The program covers 220 cooperatives with more than 31,000 members from 92 unbanked municipalities all over the country. #financialliteracy

People from San Gabriel, La Union open a bank account under Landbank's financial inclusion drive. (LBP)

In its 2017 Financial Inclusion Survey, the Bangko Sentral ng Pilipinas (BSP) reported that about 52.8 million or 77.4 percent of the total Filipino population remains unbanked. Thus, it continuously ramps up initiatives to champion financial inclusion nationwide.

In support of the central bank’s thrust, the Land Bank of the Philippines and the Cooperative Development Authority (CDA) inked deal for the Financial Inclusion Through Cooperatives (FIT-Coop) Program.

FIT-Coop is an initiative that will provide capacity-building support to micro and small cooperatives in unbanked and underserved areas nationwide.

Through the program, a total of 220 cooperatives with more than 31,000 members from 92 unbanked municipalities all over the country will undergo financial literacy training that would better prepare them to access formal credit assistance.

The Memorandum of Agreement (MOA) for the project was signed by LandBank President and CEO Cecilia C. Borromeo and CDA Chairman Orlando R. Ravanera with CDA Executive Director Ray R. Elevazo and LANDBANK Agricultural and Development Lending Sector Head Executive Vice President Liduvino S. Geron.

“The signing of this MOA for the FIT-Coop Program is a momentous and historical event—a great breakthrough in putting those in the margins into the mainstream of the development process,” Ravanera said.

Ravanera said the project would be “a great leap” that will help CDA fulfill its mandate to promote the viability and growth of cooperatives as instruments of social justice and economic development.

For her part, Borromeo said the FIT-Coop Program is a “clear display of the bank’s continuous commitment to reach the smallest cooperatives in the most far-flung areas and empower them to become catalysts for inclusive growth in the countryside.”

“LandBank is no stranger to cooperatives. We know that a lot more can be done if we collaborate with them. Communities have transformed into very progressive local economies because of cooperatives,” Borromeo said.

Borromeo noted that strengthening micro and small cooperatives are crucial for the country’s growth.

Under the FIT-Coop Program, assessment tools from both CDA and LANDBANK were utilized to develop the Cooperative Assessment Tool—an instrument that will measure a cooperative’s maturity level and readiness for different support services.

Also, an Environmental Mapping or Scanning Tool was likewise devised to identify necessary but missing facilities in the community which hamper the cooperative’s growth and development.

The CDA and LANDBANK will then refer the data collected from these tools to relevant government agencies to further help cooperatives through possible developmental interventions.

According to Borromeo, the strategy that they will use for the project will complement the administration’s “whole-of-government approach” where relevant government agencies collaborate and synergize efforts to achieve more significant results.