GOLD2022

FINCA International, Inc.

Building Tomorrow Together

aka FINCA   |   Washington, DC   |  https://finca.org/

Mission

FINCA's mission is to alleviate poverty through lasting solutions that help people build assets, create jobs and raise their standard of living.

Ruling year info

1986

Chief Operating Officer

Mr. Stefan Grundmann

Main address

1201 15th St NW 8th Floor

Washington, DC 20005 USA

Show more contact info

EIN

13-3240109

NTEE code info

International Economic Development (Q32)

Management Services for Small Business/Entrepreneurs (S43)

International Relief (Q33)

IRS filing requirement

This organization is required to file an IRS Form 990 or 990-EZ.

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Communication

Blog

Programs and results

What we aim to solve

SOURCE: Self-reported by organization

Individuals living in some of the world’s most challenging economies have long been unbanked. In fact, 1.7 billion people globally do not have access to formal financial services. More than 200 million micro, small and medium-sized enterprises in emerging economies lack adequate financing to thrive and grow. Without access to financial services, the world’s poor struggle to start or expand a business, save for a child’s education, pay for health care, or plan for the future. Off-grid families throughout sub-Saharan Africa burn kerosene, wood and charcoal to light their homes and prepare food. These traditional fuels are hazardous and unhealthy. They are a major cause of house fires and burns, and together with cooking fires, generate vast amounts of indoor air pollution. Exposure to this toxic smoke causes four million deaths worldwide, including 400,000 people in sub-Saharan Africa. Without electricity, living in darkness increases vulnerability to diseases and intruders.

Our programs

SOURCE: Self-reported by organization

What are the organization's current programs, how do they measure success, and who do the programs serve?

Microfinance Program

Nearly two billion people around the world are financially excluded, 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 it is too costly for them or they don’t know how to serve people working in the informal economy.

Financial inclusion is one of FINCA’s core interests. We believe in economic opportunity and justice for all and are working hard to achieve that ideal.

“Microfinance” refers to the financial services provided to low-income people, traditionally to support self-employment. This includes small loans, savings plans, insurance, money transfers and other basic financial services. We have also invested in innovative technologies and solutions to reach more people with vital financial services, such as mobile banking.

With subsidiaries in Africa, Eurasia, Latin America, and the Middle East and South Asia, FINCA's geographic reach is among the widest of the leading microfinance networks.

Population(s) Served
Adults

In many parts of the developing world, people lack access to necessary, affordable and quality products that could improve their quality of life.

Millions of people live off the electric grid. This means they are forced to use polluting and expensive alternatives such as kerosene lamps that affect their respiratory and eye health. Women in many developing countries spend hours over polluting open fires, cutting their productive hours in a day short.

Our BrightLife program help individuals and communities gain access to affordable life-improving goods, like clean cookstoves and solar lighting systems, that save them time and money — making them and their loved ones healthier, more resilient and empowered to strengthen their lives and communities.

Population(s) Served
Adults

Early-stage social enterprises face common challenges to growth and to reaching their full financial and impact potential. These challenges are amplified when seeking to deliver products and services to poor and low-income families in the world’s emerging markets.

• Few impact investors are willing to invest in early stage startups focused on the poor, creating a “pioneer gap” in funding for social enterprises pioneering new models of inclusive business.
• Beyond investment capital, startups lack the distribution networks, consumer trust and local know-how needed to take smart, informed risks and successfully deliver innovative solutions that combat poverty.
• Even with the right investment and technical support, early stage startups struggle to provide end-user financing solutions to make their products and services truly affordable to the poor.

Combined, these barriers hinder the proliferation of affordable and quality products and services in under- and un-served markets.

FINCA Ventures solves these problems. A impact investing initiative of FINCA International, FINCA Ventures builds on over 35 years of experience creating a global microfinance network that delivers financial access at scale. We know the challenges of building an enterprise in the world’s emerging markets and provide patient capital to innovative, high-impact social enterprises that spark household
and MSME labor productivity. Our team actively partners with entrepreneurs who create solutions that meaningfully grow income and social resilience for families and small businesses.

Population(s) Served
Economically disadvantaged people

Where we work

Goals & Strategy

SOURCE: Self-reported by organization

Learn about the organization's key goals, strategies, capabilities, and progress.

Charting impact

Four powerful questions that require reflection about what really matters - results.

FINCA International's mission is to alleviate poverty through lasting solutions that help people build assets, create jobs and raise their standard of living.

Financial inclusion is a key enabler to reducing poverty and increasing opportunity. Since 1984, FINCA has enabled bottom-up growth in markets that others have found too difficult to reach or uneconomical to serve. We do so by offering access to small loans, savings accounts and other financial services that low-income people otherwise would not have. FINCA serves its microfinance clients through a combination of brick-and-mortar branches, banking agents and digital financial service tools. This hybrid business model allows FINCA to maintain personal relationships and trust with clients while reaching deeper into the bottom of the economic pyramid.

FINCA International is addressing the challenges associated with off-grid living through BrightLife, a social enterprise in Uganda. BrightLife distributes and finances solar home systems, improved cookstoves and other life-enhancing products for low-income, off-grid customers, especially women. By offering pay-as-you-go financing, BrightLife pairs access to finance with access to energy to help customers move up the financial inclusion and energy ladders. This translates into greater resilience and opportunity for off-grid families.

At FINCA, we prefer an approach that is sustainable and empowering. Our work is guided by a commitment to market-based solutions, and a belief in the inherent resources and strengths of those living in poverty to pursue and achieve their dreams.

Sometimes these dreams can seem modest, such as fixing a leaking roof or ensuring that a child has books for school. Often FINCA clients have bigger dreams, including building small businesses that create jobs and improve livelihoods.

Microfinance
For many of these individuals, access to financial services is the gateway to realizing their dreams. Low-income households use microfinance to earn more, build assets and cushion themselves from external shocks. With increased income, they also invest in better nutrition, housing, health care and education. Our activities in the financial services sector are carried out by FINCA Impact Finance, a global network of 20 microfinance institutions and banks.

Social Enterprises
In addition to financial services, the world’s poor has a right to life-enhancing products that save them time and money, and make them healthier, more resilient and empowered. By supporting the rise of social enterprises, FINCA is enabling access to high-quality and extremely affordable products. These include solar home systems, improved cookstoves, water filtration devices and much more.

Through our BrightLife program, we partner with best-in-class manufacturers to provide last-mile distribution and end-user financing for essential products. Through FINCA Ventures, we offer patient capital and technical assistance to help grow and scale early-stage social enterprises. Both of th

At FINCA, we prefer an approach that is sustainable and empowering. Our work is guided by a commitment to market-based solutions, and a belief in the inherent resources and strengths of those living in poverty to pursue and achieve their dreams.

For many of these individuals, access to financial services is the gateway to realizing their dreams. Low-income households use microfinance to earn more, build assets and cushion themselves from external shocks. With increased income, they also invest in better nutrition, housing, health care and education. Our activities in the financial services sector are carried out by FINCA Impact Finance, a global network of 20 microfinance institutions and banks.

In addition to financial services, the world’s poor has a right to life-enhancing products that save them time and money, and make them healthier, more resilient and empowered. By supporting the rise of social enterprises, FINCA is enabling access to high-quality and extremely affordable products. These include solar home systems, improved cookstoves, water filtration devices and much more.

Through FINCA Ventures, we offer patient capital and technical assistance to help grow and scale early-stage social enterprises. Both of these programs, along with microfinance, give low-income people the tools they need to succeed.

As of January 1, 2018, FINCA International is serving a client base of nearly two million in 20 countries around the world. In 2014 alone there was a 66% increase in client savings to over $130.2 million as well as a 10% increase in the total value of loans disbursed reaching $1.6 billion.
Additionally, FINCA provides clients access to insurance, health benefits, small energy products, etc., that will not only allow FINCA to progress and advance in client outreach but will expand the conceptual design of microfinance. As an organization, we continue to work each day to serve our mission of helping the poor help themselves.

How we listen

SOURCE: Self-reported by organization

Seeking feedback from people served makes programs more responsive and effective. Here’s how this organization is listening.

done We shared information about our current feedback practices.
  • Who are the people you serve with your mission?

    FINCA serves individuals living in some of the world’s most challenging economies who are unbanked or under-banked and have no access or insufficient access to a range of modern goods and services ranging from clean energy to healthcare to education.

  • How is your organization collecting feedback from the people you serve?

    SMS text surveys, Electronic surveys (by email, tablet, etc.), Paper surveys, Focus groups or interviews (by phone or in person), Suggestion box/email, Call center,

  • How is your organization using feedback from the people you serve?

    To identify and remedy poor client service experiences, To identify bright spots and enhance positive service experiences, To make fundamental changes to our programs and/or operations, To inform the development of new programs/projects, To identify where we are less inclusive or equitable across demographic groups, To strengthen relationships with the people we serve,

  • What significant change resulted from feedback?

    Starting in June 2020 as the economic fallout of the Covid-19 pandemic was being felt most acutely by FINCA's clients around the world, we initiated a massive survey project. Over the course of several months, we interviewed some 20,000 clients. The goal was to understand what FINCA could do to assist them. The results of the survey showed that people clearly needed flexibility in their loan repayment terms. As a result of our listening exercise we instituted a wide-ranging program of loan restructuring and forgiveness.

  • With whom is the organization sharing feedback?

    The people we serve, Our staff, Our board, Our funders, Our community partners, Customer research results are publically available on our website.,

  • How has asking for feedback from the people you serve changed your relationship?

    Providing excellent customer experience is one of FINCA's strongest guiding principals. The solicitation of feedback in of itself is of limited use in shifting power to clients. It the demonstration of being an active listener and of making and communicating changes to policies and procedures based on feedback that leads to relationship change and growth. FINCA's clients often refer to us as their partner. That is, in and of itself, the highest compliment that we can receive.

  • Which of the following feedback practices does your organization routinely carry out?

    We collect feedback from the people we serve at least annually, We take steps to get feedback from marginalized or under-represented people, We aim to collect feedback from as many people we serve as possible, We take steps to ensure people feel comfortable being honest with us, We look for patterns in feedback based on demographics (e.g., race, age, gender, etc.), We look for patterns in feedback based on people’s interactions with us (e.g., site, frequency of service, etc.), We engage the people who provide feedback in looking for ways we can improve in response, We act on the feedback we receive, We tell the people who gave us feedback how we acted on their feedback, We ask the people who gave us feedback how well they think we responded,

  • What challenges does the organization face when collecting feedback?

    The people we serve tell us they find data collection burdensome, It is difficult to find the ongoing funding to support feedback collection, It is hard to come up with good questions to ask people, It is difficult to identify actionable feedback,

Financials

FINCA International, Inc.
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Operations

The people, governance practices, and partners that make the organization tick.

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Connect with nonprofit leaders

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  • Analyze a variety of pre-calculated financial metrics
  • Access beautifully interactive analysis and comparison tools
  • Compare nonprofit financials to similar organizations

Want to see how you can enhance your nonprofit research and unlock more insights? Learn More about GuideStar Pro.

FINCA International, Inc.

Board of directors
as of 12/27/2022
SOURCE: Self-reported by organization
Board chair

Mr. David Weisman

Infra Holdings, LLC

Term: 2022 -

Shawn Hassel

John Hatch

Richard Williamson

John Elkins

Agrina Mussa

Julie Houser

Avanthi Shah

Catherine Mohr

Chandresh Harjivan

Charles Trevail

Dan Green

Daniela Mielke

Eric Chern

Jordan Greenaway

Board leadership practices

SOURCE: Self-reported by organization

GuideStar worked with BoardSource, the national leader in nonprofit board leadership and governance, to create this section.

  • Board orientation and education
    Does the board conduct a formal orientation for new board members and require all board members to sign a written agreement regarding their roles, responsibilities, and expectations? Yes
  • CEO oversight
    Has the board conducted a formal, written assessment of the chief executive within the past year ? Yes
  • Ethics and transparency
    Have the board and senior staff reviewed the conflict-of-interest policy and completed and signed disclosure statements in the past year? Yes
  • Board composition
    Does the board ensure an inclusive board member recruitment process that results in diversity of thought and leadership? Yes
  • Board performance
    Has the board conducted a formal, written self-assessment of its performance within the past three years? Yes

Organizational demographics

SOURCE: Self-reported; last updated 12/19/2022

Who works and leads organizations that serve our diverse communities? GuideStar partnered on this section with CHANGE Philanthropy and Equity in the Center.

Leadership

The organization's leader identifies as:

Race & ethnicity
White/Caucasian/European
Gender identity
Male, Not transgender (cisgender)
Sexual orientation
Heterosexual or Straight
Disability status
Person without a disability

Race & ethnicity

No data

Gender identity

No data

 

No data

Sexual orientation

No data

Disability

No data