FINCA Impact Finance takes an integrated approach to financial inclusion through its unique business model and comprehensive approach to leveraging resources to best serve our clients.
There are four primary facets to this approach:
- Financial intermediation through the provision of loans, savings and insurance products tailored to local needs;
Social intermediation typified by the financial literacy training and support embedded in the group and Village Bank loan programs;
- Enterprise development;
- Social impact through leveraging the FINCA Impact Finance network to support initiatives in education, health, nutrition and financial literacy training.
CJSC “FINCA Bank” is a subsidiary of FINCA Impact Finance and part of its network of 20 microfinance institutions and banks that provide socially-responsible financial services that enable low-income individuals and communities to invest in their futures.
FINCA Impact Finance supports activities for which grant funding is typically not available, and for which reaching scale cannot be achieved through organic growth. Such activities include:
- The transformation of microfinance subsidiaries into fully-licensed financial institutions offering clients a broader array of products and services including savings and insurance products;
- Entry into new markets (e.g., Pakistan in 2013; Nigeria in 2014);
- The development of a global information services infrastructure (core banking, disaster recovery/business continuity, security and data) and human resources (training and uniform customer service).
In addition to FINCA International, the shareholders in FINCA Impact Finance are a group of leading socially-responsible investors that share FINCA International’s poverty alleviation mission. Partners include The International Finance Corporation (IFC), KfW Bankengruppe, FMO, responsAbility Global Microfinance Fund, ASN-Novib (Managed via Triple Jump) and Triodos Investment Management. No employee or board member of FINCA International will be allowed to invest or have an equity interest in, or benefit financially from, FINCA Impact Finance, as specifically defined in the legal documents establishing FINCA Impact Finance.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, they use their capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, their investments climbed to an all-time high of nearly billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges.
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. 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 Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.3 billion, FMO is one of the largest European bilateral private sector development banks.
Founded in 2003, ResponsAbility Social Investments AG is one of the world’s leading private asset managers for social investments. It specializes in sectors such as microfinance, SME financing, fair trade and independent media. With its products, including the responsAbility Global Microfinance Fund, 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. At present emerging market assets under management amount to USD 1.8 billion.
TripleJump‘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. Their objective is to work towards effective social impact in emerging markets by harnessing entrepreneurial spirit. They 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.
FINCA Impact Finance’s double bottom line business model combines commercial profitability with an emphasis on positive social impact to reach millions of low-income people around the world with life-changing financial services.