Asst. Vidal Villanueva of the Cooperative Development Authority spoke at the International Credit Union Day celebration on October 21, and he gave a very urgent advise of credit co-operatives are to reach the unbanked communities, with special mention of KAYA Payment Platform offered by NATCCO and PFCCO.
Credit co-ops must reach the unbanked communities, so they must digitalize.
This is the gist of Cooperative Development Director, Vidal Villanueva III, in his presentation on the State of the Philippine Credit & Savings Cooperatives’ that he delivered at the International Credit Union Day on October 21.
Villanueva also serves as head of the Finance Cluster Sector, composed of credit cooperatives, insurance cooperatives, and cooperative banks.
He reported that there are 6,630 reporting credit and multi-purpose cooperatives providing financial services in the Philippines. Of these 48% are micro-cooperatives with assets less than P5 million. Only 6% are large, with assets above P100 million.
Total membership is 9.76 million individual members, and majority are in Luzon.
Combined Loans Receivables amounts to P335.4 Billion, although this could be inaccurate as some co-ops did not reply to the survey. Of this, 22.1 Billion are past due by 365 days, and P1.2 Billion are under litigation.
Time and Savings Deposits amounts to P136.2 Billion.
For external borrowings, total amount is P86.4 Billion from government banks, commercial banks and federations.
Total Paid Up Capital is P120.15 Billion.
It is really important for cooperatives to utilize funds well for them to thrive, and in turn provide opportunities to members.
Total Assets stands at P513 Billion, and Total Equity stands at P319.4 Billion.
Villanueva summed up by quoting the US OCDC International Cooperative Research Group: “Business in communities were energized due to capital injection through cooperative loans and in turn, the overall quality of life in these communities improved. Of all co-op services, loans lead the way. Ease of loan acquisition is a strength for communities’ economic growth and development.”
He added that cooperatives with financial services are one of the drivers of economic development in the communities where they operate.
Credit cooperatives should strive for enhanced workplaces, safety, boost operations management, introduce new innovations, and provide access to relevant information.
He emphasized that co-ops need to push digitalization of cooperatives through KAYA Payment Platform offered by NATCCO and PFCCO, and Digicoop by the Digicoop Federation.
He said CDA awaits the registration of technology service cooperatives that will provide digital services to co-ops. “It is now the time to digitize to reach the countryside. We must embrace this trend. That is one essence of cooperatives – and enabling the members to be financially and digitally literate!”
“Credit Cooperatives must also serve the unbanked areas. Expansion is possible thru digitalization,” he said.
In concluding: “Co-ops must establish their presence in communities, helping the members help themselves, touching their lives, and leaving a mark in the hearts of our people . . . and giving hope to our fellow Filipinos. CDA tries all means to make coops to be the preferred business form. Our mantra is to pass policies based on the felt needs of cooperatives.”