Al Amal Bank | MFIs in Yemen

Data provided through Sanabel

Gross Loan Portfolio USD, 2011: 2.5 million

Number of active borrowers 2011: 15,945

Average loan balance per borrower USD, 2011: 155.7

Deposits USD, 2011: 5.2 million

Assets USD, 2011: 18.2 million

Number of depositors 2011: 33,047

Mission:

To improve the economic and social conditions of the Yemeni low income family, especially those of small and micro enterprises; by providing outstanding financial services; and to become the pioneering and sustainable financial institution in Yemen.

Background and Main Challenges:

Al Amal Microfinance Bank is a not for profit company established to deliver sustainable microfinance services to the poor segment in Yemen. Al Amal Bank is currently facing many challenges like governmental, outreach, and funding challenges.

Address:

Baghdad Street, close to ( Yali)

Sanaa

P.O. Box 15114

Yemen

Phone:

00967-1-449731

Fax:

00967-1-449721

Email:

info [at] alamlbank [dot] org

Website:

www.alamalbank.com

Main Funding Sources:

Loans

Savings

Shareholder Capital

Products and Services:

Loans

Voluntary Savings

Insurance

Leasing

Training and Consulting

Financial Services

Technical Services

Services Provided:

Full-scale Financial Services

Business Development Services

Education

Looking for (Investment Types):

Loans in Local Currency

Capacity-Building Grants

Donations

Date established:

Jan 1 2002

FYE:

31-Dec

Current Legal Status:

Bank

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Women	1
Clients living in urban areas	2
Adolescents and youth (below 18)	3
Clients living in rural areas	3
Other target market:	4
Int msg targetmothertext c	Disable people and women victims of violence, youth between 18-30 years, youth and adolescent under 18 in terms of saving
+ Development goals (ranked by importance)
Poverty reduction	1
Employment generation	2
Youth opportunities	3
Growth of existing businesses	4
Gender equality and women's empowerment	5
Development of start-up enterprises	6
Increased access to financial services	7
Housing	8
Improvement of adult education	10
+ Poverty targets
Very poor clients	1
Poor clients	1
Low income clients	1
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
SME loans
Loans for agriculture	1
Housing loans	1
+ Savings products offered
Checking accounts
Fixed term deposits
Special purpose savings accounts
+ Compulsory insurance products required
Compulsory credit life insurance	1
+ Voluntary insurance products offered
+ Other financial products and services offered
Microleasing	1
+ Non-financial services offered
+ Enterprise services offered
+ Education services offered
Financial literacy education	1
Child and youth education	1
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:	Leasing product to target poor with specific skills and have no funds to purchase assets related to their skills (drivers, carpenters, etc.)
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Flat interest method
+ Social responsibility to staff
+ Human resources
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Quality of interaction with clients based on client feedback mechanisms
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
This institution offers lending lines linked to alternative energies
+ Poverty measurement tools in use