Affordable and Accessible Fintech Based Micro-finance


By Rodion Kutsaiev on Unsplash

Affordable and Accessible Fintech Based Micro-finance
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Corporate and Retail Banking
Business Model Description

Invest in B2C and B2B financing companies offering affordable and accessible personal and business loans (i.e., small-size, low-interest rates and collateral-free) to serve the needs of the underserved population segments and MSMEs. Examples of companies active in this space are:

Business case: LendMN, established in 2006, is a consumer micro-credit service provider that has introduced the Fintech business model through its LendMN application. The application provides uncollateralized loans online at an interest rate of ~3-4% per month. As of 2022, the Company had 191,000 borrowers.

Numur Credit NBFI LLC, established in 2015, provides digital and conventional micro and small loan services and insurance coverage facilities to individuals and MSMEs. It supports women-owned businesses through its 'women empowerment program' which combines financing with business mentoring to ensure recipients have the resources, tools and network to grow their businesses.

Sendly NBFI JCS, established in 2015, is a licensed international money transfer service for Mongolians abroad. The Company has started cooperation with Golden Money Transfer, Prabhu Money Transfer and Moneytun companies, which have money transfer licenses in 31 states of the United States, and has launched online money transfer application SENDLY.

Expected Impact

Increase financial inclusion and provide affordable and accessible financial services through fintech NBFIs to unbanked populations and businesses.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) No Poverty (SDG 1)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Reduced Inequalities (SDG 10) Industry, Innovation and Infrastructure (SDG 9)
Sector Sources
  • (1) Asli Demirgüç-Kunt et al. (2022). The Global Findex Database 2021, World Bank Publications. (2) Asian Development Bank. (2022). Mongolia Finance Sector Factsheet. (3) United Nations Development Progamme (UNDP). (2021). Integration of Gender Responsive Financing Practices In Mongolia’s Financial Sector. (4) International Financial Corporation (IFC). (2014), SMEs and Women-owned SMEs in Mongolia (5) Financial Regulatory Commission of Mongolia (FRC). (2022). Annual report 2021. (6) Central Bank of Mongolia. (2022). Bulletin 2022
IOA Sources
  • (6) Mongolian Stock Exchange. (2022) (7) Financial Regulatory Commission of Mongolia (FRC). (2022). Integrated financial reports of non-banking financial institutions for the 3rd quarter of 2022, (8) National Statistics Office (NSO). (2022). (9) Mongolian Stock Exchange. (2022). (10) Fintech Market Entry to CIS, Central Asia, and Mongolia,