How it works: autonomy and ownership for local banks.
FMO offers guarantees to the local banks but does not provide the money for the loans.
Instead, NASIRA simply takes a significant part of the local bank’s risk should the recipient default.
Because it’s their own money they’re investing, local banks retain ownership of the investment. Equally important, they have a vested interest in seeing it succeed. In addition, NASIRA further enables banks to monitor their investment on a regular basis using a fintech solution. This allows banks to better understand the risks of investing in entrepreneurs and small businesses which is NASIRA’s long term goal.
And should someone default, FMO can help to make the investment profitable again.