What lessons can we draw from it?

Topic 1Coop History

The Modern Cooperatives1825 - Robert Owen1827 - Dr. William King1833 - Rochdale Pioneers1848 - Friedrich Wilhelm Reiffeisen1870 - Alphonse Desjardins

Cooperatives in the Philippines1907 - The Americans introduce

the modern coops in the Philippines.

1938 - 1st successful Credit Union introduced by a

protestant missionary in Tuguegarao, Cagayan.

Lessons LearnedFrom Owen’s and King’s efforts: good

intentions are not enough; start small (from simple to complex); internal capital; ownership; need for unity, cooperation

From the Rochdale Pioneers: Learning from mistakes; perseverance; the importance of written policies

History of FICCO

•Founded in 1954 as Ateneo Credit Union (ACU)•Became Ateneo Credit Cooperative Union (ACCU) in 1970•First Community Credit Cooperative (FICCCO) in 1980

History of FICCO

•First Community Cooperative (FICCO) in 1990•2007 – Resurrected the Misamis Occidental Cooperative Bank (MOCB) now First Community Cooperative Bank of Misamis Occidental (FBMO)•2008 – Majority stockholder of Cooperative Bank of Davao Del Sur (CBDS) & Cooperative Bank of Surigao Del Sur (CBSS

History of FICCO

•2009 – Biggest investor of National Cooperative Mutual Fund (NCMF) of the Philippines.•2nd biggest investor of CLIMBS.•Largest Community-type Cooperative in the country.•Total Assets of P5+ Billion & membership of 152,000+ as of Dec. 31, 2011.

What’s Significant About FICCO’s HistoryIt started very, very small, yet it is now a

significantly huge enterpriseIt is still owned by small people, with

average capital of less than P 10,000It has no secret formula of successOver the years, it developed a synergetic culture that propels its growth and underpins its success

FICCO is now a “brand”

Where is FICCO now?MembershipAssetsDeposits

Membership Growth is extraordinary!

1980 1990 2000 2010 2011 -

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

987 9,186 24,026

140,128 152,599

Membership

BACK

Asset Growth is noteworthy!

1980 1990 2000 2010 20110

1000

2000

3000

4000

5000

6000

2.849.2

482.2

45885123

Total Assets (In Million)

BACK

Deposit and Share is climbing!

1980 1990 2000 2010 2011

Savings 1.5 20.6 217.1 2095.9 2683.8

Share 1.5 22.7 184.4 1601.2 1886

250

750

1250

1750

2250

2750

20.6217.1

2095.9

2683.8

1601.21886

Savings Share

ICFSWhat is ICFS?Why do we need ICFS?Is this really “A Timely Move”?

What is ICFS?

ICFS

Why do we need ICFS?Cooperatives become consolidators of funds

and stop at that.Coops in the country is dividedCoops do not enjoy high yield placements and

aggressive investmentsBreaking the Federation barrier mentalityIncrease income of the primary coopsLeverage in our numbers

One Coop BankFBMO + CBDS + CBSS =

“CONSOLIDATED COOPERATIVE BANK” is now Approved by the

Bangko Sentral ng Pilipinas (BSP)

Metrosouth Coop Bank (MSCB) & Capiz Settlers Cooperative Rural Bank approved to join the CCB by consolidation or merger

Our Proof of Concept!

One Coop InsuranceThere are two Coop insurance in the country

CISP and CLIMBSFICCO invest in CLIMBS

Climbs have 1,800+ coop membersClimbs became the reinsurance arm of

FICCO/MBAFICCO MBA approves merger with CLIMBSFICCO approves the purchase of P11Mil+

worth of stocks of CDA in CISP, though not approve by CISP

One Coop Insurance

Coop Life Insurance & Mutual Benefit Services (CLIMBS)

can be the be one cooperative insurance in the country

One Coop Asset Management

FICCO with other national century coops created the

National Cooperative Mutual Fund (NCMF) Inc.

NCMF will handle investment of the

cooperatives excess funds to obtain high yield interest on their investments

Coop Philosophies1. Union of Persons

• Unity and cooperation are must

2. Self help leading to Mutual Help• Self-reliance engenders reciprocity

3. Equality and Equity• Members enjoy equal rights but share benefits/risks

equitably

Coop Philosophies4. Tool for Reform

• Joining a coop requires changing one’s outlook, attitude, way of life

• This leads to improving quality of life

5. A Coop is – Not for Profit Not for Charity But for SERVICE!

Coop PrinciplesMost of these were part of the ‘Business

Policies’ of the Rochdale Cooperatives.

Coop Principles1. Open and Voluntary2. Democratic Control3. Non- Discrimination4. Service to members5. Return to members

Coop Principles6. Financial Stability7. Continuing Education8. Cooperation among Cooperatives9. Social Responsibility

To be a Member in Good Standing

Regular depositorWise borrowerPrompt payorParticipate in the activities of the coop,

especially the general assembly

More Coop ValuesCommon good – policies are adopted with

the good of the majority in mindSavings – No person, institution, or country

will progress if the said person, institution, or country does not know how to save.

Wrong formula: Income - expenses = savings

Correct formula: Income – savings = expenses

THANK YOU!