Accion, a US-based nonprofit organization, recently launched a service called Avanza that manages retail microfinance portfolios for banks and microfinance institutions (MFIs). The service includes evaluation of prospective clients, loan disbursement and administration. Through its credit scoring methods, risk management tools and mobile device technology and mobile offices, Avanza reportedly increases the efficiency of microlending up to 40 percent. Avanza model replaces the loan officer with a team of commercial advisors, credit analysts, and call center and collections staff. Clients are classified into various risk profiles and the approach to each client varies based on that profile.
Avanza’s first partnership is with Finamérica, an MFI that operates in the district of Suba, north of Bogotá, Columbia. As of March 2012, Finamérica had assets of USD 260 million, a gross loan portfolio of USD 241 million, a 2.2 percent return on assets and 16.1 percent return on equity. As of 2010, Accion’s network serves 3.18 million active clients in 22 countries and has an active loan portfolio of USD 3.81 billion.
By Mihaela Grindeanu, Research Associate
About Finamérica: Finamérica is a finance company regulated by the Colombian Superintendency of Banks. Previously called Finansol, it was created in 1993 by Accion to create microcredit in Bogota. Finamérica offers fixed asset and working capital loans to micro- and small entrepreneurs. As of March 2012, Finamérica had assets of USD 266 million, a gross loan portfolio of USD 241 million, a 2.2 percent return on assets and 16.1 percent return on equity.
About Accion: Accion is a private, US-based nonprofit organization with the mission of alleviating poverty by providing financial products such as microenterprise loans and business training. Accion was founded in 1961 and issued its first microloan in 1973 in Brazil. Accion’s partner microfinance institutions provide loans to men and women entrepreneurs in the US and 21 countries in Latin America, Asia and Africa. As of 2010, Accion’s network serves 3.18 million active clients and has an active loan portfolio of USD 3.81 billion.
Sources and Additional Resources:
Accion Press Release: “Accion launches Avanza, a Microfinance Portfolio Management Service Deploying New Credit Methodology”, http://www.accion.org/page.aspx?pid=4220
MicroCapital.org story, July 26, 2012: “MICROCAPITAL BRIEF: Accion Buys 9% of Microfinance Institution CrediConfia of Mexico for $1.9m”, https://www.microcapital.org/microcapital-brief-accion-buys-9-of-microfinance-institution-crediconfia-of-mexico-for-1-9m/
MicroCapital.org story, July 9, 2012: “MICROFINANCE PUBLICATION ROUND-UP: Financial Advisors on Sustainable Investing; Risk Management in Microfinance; Supply-Side Financial Inclusion Data”, https://www.microcapital.org/microfinance-publication-round-up-financial-advisors-on-sustainable-investing-risk-management-in-microfinance-supply-side-financial-inclusion-data/
MicroCapital Universe Profile: Accion, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Accion
MicroCapital Universe Profile: Finamérica, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Finam%C3%A9rica
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Accion Venture Lab, Brick & Mortar Ventures Lead $3.4m Equity Raise for Licify to Expand Vende+ Construction Portal from Colombia to Mexico
- MICROCAPITAL BRIEF: Accion, Sturgeon Lead $6.4m Equity Round for Trukkr, Fintech Serving Trucking SMEs in Pakistan
- MICROCAPITAL BRIEF: Themed “Inclusive Growth in a Digital Era,” Financial Inclusion Week 2022 Offers 180 Virtual Sessions, October 17-20
- MICROFINANCE EVENT: Responsible Finance Forum; July 5-7, 3023; Bengaluru, India
- MICROCAPITAL BRIEF: Semaai Raises Equity from Accion, XA Network, Beenext, Surge for Technology Supporting Farmers, Agricultural MSMEs in Indonesia