Microfinance program changes lives of sari-sari store owners

MANILA, Philippines - Thanks to wireless technology and an innovative microfinance program, sari-sari store owners Nanay Alicia Dumdum and Nanay Bella Sadongdong of Tacloban City, who lost their livelihood nearly two years ago to super typhoon Yolanda, have seen their incomes rise by becoming conduits for financial services.

Alicia and Bella are among millions of women microentrepreneurs – owners of ubiquitous sari-sari stores nationwide that account for nearly 40 percent of retail sales in the Philippines.

Lack of access to banks and financial services made sari-sari stores the ideal pilot tests for Hapinoy’s Mobile Money Hub project for underserved communities.A social enterprise established seven years ago that combines the best of business and social development practices, Hapinoy is seeing the fruit of its Mobile Money Hub project launched in August 2014.  The project provided mobile literacy training, access to capital, and new business opportunities to women microentrepreneurs – nanays who run sari-sari stores to augment the family income.

“If they want to compete with the likes of convenience stores and groceries, they have to evolve. We are intent on helping them make the transition to a competitive environment,” said Mark Ruiz, Hapinoy co-founder and president.

Ruiz noted that the 100 women from the pilot areas of Tacloban and Palo in Leyte, and Sta. Rosa and San Pablo in Laguna who participated in Hapinoy Mobile Money Hub’s first year have seen their incomes rise by 20 to 25 percent. This added revenue comes from extending commonly used financial services such as claiming remittances from family members overseas or bill and loan payments. Sales from their sari-sari stores have also risen, thanks to the added foot traffic. The women are able to deliver financial services using smartphones powered and provided by US mobile technology innovator Qualcomm.

Qualcomm, now on its third year of partnership with Hapinoy, extended the grant to the Mobile Money Hub project as part of the US company’s “Wireless Reach” initiative, said Kyle Moss, Qualcomm’s government affairs senior analyst.

This aims to extend the power of mobile technology to projects in less privileged communities worldwide in the areas of entrepreneurship, public safety, health care, education, and environment, added Moss. Qualcomm grants are in the range of USD50,000 to 500,000.

Nanay Alicia was in tears as she recounted how she and her family lost everything they had, including the family sari-sari store she had run for 30 years, during the fury of super typhoon Yolanda in November 2013.

After signing up for Hapinoy’s Project Bagong Araw, a sari-sari store rehabilitation program, she was at first averse to using the smartphone.

Guided by Hapinoy’s mobile financial literacy training, she learned the ropes, and now sees an increase in her monthly income through the remittance service she extends as a godsend.

For her part, Nanay Bella doesn’t just get satisfaction from the added revenue stream, but from the realization that her service is invaluable to her customers. Her storem located near the Eastern Visayas Regional Medical Center, transacts remittances sent to family members in dire need of financial assistance.

“Nakikita kong nakakatulong ako sa kapwa ko,” she said.

With the adoption of technology and smartphone use, the improvement of data connectivity, and enhanced ease in the of use of mobile money apps, the Mobile Money Hub program is looking to to graduate 3,000 more nanay-agents, boosting the family income and making a difference in their lives.