The document outlines CARD Bank's commitment to client protection in their operations. It discusses 6 key areas: 1) Appropriate product design, 2) Transparency, 3) Responsible pricing, 4) Responsible treatment of clients, 5) Effective complaint resolution, and 6) Privacy of client data. For each area, it provides examples of how CARD Bank implements policies and practices to protect clients, such as designing affordable products based on client needs, providing transparent terms, offering competitive savings returns, treating clients fairly, and resolving complaints quickly. The overall message is that CARD Bank is fully dedicated to upholding strong client protection standards.

1. WHAT IS THE LOW BAR AND HIGH BAR IN
CLIENT PROTECTION!
THE CASE OF CARD BANK
Dolores M. Torres
President and CEO
CARD Bank, Inc.
A Microfinance-oriented Rural Bank
Philippines
“Matatag na Bukas sa Bawat
Pamilya”

2. Mission, Vision and
Objectives
• CARD Bank envisions building a sustainable financial institution owned,
managed and controlled by the landless rural women by providing
continued access to financial services to an expanding client base by
organizing and empowering landless rural women and by instilling the
values of discipline, hardwork and saving in an atmosphere of mutual
respect.
• Objectives
– To provide banking services especially designed for landless rural workers
by bringing bank services to community sites and accommodating the
least financial transactions within their affordability.
– To provide non-collateralized loans to non-bankable but viable projects;
and
– To ensure that 3 million poorest Filipinos are provided with financial
services by the year 2015.
“MatatagnaBukassaBawatPa
milya”

3. Historical Accomplishment
2005-2010
Outreach
600,000
496,301
500,000
36%
400,000 365,645
57%
300,000
Recognized Members
232,948
200,000
99% Percent Increase
117,195
100,000 122%
52,747
31,479
7% 68%
-
2005 2006 2007 2008 2009 2010
“MatatagnaBukassaBawatPamily
a”

4. CARD Bank: At a Glance
Loan Outstanding (in USD$) Savings Deposits (in USD$)
60,000,000 54,924,646
60,000
50,000,000 44,487,493 50,000 48,883
40,000,000 40,000 40%
31,181,007 43% 23% 34,938
30,000,000 30,000 27,807
20,121,581 55% 26%
16,804
20,000,000 13,265,317 20,000
52% 12,185 65%
7,101,057 6,164 38%
10,000,000 5,193,228 87% 10,000 4,950 98%
-7% 37% 25%
- -
(10,000,000) 2005 2006 2007 2008 2009 2010 Sep-11 (10,000) 2005 2006 2007 2008 2009 2010 Sep-11
Loan Outstanding Percent Increase Savings Deposits Percent Increase
Average Loan per Member (in USD$) Average Savings per Member (in USD$)
200
165 157
150
135 117
113 104
100 94
86 85 90 84
72 76 70
50
-100% -26% -11% -31% 5% -7% 19%
- -70% -18% -16% -24% -1% 5% 5%
2005 2006 2007 2008 2009 2010 Sep-11
(50)
Average Loans Per Member Percent Increase
“MatatagnaBukassaBawatPa
Average Savings Per Member Percent Increase
milya”

5. Commitment to Client Protection
1. APPROPRIATE PRODUCT DESIGN- Products and delivery channels will be
designed with the intent to provide value to clients. Providers will analyze the
appropriateness of products with a high expectation that responsible use will not
cause clients harm, and in particular will not lead to over-indebtedness.
• At CARD Bank:
– Products are designed and packaged based on market research done
on the clients needs and preferences;
– Loanable amounts and increments are designed in such away that
clients will not be tempted to borrow too much;
– Product mixture is also a product of market research and focus group
discussions with clients and prospective clients in the covered areas;
– Regular checking of ongoing business or businesses of the clients are
done;
– Member’s capacity to pay is evaluated and becomes the basis of loan
approval;
– Family members must approved the loan amount and must
guarantee its payment as contained in the promissory note.
“Matatag na Bukas sa Bawat
Pamilya”

6. Commitment to Client Protection
2. TRANSPARENCY
• Providers will communicate clear, sufficient and timely information in a manner that
clients can understand so that clients can make informed decisions. The need for
transparent information on pricing, terms and conditions of products is highlighted.
• At CARD Bank:
– Effective Interest Rate (EIR), actual amount of interest to be paid and
how much is due per week based on loan term chosen by the clients, a
clause on clients’ permission to share information about her and the
loans to accredited credit bureau are included in the Promissory Note
that is written in local language that is understandable to the clients;
– Repayment terms is also flexible based on clients capacity to pay; and
– Clients are given a copy of the Promissory Note and amortization
schedule upon loan disbursement.
“Matatag na Bukas sa Bawat
Pamilya”

7. Commitment to Client Protection
3. RESPONSIBLE PRICING
• Pricing, terms and conditions will be set in a way that is affordable to clients while
allowing for financial institutions to be sustainable. Providers will strive to provide
positive real returns on deposits.
• At CARD Bank:
– Returns are provided to clients through the following financial returns:
• Interest on savings deposit is much higher than market;
• Year-end rebate of interest to those clients who were able to pay
their loans at 100% during the year; (last year 1%; this year 3%)
• Clients who are stockholders of CARD Bank receive 8% dividends
per year based on stockholdings; and
• Depending on income performance of the bank, member-
stockholders are also given rebates or refund of interest based on
their stockholdings too (e.g. 2009 rebate of 12%; 2010; rebate of
16%).
“Matatag na Bukas sa Bawat
Pamilya”

8. Commitment to Client Protection
3. RESPONSIBLE PRICING
• Pricing, terms and conditions will be set in a way that is affordable to clients while allowing for
financial institutions to be sustainable. Providers will strive to provide positive real returns on
deposits.
• At CARD Bank:
– Returns are provided to clients through the following non-financial returns:
• Health clinics with doctors and nurses;
• Preferred providers program where clients get discounts for consultation;
• CARD pharmacy that gives good discounts for clients buying generic
medicines;
• Credit with Education that is provided weekly containing topics on
health, primary health care, business management, family
planning, breast feeding, among others;
• Scholarships for clients’ sons and daughters;
• Scholarships for clients for high school and college;
• Lakbay-aral/study tours for members; and
• Leadership training for clients children.
“Matatag na Bukas sa Bawat
Pamilya”

9. Commitment to Client Protection
4. RESPONSIBLE TREATMENT OF CLIENTS
• Financial service providers and their agents will treat their clients fairly and respectfully. They
will not discriminate. Providers will ensure adequate safeguards to detect and correct
corruption as well as aggressive or abusive treatment by their staff and agents, particularly
during the loan sales and debt collection processes.
• At CARD Bank:
– Qualified clients can buy shares of stocks and become owners of the
MFIs; for example CARD MBA (the micro-insurance company, is 100%
owned by the women clients; members owned more than 30% of CARD
Bank;
– Lakbay-aral/study tours (local and international) for stockholders;
– Any abuse committed by staff on clients are appropriately punished; if
it involves borrowing money from clients or withdrawing their savings
for their personal benefits, staff are dismissed as soon as investigation
has been completed and staff are proven guilty.
“Matatag na Bukas sa Bawat
Pamilya”

10. Commitment to Client Protection
5. EFFECTIVE COMPLAINT RESOLUTION
• Providers will have in place timely and responsive mechanisms for complaints and
problem resolution for their clients and will use these mechanisms both to resolve
individual problems and to improve their products and services.
• At CARD Bank:
– Regular monitoring at the weekly center meeting is being done by all
managers including top management to ensure that voices of the
clients especially complaints, issues and concerns are heard and acted
upon quickly;
– An almost 24/7 helpdesk has been installed and is being utilized by
clients. To maximize utilization, client orientation about the help desk
is being done in all CARD covered areas. Operation shall be 24/7 as
soon as orientation with all staff has been completed.
“Matatag na Bukas sa Bawat
Pamilya”

11. Commitment to Client Protection
6. PRIVACY OF CLIENT DATA
• The privacy of individual client data will be respected in accordance with the
laws and regulations of individual jurisdictions. Such data will only be used
for the purposes specified at the time the information is collected or as
permitted by law, unless otherwise agreed with the client.
• At CARD Bank:
– CARD fully complies with this principle in accordance with the
banking regulation in the Philippines.
– The promissory note contains a clause where clients agree for
CARD to provide information to credit bureau or other lenders
as it deem appropriate.
“Matatag na Bukas sa Bawat
Pamilya”

12. At CARD, we are all committed to really protect the
interests of our clients to the fullest. It may not be the
best protection commitment, but we are fully dedicated to
make it work and deliver “A stable future for every
Family”.
MatatagnaBukassaBawatPamilya!
Thank you and
Mabuhay!
“MatatagnaBukassaBawatPa
milya”