FROM THE MARGINS
On March 11, 2025, I had the privilege of speaking at the Mansmith Market Masters Conference, an annual strategy and marketing event that brings together top industry leaders, CEOs, and marketing experts. Held at the SMX Convention Center in Taguig City, the conference was led and organized by Josiah Go, chairman and chief innovation strategist of Mansmith and Fielders, Inc.
I participated in a panel discussion on Winning: the Balance Between Innovation and Risk, alongside Lawrence Ferrer, president and CEO of Bayad, and Carmen Jimenez-Ong, founder and CEO of Menarco Development. Our session was moderated by TV personality RJ Ledesma. It was an honor to contribute to a discussion that explored market trends, business growth strategies, and the evolving landscape of innovation.
Our discussion resonated deeply with me. As the founder of CARD MRI, a group of financial and social enterprises dedicated to financial inclusion, I have consistently sought ways to innovate while ensuring that the risks we take do not compromise our mission of eradicating poverty. Let me share some key insights on balancing innovation and risk, drawn from our experiences over the years.
Stress-testing before scaling
At CARD MRI, we embrace a disciplined yet flexible approach to innovation. Before rolling out a new idea, we conduct small-scale pilot programs within a carefully selected segment of our target market. We evaluate success through key performance indicators (KPIs), client feedback and financial sustainability metrics.
For instance, when we launched our digital microfinance services, we began with a test group to assess efficiency and client reception. Once a pilot demonstrates success, we expand it in phases, making data-driven adjustments along the way. Our foundation for innovation relies on three pillars:
- Market Research (validating the need)
- Storytelling (demonstrating impact through real-life case studies)
- Pilot Testing (ensuring feasibility before full implementation)
Early engagement with both employees and clients is also important to ensure smoother adoption and valuable feedback. We firmly believe that experimentation should never come at the expense of the poor. While trial-and-error is essential for progress, failure in microfinance can have devastating consequences for the communities we serve. That is why we carefully stress-test innovations by asking: What could go possibly wrong? Our clients’ well-being must always come first.
Risky vs promising innovations
We are innovative, but we prioritize risk mitigation. We consider an idea to be too risky when it threatens our organization’s financial stability, contradicts our mission, or lacks a clear path to viability despite extensive testing. We are particularly mindful of avoiding mission drift — ensuring that all innovations align with our socio-economic mission and core purpose of poverty eradication.
Some innovations simply need time and refinement. When we first introduced microinsurance, many doubted that low-income Filipinos would be interested in insurance. But we saw the unmet need and persisted. We studied the market, designed the products and engaged government regulators. With adjustments in financial modeling and continuous advocacy, we made it work. Today, we provide millions with access to affordable microinsurance products and services.
A more recent example is our Konek2CARD (K2C) mobile app, which allows clients to perform transactions such as loan payments, savings deposits, and bill payments through accredited agents. Initially, adoption was low, especially among older clients accustomed to manual financial transactions. However, through financial literacy training—particularly during the pandemic—we saw a shift. Over time, our clients embraced the technology, reinforcing a key lesson:
Education and patience are important virtues in innovation.
Perseverance and flexibility
One of our early challenges was mobile banking for microfinance clients. Initially, adoption was low due to technological barriers and trust issues. Many clients preferred traditional transactions. Mobile phone costs were high, and internet connectivity in rural areas was unreliable. It was challenging, but rather than abandoning the idea, we adjusted our approach. We learned that:
- Financial literacy programs facilitate clients’ understanding and acceptance.
- Local trusted agents, often long-time client leaders in communities, help bridge the trust gap.
- Simplified technology made the app more user-friendly and seamless.
Over time, these changes led to wider acceptance. Today, we are building a fully integrated digital ecosystem for our microfinance, microinsurance, and other social services. We are even accelerating biometric technology to better protect our clients.
Our key takeaway? Listening to clients and adapting to their needs can turn challenges into success.
Balancing act
We have learned that innovation and risk must go hand in hand. But by staying purpose-driven, client-focused, and adaptable, we can transform bold ideas into meaningful impact. Our experience shows that responsible innovation—grounded in careful testing, patience, and a commitment to serving the underserved—can drive financial inclusion while minimizing risk.
As leaders, we must embrace innovation without losing sight of the people we serve. By maintaining this balance, we can create sustainable solutions that uplift communities and drive long-term progress.
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"Innovation is the ability to see change as an opportunity—not a threat." – Steve Jobs
(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI), a group of 23 organizations that provide social development services to eight million economically-disadvantaged Filipinos and insure more than 27 million nationwide.)