Enhancing Financial Products in a Changing Landscape- Alalay sa Kaunlaran, Inc. (ASKI)
For 38 years now, Alalay sa Kaunlaran, Inc. (ASKI) has been a mainstay in microfinance, supporting microentrepreneurs and farming communities across Northern and Central Luzon. However, in the wake of the COVID-19 pandemic and recurring natural disasters, ASKI, like many MFIs, faced a major shift in priorities.
Before the pandemic, ASKI operated 98 branches, with a goal of reaching 100 in 2020. After the economic downturn, that number dropped to 73. Survival became the immediate focus. “Many MFIs had problems,” Ms. Jane Manucdoc, Executive Director of ASKI, shared, “but we were thankful to have survived. Our priority shifted to rehabilitation of our clients.”
Every year, ASKI’s operations are impacted by 3 to 4 typhoons, often hitting communities in rapid succession. Last year, the organization found itself facing liquidity challenges as agri loans went unpaid, severely disrupting cash flow.
In December 2024, ASKI sought assistance from RestartME to address urgent financial obligations. RestartME approved a Php 40 million loan, which was a critical infusion of liquidity that arrived just when it was most needed. By January 2025, ASKI was already experiencing recovery. At that time, many clients were unable to make payments due to damaged crops and devastated farmland. Despite these challenges, they had no choice but to continue farming, and they needed capital to restart. The loan from RestartME helped bridge that gap and enabled the community to begin recovering.
ASKI emphasized that in agricultural communities, it is never just the farmers who are affected. “When the typhoons hit, it is not just the farms that are affected. The whole neighborhood, even the sari-sari stores, the canteens, the suppliers, the tricycle drivers, is also affected. The entire community is affected; hence, the Php 40 million capital infusions helped a lot in recovery.”
A Household-Centered Approach to Recovery
Beyond loan disbursement, ASKI emphasized that its model is rooted in building resilience with families at the whole household level. Recovery, in their view, is about ensuring the entire household can withstand and recover from future shocks.
Their approach includes financial literacy, understanding total household cash flow, and linking clients to other agencies that provide financial aid or social protection in the case of death or disaster. It is a multi-pronged strategy, intentionally designed to equip families with the tools to ensure that their borrowers can recover.
More Than Just a Loan
RestartME has been giving post-disaster support for ASKI as it helps MFIs like them recover after disaster. “RestartME was really established for this purpose: to help institutions like us. At first, it was 0% interest, specifically for typhoon response. Our first loans were Php 5M, 10M... but later on, we were invited to sit down and talk: what’s really happening on the ground? How are people recovering?”
Those dialogues became the foundation for deeper collaboration. RestartME began enhancing its products beyond financial aid based on what MFIs shared from the field. Eventually, although there was a slight increase in interest, RestartME increased loan amounts and expanded terms to give ASKI more space to help their clients. Right now, ASKI noted that RestartME is redefining disaster not just as typhoons, but as any major disruption.
Timeliness Matters
ASKI was clear that the most critical part of RestartME’s assistance was not just the amount, but the timeliness of loan release.
“Our clients were helpless. The losses were huge. If the capital does not come on time, they borrow elsewhere, often at very high interest. They get buried deeper in the cycle of poverty and debt. That’s why the timeliness of the loan was so important.”
RestartME’s timely funds, coupled with low interest rates, prevented borrowers from falling into predatory lending traps, especially at a time when they were most financially vulnerable.
A Changing Landscape
ASKI observed that about 80% of their clients run businesses attached to their homes. “So when disaster strikes, it is not just the store that gets damaged, but also the house. 50% of our clients still do not live in resilient structures, especially in coastal and other vulnerable areas.” This is why they recognize RestartME’s efforts to start rolling out housing loans for this reason.
At the same time, ASKI acknowledges the fast pace of digital disruption. E-commerce has reshaped markets, particularly for dry goods. “It is tough now in public markets, except maybe for wet goods. Everything else can be bought online so our retailers are having a hard time.”
Many of ASKI’s clients were admittedly not familiar with digital technologies. According to Ms. Jane, almost all MFIs have seen a drop in performance. The whole industry is affected with digital technology evolution as it is also becoming harder to collect because of its effect on their clients. Ms. Jane considers this as a form of disruption that should also be addressed.
Communication and Trust
When asked how RestartME can continue supporting ASKI and its clients, the answer was clear: “Let’s continue the frequent dialogue. What we value is how RestartME asks us directly what’s happening, and then builds programs that really fit. That relationship matters. There’s trust. We can call them anytime. There’s no filter and because of that, things get addressed quickly.”
ASKI expresses its appreciation of RestartME's responsiveness and timeliness, but most importantly, of its intention.