ACCION uses several models to work with banks interested in microfinance:
1. An internal unit within the bank;
2. A financial subsidiary;
3. A Private Service Company;
4. Creation of new MFIs with bank co-investors.
The basis for choosing among the above models is a combination of the macroeconomic environment in each country, existing legal frameworks, cost efficiency considerations and additional variables. Each of the models has distinct legal structures. The legal structures suggest but do not dictate the operational structure. Yet operational structure choices are critical to the ability of the microfinance operation to build upon the advantages of the bank.
ACCION will underwrite the success of the new institution in two ways: 1) co-investing in the new institution with the bank in order to share risk; and, 2) pricing technical assistance services in two parts; a fixed fee to cover basic operational cost and a success fee based on the financial results of the project.
For more information about ACCION’s commercial banking services or other technical assistance services, please contact:
ACCION International Headquarters
56 Roland Street, Suite 300
Charlestown, MA 02129
Tel: (617) 625-7080
Fax: (617) 625-7020
