Draft:Kamrul Hasan Tarafder

Md. Kamrul Hasan Tarafder
Md. Kamrul Hasan Tarafder, founder of ASA Philippines
Born	May 25, 1957
Nationality	Bangladeshi
Other names	Md. Kamrul Hasan Tarafder, but he is mostly known as Kamrul H. Tarafder in the Philippines
Education	Master in Entrepreneureship (ME) with distinction for commendable performance in 2003.; Project Management short Diploma from Aarhus Technique School (today it is an university), Denmark 1996; Bachelor of Arts;
Alma mater	Asian Institute of Management, Manila, Master in Entrepreneurship Management (ME), graduated with distinction, on December 2003
Spouse	Hajja Dabirunnessa Khatun Tarafder (February 7, 1986, to present)
Children	Mehedi A. H. Tarafder
Parent(s)	Abu Ali Tarafder (Father), Shahena Begum Chowdhury (Mother)
Relatives	Neriza C. Tarafder (Daughter-In-Law), Nessa Mahdia Tarafder (Granddaughter), Noreine Tarafder (Granddaughter)
Awards	Conferred with Tripple A award Feb 2020 by FAIM for his professional achievent and leadership for establishing ASA Philippines and its exponential growth.

Md Kamrul Hasan Tarafder, also known as Kamrul H. Tarafder, is the founder and former President and CEO of ASA Philippines Foundation, a microfinance institution established in 2004. Over his 20-year tenure, the organization grew to become one of the largest microfinance institutions in the Philippines. By May 2024, ASA Philippines reportedly served over 2.2 million women entrepreneurs and employed a workforce of more than 12,000 staff members. Under his leadership, the institution's assets were estimated to be around $930 million, with equity reaching $430 million.

Tarafder's career in the Philippines began in 1998 after relocating from Bangladesh. He initially worked with the United Nations Development Programme (UNDP) as a Team Leader Consultant. From September 1998 to June 2004, he oversaw three key projects under the UNDP Microfinance Support Project (MSP). Evaluations by independent bodies, such as the United Nations Capital Development Fund (UNCDF) and the Consultative Group to Assist the Poor (CGAP), reportedly ranked the project highly compared to similar initiatives in 65 other countries.

In May 2024, Tarafder was removed from his position at ASA Philippines in what was widely reported as a "boardroom coup." The circumstances surrounding his removal were not officially clarified, prompting media outlets to speculate on the reasons for the abrupt leadership change. Some reports noted broader organizational restructuring as a contributing factor. The incident drew significant public and media attention, with discussions highlighting both the impact of Tarafder’s leadership and the sudden nature of his departure. Various interpretations emerged regarding the event, reflecting differing perspectives on the internal dynamics within ASA Philippines at the time.

Early life

Md Kamrul Hasan Tarafder was born in very remote village called Sreebaur of Habiganj district in Bangladesh on May 25th, 1957, to the parents Abu Ali Tarafder and Shahena Begum Chowdhury both were headmaster of primary schools. His mother Shahena Begum Chowdhury founded two schools in her lifetime and eventually one of them was named after her own name and taken as the government primary school. Both are government primary schools today. His father Abu Ali Tarafder was 1st English educated person in his clan. The place was so disadvantageous at that time, after passing matriculation examination in 1942, people from far places came to see his father. His father joined 2nd World War with British Army in 1942 as second lieutenant. After the war was over in 1945 his father was offered by his superior colonel to go with them to England, but he refused and came back to his native village to become a teacher to help impoverished villagers. Their 1st child died of child diarrhea at the age of six month, that shocked his parents. His mother stopped teaching at that time. There were no doctors available within the 10 km radius. So, his father took the challenge to study homeopathic and started to practice assisting the villagers. Kamrul came to their life as the second child but the first surviving child in the family. The homeopathic dispensary was running but most of the villagers did not have the capacity to pay for the medicine. The consultation was free. So, eventually the shelf of the dispensary started gradually emptying. The family has three children, 1 boy and two girls. Maintaining the family of 5 was a tough matter for a schoolteacher. The family cannot replenish the medicine on the shelf on their own, so, eventually the homeopathic dispensary was closed by 1967. Considering the education for the children was a priority, his parents migrated to Teliapara, a relatively better place for communication, where his grandparents from mother side were living. The liberation war started 1971, and Teliapara became the frontier of the battlefield. Because of intense fighting between the freedom fighter of Bangladesh and the Pakistani army, the family left the place and the house was burnt down, so everything was lost. 1972 his parents have another boy, so they became 4. Kamrul took his secondary school certificate after the liberation war 1972, higher secondary 1978 and 1988 Bachelor of Arts as a working student.

In early life he worked for several NGOs, in 1993 he joined ASA Bangladesh where he discovered the sustainability of any development work. There in ASA Bangladesh he realized the philosophy of his father to serve the poor neighborhood was a great idea to serve the community, but his father’s philosophy lacked sustainability model. The overwhelming majority of poor neighbors did not pay for the medicine they were given, as a result the dispensary was closed. Kamrul found his sustainability model in microfinance. In 1998 he was assigned to UNDP Philippines as Team Leader Consultant for handling a microfinance project to teach ASA method to NGO, Rural Banks and Cooperatives. He handled three projects as the Chief Consultant from September 1998-June 2004. Through the UNDP program, he had the opportunity travel across the country, studied over 50 MFIs, directly gave technical assistance (TA) to 22 MFIs. During his time with those MFIs he saw that the country had an opportunity to grow faster had he got a chance to run an MFI by himself. Keeping this in mind, he started to conceptualize to start something on his own. The business plan of ASA Philippines Foundation was prepared when he took the ME degree from Asian Institute of Management (AIM) 2002-2003. Then he started to present his model to different businessmen and philanthropist and eventually found the commitment of support in early 2004. On July 2004 ASA Philippines was born and started its operation on August 2004.

Establishment of ASA Philippines

ASA Philippines was founded in 2004 by Md. Kamrul Hasan Tarafder, drawing inspiration from the microfinance model developed by ASA Bangladesh. The organization was established with the objective of addressing poverty and promoting financial inclusion by providing microloans and other financial services to low-income households, particularly women-led microenterprises. Over the years, ASA Philippines has expanded its operations, and by 2024, it reportedly served millions of clients across various regions in the Philippines. Independent reports have highlighted its role in offering financial services to communities that often lack access to traditional banking systems.

Introduction of Gender Bonds

In 2023, ASA Philippines launched the country’s first gender bond, raising approximately PHP 5 billion to support loans specifically aimed at women entrepreneurs. This initiative, backed by the Asian Development Bank (ADB), was designed to improve financial access for women and promote gender equality through microfinance. Gender bonds are financial instruments that direct funds towards projects supporting women’s economic participation and empowerment. Analysts noted that this initiative aligned with broader international efforts to enhance financial inclusion and support sustainable development goals related to gender equality.

Partnerships and Community Development Initiatives

ASA Philippines has engaged in several partnerships and community initiatives aimed at broadening financial services and addressing socio-economic challenges in underserved areas. These collaborations have involved both private and public sector organizations:

1. PLDT-Smart Foundation Partnership (2024): In collaboration with the PLDT-Smart Foundation, ASA Philippines aimed to extend microfinance services to marginalized groups. This partnership sought to promote community development by improving access to financial resources for low-income families and small entrepreneurs. Observers viewed this effort as part of a wider trend of telecom companies partnering with microfinance institutions to leverage digital solutions for financial inclusion.
2. Support for Police Families (2024): ASA Philippines partnered with the Bayaning Pulis Foundation to provide financial support to the families of police officers who died in the line of duty. This initiative provided assistance to the dependents of 26 fallen officers, reflecting a commitment to supporting communities affected by public service casualties. Independent commentators noted that such initiatives highlight the role of microfinance institutions in addressing broader societal needs beyond traditional lending activities.

These efforts reflect ASA Philippines' approach to combining financial services with community-based support, though the effectiveness and long-term impact of these initiatives have been subjects of analysis by industry experts. While the organization has received recognition for its contributions to financial inclusion, some observers continue to call for greater transparency and evaluation to ensure that these programs deliver sustainable outcomes for the targeted communities.

Leadership in Microfinance and Capacity Building

Md. Kamrul Hasan Tarafder's contributions to the microfinance sector have included initiatives focused on capacity building and professional development within the financial services industry, particularly in the Asia-Pacific region. His work extends beyond providing financial services to strengthening institutional knowledge and fostering collaboration among regional stakeholders.

Training and Development Initiatives

In 2024, ASA Philippines partnered with the Colombo Plan Staff College (CPSC) and the Bankers Financial Institution of Nepal (BFIN) to implement a management development program for Nepalese bank managers. This initiative aimed to enhance managerial skills and operational efficiency within Nepal's microfinance and banking sectors. Independent observers noted that the program highlighted the growing trend of cross-border knowledge exchange and collaboration among microfinance institutions in the region. Such initiatives reflect broader efforts to build a network of financial professionals equipped to address the challenges of financial inclusion and sustainable development in their respective countries.

The program's design emphasized the importance of regional cooperation in improving financial services, aligning with global efforts to build institutional resilience and share best practices in microfinance.

Socialized Housing Solutions

Under Tarafder's leadership, ASA Philippines has also explored microfinance solutions aimed at addressing housing challenges faced by low-income communities. In 2024, the organization participated in the 2nd Socialized Housing Summit, where it presented various home financing models tailored for underserved populations. These models focused on providing accessible and sustainable financing options for individuals who typically lack access to conventional housing loans.

The participation of ASA Philippines in such summits has drawn attention to the potential role of microfinance in supporting socialized housing efforts. Independent evaluations have highlighted both the opportunities and challenges of integrating microfinance with housing development, noting issues such as loan affordability, repayment risks, and the need for regulatory support to ensure sustainable outcomes.

Academic and Case Study Recognition

ASA Philippines' initiatives and their impact on financial inclusion have been examined in various academic and professional settings. For instance, the Singapore Management University featured the organization in a case study titled "ASA Philippines: Making Financial Inclusion Possible." This study explored the foundation's approach to poverty alleviation through microfinance and the challenges associated with expanding financial services to marginalized populations.

While such case studies provide insights into the operations and outcomes of microfinance programs, independent scholars and industry experts often emphasize the importance of evaluating these initiatives through multiple lenses. Factors such as long-term client outcomes, institutional sustainability, and the socio-economic context are frequently considered when assessing the effectiveness of microfinance models.

Overall, the recognition of ASA Philippines in academic discourse underscores the organization's role in the broader microfinance sector. However, critical assessments continue to explore the complexities and limitations inherent in microfinance as a tool for poverty alleviation and economic empowerment.

Leadership in Financial Inclusion and Gender Empowerment

Pioneering Gender Bonds in the Philippines

Md. Kamrul Hasan Tarafder, as the leader of ASA Philippines, has played a significant role in promoting financial inclusion through innovative financial instruments. In 2023, ASA Philippines launched the country's first-ever gender bond, raising ₱5 billion. This bond aimed to enhance financial access for women entrepreneurs, supporting gender equality and encouraging women's economic participation. The funds were directed toward microfinance loans specifically designed for female entrepreneurs in underserved areas, addressing long-standing barriers to financial services for women.

This initiative drew widespread recognition and support. Prominent media outlets such as The Manila Times, Manila Standard, and Inquirer.net reported on the gender bond's objectives and impact. The Asian Development Bank (ADB) also highlighted the bond as a pioneering example of leveraging capital markets for inclusive financing. The success of this bond reflects broader trends in Asia and the Pacific, where gender-focused financial instruments are increasingly seen as essential for driving equitable economic growth.

Advancing Urban Development through Housing Microfinance

ASA Philippines, under Tarafder’s leadership, has expanded its microfinance offerings to include housing loans aimed at improving living conditions for low-income urban populations. Housing microfinance targets informal settlers and low-income families who lack access to traditional mortgage products. These loans help fund home improvements, incremental building, and other housing-related needs.

ASA Philippines' model of integrating housing finance with microcredit was featured at the 9th Asia-Pacific Housing Forum, organized by Habitat for Humanity. This forum, attended by experts, policymakers, and financial institutions, underscored the importance of sustainable housing solutions for vulnerable communities. Reports by international bodies such as the ADB have noted ASA Philippines' efforts to scale housing microfinance, demonstrating how these initiatives can help alleviate urban poverty.[1]

Such programs contribute to addressing the Philippines' persistent housing challenges, where an estimated 4.5 million families live in informal settlements according to the Department of Human Settlements and Urban Development. By providing targeted financial products, ASA Philippines supports incremental housing improvements, empowering families to achieve better living conditions over time.

Promoting Women’s Entrepreneurship and Financial Inclusion

A core aspect of ASA Philippines' mission is empowering women entrepreneurs through access to microcredit. Women in the Philippines often face systemic barriers to financial services, including lack of collateral and social constraints. By offering microloans to women, ASA Philippines aims to bridge this gap and promote economic self-reliance among female entrepreneurs.

Independent assessments, such as those published by the Philippine Daily Inquirer and BusinessWorld, have documented the impact of these programs. Women who receive microloans often use the funds to start or expand small businesses, such as sari-sari stores, food vending, and tailoring services. These businesses contribute to household income, support children's education, and improve overall community well-being.[2]

Studies on microfinance in Southeast Asia have shown that empowering women economically can lead to broader societal benefits, including reduced poverty rates and improved gender equality. ASA Philippines' focus on female entrepreneurship aligns with these findings and reflects a global trend where microfinance is recognized as a tool for women's empowerment.

Recognition and Impact

The initiatives led by Md. Kamrul Hasan Tarafder have been recognized for their contributions to financial inclusion and social development. His leadership has been acknowledged not only in local media but also by international financial institutions and development organizations. These initiatives serve as case studies for innovative microfinance practices aimed at promoting gender equity and improving urban livelihoods.

However, challenges remain, such as ensuring the sustainability of microfinance programs and addressing the indebtedness risks associated with microloans. Independent evaluations are essential to assess the long-term impact of these initiatives and identify areas for improvement.

ASA Philippines' efforts reflect broader global movements toward inclusive finance, particularly in empowering marginalized communities through targeted financial services. By adopting gender-sensitive and housing-focused approaches, the organization contributes to a more equitable and sustainable financial ecosystem in the Philippines.

Advancing Women’s Entrepreneurship through Microfinance

Key Partnerships Driving Growth

In recent years, strategic partnerships have played a pivotal role in advancing financial inclusion and women’s entrepreneurship in the Philippines. In 2022, ASA Philippines secured a $20 million loan from Citi to support women-led micro, small, and medium enterprises (MSMEs). This partnership reflects a broader trend in financial services where international institutions are increasingly prioritizing gender-inclusive funding. Citi’s investment aligns with its global commitment to promoting economic opportunities for women in underserved communities, reinforcing efforts to reduce the gender financing gap.

Additionally, Citi’s earlier ₱1 billion loan in 2022 for a women-focused microfinance initiative highlighted the growing recognition of the importance of financing women’s enterprises in the Philippines. These initiatives are part of a larger effort to address barriers faced by female entrepreneurs, such as limited access to traditional banking, lack of collateral, and systemic gender inequalities. According to the International Finance Corporation (IFC), women-owned MSMEs represent a significant yet underfunded segment of the economy, with a financing gap estimated to be in the billions of pesos.

Microfinance Innovations and Regional Challenges

ASA Philippines’ approach to microfinance has included adapting its services to meet the needs of specific regions with unique socio-economic and cultural dynamics. In the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), an area historically marked by conflict and economic instability, ASA has implemented microfinance solutions tailored to local conditions. A report by the Manila Bulletin noted that microfinancing in BARMM has shown signs of reduced risk due to these region-specific adaptations. The report attributes this improvement to financial products that consider cultural sensitivities, economic activities, and the challenges faced by women entrepreneurs in predominantly rural and conflict-affected areas.

Despite these advancements, challenges remain in fully integrating microfinance into such regions. Issues like financial literacy, security, and infrastructure continue to pose barriers. Independent evaluations have highlighted the importance of consistent support from both local governance and international development agencies to sustain these gains in financial inclusion.

Financial Inclusion in Response to Crisis

The COVID-19 pandemic posed significant challenges for MSMEs, particularly those operated by women in the informal economy. In response, collaborative funding efforts aimed at mitigating economic shocks were initiated. In 2020, ASA Philippines partnered with the Department of Trade and Industry (DTI) and Coca-Cola to launch a ₱157 million fund to support small businesses like sari-sari stores and carinderias (local eateries) affected by lockdowns and reduced consumer activity. This initiative reflects broader national strategies to protect small enterprises, which make up 99% of businesses in the Philippines, according to the Philippine Statistics Authority (PSA).

These efforts were part of a wider government and private sector response to stabilize the economy. Studies by institutions like the Philippine Institute for Development Studies (PIDS) indicate that such microfinance support played a crucial role in preventing the collapse of many small enterprises during the pandemic, though recovery has been uneven, particularly for women-led businesses.

Innovations and Barriers in Digital Microfinance

Digital transformation has increasingly become a focus in the microfinance sector to improve accessibility and efficiency. ASA Philippines has introduced digital services to streamline loan distribution and repayment. However, adopting these technologies among rural and underserved populations has proven challenging. Research by Francisco and Padillo (2019) highlights that while digitization holds potential for expanding financial services, many small-scale entrepreneurs remain hesitant due to low digital literacy, limited internet access, and concerns over security and privacy.

Efforts to bridge this gap include providing digital literacy programs and developing user-friendly platforms that cater to the needs of less tech-savvy clients. According to reports from The Economist Intelligence Unit and the Asian Development Bank (ADB), successful digital microfinance requires addressing infrastructural challenges, ensuring data security, and building trust among users.

Looking Ahead: Sustainability and Impact

While ASA Philippines’ initiatives and partnerships represent significant strides in financial inclusion, ongoing independent evaluations are essential to measure their long-term impact. Issues such as over-indebtedness, repayment pressures, and the need for continuous support for women entrepreneurs remain critical considerations. Studies by organizations like the Microfinance Council of the Philippines, Inc. (MCPI) stress the importance of balancing growth with sustainable practices to avoid potential pitfalls associated with rapid microfinance expansion.

These developments in women-focused microfinance underscore a broader movement toward inclusive economic policies. By addressing systemic barriers and adapting to regional challenges, microfinance institutions like ASA Philippines contribute to promoting gender equity and economic resilience in the Philippines.

Empowering Communities and Entrepreneurs through Microfinance

The Role of the Asia-Pacific Housing Forum

The Asia-Pacific Housing Forum, organized by Habitat for Humanity, serves as a platform for sharing knowledge and strategies to address urban poverty and inadequate housing. The forum emphasizes the role of housing microfinance in improving living conditions, particularly for marginalized urban communities. Microfinance institutions (MFIs), including ASA Philippines, have benefited from insights and collaboration fostered during these events.

A key takeaway from the 2019 forum was the need for community-driven solutions that prioritize inclusivity and sustainability. According to a report by Habitat for Humanity, peer-to-peer exchanges among MFIs enabled the development of tailored strategies for housing microfinance, especially those that empower women entrepreneurs who are often at the forefront of informal housing improvements. These discussions underscored the potential for MFIs to bridge the gap between financial services and sustainable urban development by addressing issues such as land tenure security, incremental housing improvements, and disaster-resilient construction.

ASA Philippines’ Contributions to Microfinance

ASA Philippines has been recognized for its contributions to financial inclusion, particularly in supporting women-led microenterprises. Its microfinance model provides small loans to entrepreneurs who lack access to conventional banking services. According to a 2019 Manila Bulletin report, ASA Philippines’ approach has helped underserved communities improve their economic prospects by offering accessible financial services, thereby promoting self-reliance and poverty reduction.

Independent evaluations, such as those by the Microfinance Council of the Philippines, Inc. (MCPI), highlight that microfinance institutions like ASA Philippines play a critical role in extending credit to women in informal sectors. These women often invest in small businesses such as retail stores, food vending, and home-based enterprises, contributing to local economic growth. However, challenges such as repayment pressure, financial literacy gaps, and market saturation require continuous monitoring and adaptive strategies to ensure sustainable impact.

Supporting Small Businesses During Economic Challenges

The COVID-19 pandemic posed significant challenges for micro and small businesses in the Philippines. Sectors dominated by women, such as sari-sari stores (neighborhood shops) and carinderias (local eateries), were particularly affected by lockdowns and reduced consumer traffic. In response, various collaborative initiatives were launched to support these enterprises.

In 2020, ASA Philippines participated in a funding program alongside the Department of Trade and Industry (DTI) and Coca-Cola, creating a ₱157 million support fund to help small businesses adapt to new health protocols and market conditions. Reports from Inquirer.net highlighted that these efforts focused on providing capital, resources, and training to help businesses implement socially distanced operations and adopt digital payment systems. Despite these efforts, a study by the Philippine Institute for Development Studies (PIDS) noted that recovery was uneven, with many women-led businesses facing ongoing challenges due to disrupted supply chains and lower consumer demand.

Women Entrepreneurs and Local Development Initiatives

Microfinance has also supported women entrepreneurs at the local level. In Mandaluyong, for example, women-owned businesses have thrived due to targeted microfinance programs and small business development initiatives. According to a 2014 Inquirer.net report, access to capital, along with training and mentorship, has enabled women to expand their enterprises and contribute to community-level economic growth. These initiatives align with findings by the International Finance Corporation (IFC), which indicate that closing the gender gap in business financing can significantly boost economic output and resilience.

While these programs show promise, independent research highlights the need for comprehensive support systems, including business education, market access, and policy reforms, to sustain the progress made by women entrepreneurs. Ensuring that microfinance initiatives are coupled with broader socio-economic support can enhance their long-term effectiveness.

Expanding Access to Essential Services

Beyond financial services, microfinance institutions like ASA Philippines have also played roles in improving access to essential services, such as energy and utilities. A 2017 report by Boniol discussed initiatives in remote communities where access to electricity was historically limited. These programs, often facilitated through microfinance-backed financing for solar energy and other renewable solutions, have improved the quality of life for local households and businesses. Reliable access to energy enables businesses to extend operating hours, preserve perishable goods, and enhance productivity.

According to the Asian Development Bank (ADB), integrating access to essential services with microfinance can create holistic improvements in community welfare. However, challenges such as infrastructure gaps, affordability, and maintenance need to be addressed to ensure these solutions are sustainable.

Challenges and Future Directions

While microfinance has demonstrated positive impacts, challenges remain in ensuring its sustainability and effectiveness. Issues such as over-indebtedness, financial literacy, and the digital divide must be addressed to prevent potential downsides of microcredit. Independent studies suggest that continuous monitoring, client education, and adaptive strategies are critical for mitigating these risks.

In conclusion, ASA Philippines and similar institutions contribute significantly to financial inclusion and community empowerment. However, the success of these initiatives depends on collaboration with policymakers, development organizations, and local communities to ensure inclusive, equitable, and sustainable growth.