MICROCAPITAL BRIEF: Tanzania’s FINCA Microfinance Bank, Bharti Airtel to Provide Mobile Banking Services

FINCA Microfinance Bank (formerly FINCA Tanzania), an affiliate of nonprofit microfinance network FINCA International, has announced a partnership with Bharti Airtel, an Indian telecommunications company, aiming to provide mobile banking microfinance services to FINCA’s clients in Tanzania. The service will allow clients to transfer funds to and from their FINCA accounts via mobile phones. The services will be introduced at an unspecified date.

As of 2015, FINCA Microfinance Bank operates 26 branches and serves approximately 121,000 customers in Tanzania with a loan portfolio of USD 28.6 million. The institution, which accepts deposits, is an affiliate of FINCA International, a microfinance network that had total assets of USD 1.1 billion and served 1.7 million clients through subsidiaries in 22 countries as of 2013. Bharti Airtel offers mobile phone and other services and operates in 20 countries in Asia and Africa. As of November 2014, Bharti Airtel served 307 million customers.

By Meredith Steih, Research Associate

About FINCA Microfinance Bank (Tanzania):

FINCA Microfinance Bank (formerly known as FINCA Tanzania) is an affiliate of FINCA International. The organization serves both the general public and traditional FINCAA clients. As of August 2015, FINCA Microfinance Bank served approximately 121,000 clients and the organization operates 26 branches in Tanzania. As of 2015, the organization has a loan portfolio of USD 28.6 million.

About FINCA International:

The Foundation for International Community Assistance (FINCA) International, a nonprofit microfinance network based in Washington, DC, provides financial services to poor families through a network of locally managed institutions. FINCA was founded in 1984 by Dr. John Hatch, who is known for helping develop “village banks” in which each member guarantees the loans of other members. FINCA targets its services to poor women living in the Americas, sub-Saharan Africa and Eurasia. As of 2013, FINCA International has total assets of USD 1.1 billion and serves 1.7 million clients through subsidiaries in 22 countries. In December of 2011, FINCA launched a subsidiary, FINCA Microfinance Holding LLC, with funding from the International Finance Corporation (IFC), KfW Bankengruppe, Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), responsAbility, and Triple Jump.

About Bharti Airtel

Founded in 1995, Bharti Airtel (Airtel) is an Indian telecommunications company headquartered in New Delhi. Airtel operates Airtel Money, whereby users can transfer money, pay bills and perform financial transactions from their mobile phones. As of November 2014, Bharti Airtel served 307 million customers in 20 countries across Africa and Asia.

Sources and Additional Information

[1] Daily News Tanzania: “FINCA partners with Airtel to provide mobile bank service”, July 2, 2015  http://www.dailynews.co.tz/index.php/biz/46708-finca-partners-with-airtel-to-provide-mobile-bank-service

MicroCapital Universe Profile: FINCA Microfinance Bank

MicroCapital Universe Profile: FINCA International

MicroCapital Universe Profile: Bharti Airtel

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