Organización de Desarollo Empresarial Femenino Financiera S.A.

Gross Loan Portfolio USD, 2010: 30.4 million

Number of active borrowers 2010: 26,668

Average loan balance per borrower USD, 2010: 1,141.4

Deposits USD, 2010: 11.7 million

Assets USD, 2010: 39.3 million

Number of depositors 2010: 40,197

Mission:

To offer financial services to microenterprises and small businesses, similar to other legal financial services, with the end result of improving the quality of life for its clients.

Background and Main Challenges:

Funcionar como una financiera a partir del segundo semestre del 2008.

Address:

Colonia Alameda, 13 y 14 ave. 3 calle NE.

San Pedro Sula

Honduras

Phone:

(504) 2565-0700

Fax:

(504) 558-0374

Email:

odef [at] odeffinancierasa [dot] org [dot] hn

Website:

www.odeffinancierasa.org.hn

Main Funding Sources:

Grants

Loans

Shareholder Capital

Products and Services:

Loans

Voluntary Savings

Insurance

Fund Transfer Services

Services Provided:

Business Development Services

Looking for (Investment Types):

Loans in Local Currency

Donations

Loans in US$

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1985

FYE:

31-Dec

Current Legal Status:

NBFI

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Sectores de bajos ingresos	1
Clients living in rural areas	2
Women	3
Adolescents and youth (below 18)	4
Clients living in urban areas	5
+ Development goals (ranked by importance)
Poverty reduction	1
Increased access to financial services	2
Health improvement	3
Housing	4
Water and sanitation	5
Children's schooling	6
Growth of existing businesses	7
Development of start-up enterprises	8
Employment generation	9
Youth opportunities	10
Improvement of adult education	11
Gender equality and women's empowerment	12
+ Poverty targets
Low income clients
+ Governance
Has trained members of its board on social performance management
Has a formal board committee that monitors social performance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
SME loans
Loans for agriculture
Housing loans
Legalización de tierras
+ Savings products offered
Checking accounts
Voluntary savings accounts
Compulsory savings accounts (cash collateral)
Fixed term deposits
+ Compulsory insurance products required
Compulsory credit life insurance
+ Voluntary insurance products offered
+ Other financial products and services offered
Remittances services
Pago de servicios públicos
+ Non-financial services offered
+ Enterprise services offered
Enterprise skills development
+ Education services offered
Financial literacy education
+ Health services offered
Basic medical services
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:	(1) Servicio Médico (2) Microcrédito (3) Proyecto de vivienda subsidiada (4) Agricultura (5) Legalizacion de Tierras (6) Maternidad (7) Adquisicion de activos fijos
+ 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
Declining balance interest method
+ 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
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use
Per capita household expenditure