Banco FINCA Ecuador: Everything Is Possible with ‘Small-Is-Beautiful’ Model from FINCA

Equador’s FINCA Impact Finance (FIF) is a network of 20 microfinance institutions and banks that focuses on reaching low-income clients through responsible financial services.

With an average loan size of $800, FIF delivers a double bottom-line of profitability and positive social impact. It has 2.38 million clients globally — more than half of them women. It serves unbanked individuals, families and communities through branch banking and branchless channels such as agent networks, mobile services and digital field automation.

FINCA Impact Finance operates according to a social purpose to provide innovative and impactful services to enable low-income individuals and communities to invest in their futures. FIF provides business loans and savings accounts, facilitates money transfers and oversees insurance, and provides e-wallets and other financial services.

The network was founded by US-based FINCA International in 1984 to support the development of micro-entrepreneurs through access to responsible finance. Its success led to subsidiaries forming across Latin America, among them Banco FINCA Ecuador, which was established in 1993. In 2008, Banco FINCA Ecuador transformed from a microfinance institution to full-service bank. Ten years on, it received a SMART certification in recognition of its long-standing commitment to client protection.

CEO of Banco FINCA Ecuador, Iván Tobar, highlighted the reasons for the success: “At a social level, microfinance makes a strong impact in a community,” he said, “which is proven to produce greater standards of living and increased employment.
“Banco FINCA Ecuador has shown remarkable growth with a portfolio increase of over 25 percent, as well as growth in total assets. The solutions it provides have been developed over more than 20 years.

“This growth rate shows us two things. First, that we are contributing to the economic well-being of individuals, families and communities, and second, that we are offering a portfolio of products and services that are attractive to the Ecuadorian market.

“Our mission is to help our clients take their business ideas and turn them into concrete action.”

For Andrée Simon, President and CEO of FINCA Impact Finance, “Microfinance is about creating positive social impacts. Responsible financial services come with transparency and financial education for our clients. This ensures that each client understands the purpose and implications of each of our products and services, so that granting a loan is beneficial and empowering for the recipient. That is what sets us apart, our commitment to this social purpose, and that is what gives us a great opportunity to keep growing in the Microfinance market.”