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- I think we are looking at a revolution in poverty alleviation if we continue to follow the principles and values that have always defined us.
- Financial literacy, access to financial tools, and economic empowerment underpin the development of healthy and stable states. Not to mention greater gender equality!”
Harriet Tizitta used to sell tomatoes and onions at her local market in Kampala, Uganda, but she could only afford to purchase one sack of vegetables at a time. With a microloan from FINCA Impact Finance, an international microfinance institution, the mother of four was able to build her business by increasing her bulk purchases. Eventually, this allowed her to buy a grocery shop and rental home of her own. What’s more, she now can afford school fees, so her children can get a formal education. Her daughter Denise is studying to be a doctor.
When her husband fell prey to alcoholism 18 years ago, Julia Maria Ixchop Us De Ventura went to work. She started off selling food in the street to make ends meet. With the help of a FINCA loan, Us De Ventura was able to expand, opening a now bustling restaurant in Guatemala City. Her husband, who got sober 12 years ago, works by her side from 7am – 1pm every day. They have been able to put their children through school, take care of aging parents, and renovate their home.
These are just two examples of the impressive work being done by FINCA Impact Finance, a network of 21 microfinance institutions and banks operating around the world that provide responsible financial services to low-income entrepreneurs. Andrée Simon, the CEO of FINCA, has found her life purpose in helping her organization do what it does. “There are lots of banks in the world, but not many of them have a double-bottom line of both financial and social performance,” she said. “I love being at the helm of a business that exists to do good.”
FINCA came into existence more than 30 years ago when the founders realized that most traditional banks, with their heavy infrastructure and profit-only motives, were not going to reach out into underserved markets and meet the needs of relatively poor clients who desired small loans. The organization carved out a niche in that space, sustainably bringing the financially marginalized into the formal financial sector.
However, FINCA met with limits in terms of what services they could offer due to the constraints of technology at the time. “Now, with the integration of scoring, tablets, e-wallets, mobile credit and savings, and through our fin-tech partnerships, we’re in a position to bring responsible financial services to clients that we couldn’t serve under the traditional business model,” Simon explained. “ I think we are looking at a revolution in poverty alleviation if we continue to follow the principles and values that have always defined us. ”
Simon was raised by “a couple of true believers” who taught her to leave the world a better place than she found it. But she openly admits to having meandered for some time trying to figure out exactly how to do that. She studied liberal arts, went pre-med, and got a degree in economics before completing a degree in finance. Why? “Finance can address the economic disenfranchisement that drives so much global instability. Finance can be a sustainable business, renewing itself and growing to serve many more people over time. And finance – when done right - is actually agnostic. If you want it to do good, it can.”
FINCA currently has 10,000 employees around the world and millions of current and former clients. The combination of financial sustainability and positive social impact the organization achieves aligns with Simon’s desire to leave something better behind. “We are building an institution that has the potential to change the lives of individuals, their families, and their communities. Financial literacy, access to financial tools, and economic empowerment underpin the development of healthy and stable states. Not to mention greater gender equality!”
“If you have a career you really love and believe in, it’s a little bit like getting to eat chocolate cake for breakfast: You look forward to it. You think about it all the time. You’re happy to see it in the morning,” Simon exclaimed.
To young people looking to tap into their life purpose, Simon offers this advice: “Focus your energy on understanding what motivates and inspires you. Your task at this stage in your life is to try on as many hats as possible and learn about what you like and what you don’t. You will wear your work hat the majority of your waking hours for most of your life – so pick one that fits and that you really love.”
