Plan Int’l and J.P. Morgan to establish Community Savings Groups

For Eastern Samar communities

In response to the challenges in the aftermath of Typhoon Haiyan, Plan International, in partnership with J.P. Morgan, is supporting the formation of Community Savings Groups, targeting people from marginalized and highly-affected communities in the coastal region of Eastern Samar.

The program partnership aims to establish 90 Community Savings Groups 60 of which will be funded by J.P. Morgan’s foundation - across seven municipalities, reaching an estimated 2,250 individuals, 75 percent of whom are women.

"J.P. Morgan's funding of 60 Community Savings Groups in the Philippines is making it possible for people to rebuild their lives and support their own families post-typhoon," said Jill T. Nosach, Plan International USA's Senior Director of Development. "J.P. Morgan's generosity is increasing families' security through savings; strengthening their financial capacity through economic and life skills training; and improving access to basic social services through community networks and referrals. Plan International USA is deeply grateful for J.P. Morgan's support of this transformative work."

Community Savings Groups provide a good alternative to the more traditional microfinance models by enabling communities in the most remote areas, to have access to savings, credit, and insurance services. Instead of relying heavily on external actors like banks, Community Savings Groups are cooperatively managed by groups of people who come together to save their own money and borrow from pooled funds. After three-to-five weeks of saving, members can take credit of up to three times the value of their savings, depending on the amount of money available from the savings of the entire group. Members then repay the group within three months. These groups create a locally sustainable financial safety net that helps smooth personal shocks and increases people's ability to accumulate cash and engage in income generation activities.

"We believe we have a fundamental responsibility to help our communities address their economic and social challenges," said Roberto "Bobbit" Panlilio, J.P. Morgan Philippines' Senior Country Officer.

"By strengthening the overall financial capacity of the community, providing access to funding resources especially for underprivileged households, this initiative will generate greater awareness of financial independence and stability, highlighting the importance of saving and credit improvement," he added.

Typhoon Haiyan struck the Philippines in early November 2013, affecting an estimated 12.2 million people. One of the strongest storms ever recorded, it destroyed access to food and water, health care, and education and resulted in a devastating loss of employment and income for millions of people.

The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) estimates that the storm destroyed or disrupted the livelihoods of 5.9 million workers, of which 2.3 million (40%) are female and 1.2 million (20%) are youth aged 15 to 24. Communities affected by the disaster face building locally sustainable financial safety nets in order to address immediate concerns such as food, water, and health care, as well as for the long-term reconstruction of their livelihoods.

J.P. Morgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.5 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, J.P. Morgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands.

Plan International is a child rights humanitarian organization that works side by side with communities in 51 developing countries to end the cycle of poverty for children and their families. Plan works at the community level to develop customized solutions and ensure long-term sustainability. Its solutions are designed up-front to be owned by communities for generations to come and range from clean water and health care programs to education projects and child protection initiatives.