CoReACS adopt Musoni to offer housing finance in the Philippines

By November 14, 2017Client Profile

At Musoni we are lucky to work with a variety of fantastic organizations, from MFIs to asset-financing companies. Our focus this time is on Community Resources for the Advancement of Capable Societies  (CoReACS), a social enterprise and housing finance organization in the Philippines. Inspired from one of the seven corporal Acts (Cor-Acs) of mercy – “To shelter the Homeless”, CoReACS is engaged in providing access to sustainable housing microfinance services to homeless and informal settlers (ISF) for their homes and livelihoods.

Founded in 2015, CoReACS is the latest addition to the Philippine Alliance, a group of 5 organizations who have their common mission to provide sustainable shelter solutions to the urban poor through a community driven process. The organizations alongside CoReACS include: the Homeless Peoples Federation Philippines Inc. (HPFPI), the Philippine Action for Community-led Shelter Initiatives Inc. (PACSII), the Technical Assistance Movement for People and the Environment Inc.(TAMPEI), and LinkBuild. Each of these organizations has a particular role, and works together throughout the process of acquiring land tenure and providing new housing solutions for the urban poor. Formed primarily as the financial literacy arm of the Alliance, CoReACS provides their services through a microfinance model.

In 2016, CoReACS piloted two new loan products; the Home Loan (also known as the Micro Mortgage Initiative –MiMo) product and the Home Pluss loan product. The MiMo loan product is CoReACS’ core product and clients applying for this loan must be endorsed by the HPFPI who are responsible for community organizing and preparation. The Home Pluss Loan on the other hand is a group based loan product developed as a livelihood opportunity loan and also as a social shield facility that hopes to minimize the effects of the many household financial shocks commonly experienced by slum dwellers like sickness, death and even for education.

To manage their client portfolio, in 2016 CoReACS selected Musoni as their preferred core banking system provider. Using the Musoni System enabled CoReACS to design different loan products to meet the growing demand from the communities. As a result, they now have four loan products to offer including the Home Development Loan and the Home Lot Loan.

Rolando O. Villanueva, the Chief Executive Officer 
of CoReACS, said that “Musoni is a fantastically user friendly core banking system. Having a cloud based system has made it easy for us to easily expand without worrying about complicated infrastructure or set-up costs. The system is also very flexible, enabling us to launch new products at the press of a button.”

The rollout of Musoni was done quickly with local training provided on site. After adopting Musoni, CoReACS has expanded at lightning speed. At the end of 2016, CoReACS had booked 88 active Home Loans (MiMos) through LinkBuild’s socialized housing projects. In addition, CoReACS has opened pilot offices in three cities (Davao City, Cebu City and Iloilo City) where new housing projects shall be undertaken. CoReACS estimates that over 10,000 Home Pluss potential clients resides within their existing communities in these cities. As of October 31, 2017, CoReACS supports 200 active solidarity Groups with 1,052 members and is projected to reach more before the year ends. These members are managed by seven field staff and two management members across four offices – this is only made possible thanks to Musoni’s cloud technology.

As a result of this success, in the coming period, CoReACS will become an NGO MFI and will continue to lead the young Philippine Micro mortgage industry. In addition CoReACS plans to open additional field monitoring offices in Bicol, Valenzuela, Paranaque and Rizal to ensure more urban outreach.

Cameron Goldie-Scot, Musoni’s co-founder and CEO said “we’re excited to partner with CoReAccs as they lead the way in helping low income Filipinos afford high quality housing in a sustainable manner. They have successfully demonstrated how using a cloud based core banking system can keep costs low while facilitating rapid expansion. I’m personally looking forward to supporting their expansion into new areas with new products for many years to come.”