggest advantage of refreshing our brand's look and feel is the ability to reach new customers. Rebranding has one simple goal: to keep our brand current.

Design trends play a major role in how potential or current customers perceive our company and all it has to offer. It is meant to create new growth in an ever-evolving market and to give our business its own voice, look, and feel, which will help establish us as an industry leader with a personality that appeals to our audience. It's challenging to showcase how much our company has grown when our brand doesn't reflect it. If we have expanded to offer new products, grown to include more services, or set new goals for the business, then rebranding is a great way to show that our business is evolving.

The benefits of rebranding will not only impact our overall inbound strategy, but they will also help our company become more profitable. Reaching new potential clients, standing out from our competitors, showcasing our expertise, and expanding the influence and reach of our products and services are all ways to increase our profits simply by giving our brand a new look.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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RAFI Microfinance, Inc. (RAFI MFI) is a program under the Microfinance & Entrepreneur focus area of the Ramon Aboitiz Foundation Inc. (RAFI). It is organized to empower needy micro-entrepreneurs to become financially balanced and self-reliant.

Currently, it operates in various provinces and serves thousands of micro-entrepreneurs in underserved and helpless communities across the country, impacting millions of lives. RAFI MFI's products are accessible and adaptable, offering a wide selection of business requirements and life financing and insurance options that cover most, if not all, of a micro-entrepreneur's financial needs.

Additionally, it provides medical assistance through its Community Outreach Program, aiding over six thousand clients through performance incentives, mobile doctors, and medical services.

It's not just a mere logo; it represents more than what meets the eye. It is about consistently embodying OUR VALUES that have been with us since our humble beginnings in the communities. This is WHO we are as a people, the WHY behind all our missions, and the HOW through our work "Kung sila man ay nagsimula na, kakasimula pa, o magrerecover pa mula sa mga bagyo at kalamidad na nangyari, gusto nating nandyan tayo upang tulungan at gabayan ang ating mga kliyente."

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This new design is rooted in the accessible and meaningful relationship we have with our beneficiaries and local communities. It is based on the earliest RAFI shield icon to strengthen the connection with the mother brand. The abbreviation RAFI is displayed as a single logotype, "RAFI." There are two reasons for this: first, RAFI MFI is already well-known as "RAFI" in most of the Barangays we have visited. Second, it unifies the company under a harmonious identity that is easily remembered, spoken, and recognized by many. In addition, it symbolizes our true nature of actively engaging with our people's livelihoods while the word “Microfinance” is displayed below to clearly communicate the core essential focus area of the business.

To this day, when we hear the word “RAFI,” it evokes all these positive feelings, for RAFI has carved a special place in our hearts. In the spirit of rebranding, we will continue to commit to our customers and provide the same, or even better, level of professionalism you have experienced. We'd like to take this opportunity to thank our loyal customers and business partners for your trust and friendship in business. Most importantly, RAFI’s rebranded logo epitomizes a trusted and holistic foundation that will stand by us through the ups and downs fearlessly.

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Scaling Up For Better Impact

MAUSWAGON PLUS LOAN (MPL)

Delia Nacorda Gilig Inoc t Mauswagon Plus Loan Clien

The Mauswagon Plus Loan is a financial service provided by RAFI Microfinance, designed to extend financial aid to micro and small entrepreneurs across diverse sectors of the economy. Its primary aim is to foster the expansion and enhancement of their businesses, contributing to gaining extra business capital and overall business progress. This financial facility caters to individuals such as Nanay Delia Gilig Inoc, an aspiring small business owner seeking to augment her capital.

Nanay Delia Inoc has been a valued client of RAFI Microfinance since 2004. She oversees four distinct small-scale enterprises: a sari-sari store, a computer shop, a piggery, and a shell crafts venture that has served as her primary income source since the 1990s.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Scaling Up For Better Impact

Nanay Delia's entrepreneurial aspirations have deep roots, tracing back to her youth.

She has always dreamt of owning a business that could not only sustain her own livelihood but also extend a helping hand to those in need. Presently, she stands as a testament to the realization of these dreams, skillfully managing her diverse businesses while simultaneously imparting her expertise in shell crafts to aspiring artisans, instilling hope in their hearts that they too can embark on their entrepreneurial journeys.

However, like any business venture, Nanay Delia encountered her share of challenges, particularly when the devastating Typhoon Odette wreaked havoc upon the province.

Emerging from the wreckage that Typhoon Odette left behind proved to be an arduous journey, especially for small business proprietors like Nanay Delia, who suffered the loss of both her residence and her commercial endeavors.

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Determined to persevere, she creatively employed the remaining stock she had salvaged post-typhoon, engaging in the crafting and sale of shell-based products.

Overcoming the adversities, she faced took a span of three months, during which Nanay Delia's resilience and faith played pivotal roles. With unwavering determination and through the assistance of the Mauswagon Plus Loan offered by RAFI Microfinance, amounting to Php 5,000 at that time, she steadfastly believed in the gradual growth of her small-scale enterprise.

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Scaling Up For Better Impact

SOCIAL PERFORMANCE MANAGEMENT (SPM) SPM ROAD MAP

03

01 04

PHASE 1

PHASE 2

PHASE 3

Design, definition, development, establishment and operationalization of the Social Performance Management System

Improvement and updating of the SPM Manual

SPM & Client Protection Principles Certification

Testing & alignment with processes & systems

Orientation & cascade Implementation on the ground and monitoring

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Scaling Up For Better Impact

Themes

Social Goal

Social Objective

Measures

With RAFI Microfinance Inc.'s commitment to upholding Social Performance Standards and Client Protection Principles, the first phase of the Social Performance Management (SPM) roadmap has been successfully completed. This phase involved forming a working group with representatives from all teams within the organization, conducting workshops to align SPM initiatives and measures, and completing the Client Protection Principles Assessment.

In 2022, the work on the SPM Manual and Social Performance Index (SPI), which will be included in the measures reported to the Management and Board, was initiated. These efforts are set to be finalized in 2023-2024 with the guidance of our consultant, Lalaine M. Joyas.

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Risk

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Charting a Course to Success: Meet RAFI MFI’s Risk Management Team RAFI MFI’s thrust to promote a risk-aware and risk-resilient organization lead to the formation of a dedicated Risk Management Team in July 2022. Comprising of just three officers but ably assisted by the RAFI Risk Management Team, our Team may be compact in size, but we are dynamically driven and guided by a shared vision of building resilience to safeguard RAFI MFI from unforeseen threats.

The first challenge faced by the Risk Management Team was to comprehensively identify and assess potential risks that could affect the organization's operations, projects, and strategic objectives. Collaborating with various departments, the Team conducted a strategic risk assessment, covering aspects ranging from operational and financial risks to regulatory and environmental concerns.

This detailed analysis allowed RAFI MFI to prioritize and address the most critical risks proactively.

A key focus of the team's initiatives was to foster a risk-aware culture across the organization. In 2022, the Team was able to reach out to 549 employees at all levels from the monthly bootcamps, training sessions, and participation during the December 9, 2023 Branch Operation Leader’s conference, thereby encouraging employees at all levels to become proactive risk identifiers and reporters. Emphasizing the value of risk awareness has empowered the employees to take ownership of their risk-related responsibilities, promoting a sense of collective vigilance.

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Risk

Recognizing that risk landscapes are ever-evolving, the Team’s regular risk reports & dashboards were disseminated to senior management and the Board, providing actionable insights for informed decision-making.

Acknowledging the significance of fraud risks, the Risk Management Team took the initiative to analyze and address this critical area. Building upon the results of the fraud risk analysis, the Team took the lead in developing a comprehensive Fraud Risk Management Manual. This manual outlines proactive measures for fraud prevention, detection, and response. It serves as a valuable guide for employees at all levels, equipping them with the knowledge and protocols to identify, report, and address fraudulent activities effectively. Additionally, the targeted training sessions on fraud awareness and prevention equipped our branch personnel with the knowledge to recognize red flags and report suspicious activities promptly.

Risk Management Team is also responsible for monitoring and reporting on security incidents that may affect RAFI MFI. Our Team ensures that all security incidents are promptly escalated to the relevant

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stakeholders, including senior management and the Board. We provide clear and concise incident reports detailing the nature of the incident, its impact, and the actions taken to address it.

Risk Management takes a proactive approach in risk mitigation by assessing RAFI MFI’s insurance needs. The Team works closely with insurance providers to tailor coverage that best protects the institution’s assets and mitigate potential financial risks. Analysis of the risk exposure determines the appropriate types and levels of insurance coverage required. This process ensures that our insurance policies align with the institution’s objectives.

While our team may be small, we firmly believe that our combined dedication and expertise will yield remarkable results. By fostering a collaborative and supportive environment, we amplify our strengths and compensate for our size. Our team is driven by a shared sense of purpose, making every contribution valuable to our risk management endeavors.

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Our Leaders: Board of Trustees

OUR LEADERS

Mikel Alberto Aboitiz

Amaya Cristina Aboitiz-Fansler

Chairman

President

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Our Leaders: Board of Trustees

Carlos Ramon Aboitiz Member

Dominica B. Chua

Fr. Ernesto Javier S.J.

Member

Member

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Our Leaders: Executive Committee

OUR LEADERS

Mikel Alberto Aboitiz

Ma. Cristina C. Aboitiz

Chairman

Member

Chairman, Investment Committee Chairman, Succession Committee

Member, Succession Committee

Amaya Cristina Aboitiz-Fansler

Carlos Ramon Aboitiz

Member

Member

Member (Ex-Officio), Investment Committee Member, Audit Committee Member, Succession Committee Member, Risk Committee

Member, Investment Committee Chairman, Audit Committee Chairman, Risk Committee

Sofia Isabel Aboitiz-Herrera

Ana Maria Aboitiz-Delgado

Member

Member

Member, Succession Committee

Member, Investment Committee

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Our Leaders: Executive Committee

Tristan Roberto Aboitiz

Carlos Kahn

Member

Member

Member, Audit Committee Member, Risk Committee

Member (ex-officio), Invesment Committee Member (ex-officio), Risk Committee

Dominica B. Chua

Riella Mae Christa Guioguio

Member

Member

Member, Audit Committee Member, Succession Committee Member, Risk Committee

Member (ex-officio), Investment Committee Member (ex-officio), Risk Committee

David Mikel Aboitiz

Jonar B. Dorado

Member

Member

Member, Audit Committee

Member (ex-officio), Risk Committee RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

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Management Committee

OUR LEADERS

Jonar B. Dorado

Ailyne May Lim

Chief Operating Officer

Vice President for Operations

Iris Dorado

Julian S. Valdueza

Vice President for Business Development Unit

Finance and Accounting Comptroller

Erasto Panes

Wesly Peteros

Human Capital Head

IT Director

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Management Committee

Beryl Bondoc

Raffy Baladjay

Strategy and Performance Manager

Operational Excellence Officer-in-Charge

Michael M. Godinez

Carlos Kahn

Chief People Officer

Chief Finance Officer

Miraflor Enecio

Estee Plunket

Chief Business Excellence Officer

Chief Brand Officer RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Our Leaders: RAFI Microfinance Teams

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OFFICE OF THE CHIEF OPERATING OFFICER

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Our Leaders: RAFI Microfinance Teams

OPERATIONS

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Our Leaders: RAFI Microfinance Teams

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OFFICE OF THE STRATEGIC MANAGEMENT

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Our Leaders: RAFI Microfinance Teams

HUMAN CAPITAL

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Our Leaders: RAFI Microfinance Teams

FINANCE, PROCUREMENT, GENERAL ACCOUNTING (FPG)

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Our Leaders: RAFI Microfinance Teams

FINANCE, PROCUREMENT, GENERAL ACCOUNTING (FPG)

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Our Leaders: RAFI Microfinance Teams

BRAND DEVELOPMENT TEAM

BUSINESS DEVELOPMENT TEAM

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Our Leaders: RAFI Microfinance Teams

BUSINESS EXCELLENCE TEAM

INTERNAL AUDIT TEAM

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Our Leaders: RAFI Microfinance Teams

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GOVERNANCE, RISK AND COMPLIANCE TEAM

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Our Leaders: RAFI Microfinance Teams

INFORMATION TECHNOLOGY TEAM

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Financial Statements

AND FINANCIAL POSITIONS RAFI MICRO-FINANCE, INC. (A Non-Stock, Non-Profit Organization) BALANCE SHEETS December 31, 2022 and 2021 (Amounts Expressed in Whole Philippine Pesos)

EXHIBIT “A” Note

2022

2021

ASSETS CURRENT ASSETS Cash and cash equivalents Loans receivable - net Accounts receivable Prepaid expenses and other current assets

3 4 5

Total Current Assets

P533,391,470 3,130,709,800 201,547,598 43,462,479

P307,940,547 2,995,692,779 90,868,026 52,153,754

3,909,111,347

3,446,655,106

232,194,690

246,873,595

P4,141,306,037

P3,693,528,701

NON-CURRENT ASSETS Property and equipment - net

6

TOTAL ASSETS

EXHIBIT “B” Note REVENUES Income from microfinancing activities Interest income from banks Other supports

2022

2021

4

P1,828,709,252

P1,730,687,283

3 10

845,974 2,888,169

888,777 2,079,499

1,832,443,395

1,733,655,559

11

1,528,362,808

1,273,027,384

12

165,061,090

136,697,570

1,693,423,898

1,409,724,954

139,019,497

323,930,605

(35,755,975)

(34,718,786)

P103,263,522

P289,211,819

EXPENSES Expenses for microfinancing activities Administrative expenses

EXCESS OF REVENUES OVER EXPENSES BEFORE INCOME TAX

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES Accounts payable and accured expenses Short-term loans Current portion of long-term loans Capital build-up Income tax payable

7

PI 41,590,521

P202,824,332

8 8 9

1,900,000,000 8,759,336

1,518,000,000 10,000,000

871,408,948 8,538,646

857,499,295 7,987,277

2,930,297,451

2,596,310,904

13

Total Current Liabilities

INCOME TAX EXPENSE

13

EXCESS OF REVENUES OVER EXPENSES FOR THE YEAR

(See accompanying notes to financial statements)

EXHIBIT “C” NON-CURRENT LIABILITIES Non-current portion of lease liability Non-current portion of long-term loans Accrued retirement payable

7

19,168,458

15,981,792

8

-

8,750,000

15

2,422,879

50,651,832

21,591,337

75,383,624

TOTAL LIABILITIES

2,951,888,788

2,671,694,528

FUND BALANCE (Exhibit “D”)

1,189,417,249

1,021,834,173

TOTAL LIABILITIES AND FUND BALANCE

P4,141,306,037

P3,693,528,701

Total Non-Current Liabilities

(See accompanying notes to financial statements)

RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

Note EXCESS OF REVENUES OVER EXPENSES OTHER COMPREHENSIVE INCOME Items not subsequently reclassified to profit or loss Actual gain on retirement benefits TOTAL COMPREHENSIVE INCOME FOR THE YEAR

15

2022

2021

P103,263,522

P289,211,819

64,319,554

34,735,008

P167,583,076

P323,946,827

(See accompanying notes to financial statements)

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Financial Statements

RAFI MICRO-FINANCE, INC. (A Non-Stock, Non-Profit Organization) BALANCE SHEETS December 31, 2022 and 2021 (Amounts Expressed in Whole Philippine Pesos)

EXHIBIT “D” Comulative actuarial gain (loss) on retirement Cumulative results of operations benefits (Note 15) Balance at December 31, 2020

(P29,417,046)

Excess of revenues over expenses for the year Other comprehensive income Acturial gain on retirement benefits

-

P727,304,392 289,211,819

34,735,008

-

Note

Total P697,887,346 289,211,819

34,735,008

Balance at December 31, 2021

5,317,962

1,016,516,211

1,021,834,173

Excess of revenues over expenses for the year Other comprehensive income Acturial gain on retirement benefits

-

103,263,522

103,263,522

Balance at December 31, 2022

EXHIBIT “E” 2022

2021

P1,588,722,230

P1,549,303,683

196,605443

182,007,151

2,888,169 (1,623,337,953)

2,079,499 (1,251,403,609)

164,877,889

481,986,724

(135,017,021)

(583,915,515)

29,860,868 845,974 (27,656,717)

(101,928,791) 888,777 (25,780,769)

(35,204,606)

(34,558,107)

(32,154,481)

(161,378,890)

(65,004,567) 293,826

(101,490,303 -

(64,710,741)

(101,490,303)

Increase in capital build-up Loan availments Loan payments Interest paid

13,909,653 1,900,000,000 (1,527,990,664) (63,602,844)

251,984,912 2,444,000,000 (2,339,583,333) (72,529,634)

Net cash used in financing activities

332,316,145

283,871,945

NET INCREASE IN CASH AND CASH EQUIVALENTS

225,450,923

21,002,752

3

307,940,547

286,937,795

3

P533,391,470

P307,940,547

CASH FLOWS FROM OPERATING ACTIVITIES Interest received from loans receivable Other income from microfinancing activities Receipts from other supports Cash paid to suppliers and employees

10

Cash generated from operations Increase in loans receivable Cash used for operations Interest income from banks Contribution to retirement fund Income tax paid

3 15

Net cash used in operating activities

64,319,516

-

P69,637,516

P1,119,779,733 P1,189,417,249

(See accompanying notes to financial statements)

64,319,516

CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Proceeds from sale of equipment

6

Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES

CASH AND CASH EQUIVALENTS BALANCE AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS BALANCE AT END OF YEAR

(See accompanying notes to financial statements)

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Financial Statements

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End

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RAFI MFI Annual Report 2022 | Kaagapay Sa Pagbabago

UPHOLDING THE DIGNITY OF FILIPINO MICRO-ENTREPRENEURS Location 35 Eduardo Aboitiz Street, Brgy. Tinago, Cebu City, Philippines, 6000

Contact Us RAFI MFI Smart (calls only): 0919 065 8074 SMS Hotline (texts only): 0922 999 8881 Whistleblower Hotline (For Fraud or Theft): 0917 808 9569 FB Messenger: RAFI Microfinance Inc

Email Address rafimfi_cares@rafi.ph

Website www.rafimfi.org.ph

Social Media Facebook: RAFI Microfinance Inc