FINCA provides financial services to the world's lowest-income entrepreneurs so they can create jobs, build assets and improve their standard of living. We are an anti-poverty organization whose work is aimed at creating employment, raising family incomes, and reducing poverty worldwide.
We offer small loans and other products to those turned down by traditional banks, believing that even the poor have a right to financial services. With these loans, families can invest in, and build, their own small businesses and their income-earning capacity. Worldwide, our clients post repayment rates over 97 percent.
FINCA pioneered the “Village Banking method” of credit delivery, now used by hundreds of organizations worldwide. Our programs reach the poor in more diverse countries than any other microcredit provider. We operate Village Banking programs in 21 countries of Africa, Eurasia, the Greater Middle East and Latin America, serving more than 725,000 people – 70% women – through a loan portfolio exceeding $340 million.
We’re not a typical charity. We offer loans, not gifts, and we promote financial independence, both among our clients and in our programs. Although we are a nonprofit, we operate using sound business principles and an entrepreneurial spirit.
Our work enables poor families to create their own solutions to poverty. Our Village Banking methodology promotes community and individual development, helping lift entire communities out of poverty.
FINCA is a truly global organization with wholly-owned subsidiaries on four continents. We specialize in financial services, believing that by doing one thing well, we will have the greatest possible impact. We build sustainable programs that achieve the highest standards of financial performance. At the same time, we retain our focus on serving the poorest of the working poor.
The Microfinance Market
Today, the majority of microfinance providers are either small local organizations or international organizations who offer an array services, including microcredit. Many microfinance organizations have begun to move “up-market”—to serve a higher-income clientele to make their operations more profitable and more attractive to commercial investors.
Despite the commercial capital now entering the microfinance field, few banks or other commercial entities are willing to invest in rural markets or countries in turmoil; yet these are the areas that most need economic assistance. FINCA has built strong and successful programs in the world’s poorest countries—such as Malawi and Haiti—and in those where social and political strife has made progress difficult—Kosovo, Democratic Republic of the Congo, and Afghanistan. Our mission is to build the equity of these programs so that they, too, can access commercial funds.
Donations, Investment & Commercial Capital
Donations play a key role in our business model. First, they create equity that allows us to access commercial funds. Every dollar donated to FINCA leverages five dollars in commercial capital—capital that we direct to low-income families. Donations also enable FINCA to maintain ownership over its programs, even as they attract investments from other sources. And that ownership is critical to our mission: it ensures that our programs remain committed to serving the very poor—those who attempt to survive on less than $2 a day.
A Solid Track Record
FINCA strives to be a "banker with a soul." We believe we can create the best of both worlds: sustainable, financially-sound programs that serve the very poor. Our track record proves we are right.
The Microfinance Information Exchange, Inc., (MIX) Global 100 Composite Ranking of microfinance institutions has ranked four of FINCA’s affiliates in its Top 100 Best Performing microfinance providers around the world. The Top 100 ratings are based on profitability, and the balance of results achieved among three key attributes – outreach, efficiency, and transparency. High performing microfinance institutions seek to maximize performance in areas that include improving outreach, minimizing risk, reducing cost, and strengthening returns. FINCA Armenia ranked #17, followed by FINCA Guatemala at #42. FINCA Azerbaijan came in at the #55 position, while FINCA Ecuador was ranked at #75.
MicroEnterprise America and the Microfinance Information Exchange, Inc., (MIX) released their Championship League listing, a report ranking Latin America’s leading microfinance institutions in eight performance categories. Drawing on a survey of 193 MFIs, they analyzed the latest, high-quality data from auditors, regulatory agencies and other third-party sources to report on MFI performance for 2007. FINCA’s seven affiliate programs all ranked in the top 100 with Mexico leading the pack at #17, Ecuador at #28, Guatemala at #33, Nicaragua at #51, Honduras at #65, Haiti at #97 and El Salvador at #100.
FINCA Haiti also ranked #9 in overall growth, increasing lending by 123%, while FINCA El Salvador increased growth by 78 percent, coming in at #18 on the list.
FINCA works through microfinance to serve over 700,000 working poor clients through 21 wholly-owned subsidiaries in Latin America, Africa, Eurasia, and the Greater Middle East. We work in war zones and post-war zones, in areas where AIDS and HIV are rampant, and in areas torn by ethnic strife. After all, these are the places where people need us most.
FINCA programs work closely with our low-income clients, providing them with the tools to raise their incomes and enter the global economy. We offer an array of microfinance services, and we tailor those services to local circumstances and to what clients say they want.
Where is FINCA International