Part of a series of posts from Bachelor of Commerce student blogger, Danny Hertz, written during a Loran Scholarship outreach project in the Philippines.

Yesterday I said my goodbyes to the friends I have made near the hostel where I live in Metro Manila. As a send-off gift, they decided to order me some of the Filipino delicacies that they knew I wouldn’t forget. Overlooking any concerns I might have had about getting sick immediately before embarking on a month of travelling, I agreed to go along with them. They warned me that I would want to soak everything they ordered in vinegar before consuming it for two reasons: to sterilize it and to make it tastier. That probably should have raised a red flag or two… After 5 minutes of watching it all cook on a home-made BBQ, I was treated to the following: pig intestines, chicken intestines, pigs ear and betamax (which was essentially cubes of chicken blood)! After trying all four dishes, I am happy to report that I lived to tell the tale, and the only damage I’ve suffered is a very sore throat from consuming about half a liter of vinegar to choke it all down.

Thanks again to everyone for following my updates this summer. Living in the developing world and working in microfinance has been both a rewarding and, at times, challenging experience; but I’ve learned a great deal about a fascinating and important poverty alleviation tool in a different part of the planet in addition to exploring some fascinating places.

Part of a series of posts from Bachelor of Commerce student blogger, Danny Hertz, written during a Loran Scholarship outreach project in the Philippines.

While the Philippines does not have anything close to a Canadian winter, I would have to disagree with the experts who say that it does not have a “harsh climate”. The remarkable heat and humidity has given way to the rainy season, and with the rainy season comes typhoons. After joking with my co-workers for the past month that I wanted to experience one while I was in the country, my wish was granted. Typhoon Conson struck the city in a big way last Tuesday night, and it was indeed quite an experience. Winds as strong as 120 km/h came through the area and the rain seemed to be quite relentless. The combination of the two knocked out the power for 3/4 of the nation and claimed the lives of 72 people. Apparently the 3rd floor hostel that I’m living in was just the right size, and was too high to be flooded while too short to be damaged by the wind. Additionally, the bugs in the building must have realized that this was the safest floor to be on as I found a cockroach in my shower the next morning! The locals seemed much less concerned about the weather than I was, and said typhoons hit the country on average once every two weeks. While it certainly was interesting to hear and see the winds and the rains last week, I’ve now crossed it off my bucket list and am hoping to be out of the country before the next one comes along…

Part of a series of posts from Bachelor of Commerce student blogger, Danny Hertz, written during a Loran Scholarship outreach project in the Philippines.

A few weekends ago I made a trip to the northern part of the country to see the world heritage site of the Ifugao Rice Terraces. Dubbed by the locals as the “Eighth Wonder of the World”, these man-made structures were built thousands of years ago as a way to grow rice on the slopes of the mountains. Each terrace is about 6 feet high and 8 feet wide, and I can only imagine that it would have taken an enormous amount of work to construct and maintain.

The journey to Ifugao was perhaps one of the longest land travel trips of my life. We rode an overnight bus from Manila for 11 hours, and then hired a local “tricycle” to take us past the highway along the dirt trail, for what we thought would be the rest of the way. However, after being squished in the tricycle for an hour, we were told by our driver that he could not transport us any further because the recent rains had washed out the road and that we would need to take a hike to reach the terraces. Initially, I was quite happy about this, having spent the previous 12 hours in a vehicle. We politely asked for directions on how to get there, and our driver pointed us in the direction of what seemed to be the highest mountain in sight. He recommended that we hire a guide so that we didn’t get lost. Quite conveniently, an old man, who appeared to be about 65, walked by and offered us his services. I was initially somewhat cautious about this, and felt that due to his age he would probably slow us down more than anything, but given the lack of competing options I agreed.

After an 8 km uphill walk at a mind-boggling pace set by a local Filipino who was at least 3 times my age, we arrived at the rice terraces. Perhaps it was because of the arduous journey to get there, but the view was perhaps the most unique sight I have seen this summer, and I was thoroughly impressed.

Part of a series of posts from Bachelor of Commerce student blogger, Danny Hertz, written during a Loran Scholarship outreach project in the Philippines.

A significant new development in the provision of financial services to the lower income segment is broadly referred to as mobile banking. Here in the Philippines, this consists of two major initiatives that I’ve been researching: money transfers via cell phones, and bringing ATMs to the rural areas. Filipinos are some of the most active users of remittance services in the world due to the vast number of people working abroad and also the distribution of the local population across the many islands of the Philippines. To transfer money to family members who live in the rural areas or to students studying in the cities using conventional methods is quite expensive here, since businesses such as Western Union charge a commission fee of 7%-15%. Through a partnership that Seed Finance has with the main telecommunications operator in the country, members of the Seed Finance network can now send remittances electronically via text messaging for as little as 2 cents plus a commission of about 1%. The “mobile money” can then be exchanged for cash by the recipient family member at a “money in-money out” center. The result has been substantial savings and increased convenience for the microfinance users of this technology.

Secondly, a partnership between Seed Finance and an independent ATM deployer in the Philippines has been working to bring ATM machines to more remote communities. The primary market consists of pensioners and government employees, such as teachers and policemen, all of whom are paid via direct deposits to their bank accounts. Prior to the placement of an ATM in their community, these rural residents would have to travel from 45 minutes to 5 hours via bus or jeepney to the nearest bank branch to retrieve their salary or pension. When an ATM is placed in their community, they can save up to $5 (which goes a surprisingly long way here!) and a significant amount of time by using their local ATM. Innovations such as these are proving that they have the potential to be profitable, as well as allowing the companies involved to practice positive CSR techniques for the fellow countrymen and women in hard to reach areas.

Part of a series of posts from Bachelor of Commerce student blogger, Danny Hertz, written during a Loran Scholarship outreach project in the Philippines.

A significant new development in the area of providing financial services to the lower income segment of the population is broadly referred to as mobile banking. This consists of two major initiatives that I have been researching: money transfers via cell phones, and bringing ATMs to the rural areas. While both technologies face considerable barriers before they will ever become mainstream; the potential payoff from them is significant.

As many of you probably know, the Filipinos are one of the most active users of remittance services of any groups of people in the world due to the vast numbers of Filipinos working abroad and also the disbursement of the local population across the many islands of the Philippines. To transfer money to family members who are live in the rural areas or to students studying in the cities is quite expensive here, since businesses such as Western Union charge upwards of 5% of the transaction value. Through a partnership that Seed Finance has with the main telecommunications operator in the country, members of the Seed Finance network can now do this for as little as 2 cents via text messaging. The money can then be retrieved at a “money in-money out” center for a much more affordable rate. The ATM project has been a partnership with the only independent ATM deployer in the Philippines to bring the financial service to more remote communities.

Pensioners and government employees, such as teachers, are all paid via direct deposit to their bank accounts, and often the rural residents will have to travel 45 minutes to 5 hours via bus to the nearest bank branch. When an ATM is placed in their community, they can save up to $5 (which goes a surprisingly long way here!) and a significant amount of time by using the one in their community. Innovations such as these are proving that they have the potential to be profitable, as well as allowing the companies involved to practice positive CSR techniques for the fellow countrymen and women in hard to reach areas.