FINCA partners with numerous public-sector partners whose support has helped advance FINCA’s mission worldwide. These agencies and government-funded bilateral and multi-lateral development organizations have enabled FINCA to expand into new regions and new countries, create new products, improve service delivery through technological innovations, develop non-financial services for clients, such as HIV/AIDS education, and have helped subsidiaries transform into regulated financial institutions.
FINCA’s Primary Partners in Development include:
United States Department of Agriculture (USDA)
Since FINCA’s first Food for Progress program with USDA in 2000, we have been
fortunate to have a partner in USDA that shares our vision for investing in market-based agricultural development. Together with USDA, FINCA has implemented 14 separate programs in 11 countries. We have introduced rural populations to solar energy and drip irrigation, and have financed the use of greenhouses for greater crop diversity and productivity. FINCA has helped small business owners create new jobs, financed product packaging, supported regional trade within the agriculture sector, and trained and financed the transition from staple crops to export-oriented crops. USDA Food for Progress resources have also permitted FINCA to pioneer unique agricultural loan, insurance, and savings products, and we have used mobile and digital technology wherever possible to save costs and create more convenience for our clients. FINCA has served more than 185,000 clients with over $54 million in seed capital provided by USDA since 2000. Because that seed capital was used for loans, it still remains in place in those agricultural communities, working and growing, as each loan gets repaid and cycles back into circulation.
The United States Agency for International Development (USAID) is a long-time supporter of FINCA and one of the largest institutional donors in its history. USAID support has allowed FINCA to significantly scale its microfinance programs throughout Latin America, Eurasia and Africa. Recent programs have supported the earthquake recovery in Haiti, financial access for the very poor in Mexico, pilot programs to develop card-based services in Latin America, and clean energy finance in Uganda. FINCA is currently partnering with USAID in Jordan on a Youth Finance Program to pilot an approach that integrates microfinance loans and entrepreneurship training for budding young entrepreneurs.
The Inter-American Development Bank (IDB), through its Multilateral Investment Fund (FOMIN), has supported FINCA with both loans and targeted technical assistance that has allowed FINCA to expand its outreach in rural areas, improve its operations, and increase its use of technology to deliver value to its microfinance clients. FOMIN is currently providing loans and technical assistance to FINCA in Nicaragua and Mexico. This assistance is supporting FINCA’s use of technology to expand credit activities in rural areas, developing an activity-based costing model in Nicaragua, and efforts for FINCA Mexico to transform into a deposit-taking institution offering expanded services and value to its clients.
International Finance Corporations (IFC)
FINCA and IFC (International Finance Corporation) have an ongoing partnership covering a range of strategic initiatives. During 2012, FINCA partnered with IFC on a project to scale up deposit savings in the Democratic Republic of Congo (DRC). Deposit savings is one of the financial products low-income people want the most, and yet is among the least available. Providing its clients with a safe place to save is a major priority for FINCA DRC, and with the help of IFC’s $1.7 million support, FINCA DRC will reach over 185,000 clients with savings and other services via alternative delivery channels. IFC support is also key to FINCA initiatives to strengthen corporate governance and risk management and to establish a leadership program in principles of responsible finance and corporate social responsibility. Principles and standards laid out in these initiatives will be rolled out systematically in every one of our country Subsidiaries. By 2016, FINCA DRC hopes to reach over 185,000 clients through the deployment of third-party agency banking and mobile payments in and around Kinshasa and Lubumbashi. IFC is also one on the investors in FMH.
The United Nations Capital Development Fund (UNCDF) is supporting FINCA’s efforts to increase financial inclusion in Sub-Saharan Africa. FINCA is a partner with UNCDF in Democratic Republic of Congo and Uganda as part of their Youth Start program, which is also supported by The MasterCard Foundation. Through these two programs, FINCA has developed savings account products tailored to meet the needs of youth ages 12 to 24. With UNCDF support to date, FINCA has provided financial education to more than 28,000 young people, and mobilized more than 21,000 youth to open savings accounts in the two countries.