Frequently Asked Questions
What is financial inclusion?
According to the World Bank, “Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.” FINCA Impact Finance is leading the way in expanding financial inclusion in under-served, low-income communities by providing access to credit, savings, transfer services and insurance. Having access to formal finance allows people to access capital to grow businesses, build a credit record, have a secure place to save money, easily make or receive payments or remittances, and invest in health and education.
What is financial health?
People are financially healthy when they have access to financial tools to effectively meet their basic needs, remain resilient in the face of unexpected shocks, and cultivate economic opportunities. Together, these three elements add up to provide someone with financial health.
To determine Financial health, we ask the following questions:
1. Can our customers meet their basic needs (daily bills, groceries, etc.)?
2. Are our customers able to come up with a savings reserve (ideally the equivalent of 3 months’ salary) tomorrow in the event of a crisis?
3. Do our clients feel secure in their financial future and can they take out a loan to grow their business or put their children through school?
How many people in the world are unbanked?
As of 2017, about 1.7 billion adults remain unbanked — without an account at a financial institution or through a mobile money provider. In 2014 that number was 2 billion.
What is the average loan size of a FINCA loan?
The average loan size across our subsidiaries is $996.
What is FMH and who are its investors?
FINCA Microfinance Holding Company LLC (FMH) is a social investment partnership that owns and operates the FINCA Impact Finance network. Since 2011, the partners’ capital has helped expand FIF’s ability to lend to clients and supports the ongoing transformation of its microfinance subsidiaries into fully-licensed financial institutions.
FINCA Microfinance Holding Company LLC (FMH) is composed of six investors who share our mission: FINCA International, our founder and majority owner, IFC (International Finance Corporation), a member of the World Bank Group; KfW, the German development bank; FMO, a Dutch development bank; Global Microfinance Fund AG; Triple Jump, a Netherlands microfinance investment firm; and Netherlands-based Triodos Bank.
What is the relationship between FMH and FINCA International, Inc.?
FINCA International is the founder and majority shareholder of the FINCA Impact Finance network. FINCA International is a 501(c)(3) not-for-profit corporation headquartered in Washington, D.C.