In a recent interview, Frontier Investments Group Managing Director Monica Brand discusses the sub-sectors within the microfinance investment industry in which Frontier Investments seeks to invest. Frontier Investments Group is a venture equity fund focused on microfinance and managed by ACCION International, which is a U.S.-based nonprofit organization with total assets of USD 346 million at December 31, 2009.

According to the interview published on the Microfinance Focus website, Frontier Investments seeks companies which “unleash new business models and can help radically reduce cost and can expand the quality of financial inclusion” [1]. Ms Brand indicates three such business sectors that Frontier Investments supports: back office shared platform technology and business outsourcing, microinsurance, housing finance and distribution models such as mobile banking. Ms Brand also discusses the investment criteria that Frontier Investments analyzes, such as the business model, breakthrough innovation, management team and their commitment to the business, revenue model, market size and especially the market segment, as Frontier Investments seeks to invest in businesses which serve the poor. Ms Brand also notes that the investment opportunities which Frontier Investments is currently considering are based in India.

By Jennifer Shevock, Research Associate
About ACCION International:
ACCION International is a private, U.S.-based nonprofit organization with the mission of giving people the financial tools necessary for poverty alleviation, such as microenterprise loans, business training and other financial services. ACCION’s partner microfinance institutions provide loans as low as USD 50 to microentrepreneurs in 23 countries in Latin America, Asia, Africa and the United States. ACCION has total assets of USD 346 million at December 31, 2009.

About ACCION International Frontier Investments Group:
ACCION International’s Frontier Investments Group is a venture equity fund focused on microfinance. Frontier Investments invests in new technologies and business models that can enhance the way financial services are delivered to the poor. Frontier Investments seeks innovations that will enhance the efficiency, reach and scope of financial services at the base of the economic pyramid. No financial information is available for the Frontier Investments Group.

Sources and Additional Resources:
[1] “Frontier Investments focused on Mobile Banking, Microinsurance & Housing” July 19, 2010. http://www.microfinancefocus.com/news/2010/07/19/%E2%80%9Cfrontier-investments-focused-on-mobile-banking-microinsurance-housing%E2%80%9D-monica-brand/

MicroCapital Universe: ACCION International: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACCION+International

MicroCapital Universe: ACCION International Frontier Investments Group: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACCION+Frontier+Investments+Group

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