FINCA INTERNATIONAL INC.
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FINCA Microfinance Bank Limited (FINCA Nigeria) is a greenfield, deposit-taking microfinance bank operating in Imo state in the South East of Nigeria. It was established in December 2014, and in its first week of operation the MfB mobilized over 1,300 clients, 75% women. Its goal is to expand to five additional states and reach more than 30,000 low-income micro-entrepreneurs within three years. FMO’s financial relationship is with FINCA Holding.
What is our funding objective?
To expand its offering, FINCA Nigeria wish to launch Alternative Delivery Channels (ADC), particularly Digital Financial Services (DFS). This will provide the market with technologies needed to facilitate transactions quickly and easily. To this end, FINCA Nigeria intends to recruit a consultant to help develop a strategy and roll-out plan for DFS, and to provide technical assistance and guidance during development, implementation and piloting.
Why do we fund this investment?
In Nigeria, the existing Deposit Money Banks are serving about 20 million clients through a network of 6,000 branches. With an adult population of almost 85 million, the need for financial services is enormous. Also, the distance from bank branches and the high cost of servicing low-balance accounts are contributing factors to financial exclusion of the poor. The use of DFS, to advance outreach and accessibility is virtually untapped in Nigeria. Deployment of FDS can help address the challenges of distance and accessibility, and thereby provide better coverage of financial services and make those services more affordable.
- Region
- Africa
- Country
- Nigeria
- Sector
- Financial Institutions
- Effective date
- 11/9/2015
- End date
- 4/29/2020
- Total FMO financing
- EUR 0.06 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B