FINCA Microfinance Bank | Press Releases
After 17 years of operation as microfinance institution in the country, we’ve accomplished yet another milestone which opens a whole new chapter of our operations as FINCA Microfinance Bank.
Airtel Tanzania has signed an agreement with FINCA Microfinance Bank which will now make it easier for the bank’s customers to access their accounts through their phones.
The MasterCard Foundation And FINCA International Launch $12.7 Million Partnership To Expand Financial Services In Malawi, Tanzania, And Zambia
Project will broaden financial service delivery channels, strengthen staff capacity, scale up savings, and measure social performance
Dar es Salaam, Tanzania (31 July 2013) – The MasterCard Foundation and FINCA International today announced a $12.7 million partnership that will allow the region’s financially underserved people to more easily access savings products and services through the development and deployment of new technologies. By making access to savings accounts and services more readily available, it is anticipated that the number of people creating their own financial safety nets will increase dramatically in coming years. The partnership also supports expansion of FINCA’s innovative social performance management system, focused on ensuring that FINCA’s operations, products and services are both responsive to client needs and reach the clients who can receive the most benefit.
According to FINCA President and CEO Rupert Scofield, FINCA’s business model has reached a stage to radically expand its footprint and product offerings in the Sub-Saharan Africa, with the goal of bringing a wide range of financial services to over 500,000 previously excluded savers and nearly 300,000 borrowers in Malawi, Tanzania, and Zambia by 2017. The partnership allows FINCA to capitalize on technological advancements in the delivery of financial services, to making the services more widely accessible at anticipated lower costs, and with greater safety.
“The advent of new technologies has the potential to transform how millions of women and men on the continent gain access to financial services, especially when it comes to savings mobilization,” Mr. Scofield said. “FINCA’s more than 20 years providing financial services in Sub-Saharan Africa, coupled with The MasterCard Foundation partnership, will allow us to catalyze the expertise and investments we’ve amassed to create even greater value for the unbanked people in the region.”
“This is an innovative project that will help us understand the impact technology has in bringing responsible, cost-effective financial products to people in rural communities,” said Reeta Roy, President and CEO of The MasterCard Foundation. “We share with FINCA a commitment to rigorously documenting the impact financial services have on the lives of people who live in poverty.”
FINCA and The MasterCard Foundation share the same values and belief that people have the potential to transform their lives if given the opportunity. By increasing access to high quality microfinance services in Sub-Saharan Africa, FINCA and The MasterCard Foundation will enable low-income individuals and households to realize their potential, and improve the lives of their families, and their communities.
Consistent with FINCA’s mission, this initiative will target low-income and unbanked individuals in Malawi, Tanzania, and Zambia with a focus on women. On a consolidated basis, currently 47% of FINCA clients in the region live on less than $2.50 per day, and 60% are women.
FINCA will build upon its current regional pilot programs and industry best practice to develop and roll out new product delivery channels, including point of sale devices, light branches and kiosks, agent networks, and mobile services in rural and underserved communities in the three countries. FINCA will train its middle management and front-line staff to support the roll-out of its new delivery channels and products. The program will also support the continuing development, integration, and analysis of social performance metrics into every aspect of FINCA’s operations. The use of these metrics will ensure FINCA is providing clients the products and services they need, reaching its target audiences, and more effectively tracking and understanding the impact of financial inclusion on the well-being of clients.
FINCA Africa currently provides financial services to more than 295,000 borrowers and nearly 417,000 savers living in the Democratic Republic of Congo, Malawi, Tanzania, Uganda and Zambia.
About FINCA International
FINCA is a leading international micro-finance organization that provides financial services to the world’s lowest-income entrepreneurs, helping them create jobs, build assets and improve their standard of living. For more than 25 years, FINCA has been committed to breaking the cycle of poverty by providing community-based credit and savings opportunities, as well as other financial services including insurance, money transfers and payment services. Currently, FINCA operates with a distinctive, integrated business model that accepts donations and investment dollars, an approach that leverages available capital and promotes greater transparency, sustainability and higher standards of business practices. This has allowed FINCA to achieve balanced financial and social performance unmatched in the industry – while opening the path to socio-economic development for the lowest-income citizens of the world. Based in Washington DC with local operations across 22 countries serving nearly 1 million borrowers, FINCA’s outreach is among the broadest and most comprehensive of today’s microfinance networks. For more information, please visit www.FINCA.org
About The MasterCard Foundation
The MasterCard Foundation is an independent, global organization based in Toronto, Canada, with more than $6 billion in assets. Through collaboration with partner organizations in 50 countries, it is creating opportunities for all people to learn and prosper. The Foundation’s programs promote financial inclusion and advance youth learning, mostly in Africa. Established in 2006 through the generosity of MasterCard Worldwide when it became a public company, the Foundation is separate and independent from the company. Its policies, operations, and funding decisions are determined by its own Foundation Board of Directors and President and CEO. To learn more about the Foundation, please visit www.mastercardfdn.org.
Technology Hub Improves Performance and Sustainability for Global Microfinance Leader
January 7, 2013 (Washington, DC) – FINCA International announced its Americas’ Data Center (ADC) is fully operational, providing data processing for its Washington, DC-based Headquarters and subsidiaries in the Latin America region. With its existing data center in Frankfurt, Germany, and its Africa data center, the ADC will enable FINCA to fulfill its vision of increased outreach to the world’s lowest-income entrepreneurs while improving sustainability for its programs worldwide.
President and CEO Rupert Scofield said, “With more of our business dependent on information technology, we’re taking steps today to deliver the productivity gains available through technology innovations. The ADC enables system-wide growth to create more effective and efficient systems, which helps lower our costs and pass the savings on to clients.”
Braulio Oliveira, Chief Information Officer, said the new data center sets the standard for the implementation and expansion of all of FINCA’s regional data centers. “Emplacing FINCA’s information technology systems in commercial data centers allows FINCA’s 10,000 colleagues worldwide access to the most current data and information to better serve our clients.”
According to Mr. Oliveira, the ADC will initially house FLEXCUBE for FINCA’s Mexico Subsidiary, with Human Resources Information System, Enterprise Data Warehouse, Financial Management System and Email infrastructures coming online in the future.
FINCA Board Member and Technology Committee Chair Paul LeFort noted, “Investments such as this enable FINCA to fulfill its vision of increased outreach, while improving performance and sustainability in our 21 subsidiaries. This is a smart and strategic move for FINCA.”
FINCA, a leading international microfinance organization, provides financial services to the world’s lowest-income entrepreneurs so they can create jobs, build assets and improve their standard of living. For more than 25 years, FINCA has been committed to breaking the cycle of poverty by providing community-based credit and savings opportunities. Based in Washington DC, FINCA currently reaches more than 980,000 clients through its network of subsidiaries in Africa, Eurasia, the Greater Middle East, and Latin America. FINCA International is the parent of 21 microfinance subsidiaries, managing their global activities through FINCA Microfinance Holdings, LLC, which allows FINCA to leverage funding from socially-responsible investment partners to support the mission.
FINCA International Launches Socially-Responsible Investment Subsidiary – FINCA Microfinance Holdings, LLC – with IFC and Other Global Microfinance Investment Partners (KfW, FMO, responsAbility, and Triple Jump)
Innovative New Model for Growth Will Enhance and Expand Services for Lowest-Income Clients Worldwide
WASHINGTON, DC, June 17th, 2011 – FINCA International (FINCA), one of the world’s oldest and largest microfinance organizations with a 25-year proven track record of success, announced today the launch of a subsidiary called FINCA Microfinance Holdings, LLC (FMH).
FMH, a first-of-its-kind, socially-responsible investment partnership for microfinance, was formulated to strike the right balance between attracting capital needed for expansion and protecting the integrity of FINCA’s charitable mission. It is expected to help FINCA nearly double its client base to 1.5 million people across its network of 21 programs in Africa, Latin America, Eurasia and the Greater Middle East, while maintaining its continued focus on financial services for the poor.
In addition to enabling growth, the creation of FMH will allow FINCA to provide new financial and life enhancement services, like savings accounts and insurance products, that clients can use to build safer, more secure livelihoods; and create efficiencies in the FINCA network that will help drive down its costs of doing business.
FMH was created to enable a three-year, $74 million capital investment from socially-responsible investment institutions that are committed to the microfinance sector and have long-term relationships with FINCA. The International Finance Corporation (IFC), a member of the World Bank Group, will make its largest single equity investment in the microfinance sector through FMH at a total of $35 million. Other partners include KfWBankengruppe, the German development bank, which is investing $15 million; FMO, the Netherlands development bank, which is also investing Euros approximating $14 million; responsAbility Global Microfinance Fund, an investment fund advised by the Zurich-based asset manager responsAbility Social Investments AG, which is investing $5 million; and Triple Jump, a Netherlands-based microfinance investment manager, which is investing $5 million through the ASN-Novib Fund.
“This is a natural next step in our evolution as an institution focused on serving the lowest-income women and men in the developing world,” FINCA President and CEO Rupert Scofield said. “FMH strikes the right balance between attracting the capital needed for expansion and protecting the integrity of our charitable mission, and will allow us to strengthen existing operations, deliver new and improved products and services, and make much more loan capital available to millions more people in need.”
Jyrki Koskelo, Vice President, Global Industries, IFC said: “Microfinance has proven to be an important tool in tackling poverty and creating opportunity for people to improve their lives, yet it still reaches less than 20 per cent of its potential market among the world’s three billion or more poor. IFC’s $35 million investment, and partnership with FINCA, is in line with our strategy of extending financial services to the world’s poorest, giving them the opportunity to escape from poverty.”
FINCA’s organizational structure will change with the launch of FMH. The original 501(c)(3) organization, FINCA International, Inc., will be the majority shareholder of FMH. A new board of directors—comprised of representatives from FINCA International, the partners in FMH, and independent outside members—will be created to oversee FMH FINCA will keep control of the development mission of FMH.
According to the explicit terms establishing FMH, no employee or Board member of FINCA will be allowed to invest in, or benefit financially from, FMH. In addition, a Social Performance Audit Committee of the Board, the first-of-its-kind in the microfinance industry, will closely monitor FMH’s mission focus and social indicators; measure and analyze the new entity’s activities to ensure transparency; and guide the design and execution of new products and services which enhance the social well being of FINCA clients.
FINCA will continue to raise funds to expand even deeper into un-served rural areas; and drive research and development to enhance and create new products and services for clients.
New Partners Share FINCA’s vision
“The common goal to fight global poverty makes FINCA and KfW natural allies,” said Doris Köhn, Director General KfWEntwicklungsbank. “We are very happy to intensify our longstanding relationship with FINCA through this market-driven transaction, which will greatly benefit poor entrepreneurs throughout FINCA’s network.”
“This partnership has the high level of social impact FMO looks for in its investments,” said FMO’s CEO Nanno Kleiterp. “It will enable FINCA to reach even more low-income people in developing countries with financial services, allowing them to build businesses and livelihoods.”
“We are delighted to elevate our long standing partnership with FINCA to a new level” said Klaus Tischhauser of responsAbility. “We see the establishment of FMH as an important step in financial sector development. This cooperation will facilitate integration into local and international financial markets, and thereby significantly improve access to finance and the development prospects for low-income clients around the globe.”
“FINCA contributes worldwide to our shared objective to reach out to the lower segments in society and provide the entrepreneurial poor with access to finance,” said Mark van Doesburgh, Managing Director,Triple Jump. “We strongly support FINCA’s focus on women as they tend to be more vulnerable than men. Through this investment in FMH, the ASN-Novib Microcredit Fund aims to contribute to the expansion of FINCA’s activities to reach out to more men and women who are sustaining their families through small businesses.”
FINCA is a leading international micro-finance organization that provides financial services to the world’s lowest-income entrepreneurs, helping them to create jobs, build assets and improve their standard of living. For 25 years, FINCA has been committed to breaking the cycle of poverty by providing community-based credit and savings opportunities. Currently, FINCA operates with a distinctive, integrated business model that accepts donations and investment dollars, an approach that leverages available capital and promotes greater transparency, sustainability and higher standards of business practices. This has allowed FINCA to achieve balanced financial and social performance unmatched in its industry while opening the path to socio-economic development for the lowest-income citizens of the world. Based in Washington DC, with local operations across 21 countries serving over 815,000 clients (as of 04.30.11), FINCA’s outreach is among the broadest and most comprehensive of today’s microfinance networks. For more information, please visit www.FINCA.org
International Finance Corporation
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. IFC creates opportunity for people to escape poverty and improve their lives. They do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, IFC’s new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org
Established in 1948 as a public law institution, KfWBankengruppe is today owned 80% by the Federal Republic of Germany and 20% by the federal states (“Länder”). With a balance sheet total of more than EUR 440 billion, KfW is one of the world´s leading and most experienced promotional banks. As a bank with no branch network or customer deposits, it refinances its lending business almost exclusively in the international capital markets. In 2010 this was more than EUR 76 billion. KfW has representative offices in more than 70 cities around the world, and more than 4,500 men and women are employed with the bank. KfWEntwicklungsbank is part of KfWBankengruppe and a competent and strategic advisor on current development issues. Reducing poverty, securing peace, protecting natural resources and helping to shape globalization are the main priorities of KfWEntwicklungsbank. On behalf of the German Federal Government it finances reforms, infrastructure and financial systems for socially and ecologically compatible economic growth in more than 110 countries. It is a worldwide financing partner, and it also employs funds of its own for development projects.
The Netherlands Development Finance Company (FMO) is the international entrepreneurial bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of EUR 5.3 billion, FMO is one of the largest bilateral private sector development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not – or not yet – prepared to take. FMO’s mission: to create flourishing enterprises that can serve as engines of sustainable growth in their countries.
responsAbility Social Investments AG
Founded in 2003, responsAbility Social Investments AG is one of the world’s leading asset managers for social investments. It specialises in sectors such as microfinance, SME financing, fair trade and independent media. With its products, responsAbility enables people in developing countries and emerging markets to access markets, information and other services crucial for their development. Private and institutional investors can thus professionally contribute to positive social development while at the same time achieving a financial return.
Triple Jump’s mission is to contribute to the sustainable development of emerging market economies by facilitating investment in micro and small enterprises. Triple Jump seeks to support the expansion of viable microfinance institutions in all three stages of their development (emerging, expanding and mature) by providing capital and advisory services. Our objective is to work towards effective social impact in emerging markets by harnessing entrepreneurial spirit. We focus on MFIs which are committed to: Reducing poverty in their society; Reaching low-income and vulnerable groups, particularly women; Respecting society and the environment; and, Achieving maximum efficiency, financial sustainability and outreach.