FINCA’s founders understood that poor people could be trusted to pay back small loans, and that these loans could transform their lives. Over 30 years later, the concept of microfinance has helped millions of hard working people build businesses, increase their incomes, and improve their lives.
What is Microfinance?
Microfinance refers to the financial services provided to low-income people, traditionally excluded from the formal financial system, to support self-employment. These services include small loans, savings plans, insurance, money transfers, and other basic financial services.
But FINCA knows that it’s not enough to serve our clients through our branch network. We have invested in innovative technologies and solutions to reach more people with vital financial services, allowing them to do their banking while saving time and money.
Our services help families start and build small businesses that become critical sources of employment, income, and economic vitality in their communities.
Access to essential financial services can bridge the economic gap between the haves and have-nots. It can also create economic sustainability and self-reliance for the poor. Salaried or wage-paying jobs are scarce in many developing countries, and many individuals earn their living through informal markets and self-employment by creating and operating their own small enterprises.
Financial services can empower individuals economically and socially by allowing them to better manage their lives. It can also help them to better integrate into a country’s economy by actively contributing to economic growth while giving them a stake in their communities.
Microfinance and Financial Inclusion
Nearly 2 billion people around the world are excluded from the formal financial system, without critical access to credit, savings, or other basic financial services.
Traditional banks often do not serve the micro loan segment—or even the small business segment—in developing countries because these clients are considered too costly or high risk, or because they don’t know how to cater to the needs of people working in the informal economy.
Financial inclusion has always been at the core of FINCA’s work. We believe in economic opportunity and justice for all, and are working hard to achieve that for more and more people worldwide.