First MicroFinanceBank Ltd - Pakistan

Gross Loan Portfolio USD, 2010: 27.7 million

Number of active borrowers 2010: 151,797

Average loan balance per borrower USD, 2010: 182.7

Deposits USD, 2010: 62.4 million

Assets USD, 2010: 74.2 million

Number of depositors 2010: 227,039

Mission:

The Bank aims to reach out those who are currently not able to receive adequate financial services, throughout the country, in rural as well as urban areas. The target audience are the poor and underpriviledged of Pakistan, especially women.

Background and Main Challenges:

THe First MicroFInance Bank Limited is the first transformation in Pakistan from NGO to Bank.

October 2007: FMFB and Pakistan Post partner towards poverty alleviation. More information on this initiative is available at the following link:
http://www.akdn.org/news/2007october2.htm

Address:

Ground Floor, Evacuee Trust Complex, Plot No. 4, F-5/1

Islamabad

Pakistan

44000

Pakistan

Phone:

92 21 2824450

Fax:

92 21 2821817

Email:

fmfbnp [at] cyber [dot] net [dot] pk

Website:

www.mfb.com.pk

Main Funding Sources:

Grants

Savings

Shareholder Capital

Products and Services:

Loans

Voluntary Savings

Insurance

Fund Transfer Services

Looking for (Investment Types):

Capacity Building Grants

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 2002

FYE:

31-Dec

Current Legal Status:

NBFI

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Women	1
Clients living in rural areas	2
Clients living in urban areas	3
+ Development goals (ranked by importance)
Poverty reduction	1
Employment generation	2
Growth of existing businesses	3
Increased access to financial services	4
Development of start-up enterprises	5
Health improvement	6
Housing	7
+ Poverty targets
Poor clients
Low income clients
+ Governance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
Loans for agriculture
Loans for education
Housing loans
+ Savings products offered
Checking accounts
Voluntary savings accounts
Fixed term deposits
+ Compulsory insurance products required
Compulsory credit life insurance
Health insurance for hospitalization
+ Voluntary insurance products offered
+ Other financial products and services offered
Remittances services
+ Non-financial services offered
+ Enterprise services offered
+ Education services offered
+ Health services offered
Health camps and medical helpline through insurance companies
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:	Loan products, savings products, insurance and other services all contain components that target the poor
+ 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
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
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
+ Social responsibility to the environment
This institution includes specific clauses in its loan contracts to mitigate specific environmental risks
This institution offers lending lines linked to alternative energies

+ Poverty measurement tools in use
Per capita household income
Participatory wealth ranking (PWR)