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 19 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, 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.