MICROCAPITAL BRIEF: AccessBank of Azerbaijan Implements Loan Repayment by Telephone, Debit Card

Microfinance institution (MFI) AccessBank of Azerbaijan, an affiliate of Germany’s Access Microfinance Holding AG (AccessHolding), recently announced the implementation of a new service allowing customers to make loan payments by telephone. Customers who use one of the bank’s plastic debit cards can now transfer funds from their cards towards debt repayment via AccessBank’s call center.

Mr Andrew Pospielovsky, general manager of AccessBank said “AccessBank continuously tries to improve the quality of the services extended to our customers. Providing the option of repaying loans by phone will save them time.”

As of December 2010, AccessBank reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 457 million, a gross loan portfolio of USD 342 million, approximately 120,000 borrowers, return on assets (ROA) of 7.68 percent, return on equity (ROE) of 40.1 percent and a deposit portfolio of USD 158 million. AccessHolding has committed capital of EUR 26.4 million (USD 37 million). As of March 2012, AccessHolding has investments in AccesBanque Madagascar (39.2 percent share); AccessBank Azerbaijan (16.5 percent share); AccessBank Tanzania (42.9 percent share); AB Microfinance Bank Nigeria Limited (50.1 percent share); AccessBank Liberia (52 percent share); and AccessBank Tajikistan (52 percent share).

By Amira Berrada, Research Associate

About AccessBank: AccessBank was founded in 2002 as the Micro Finance Bank of Azerbaijan (MFBA) and was renamed AccessBank in 2008. AccessBank is owned by six organizations: the European Bank of Reconstruction and Development (20 percent), an institution owned by 61 countries and two intergovernmental institutions; the International Finance Corporation (20 percent), the investment arm of the World Bank Group; the Black Sea Trade and Development Bank (20 percent), a financial institution with eleven European member countries; Germany’s KfW Bankengruppe (20 percent); Access Microfinance Holding AG (16.53 percent), a commercial microfinance holding company based in Germany; and LFS Financial Systems GmbH (3.47 percent), a German consulting and management company that focuses on microfinance projects. As of December 2011, AccessBank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 488 million, a gross loan portfolio of USD 378 million and approximately 120,000 borrowers. As of December 2010, AccessBank reported return on assets of 7.68 percent return on equity of 40.14 percent, deposits to loans of 46.26 percent and deposits to total assets of 34.61 percent.

About Access Microfinance Holding AG: Access Microfinance Holding AG (AccessHolding) was established in 2006 in Germany by LFS Financial Systems GmbH (LFS). It invests in microfinance institutions (MFIs) and aims to develop its investments through equity finance, holding services and management services rendered by LFS, which acts as its technical partner. AccessHolding establishes new MFIs together with external partners and transforms existing non-bank microlending institutions into microfinance banks that offer a wider range of services such as deposits. AccessHolding is a joint-stock company with committed capital of EUR 26.4 million (USD 37 million). As of March 2012, AccessHolding has investments in AccesBanque Madagascar (39.2 percent share); AccessBank Azerbaijan (16.5 percent share); AccessBank Tanzania (42.9 percent share); AB Microfinance Bank Nigeria Limited (50.1 percent share); AccessBank Liberia (52 percent share); and AccessBank Tajikistan (52 percent share).

Sources and Additional Resources:

[1] AccessBank Press Release submitted to Microcapital, April 2012

MicroCapital.org story, April 20, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $15m to Microfinance Institution
AccessBank of Azerbaijan for Micro-, Small and Medium-Sized Enterprises (MSMEs)” https://www.microcapital.org/microcapital-brief-european-bank-for-reconst

MicroCapital.org story, March 23, 2012, “MICROCAPITAL BRIEF: Microfinance Institution AccessBank of Azerbaijan Increases Share Capital to $108m” https://www.microcapital.org/microcapital-brief-microfinance-institution-

MicroCapital.org story, January 4, 2012, “MICROCAPITAL BRIEF: Microfinance Institution AccessBank of Azerbaijan Disburses 500,000th Loan” https://www.microcapital.org/microcapital-brief-microfinance-institution-

MicroCapital Universe Profile for AccessBank : https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Acc

MicroCapital Universe Profile for Access Microfinance Holding AG: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Access+Microfinance+Holding+AG+%28AccessHolding%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.