Credit Union Development Educator - Batch 10

Development Education Workshop:

The Development Education Workshop in Bangkok is one of my life’s most treasured training. Not because it is held in a foreign country with a plus on travel but it is because I’ve learned new insights and it renews my commitment to the cooperative movement and more so to our country as a Filipino.

Other than the Development in Credit Union education and cooperative awareness, the training gives me deep understanding of what we were called for in preserving and protecting the cooperative movement in the Philippines and in Southeast Asia. I am very grateful for the training and would surely bring the advocacy of credit union awareness wherever I go. It also gives me realities of what we Filipino’s have done so far in as far as the cooperative movement in the Philippines is concern.

I would like to speak more as a Filipino DE. What I have observed, what I have learned, and why we need more people who have unquestioned integrity and honesty in the cooperative movement in the Philippines.

The Culture:

“Talk More, Do Less” that’s what we Filipino’s are, we talk too much but we work less. We are good communicator in English than any other Asian nationals and they envy us for that. But what is very sad is we don’t walk the talk. Meaning we are only good at talking and not on implementing. It is either we are slow to implement or we don’t implement at all.

Chum Klung Chan Credit Union Ltd. size and successes struck me deeply. The visitation pounded my heart after knowing some of them were trained in the Philippines, specifically SEARSOLIN in Cagayan de Oro. I teach Cooperative Financial Management I and II at SEARSOLIN for the last three (3) years. And yet the biggest Cooperative in the Philippines is less than one-third (1/3) the size of Klung Chan CU, what a shame! I should be the one listening to them. I felt I have done nothing for my cooperative and the cooperative movement in my country. Nevertheless, this is a challenge for me to pursue and replicate successes thru best practices applications in my country whenever and wherever applicable.

The Lessons:

As a Development Educator in Asia it is my duty to spread the light for those who are still in darkness in my country as well as in Asia. I felt the burden of sharing the good news by lighting more candles of Credit Union awareness in Asia. “Creating a Real Difference” to the peoples lives that they may realize they matter to the communities where they belong and that they too could make a difference in their respective communities.

Empowerment – this I believe is what we need to advocate to our people. Most of them don’t know about it and never know they could have it in numbers. We could only make a good fight on social equity and justice if the people are empowered. If there minds are opened it is only then we could say we have conveyed our message successfully. As I always say in all of my speaking engagement that “there is not enough justice, where too few have too much, while too many have too little”, the equitable wealth distribution can only be attained by means of Credit Union and I believe there is nothing else.

The Calling:

It is said that many are called but few are chosen. It may not be for everyone to deeply feel the urgency for an unselfish service for the greater good nevertheless it is for everybody to feel the level of awareness that may be enough to spread the word because out of the abundance of the heart, the mouth will surely speak.

DE workshop creates awareness to those who are already in the movement to make them more convince to the Credit Union, equipped them for obstacles ahead, and sustain them to move them forward and finally “Creating a Real Difference in their communities”.

I know there are still many, many things to do out there. Only those who are going to step forward and say “Yes” are the ones who will get treasures in heaven. They are the ones who can outlive their lives because they will be remembered. They will be honored.

Thus, for the knowledge and for everything…

Thank you ACCU.

Judge This!!!

"coop-natcco party-list promises P1M" is the title of this in YouTube. I won't add anything to that instead watch and hear it and be the judge.

Bulgarian Music Idol

I'm just thinking this could somehow make you smile or pehaps laugh.

FICCO Officers and Management Pics

Consolidated Board of Directors Report: 53rd Annual GA of FICCO

Following is a summary of the state of our Cooperative from our Board of Directors for the operating year ended December 31, 2007:

Profitability

We realized a net surplus of P144 million, representing an increase of 22% over last year’s P118 million. This, despite recognizing P39.7 million for additional allowance for probable losses on our loans released and not attaining our loan target for 2007. This provision also makes us compliant with international standards for loan loss provisions.

Liquidity

Our total cash as of year end amounted to P 387.95 million, or 16% of our total resources, higher than last year’s 13%. We have sought more attractive rates for these excess funds since we need better returns than the 4-5% on time deposit offered by banks but to no avail since we offer up to 6.5% interest for time deposits, 4% for savings, 8% for retirement savings and up to 10.75% for interest in share capital, yet only charge 9% for loans.

Stability

Our share capital to total assets ratio increased to 38%, or 7% higher compared to 2006. Our statutory fund to total asset ratio also rose 6.2%, compared to 5.8% for the previous year. Our statutory funds fully funded our total property and equipment. Equity increased 24% to P 176 million compared to last year. These figures reflect FICCO’s self-sustaining capability over the long-term.

Growth

Our total resources increased 30% or P 480 million from P 1.92 billion to P 2.40 billion by year end. This increase was sourced from loans to members and their deposits in savings and share capital. Our total number of members increased 16% to 103,854 from 89,307 in 2006, making us the biggest cooperative in the country in terms of membership.

Based on the aforementioned figures, the FICCO Board of Directors has declared a modest 10.75% rate on Interest on Share Capital and 9.25% rate on Patronage Refunds. These are higher compared to last year’s figures of 10.50% and 9.0%, respectively. These are also higher than most commercial banks in the country have declared for the same period.

Our loan releases for 2006 has been pegged at P 2.52 billion, which we deem sufficient to make a big difference in the livelihood and daily sustenance of our cooperative members as well as trickle down to spark further economic activity in the rest of the region.

Other significant accomplishments

Besides the financial aspects of our accomplishments last year, we are also proud to share with you the following which have complemented FICCO’s growth for the period:

Branches and Business Centers

· We have opened three new branches in the following areas:

o Davao City at Bangkerohan

o Maranding, Lanao del Norte; and

o Bayugan, Agusan del Sur

· We are planning to add several more branches and business centers in various areas of Mindanao.

Human Resource Development

· Appointed three (3) new branch managers in connection with the opening of additional branches.

· The Board of Directors approved the creation of the position of Chief Executive Officer (CEO) and three (3) Regional Managers.

Mutual Benefits Association

· For the year ended December 31, 2007, the FICCO MBA generated over P2 million pesos.

Misamis Occidental Cooperative Bank (MOCB)

· With five (5) of the nine (9) members of the Board, FICCO now exercises significant control and influence over the operations of the MOCB.

· Through a General Assembly Resolution, MOCB has been renamed “First Community Cooperative Bank” pending approval of the Bangko Sentral ng Pilipinas (BSP).

Cooperative Bank of Davao del Sur (CBDS)

· Our Board of Directors approved a P10 million investment in CBDS.

· As a result of this, FICCO now sits as a member of the CBDS Board of Directors and now exercises control over the bank’s operation.

Computerization

· Our Board of Directors has contracted G2G Computer (a General Professional Partnership) to develop a new computer program to upgrade our online services for FICCO members.

Amendment of By-Laws

· The Cooperative Development Authority (CDA) has approved FICCO’s amendments of its By-Laws, as follows:

o Expanded scope of operations from Mindanao to the entire Philippines.

o Added Funeral Services and Mutual Benefit Association as part of its primary purpose.

Financial Highlights

as of December 31, 2007

(in Million Pesos except for no. of members)

Despite the unsuccessful conclusion of our bid for a more direct and active participation in our political system as a party list, we shall keep pursuing our dream. We have been a positive agent of change through social, economic and cultural initiatives through the cooperative ideal and its principles, and we shall continue to pursue this ideal and principles in the spirit of cooperativism.

For the Board of Directors and Management

Atty. PROCULO T. SARMEN

Chairman

CHAIRMAN’S MESSAGE "FICCO 53rd G.A."

Cooperatives have proven to be highly effective in improving the quality of life of peoples all over the world. FICCO is an outstanding example.

FICCO has never been an overnight sensation. Neither was it built nor created by just one individual. It is a collective accumulation of cycles of transition, discovery, hard work and more importantly, collective effort. Great leaders, committed volunteers, diligent staff and supportive members comprise the FICCO Team in striving to reach out and attain its vision and mission.

The journey to success is long and arduous. But the forerunners of this cooperative kept their minds towards achieving the dream of SERVICE, EMPOWERMENT, AND UPLIFTMENT.

FICCO now has a 103,584 strong membership base and 2.4 Billion Pesos in total assets as of December 31, 2007.

Through over 50 years of service, FICCO's philosophy of self and mutual help has been demonstrated by its owners-members in terms of money saved, money borrowed and money paid back.

Quite a remarkable feat for an organization that is not for charity, not for profit but for service.

Our three business pillars of growth, i.e., Credit, Insurance through the FICCO Mutual Benefit Association and Funeral Service, are now being pursued to address the ever changing times and hurdle the identified needs of our members.

At present, we have twenty seven (27) business centers strategically located to cater to members' needs and we plan to put up more in the future. We took bold steps to undertake revolutionary services that will forever change the face of the cooperative movement in the Philippines. Soon enough, FICCO will become a national model of modern financial solutions among Filipino cooperatives.

Our aim is not only to become the biggest cooperative in the entire country, but also to become the most dynamic and proactive cooperative that will cause a ripple effect towards good governance, stability and sustainability.

Fellow cooperators, let us be one in solidarity to promote cooperativism and blaze that trail for others to emulate. We remain the Philippine industry's No. 1 and biggest open-community type multi-purpose cooperative, and we expect to sustain this with our Volunteer Leadership and Spirit of Cooperativism.

(Sgd.) PROCULO T. SARMEN
Chairman

FICCO MBA Board of Trustee Report

Today marks another milestone for the history of FICCO to conduct the first General Assembly of the FICCO Mutual Benefit Association (MBA). If we recall last August 23, 2007 the SEC approved the registration of FICCO MBA and subsequently got its licensed from the Insurance Commission last November 8 of the same year.

With this new segment to provide a total member care by increasing the percentage of insured individuals, FICCO is optimistic in its outlook to elevate the cooperative movement to a higher level. The FICCO MBA is slowly gaining acceptance in the general membership of FICCO and for a short stint of almost 3 months to operate in the year 2007 we have the following data for the FICCO MBA’s Financial Status:

	2 0 0 7
	(Almost 3 mos.)
MBA enrollees	7,623
Total Membership Fee	P 715,260
Membership contribution	P 1,200,412

Plans:

The forthcoming 2008 operation remains promising for the FICCO MBA operation as we targeted 33,000 additional members and a Gross Income of P 29.129 Million at the end of the year.

The growth and responsiveness of the program is the basic prerequisites of determining its pricing, thus, members support plays a pivotal role in the success and mainstreaming FICCO MBA to the general membership.

As it is the written mandate of the FICCO MBA to carry out the objectives for which it was created, early judgment from the few has no room when nothing has been seen wrong about it yet. It is the Board’s desire to convey to the members that this is another chance of FICCO to make a difference in the place where we operate thus let us optimize and seize the opportunity.

FICCO Assists Coop Banks

What started as a small, closed-type credit union, the First Community Cooperative (FICCO) is now into helping cooperative rural banks get back on their feet.

The cooperative rural banks are supposed to be the bank of cooperatives. But in a reversal of roles, FICCO, a primary cooperative based in Cagayan de Oro City, has so far helped two cooperative banks, namely: the Misamis Occidental Cooperative Bank (MOCB) and the Cooperative Bank of Davao del Sur (CBDS).

The MOCB, which was closed by the BSP in 2003, was actually about to be liquidated by the Philippine Deposit Insurance Corporation (PDIC). In fact, the PDIC has already paid many of the small depositors. But, at the instance of then CDA Region 10 Director Manuela Pelaez, FICCO, along with Clarin National High School MPC and Paglaum MPC of Misamis Occidental, Coop Bank of Misamis Oriental, Oro Integrated Coop, Del Monte coops, PFCCO-ML of Cagayan de Oro and DEARBC of Bukidnon pooled resources together to infuse some P 12.5 million in fresh funds. FICCO’s contribution is P 9.4 million. Thus, MOCB was reopened last 16 April 2007.

This unprecedented move of resurrecting a dead bank is anchored purely on the desire to help a distressed coop, as well as the bank’s depositors. Getting some returns on the investment may take sometime considering the bank’s recent history and hazy image. This is actually also part of a grand design to create a financial system owned by the grassroots. Rabobank, a multinational bank based in Germany and the Netherlands, is actually an offshoot of the mergers of Reiffeisen credit unions of Germany and Boerlingen credit unions of the Netherlands.

Responding to another call of assistance, FICCO also infused P 10 million in fresh funds to the capital-deficient Cooperative Bank of Davao del Sur (CBDS). Laden with huge past due loans and continuing losses, the bank was about to be closed by the BSP in 2001. Under a new leadership, the leading coops of Southern Mindanao, namely, the USPD coops, SAMULCO, Silangan MPC, Panabo MPC, Kapalong MPC, Agdao MPC, BCS, JAT coop, DASURBACO and a few others, together with the Bukidnon Coop Bank, infused fresh funds to CBDS. But despite the infusion, the bank was unable to exploit its potentials until FICCO came into the picture.

FICCO saw a lot of promise in CBDS’ micro-finance programs that provide loans to very small entrepreneurs and LGU personnel. The former are considered by many as non-bankable. FICCO hopes that its involvement will hasten the emancipation of this usually neglected sector. Uplifting their economic status and bringing them to the mainstream is a challenge FICCO will always take. It is in this area that the coop has a lot of practice.

Other coop banks, whose requests for assistance are now being reviewed by FICCO, include the Coop Bank of Surigao del Sur (CBSS), Coop Bank of Zamboanga del Sur, and the Coop Bank of Camiguin (CBC).

That a primary cooperative, which started with only 17 members and P 26.30 in initial capital, has become a supporter of coop banks is indeed a remarkable feat.

FICCO actually started in 1954 as the Ateneo Credit Union, based at the then Ateneo de Cagayan, now Xavier University. Up to 1970, ACCU (the word cooperative was added to the original name in 1964) was a closed-type coop with no more than 200 members and P 184,000 in assets. In that year, it opened itself to the Cagayan de Oro community, and after ten years of hard selling, it was able to increase its membership to almost 1,000 and its assets to P 2.8 million. The name was changed to FICCCO (First Community Credit Coop) in 1978.

The next ten years (1981-1990) was the take-off decade of FICCCO. As of 31 December 1990, the coop membership reached 6,000 and total resources stood at P 33 million. In 1992, the coop turned multi-purpose and changed its name to FICCO, dropping “Credit” from its name. In a pioneering move, it started branching out also in that year. By the end of 2000, FICCO has already opened eight branches (4 in Cagayan de Oro and one each in 4 towns of Misamis Oriental), increased its membership to 24,000 and its assets to P 454 million. It also developed some five hectares of land into a housing subdivision benefiting close to 300 members.

If those accomplishments surprised many, even from within FICCO, what unfolded during that last seven years astounds many more. During this period, FICCO opened 18 more offices (5 more in Misamis Oriental, 2 in Camiguin, 6 in Bukidnon, 2 in Lanao Norte, 1 in Butuan City, 1 in Agusan del Sur and 1 in Davao City). Resources shoots up to P 2.4 billion and membership topped 103,000.

What propelled its growth is actually its unique culture that upholds or emphasizes quality service, prudent stewardship, integrity, transparency, sacrifice, low-cost/high return operations, and volunteerism among others. This culture created a positive image of the coop that converted the FICCO name into a brand. So much so that by the time FICCO opens a branch in a particular community, there are already several hundred of its residents who are already members of the nearest FICCO branch.

The commitment of the leaders, personnel and members of FICCO brings out a synergetic environment that propels its continuing growth. An average of 1,500 people joins FICCO every month and the average monthly growth in assets is P 35 million.

The high satisfaction among the members is “infectious.” Through word of mouth, the FICCO aura spreads within and among communities. It is this kind of public acceptance that positions FICCO to become a ‘rescuer’ of coop banks. (ibdaba)

FICCO Invests in Mutual Fund, Coop Guarantee Fund, Coop Banks, Coop Insurance

In a move to build an integrated financial system for the grassroots, FICCO joined the “century coops” group, otherwise known as the National Cooperative Movement (NCM) to establish a mutual fund and a deposit guaranty fund for cooperatives.

Through the guidance and encouragement of former Senator Agapto “Butz” Aquino, former Secretary of Agriculture Senen Bacani, and former PDIC President and SSS Administrator Vitaliano Nanagas, the leaders of big cooperatives in the country (Cebu CFI Com. Coop, Perpetual Help Com. Coop, NOVADECI, San Dionesio Dev. Coop, USPD Coops, FICCO and many others), in a series of meetings since November 2007, agreed to organize a coop mutual fund and a coop deposit guaranty fund.

The coop mutual fund will address the need of most cooperatives as to where to park their money. With the drastic reduction in interest rates on time deposits of banks, coops with surplus funds are desperately searching for investment opportunities to maximize return. This prompted Sen. Aquino and Sec. Bacani to spearhead the formation of a coop mutual fund, patterned after the GSIS mutual fund.

The GSIS mutual fund invested heavily in equities and, over the long term, has posted gains way higher than time deposit rates. In the initial years though up to 1999, the GSIS mutual fund lost value when the price of equities declined. But it has since performed remarkably ad recovered lost ground.

In a parallel move, the NCM also formulated guidelines for the creation of a coop guarantee fund, initially known as CODIS, or Coop Deposit Insurance System. CODIS will hopefully serve the coops in the same manner that the PDIC (Phil. Deposit Insurance Corp.) is servicing banks. It is anticipated that CODIS will assure the general public of the stability of cooperatives with the CODIS label. This will hopefully lead to a feeling of security for their funds resulting to the increase of deposits in cooperatives.

FICCO also participated in the effort to consolidate or unite all the the cooperative banks in Mindanao. With our equity investment in the Misamis Occidental Cooperative Bank, and the move to also make equity investments in the cooperative banks of Davao del Sur and Surigao del Sur, FICCO hopes to play an active, if not a leading role in the consolidation effort.

FICCO’s participation in the unification effort is anchored on a vision of building an integrated financial system for the grassroots. We look forward to the day when FICCO, just like Migros of Switzerland, Caja Laboral of Mondragon, Spain, and Rabobank of Germany and the Netherlands, will have made possible for the ordinary people to own a world-class multi-national bank. Of course, we have to start small. Let us start with the strengthening of the coop banks.

Prompted by the same vision, FICCO will also invest in the equity of the Coop Life Insurance and Mutual Benefit Services (CLIMBS). CLIMBS is a coop insurance network with more than 1,500 member-cooperatives all over the country under its wing. With the FICCO MBA already operational, FICCO will be able to provide more insurance, fidelity, assurance and guarantee services to its members.

With this move, FICCO is going into the direction taken by universal banks that invested in, if not own insurance companies, e.g. Phil. AXA of Metro Bank, Ayala Life of BPI, Malayan Insurance of RCBC, UCPB General Insurance of UCPB and Generali Pilipinas of BDO.

FICCO’s innovative and enterprising spirit lives on with the end in view of improving further the lives of its members. (IBDABA)

Is Insurance That Important ?

Have you realize what it means to lose someone? Or what if something happens to the primary income earner of the family? The member left behind not only grieved for such lost but also suffers the agony for the last expenses to bring someone to the final place of abode. It means that they will have to take care of the memorial services and other expense related to it, casket, memorial lot, estate taxes, and others. Moreover, after burial the suffering still continues due to income and opportunity loss, just imagine the replacement of income to maintain the family’s standard of living. More so, if the survive family left with unpaid (home, car, etc.) mortgage and other debts. In addition, the education of the children would have to be continued with corresponding expenses. Thus, reality bites, this eventful loss is basically bringing the family back to “square one” and dip further into poverty.

In the Philippines the insurance industry remains upbeat since Filipinos are mostly either under or not insured. This is so because it’s not affordable, the life insurance is just too expensive for the average income earner. According to Insurance Commission data, it is estimated that only twenty percent of the population in the country have Life Insurance unlike in the U.S in which about 82 percent have. Other European countries are more or less the same with US in terms of percentage to total population with insurance.

The birth of FICCO MBA is more of a response to this call by carefully considering its mandate for a total member care. If we compare our FICCO MBA products against those offered by commercial insurance provider, we can see a big difference in terms of premium and benefits since commercial providers premium ranges from P 200.00 to P 300.00 per month with corresponding benefits of P 30,000.00 for death and double it’s amount for accident, the FICCO MBA has offered a lower premium at P 21.00 / week, and monthly of P 90.00 you can be covered for P 40.000.00 on natural death and P 80,000.00 for accidental death. In addition, the premium you pay is inclusive of your dependents thus no need to pay for additional cost.

The FICCO MBA is offering a reasonable premium at an equitable coverage. If this rate is still a burden then maybe we can carefully examine our present expenditure patterns, and ask ourselves for example: How much am I spending to bet with lotto on a daily basis? Is this worth the risk? How much am I spending with texting and calling on my cellphone? Is it about 20 – 25 text a day? How much do I spend for cigarette? Is it 2 packs a day? How much do I spend for weekly movies? These questions and many more gives us more reason to ponder, there’s got to be a better use of that money

In summary, obtaining a Life insurance is considered more as necessity than wants. Most have not regarded it fully as such because it is not offered to the public at an affordable rates and FICCO seeing this to be necessarily offered to the general membership contemplates to launch FICCO MBA with a noble purpose of public service. We are not betting for luck this time but instead we are preparing because death is certain to come to all of us. It is reality and we can leave a legacy that we care for other family members by taking out certain burden to them.