General Electric Consumer Finance (GE Money) has made a three-year commitment worth USD 1.5 million to support FINCA’s (Foundation for International Community Assistance) Village Banking Campaign. Founded in 1984, FINCA’s Village Banking aims to reach 1 million of the world’s lowest-income entrepreneurs by the end of 2010. During 2008, FINCA will use the first USD 500,000 installment of the funding to expand in Middle East, Africa, Eurasia and Asia.
Founded in 1984, FINCA pioneered the village banking methodology, which provides capital to low-income households through financial support groups. The self-help support group usually has 20-30 members, predominantly female head-of-households. Since individuals lack collateral, the group guarantees repayment. The groups meet once a week for training, motivation and mentoring. Loans start at USD 50 – 100 and are linked to savings such that the more a client saves the more she can borrow. The normal loan period is four months and is repaid in 16 weekly installments.
In February 2007, GE Money became FINCA’s corporate partner. GE Money and FINCA work together to develop philanthropy, marketing and branding, product development and delivery. GE Money’s funding helped launch FINCA Jordan, a microfinance program in the Middle East. GE Money’s support will also help establish new village banks in Malawi and Ukraine, while funding a feasibility study on establishing a new FINCA program in India. In addition, GE Money’s support will enable FINCA Mexico to launch an educational program to empower and educate FINCA clients to in health issues.
As part of its Corporate Citizenship, GE Money launched “Banking on Women” in 2008. The aim of the program is to provide financial educatioan and microfinance to women. The corporation has partnered with LET’S GO Foundation, a non-profit organization in Phillipines, to establish the Women Entrepreneurship Program. GE’s partnership with FINCA is part of the corporation’s effort to provide equal financial education and access around the world.
GE Money, a unit of General Electric Company, is a provider of retail, banking and credit services in 55 countries around the world. Based in London, UK, GE Money offers a range of financial products, including credit cards, personal loans, bank cards, auto loans and leases, mortgages, debt consolidation and home equity loans, and credit insurance. In 2007, General Electric reached full-year revenues of USD 163.4 billion, and earnings of USD 20.7 billion, while GE money reached USD 4.3 billion earnings and USD 211 billion assets.
As of 2006, FINCA has total assets of USD 251 million, operates through 100,000 village banks. Microcapital published an interview with FINCA’s founder, John Hatch, here.
By Ipek Kuran, Research Assistant
Additional Resources:
GE Money Corporate Social Responsibility
John Hatch “village banking” speech – HAAS Berkeley
Microcapital Pioneers in Microfinance – John Hatch interview
Similar Posts:
- MICROCAPITAL BRIEF: FINCA Ventures Places Equity in Agtech CassVita, Seeking to Boost Incomes from Farming Cassava in Cameroon
- MICROCAPITAL BRIEF: FINCA Microfinance Jordan, JOHUD Partner to Fund Community Businesses
- MICROCAPITAL BRIEF: Jeff Flowers to Lead FINCA Impact Finance
- MICROCAPITAL BRIEF: She WINS Africa Program to Empower Women-led Startups
- MICROCAPITAL BRIEF: Women’s World Banking Offering 5-month Leadership Program for Regulators
