Revision for “FINCA International” created on October 22, 2015 @ 08:09:12
FINCA International provides financial services to the world’s lowest-income entrepreneurs so they can create jobs, build assets and improve their standard of living.
We target the poorest of the working poor: those who have the least access to services such as loans, savings programs, and insurance. Our clients include women, who make up 70 percent of the world’s poor; individuals unable to find work in the formal sector; families displaced by war and internal conflict; the rural poor; and those affected by chronic poverty.
With more than 20 years’ experience and over 750,000 clients on five continents, FINCA offers a proven solution to poverty.<a href="http://www.finca.org/site/c.6fIGIXMFJnJ0H/b.6088911/k.5C7A/Key_Turning_Points_in_FINCAs_History.htm">FINCA’s website: Key Turning Points In FINCA’s History</a>
Four weeks after its launch, the program served some 14,000 families with loans worth $630,000, demonstrating a tremendous demand for working capital among the rural poor. Encouraged by the results, Hatch began training others in the Village Banking methodology, and new programs began to take root throughout Latin America.
There were additional benefits. Because the women came together to borrow capital, they began to support one another – and each other’s businesses. If one local microenterprise grew and attracted more customers, it benefited all the tiny businesses in the neighborhood. Village Banks became focal points for grassroots community development. Latin America and Africa: Fertile Ground for Village Banking. Buoyed by the success of the program in El Salvador, FINCA grew, opening Village Banking programs in "Gender , "Gender , "Gender and "Gender in 1989. <a href="http://www.finca.org/site/c.6fIGIXMFJnJ0H/b.6088433/k.9AF7/Narrative_History.htm">FINCA’s website: Narrative History</a>
By the end of FINCA’s first decade in 1994, Village Banking programs in Latin America and Africa benefited some 50,000 low-income families.<a href="http://www.finca.org/site/c.6fIGIXMFJnJ0H/b.6088439/k.9CE9/Business_Model.htm">Business Model</a>
Other innovations followed. FINCA worked with MTN, Uganda’s largest telecommunication company, and the Grameen Technology Center to bring mobile pay telephone service to Ugandan villages. FINCA Uganda also began providing loans for solar home systems, which provide a sustainable source of electricity for lighting and other uses. In Malawi, FINCA partnered with the Bill & Melinda Gates Foundation and The Johns Hopkins University Bloomberg School of Public Health’s Center for Communication Programs to integrate HIV/AIDS prevention education with Village Banking. Meanwhile, in the Americas, FINCA’s partnership with Visa allowed Mexican Village Bankers to receive their loan disbursements on debit cards rather than by checks, increasing clients’ access to their funds while lowering costs and improving security.
Finally, and most importantly, FINCA was among the first microfinance institutions to turn its attention to providing clients with secure savings services to complement the provision of working capital loans. Mobilizing savings required FINCA’s affiliates to acquire formal banking licenses. In 1997, FINCA Kyrgyzstan became the region’s first formal financial services institution for low-income entrepreneurs. In 2004, FINCA Ecuador and FINCA Uganda also became formal financial institutions who serve the working poor. More recently, FINCA’s affiliates in the Democratic Republic of Congo and Zambia have received permission to take deposits.
In 2009, FINCA partnered with Deutsche Bank to introduce another revolution, securing capital commitments of $21.2 million for the FINCA Microfinance Fund B.V., the first-ever single microfinance network sub-debt deal. The fund, which has only private sector investors, was 100 percent oversubscribed and brought a new pool of investors to the microfinance industry. The offering is providing FINCA affiliates in the Democratic Republic of Congo, Mexico, Armenia, Azerbaijan, Kyrgyzstan, Georgia and Tajikistan the financial flexibility to on-lend an estimated $100 million in additional loan capital, as well as make the investments in staff, branches and other infrastructure to support its expanding microfinance lending and deposit taking programs. “Microcredit” Becomes a Household Word.
At the end of FINCA’s second decade, its programs had become models for outreach and sound financial management. The FINCA network surpassed the $100 million mark in loans outstanding to the world’s working poor, and 13 of its 21 programs had achieved “sustainability,” covering their operating costs with income from lending.
-Open Village Banking programs in ten countries where FINCA’s services are needed most.
-Build 100,000 Village Banks in the world’s most destitute neighborhoods.
-Reach one million of the world’s working poor with financial services they couldn’t otherwise obtain.
<a href="http://www.finca.org:">FINCA International Official Website</a>