Corporate Citizenship
Microfinance Case Studies
Established in 2005, Citi Microfinance works across Citi's businesses and regions to provide products and services for microfinance institutions (MFIs), networks and investors that lend to the underserved. The program serves more than 100 MFIs in more than 40 countries around the world and has helped make microfinance an integral part of the financial infrastructure.
"The microfinance sector is experiencing huge challenges as it achieves significant growth and transformation. With increased financial inclusion, clients begin to have wider choices in accessing credit. Combined with increased competition, there are greater expectations for the sector to strengthen business practices, client protection, regulatory oversight, and financial education."
Small Businesses get $100 Million of Loans
Citi provided $199 million of capital through a combination of equity and loans to the Communities at Work Fund in 2010. By the end of 2010, the Fund had approved $100 million in lending to small businesses in low-income U.S. communities.
The Fund provides financing through Community Development Financial Institutions (CDFIs) that lend to nonprofit and for-profit businesses underserved by traditional banks. The extra finance has benefitted CDFIs working in 39 states and Washington, D.C., helping them to advance sustainable economic development, stabilize and drive job creation and contribute to the economic recovery of community groups. CDFIs that have received loans include ACCION Texas, Cooperative Business Assistance Corporation, Self-Help Ventures Fund and New Mexico Community Loan Fund.
One borrower, Inspiration Corporation, is using the loan to develop a new 60-seat restaurant, catering, and job training facility in Chicago's East Garfield Park neighborhood. Inspiration Corporation has recruited 12 full-time employees to expand its services in addition to the 49 already on the payroll.
Building Scalable Savings Through Partnership
Citi Microfinance and Citi's retail banking businesses are developing savings products for underserved communities in the U.S.
Partnering with Grameen America, which provides small loans to women micro-entrepreneurs in New York, Citibank has opened more than 3,000 new savings accounts for Grameen's members. For many, this is their first bank account.
This Citi savings account was highlighted by the Federal Deposit Insurance Corporation (FDIC) as a best-practice example of its type.
