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About FMFB-A

 

About The First MicroFinanceBank-Afghanistan (FMFB-A)

The First MicroFinanceBank-Afghanistan (FMFB-A) started operations in 2004 and is part of the Aga Khan Agency for Microfinance (AKAM), which has financial institutions operating in over 15 countries throughout the developing world. It is affiliated with the Aga Khan Development Network (AKDN), a group of nine development agencies working in health, education, culture, and rural economic development primarily in Asia and Africa. Our primary objective in Afghanistan is to contribute to poverty alleviation and economic development through the provision of sustainable financial services to the poor and underserved. Since 2016, we are a member of the Global Alliance for Banking on Values (GABV) – an independent network of banks using finance to deliver sustainable economic, social, and environmental development. Our values-based banking agenda focuses on providing affordable financial services that promote entrepreneurship, agriculture, incremental housing, and clean energy in Afghanistan. The First MicroFinanceBank-Afghanistan (FMFB-A) sought to consolidate its position as Afghanistan’s leading financial service provider in Afghanistan. FMFB-A is the market leader in terms of Gross Loan Portfolio (GLP) size with over AFN 4 + billions of December-2021. The bank has (230,562 active) clients including borrowers and individual depositors who do not necessarily save to accumulate assets but often seek to smooth consumption when a family’s income is irregular. FMFB-A is the largest financial service provider in terms of Gross Loan Portfolio (GLP) with 61% market share as per AMA’s Microview report edition 34.

Vision

To be recognized as the leading microfinance services provider contributing to poverty alleviation and economic development through the provision of sustainable financial services primarily targeting at the micro and small businesses and households. To reduce poverty, diminish the vulnerability of poor populations and alleviate economic and social exclusion, it aims to help people become self-reliant and eventually gain the skills needed to graduate into the mainstream financial markets.

Mission

To reduce poverty, diminish the vulnerability of poor populations, and alleviate economic and social exclusion. It aims to help people become self-reliant and eventually gain the skills needed to graduate into the mainstream financial markets. At the same time, the Bank has to remain financially sustainable.

FMFB-A Background

The Bank is affiliated with the Aga Khan Development Network (AKDN) a group of nine development agencies working in health, education, culture, and rural and economic development primarily in Asia and Africa. In 2002 AKDN established two microfinance programs in the country, the Emergency Microcredit Programme and the Rural Microcredit Programme. Based in Kabul, Puli-Khumri, and their adjoining districts, the Emergency Microcredit Programme provided a financial safety net for retunes by offering credit for start-up, restarts, and expansion of income-generating activates in those areas. In 2004, the urban portion of the Emergency Microfinance Programme in Kabul was converted into The First MicrofinanceBank with an initial capital of US$ 5 million invested by the Aga Khan Fund for Economic Development (AKFED) and the International Finance Corporation (IFC) later joined by Kreditanstalt fur Wiederaufbau (kfw), the institution was the first of its kind under the country’s new regulatory structure and was granted license #001 under the new banking law in the autumn of 2003. In 2005, the urban portions of the emergency microfinance program in Pul-i-kumri and Mazar-e-Sharif were also absorbed into FMFB-A. The Bank’s overarching business strategy is to affect demonstrable, measurable, and lasting improvements in the quality of life (QoL) of its clients by delivering appropriate financial services to help alleviate economic and social exclusion. The Bank also endeavors to develop and market products that cater to customers and to generate revenue from high-income groups. FMFB-A is developing a multitude of initiatives that redesign traditional processes by developing new service offerings, facilitate client acquisition and delivery of products and services driven by technology developments, competitive factors focusing on operational efficiency by introducing financial services through a suite of digital touchpoints. The Bank’s current suite of Deposits/Services includes deposits (CA, SA, and TD) and, along with commercial banking services including Online Banking, Afpay Debit Card issuance, ATM, fund transfers, international remittances, foreign currency exchange, and bulk payroll processing and plans to introduce Master Debit card, SMS Banking and POS services soon. The Bank is in the process of developing and establishing its Islamic Banking Window and soon will be offering Islamic Banking products and services including but not limited to Qard Current Account, Mudarabah Saving Account, Mudarabah Investment, Commodity Murabaha (Tawarruq), Murabaha – Bai Bithaman Ajil, Ijarah/Musharakah Mutanaqisa, Investment Mudarabah, Istisna, Salam, etc. The establishment of the Bank is an integral part of the AKDN’s commitment to contribute to the reconstruction and rehabilitation of the economic infrastructure and civil society institutions in Afghanistan.