Frankfurt-based financial services company Deutsche Bank recently met its goal of securing USD 100 million from various investors for its Global Commercial Microfinance Consortium II fund (Consortium II), which provides capital to microfinance institutions (MFIs). The purpose of the fund is to support the growth of MFIs that pursue both financial and social goals as well as prioritize customer care. Consortium II was established in 2012 and has since provided USD 83 million to approximately 30 MFIs in 15 countries [1]. The fund also assists MFIs with initiatives such as improving customer service and seeking Smart Campaign Certification, which covers a range of microfinance client protection practices [2].
Participants in Consortium II include: Paris-based insurance provider Axa France Vie; Cologne-based insurance group Axa Germany; the Calvert Foundation, a US-based nonprofit that provides financial services; Caisse Nationale de Prévoyance Assurances, a France-based insurance group; Canada-based Développement International Desjardins; US-based financial services provider Everence Community Investments; German-government owned development bank KfW Bankengruppe; the Left Hand Foundation, a US-based nonprofit; US-based financial services provider Money in Motion LLC; the Overseas Private Investment Corporation, which is backed by the US government; US-based financial services holding company State Street; the Swedish International Development Cooperation Agency; Norwegian financial services company Storebrand; and Daniels College of Business at the University of Denver in the US state of Colorado. Deutsche Bank reports operations in approximately 70 countries and assets totaling EUR 1.78 trillion (USD 2.44 trillion) as of September 2013.
By Meraj Husain, Research Associate
About Deutsche Bank
Deutsche Bank is a Germany-based international bank that was founded in 1870. It has assets totaling EUR 1.78 trillion (USD 2.44 trillion) as of September 2013. The bank has employees in approximately 70 countries. Deutsche Bank operates Deutsche Bank Microcredit Development Fund (DB MDF), which provides financing to microfinance institutions (MFIs) with the aim of enabling them to attract further resources on a leveraged basis from local commercial banks.
About Global Commercial Microfinance Consortium II
Established in 2012, Global Commercial Microfinance Consortium II is a fund that has provided loans of USD 83 million to approximately 30 microfinance institutions in 15 countries as of 2013. Participants in Consortium II include: Paris-based insurance provider Axa France Vie; Cologne-based insurance group Axa Germany; the Calvert Foundation, a US-based nonprofit that provides financial services; Caisse Nationale de Prévoyance Assurances, a France-based insurance group; Canada-based Développement International Desjardins; US-based financial services provider Everence Community Investments; German-government owned development bank KfW Bankengruppe; the Left Hand Foundation, a US-based nonprofit; US-based financial services provider Money in Motion LLC; the Overseas Private Investment Corporation, which is backed by the US government; US-based financial services holding company State Street; the Swedish International Development Cooperation Agency; Norwegian financial services company Storebrand; and Daniels College of Business at the University of Denver in the US state of Colorado.
About Smart Campaign
The Smart Campaign, which was founded by US-based nonprofit Accion and is located at Accion’s Center for Financial Inclusion in the US state Washington, DC, is an “effort to unite microfinance leaders around a common goal: to keep clients as the driving force of the industry.” It promotes seven core consumer protection principles including: “appropriate” product design and delivery, prevention of over-indebtedness, transparency, responsible pricing, fair and respectful treatment of clients, privacy of client data and mechanisms for complaint resolution. As of 2013, The Smart Campaign is endorsed by approximately 3,348 microfinance institutions (MFIs), microfinance support organizations, investors, donors and individual industry professionals.
Sources and Additional Resources
[1] Deutsche Bank USA: “Global Commercial Microfinance Consortium II Fund,” https://www.db.com/usa/docs/Consortium_II_Fund_Profile_2013Q4.pdf
[2] Information provided to MicroCapital by Deutsche Bank, January 2014
MicroCapital, December 31, 2013, “Deutsche Bank Secures $75m for Microfinance Enhancement Facility for On-lending to Micro-, Small Enterprises,” https://www.microcapital.org/microcapital-brief-deutsche-bank-secures-75m-for-microfinance-enhancement-facility-for-on-lending-to-micro-small-enterprises/
MicroCapital, May 7, 2008, “ING Review of Deutsche Bank’s Microfinance Activities, the Microcredit Development Fund, and the Global Commercial Microfinance Consortium,” https://www.microcapital.org/microcapital-story-ing-review-of-deutsche-bank%E2%80%99s-microfinance-activities-the-microcredit-development-fund-and-the-global-commercial-microfinance-consortium/
MicroCapital Universe Profile: Deutsche Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Deutsche+Bank
MicroCapital Universe Profile: Global Commercial Microfinance Consortium II, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Global+Commercial+Microfinance+Consortium+II
MicroCapital Universe Profile: Smart Campaign, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SMART+Campaign
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
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