Share

Helping Small Business Loans Go Global

2023-09-22

TIFI: Helping small business loans go global

The problem: small businesses need financing to grow. The solution: financial institutions should lend them money.

Easy, right?

Of course, it’s never that simple. Especially for financial institutions in developing countries, which often don’t have the resources to deliver efficient, risk-mitigated SME (small and medium enterprise) lending.

That’s where Technology and Innovation for Financial Inclusion (TIFI) comes into play. With the support of our donors, the Worldwide Foundation for Credit Unions provides financial support to TIFI, in addition to funding from USAID, to develop tools that credit unions in developing nations can use to improve and expand their SME lending.

Currently, TIFI is focused on three countries—Burkina Faso, Guatemala and Kenya—with key credit union partners in each country, working cooperatively with the World Council of Credit Unions (WOCCU), cascading support to a wide network of other credit unions that collectively serve millions of members.

There are a few ways TIFI is helping to make SME lending easier and more effective. The biggest focus is on something called the SME Lending Toolkit: a comprehensive package of resources, tailored to each TIFI country and designed to reduce lending risk through smarter loan underwriting.

In addition to streamlined lending training, the Toolkit also identifies localized market trends to help credit unions diversify loan products to meet the needs of their community.

Since the program’s launch in 2018, over 20 credit unions have adopted the SME Lending Toolkit, granting loans totaling nearly $30 million across the three TIFI countries. Even more impressive, following the program’s rollout, the percentage of loans past due went from 30 percent to a less than a two percent average across the participating countries.

TIFI is making an impact in other ways, too. The digitization of banking is helping to democratize credit in emerging markets and developing countries. TIFI is at the forefront: Helping credit unions adopt digital lending platforms and foster technology partnerships to grow their digital readiness.

The program also includes business development services (BDS), because we know successful SME lending isn’t just about the lender. BDS works with community organizations to help formalize SMEs and grow their respective trades. Simply put: It’s easier and safer for credit unions to lend to healthy, established SMEs. Supporting SMEs through this market approach means TIFI can deliver more robust and holistic programming.

It’s an exciting program that has a rewarding domino effect. TIFI is boosting credit unions’ capacity for lending, which means small businesses in developing countries can flourish resulting in stronger and more resilient communities. It’s truly a win-win-win.

The work isn’t done yet. The World Bank estimates there are trillions of dollars in unmet SME financing around the world. Can we count on your support?

2023-09-15

Helping Venezuelan Refugees Begin Again

The Economic Inclusion Project: Helping Venezuelan refugees begin again

2023-09-04

WFCU's New Perspective on the Credit Union Movement

Supporting global good with a little cooperative competition

2023-08-08

Worldwide Foundation for Credit Unions Launches $750,000 Grass-roots Fundraising Drive to Celebrate 75 Years of ICU Day

‘Members Helping Members’ campaign will support global credit union growth.

2020-12-08

Bridging the Gap…in 2020 & Beyond

Each year, December means three things to me: 1) assessing the year about to end, 2) taking a peek at the year ahead and, most importantly, 3) honoring traditions with those we care about. I’m blessed to be able to do all three at home and at work with the Worldwide Foundation for Credit Unions, especially as 2020 comes to an end.

2020-11-10

Global Gratitude

Worldwide, credit unions have stepped up in the face of COVID-19. In my role with the Worldwide Foundation for Credit Unions, I’m blessed to be connected to a network of global peers who continually share stories of support, perseverance and hope that contribute to maintaining member well-being during an unprecedented time of conflict for us all.

2020-09-02

Share Your Impact & Make an Impact by Inspiring Hope for a Global Community on ICU Day

Share Your Impact & Make an Impact by Inspiring Hope for a Global Community on ICU Day

2020-07-21

Masking the Dangers of COVID-19

Imagine access to personal protective equipment (PPE) being a requirement for keeping your credit union movement open during COVID-19. That was the reality for Ukraine’s 23 credit unions in mid-March due to a temporary shutdown. The system reopened on April 2 due to a joint advocacy effort—but only on the condition that all credit unions equip staff and visiting members with PPE.

2020-07-06

How Poland’s Credit Unions Are Counteracting the Effects of the COVID-19 Pandemic

The safety and health of credit union employees and members during the COVID-19 pandemic was a priority for all of us at the National Association of Cooperative Savings and Credit Unions (NACSCU).

2020-06-02

Promoting Member Ownership in Credit Unions: How the WOCCU TIFI Project is Making a Difference Among the Underserved in Sub-Saharan Africa

Membership is about ownership in cooperatives. That’s what matters!

2020-05-19

Worldwide Foundation Grant to Fund PPE for Ukrainian Credit Union Staff

Teams from two World Council of Credit Unions’ programs are working together to keep frontline Ukrainian credit union workers safe during the COVID-19 pandemic.

2020-05-13

Everyone Deserves Digital...Right???

Imagine leaving your home early, wearing a face mask and gloves as you head to your local credit union branch. Upon arrival, you see your fellow members wearing their own PPE and standing six-feet apart to keep a safe distance next to a red hashmark on the sidewalk, while waiting their turn to be called forward to access their accounts and services.

2020-04-14

Credit Unions and the Need for Expanded Digital Service Offerings

The global COVID-19 pandemic has already fundamentally altered—at least in the short-term—how we manage our lives. This includes how we engage with our extended families, our friends, our co-workers and, not to be forgotten, our finances.

2020-04-07

Meeting the COVID-19 Challenge on World Health Day

Credit unions have always been there to support the financial health of their members. But amid the coronavirus (COVID-19) pandemic, many are now going above and beyond to protect and support the physical health of their employees, members and communities as well.

2020-03-31

Embrace Our New Normal

As we come to the end of a month that celebrates International Women’s Day and Women’s History Month, we have found ourselves embracing a new normal.

2020-03-02

A Global Women’s Leadership Network journey from the Philippines…to Austria

Centered around taking action for equality and raising awareness against bias, International Women’s Day 2020 sees a number of missions celebrating women’s achievements.

2020-02-20

Donor Love is a Two-Sided Affair

Love, in any form, is a two-sided affair.

2020-02-06

What’s so ‘good’ about the global good card?

As credit union employees, we experience the power of reliable, affordable financial services each day. But there are millions of people who aren't so fortunate. We believe everyone can be financially successful if they have the tools and resources credit unions provide. And that’s why we launched the Global Good Card: A new way to bring the credit union philosophy to life.

2020-01-08

Top Five Ways to Engage Globally in 2020

Envision your community not having a Credit Union. How would that void affect its citizens, business and way of life? Multiply that to thousands of communities worldwide and picture what our society would be like.

2020-01-03

An Innovative Strategy for Digital SME Lending in Guatemala

According to the International Labor Organization, small- and medium-enterprises (SMEs) are responsible for more than two-thirds of all jobs worldwide, along with the majority of new job creation.

2019-12-19

The Indiana Credit Union League: Recognizing Global Good

When it comes to the Worldwide Foundation for Credit Unions mantra—Do Global Good—the professionals at the Indiana Credit Union League (ICUL) don’t just promote it, they live it.

2019-10-17

WOCCU Credit Union Partner Coonecta Leads Interoperable Digital Financial Inclusion in Ecuador

WOCCU’s Ecuadorian subsidiary, Coonecta, is driving interoperable payments in Latin America with its mobile platform BICOO, addressing key barriers facing the unbanked: cost, distance, documentation requirements and a lack of connection to other national payment channels. Credit unions (through BICOO) and banks (through their BIMO app) in Ecuador have simultaneously released interoperable platforms in an effort to increase financial inclusion through new digital channels.

2019-08-09

Champion Spotlight: Connexus Credit Union

When a Connexus employee makes the decision to work for the credit union, they may not realize it at the time, but they are becoming a part of something much bigger than themselves; they are becoming a part of the credit union movement. Often times, it’s the “People Helping People” philosophy that immediately draws people in, and other times it’s something our employees become passionate about over time as they learn of the great opportunity they have to make a positive impact in people’s lives. They learn about this opportunity through experience and through education, and also through the partnerships that Connexus cultivates with organizations such as the World Council of Credit Unions, which provides grassroots support where it’s needed the most.

2019-07-12

Remembering Haiti: Project Storm Break

During July, ahead of the World Credit Union Conference, Field Notes, the official blog of the Worldwide Foundation for Credit Unions, focuses on a core component of its work: disaster relief.

2019-07-02

Getting Ahead of the Storm: Project Storm Break

During July, ahead of the World Credit Union Conference, Field Notes, the official blog of the Worldwide Foundation for Credit Unions focuses on a core component of its work: disaster relief.

Subscribe