Embed or link this publication
Description
The year in review
Popular Pages
p. 1
changing l changing changing li changing l changing changing annual report 2010 twenty-five years changing lives for[close]
p. 2
mission statement the mission of finca® is to provide financial services to the world s lowest-income entrepreneurs so they can create jobs build assets and improve their standard of living table of contents founder s letter 1 2 4 6 vision to be a global network collectively serving more poor entrepreneurs than any other mfi while operating on commercial principles of performance and sustainability letter from the chairman and the president ceo finca celebrates twenty-five years twenty-five years in the making what we do 12 20 30 34 34 36 38 41 how we change lives financial report finca international executive management team finca global boards of directors and advisory boards finca international staff major donor gifts ways to give photography by robert bengtson donna morris mary plummer audrey scott daniel noll getty images istockphoto and finca staff www.finca.org[close]
p. 3
founder s letter t dear friends that within the next 25 years the global microfinance movement is destined to serve the entirety of the world s poor and permit mankind to abolish poverty altogether when i retired in 2006 at age 65 i was finca s first retiree as i have gradually experienced the joys and limitations of becoming elderly some important questions have attracted my attention how does an elderly client of finca manage her senior years how does she survive without a pension social security significant savings or health insurance what does she do when her children move away when they become unemployed when their subsistence contributions disappear such musings suggest to me that in order for a finca client s family to escape poverty access to credit is not enough growing a business is not enough focusing only on the client and not her employment-age children is not enough at the global microcredit summit in valladolid spain in november 2011 i will chair a workshop entitled when clients grow old my hope is that this discussion will encourage the industry to explore the development of client retirement savings accounts and pension programs to help our elderly clients manage their senior years so much happening so much left to do he year 2010 was a momentous one for finca and for me personally in june the finca board of directors created a new social performance audit committee a goal i ve had for more than a decade now the first of its kind in the global microfinance movement the committee will monitor finca s compliance with its social mission of reaching the world s poorest entrepreneurs and measure the impact of our products and services by year s end finca will begin field testing its new social performance monitoring system in november i turned 70 and two weeks later finca celebrated its first 25 years with a marvelous fundraiser in new york that brought together long-time finca supporters and representatives from each of our subsidiaries around the world and my favorite part clients who told their remarkable stories of success this was a first for the finca family and i m confident that even though i may not be here to celebrate finca s 50th anniversary many new supporters of finca will and what a remarkable 25 years it has been since the germ of an idea that manifested itself on a flight to la paz bolivia sprouted into what became village banking who would have believed that this simple idea and one-man operation would grow into one of the premier international microfinance institutions in fiscal 2010 boasting nearly 7,000 employees who provide key financial services as well as hope and opportunity to almost 765,000 microentrepreneurs across 21 countries on five continents notwithstanding all we have accomplished since 1985 i am confident that finca s best years lie ahead i never tire of predicting john hatch santa fe new mexico finca 2010 annual report 1[close]
p. 4
letter from the chairman and the president ceo his past year marked a major milestone in finca s history the celebration of a quarter century of providing small loans and hope to millions of poor people living in 21 countries around the world we ve grown from an idea scribbled on a legal pad to a thriving network of wholly-owned microfinance institutions serving hundreds of thousands of clients with a broad array of products and services we ve grown from three men working out of a small apartment in new york city to employing nearly 7,000 men and women in hundreds of communities worldwide most important we ve provided millions of individuals with small loans allowing them to own and operate small businesses provide their families with a more secure life and have a chance to break the cycle of poverty forever to say we are proud is an understatement to say we are satisfied with our success would be misleading as we have many exciting plans for our next quarter century plans that include your continuing support and encouragement we are pleased to report that in our 25th year finca successfully rebounded from the global financial crisis registering strong gains in both client outreach and loan portfolio finca concluded fiscal year 2010 serving 764,770 clients an increase of t dear friends of finca 6.6 percent over 2009 improving the lives of an estimated 3.8 million children and adults1 struggling in poverty loans outstanding at year-end grew to $387 million an increase of 20 percent while total loans disbursed in 2010 reached $802.4 million our subsidiaries successful action plans improved operational performance and boosted portfolio quality enabling them to weather the global economic recession and in several cases reach new heights of client outreach portfolio size and profitability the pace of finca s recovery in 2010 like the challenges confronted since the fall of 2008 has varied across our four regions after a particularly difficult 2009 finca s latin america region began to recover in 2010 and by year s end client outreach had rebounded to 240,339 clients and portfolio growth stood at 19 percent for a total of $90.8 million an even stronger sign of recovery the region potentially impacted over 1.2 million children and adults2 disbursing more than $309.1 million in loans averaging just $515 finca eurasia recovered earlier and more thoroughly from the global financial crisis expanding outreach by 9.7 percent to 316,957 clients portfolio outstanding increased by 18 percent to $241.6 million and the region disbursed a total 1 2 based on an average family of five members ibid 2 www.finca.org[close]
p. 5
of $352.5 million in loans all of this outstanding growth was achieved with near-record-low levels of portfolio at risk greater than 30 days averaging just 1.1 percent in africa finca s subsidiaries experienced 18.5 percent growth over 2009 financing the business growth of 189,183 microentrepreneurs loans disbursed totaled $129.2 million in loans averaging just $331 with portfolio at risk greater than 30 days of just 2.6 percent the region s loan portfolio expanded by 34.1 percent and closed the year at $47.5 million finca africa clients have accumulated savings of $17 million to invest in their businesses their children s education and improvements in their living standards finca s greater middle east region concluded the year with a loan portfolio of nearly $7.1 million providing a hand-up to 18,291 hardworking microentrepreneurs finca afghanistan provided financial services to nearly 7,100 clients in one of the world s most challenging environments and finca jordan expanded its client outreach by 26.8 percent to 11,197 clients 98 percent of them women the two subsidiaries disbursed a total of $11.6 million in loans during the year with the potential to transform the lives of over 91,000 children and adults.1 2 finca continues to attract highly-skilled finance professionals and specialists from banking and other fields both for hire and to volunteer their expertise the network has made significant strides in training and development to ensure that finca s subsidiaries can compete in a fast-moving and increasingly sophisticated microfinance marketplace we are implementing front-end technology including debit cards point of sale pos terminals and palmtop computers to improve service to clients offering them new levels of convenience cost-savings and safety clients in mexico for example save time and money by using prepaid cards to access their loans through atms and pos terminals in retailers throughout the country finca s resource mobilization teams the capital markets group and new business development team mobilized $124 million in loans and $24.3 million in donations and grants respectively as conditions began improving from the most challenging economic environment in decades finca partnered with microplace to develop a unique website portal that lets individuals participate in impact investing and in turn finca is able to aggregate small individual investments to make larger loans to its subsidiaries additionally a grant of $8.1 million from the u.s department of agriculture s food for progress program is enabling finca honduras to provide financial services to thousands of small scale farmers and other microentrepreneurs finca s network has emerged from the financial crisis nimbler stronger and more confident as a result of our continued focus on our mission vision and long-term strategy for expansion we are investing in our future growth by furthering the transformation of our subsidiaries into regulated financial institutions we could not have achieved all that we have over the past 25 years without generous contributions from loyal supporters in the us canada the uk europe and around the world we thank you and invite you to continue your support of our hundreds of thousands of hardworking microentrepreneurs who seek a hand-up not a handout to transform their lives today and in the future sincerely rupert w scofield president and ceo robert w hatch chairman ibid finca 2010 annual report 3[close]
p. 6
finca celebrates twenty-five years of creating pathways out of poverty n early 500 supporters including finca s board of directors and advisory board members and all of the ceos representing each of finca s 21 subsidiaries convened in new york on november 18th to celebrate a quarter century of providing small loans and financial services to the world s poor finca ambassador of hope natalie portman and long-time finca supporter soledad hurst were honored for their tireless efforts to raise funds and generate awareness about village banking and the power of microfinance the celebration was co-chaired by veronique and bob pittman and rosalie swedlin and robert cort and benefit committee members susan ainsworth margaret blakey tamar cohen darwin eads jo ann field topher grace robert graham kristin g hatch bob hurst nabeeha kazi hutchins aleen keshishian charles nolan betsy ross zoe saldana and jacqui michel and david weisman finca president and ceo rupert scofield and founder john hatch shared their passion for finca and its mission using personal anecdotes to highlight the life-changing impact finca s small loans have had for millions of hardworking families since making its first loans in 1985 finca founder john hatch recalled watching a small child die from malnutrition and deciding that he would devote his life to finding ways to stop these needless deaths he dedicated his life to development work and eventually convinced usaid to fund his idea for village banking knowing that if he was ever going to impact the lives of poor children he needed to help their mothers generate their own 4 www.finca.org[close]
p. 7
incomes hatch remarked for the past quarter century 70-to-90 percent of finca s loans have gone to women many of them single mothers we can t measure this exactly but we know finca loans have helped saved the lives of thousands of these mothers children and grandchildren scofield recalled his first trip to rural mexico as a peace corp volunteer where he noticed that no one smiled and was told that they have nothing to smile about twenty-five years later he was proud to say the smiles are on our clients faces today not only in mexico but in all the countries in which we work because finca s small loans have allowed our clients to take control over their lives the smiles are also on the faces of the children as they watch in admiration each day as their mothers and fathers work to provide them with the food clothing shelter and education they require to shape their own more promising futures guests were moved to a standing ovation when they heard from two finca clients ms margarette nivose from haiti and ms tamara shekimbaeva from kyrgyzstan about how finca loans have changed their lives and improved life for their children and as if these testimonies weren t enough everyone was thrilled to view a specially-recorded video message from us secretary of state hillary clinton congratulating finca for its quarter-century of success and acknowledging the honorees for their dedication to creating a world without poverty the celebration was sponsored by deltek dior beauty first data and sapient nitro other corporate contributors included credit suisse deutsche bank goldman sachs cleary gottlieb steen hamilton llc fox searchlight and moody s the honorees were joined on the red carpet by mistress of ceremonies ali wentworth academy award-nominated actor jake gyllenhaal choreographer benjamin millepied actors peter facinelli jill flint and margarita levieva film directors including academy-award winner tom hooper and derek cianfrance florence welch of internationallyacclaimed music group florence the machine fashion designer jason wu stylist kate young and world-renowned chef and co-host of top chef tom colicchio finca s village banking campaign a big success 2010 marked the culmination of finca s five-year village banking campaign an ambitious call-to-action designed to mobilize the people and resources needed to alleviate poverty on a global scale goals for the campaign were clear n operate 100,000 village banks by 2010 in the world s most destitute communities n reach one million of the world s working poor with financial services they couldn t otherwise obtain n raise $200 million to give the poorest families the necessary tools to raise their own incomes and n inspire millions around the world to promote a proven solution to poverty when we announced the campaign in 2007 we never dreamed that the world would undergo a global economic meltdown just one year later as the world watched the collapse of many financial sectors we are proud to say that microfinance remained above l to r founder john hatch board chairman bob hatch and president ceo rupert scofield left honorees finca board member soledad hurst and ambassador of hope natalie portman resilient and we are thrilled to report that despite the challenging economic times we were still able to come close to and surpass our three main goals by the end of 2010 n we had established 99,354 village banks across our five-continent network reaching 99 percent of our goal of establishing 100,000 banking groups n our nearly 7,000 employees worldwide were serving almost 765,000 clients with loans averaging $597 and on-time repayment rates remaining exceptionally high at 97.7 percent and n our loan portfolio grew to $387 million far surpassing our goal of $200 million finca 2010 annual report 5[close]
p. 9
the finca network 19852010 client outreach growth 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 fy 1990 fy 1995 over 3.8 million total family members impacted in 2010 at an average of five members per family fy 2000 the goal 1,270,934 clients served by 2013 benefiting nearly 6.4 million lives fy 2005 fy 2010 fy 2013 finca 2010 annual report projected 7[close]
p. 10
the finca network 19852010 ated by finca but run by teams of dedicated professionals that possess intimate knowledge of the local market 21 subsidiaries worldwide are owned and oper nearly life-changing financial services targeting people living at 50 percent below the poverty level and in rural areas 7,000 employees provide client-focused $4.8 billion in small loans is estimated to have positively impacted approximately 5.6 million families over the past quarter century countless numbers of children have eaten more nutritious foods received medical care when needed and most important been able to stay in school 8 www.finca.org[close]
p. 11
the finca network 2010 highlights 764,770 clients served an all-time high for finca $387 million in loans outstanding representing a 20 percent increase over 2009 $802.4 million in small loans disbursed on five continents around the globe fy 2010 summary of performance total clients average loan size $331 $1,039 $764 $515 $597 total loan portfolio $47,479,738 $241,628,063 $7,062,911 $90,825,382 $386,997,094 total amount lent in 2010 $129,245,763 $352,490,585 $11,552,960 $309,133,373 $802,422,681 portfolio at risk greater than 30 days 2.6 1.1 4.0 5.2 2.3 $30.8 million in savings mobilized africa eurasia gme 189,183 316,957 18,291 240,339 764,770 portfolio at risk greater than 30 days 2.3 percent latin america total finca 2010 annual report 9[close]
p. 12
financial products lending model that creates access to financial services for the most vulnerable in society fostering empowerment and self-reliance village banking our core product is a peer savings accounts help clients create their own safety nets to guard against emergencies and invest in their futures individual loans allow clients with larger capital needs to invest in their growing businesses and generate employment hospitalization and funeral expenses provide new levels of protection and security microinsurance products health credit-life money transfer services strengthen financial links www.finca.org across borders and between urban and rural communities allowing clients to send or receive money for business or family purposes 10[close]
p. 13
product innovation equipment to achieve higher farm yields and increased incomes rural loans help clients purchase seeds fertilizer livestock and islamic microfinance products approved by local religious leaders enable finca to offer culturally-appropriate financing in afghanistan and jordan microenergy loans provide clean electricity systems for existing and new businesses and enable children to study after dark prepaid loan cards let clients manage cash flows more efficiently accessing only the amount they need when they need it from atms and participating merchants reaching the lowest-income clients worldwide points of sale create a low-cost delivery channel for 11 finca 2010 annual report[close]
Tags
Comments
no comments yet