Name: Dela cruz, Ghinmel E.

Section/Year: BSBA – 2B

Title Of case: Vifel Cooperative Bank

Case 3: Vifel Cooperative Bank
Time Content: October 2023
Vifel Cooperative Bank is a financial entity wherein its members are also the owners and
customers of the bank. Initially, a group of 35 incorporators bound themselves to meet their
common goals, objectives, and aspirations. Inspired by the need to propagate the values of thrust,
self-help, self-responsibility, respect, community spirit, equity, integrity, self-regulation, and
harmony, Vifel Cooperative Bank was founded. Vifel Cooperative Bank espouses the seven
cooperative principles of voluntary and open membership, democratic member control, member
economic participation, autonomy and independence, education, training and information, co-
operation among cooperatives, and concern for community. Today, the bank provides a wide
range of banking and financial services to its customers. This includes savings and credit
facilities like deposits, salary, teacher, housing, and auto loans, banking accounts, and other
related financial services. Membership is so far pegged at 898 and the number continues to
increase.
Vifel Cooperative Bank is competently managed by an aggressive and dynamic bank
manager. Supported by a pool of financial people who are qualified and knowledgeable in
banking, trusted and responsible in handling monetary, and imbued with involvement and
commitment, the Bank has been successful in serving its customers who happen to be its
stakeholders. Through the Bank, more members are able to build their own homes. The
opportunity to own one has been appreciably welcomed by the members.
This has given them a sense of security and safety and more than that, a sense of self-
pride and self-respect. Auto loans likewise allow the members to purchase cars. For parents
sending their children to school, credit facilities have helped members pay their children’s tuition
fees. In addition, Vifel Cooperative Bank has supported its member in their entrepreneurial
ventures. From their borrowings, some members were able to put up their own businesses:
baking and selling different types of breads, cakes, cookies, and other pastries; selling
vegetables, meat products, and fishes and seafoods; opening franchises in mineral water, milk
teas, and ice creams; and sewing t-shirts, short, and dusters.
Given the successes of Vifel Cooperative Bank, debt collection has been difficult. A
number of its member have defaulted in the payment of their loans. Reasons like lack of income
and the reality of lac of knowledge in handling one’s finances have been common response from
these delinquent payers.
As branch manager of Vifel Cooperative Bank, what strategies will you carry out to make
sure that loan are paid on time, thus decreasing significantly the percentage of defaulted loans?
Use the case method to come up with an action plan.
Perspective: A Branch Manager Of Vifel Cooperative Bank
Central Issue: Vifel Cooperative Bank is expertly run by an assertive and vibrant bank branch
manager and is supported by a team of capable and skilled financial professionals, debt
collection is a significant problem as a result of many members failing out on loan payments.
Statement of Objectives:
1. To implement strategies to solve the problem about debt collection;
2. To significantly decrease the percentage of defaulted loans.

RELATED LITERATURE
ICICIPrudential, 2021. Having a financial goal allows you to stay focused and avoid
overspending. So, plan what you want to do with your money in the short as well as long term. In
order to achieve your long-term financial goals like your dream house, your child's education,
retirement and much more you must start investing in financial products.
Prulife, 2016. While taking loans to achieve your life goals is a common way, they do come with
a fair share of problems. The high interest can eat into your savings. Taking on multiple loans
also affects your credit score, thereby making it harder for you to avail credit when absolutely
necessary or in some cases, even a job.
PMC, 2013. In line with this second mandate for the CFPB, there has been much recent public
discussion on financial literacy and the role of financial education as an antidote to limited
individual financial capabilities
Toolkit, 2023. This section focuses on financial education issues that are important for young
adults, aged 19-29 years old. Young adults, both those who work and those enrolled in
postsecondary education, need financial literacy, as many are transitioning to a stage of financial
independence. These young adults are having to make major financial decisions for the first time
in their lives, as they are receiving credit card applications to consider or may have to take out a
student loan to finance their education.
Bankrate, 2023. Financial literacy entails having a solid understanding of money management so
you can make good decisions when creating a budget, saving and investing money, managing
debt and paying taxes. The consequences of not being financially literate can be costly. In fact,
Americans estimated they lost an average of $1,819 in 2022 due to lack of knowledge about
personal finances, according to a study by the National Financial Educators Council.
Bennet, 2023. Lack of knowledge when it comes to your bank accounts could mean you’re being
charged fees that are avoidable, and you could also be losing out on opportunities to earn higher.
Whether it’s lack of knowledge about banking, credit cards or ways you might become a victim
of financial fraud, financial illiteracy could leave you with unnecessary fees, a low credit score
and difficulty borrowing money.
Areas of Consideration:
1. Debt Collection: The Vifel Cooperative Bank is has a number of non-paying members
2. Defaulted of their payment of their loans: Defaulted of payment for their loans including
lack of income and Financial illiteracy.
Alternative Course of Action:
1. Offer multiple payment to members by next month.
2. Provide the seminar about how managed financial to members every quarter.
Decision Matrix:
VARIABLES Alternative offer multiple Provide seminar about
payment method literacy to members .
Risk 4 3
Costs 4 2
Benefits 5 5
Ease of Implementation 3 3
Total 16 (highest) 13

Conclusion: The Vifel Cooperative Bank’s biggest issue is its difficulties acquiring debt, which is
accompanied by a number of its members’ loan default.
Recommendations: A variety of payment options for its members should be a top priority for the
Vifel Cooperative Bank. It would help with the implementation of the strategy to produce an
action plan and Gantt chart. Second, to help members become better at managing their finances,
Vifel Cooperative Bank should offer financial literacy seminars.
Action Plan: Provide the seminar about how managed Financial to members.
Activiti Objectiv Division Person’s Costs Time
es es responsible
Perform To ensure Credit Credit Estimated 3
thorough members Department officer, Credit 211, 030 months
checking capable of department php
To members paying to debts.
Provide a Enhanc the Marketing Marketing Estimated 1
number of attractiveness to Department Manager 50,000 month
meetings new customers Php
every week
Tracking of To measure the Project Team Project Estimated 6
the progress effectiveness of manager 8,000 months
that strategy. Php
Continues of To know Project team Project Estimated 10
the services weather to manager 8,000 months
and meetings continue or
abandon this
initiative or
how it can be
approved
Gantt Chart ( YEAR 2023)
Jan. Feb. Marc April Ma June July Au Sep Oct No Dec
h y g v
Perform
thorough
checking to X X X X X
members

Provide a
number
of meetings X X X X X X X X
every week
Tracking of
the progress X X X

Continues
of the
services and X X X X X X X
meetings