FIDES | FINANCIAL SYSTEMS DEVELOPMENT SERVICES AG is a company focusing exclusively on the development of sustainable rural microfinance institutions.

FIDES in a Nutshell

FIDES is a joint stock company with head office in Fribourg, Switzerland (since 2007) and a liaison office in Montpellier, France. FIDES was founded in 1996 by microfinance specialists from six countries, all having long- term experience in the field of financial systems development and small business promotion. Together with institutional partners, FIDES has since set up successful microfinance institutions in several countries, mainly in Africa and Eastern Europe, and has provided expert support to a large number of other microfinance institutions. FIDES is owned by its leading staff members. Staff size is 22.

FIDES is a consultant, investor and manager of microfinance initiatives. Our main institutional partners are the Swiss Agency for Development and Cooperation (SDC), Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ/German Technical Cooperation), the World Bank, the International Fund for Agricultural Development (IFAD), KfW Bankengruppe and other bilateral development agencies.

CORE COMPETENCES Building sound microfinance institutions in rural areas is the core competence of FIDES.
In many developing countries, financial institutions targeting farmers and small entrepreneurs have failed. Only a few have succeeded in providing reliable services to rural and urban poor on a larger scale.
Access to loans and other financial services has become a key issue for private sector development and employment creation. The ongoing debate on this issue between international donors, governments, and development agencies has moved towards the solution of building financially sustainable institutions, capable to meet the needs of a large number of small entrepreneurs. Meanwhile, new microfinance initiatives have emerged and shown that microfinance institutions can be sustainable and at the same time reach a considerable number of borrowers and savers. Microfinance banks have proven to be a successful vehicle, but mainly for urban clients.

FIDES has been innovative in developing approaches for rural areas. Most of them entail technical and organizational innovations that allow transaction cost and risk reduction. Sustainable institution building concepts lead to excellent repayment rates, outreach to under-serviced market segments and significant growth capacity. Such institutions have had a considerable impact on income-generating activities and employment creation.

FIDES is playing a leading role in this sector by

• Designing and implementing innovative approaches to the creation of sustainable rural microfinance institutions.
• Providing professional training and technical support to existing microfinance institutions.
• Creating and supporting research and development units in microfinance institutions, key to sound product development and social performance measurement. Providing microfinance research relevant to academics and the microfinance sector.
• Providing expertise to governments and development agencies.

swiss microfinance holding In 2007, FIDES has created a Microfinance Holding in Switzerland. This Holding will own on a long term basis the majorities in the banks and thus influence the social orientation and bank policy. It is open to private and institutional investors in order to accelerate the setting-up of new banks (e.g. work started in Senegal and Ghana) and to further capitalize the growth of existing ones.

PARTNERSHIPS
Financial and technical partnerships
GTZ, SDC, IFAD, KfW Bankengruppe, Oikocredit
University and Research Centers
CIRAD, CIDR, CNEARC
Banks
BNDA, SEWABANK
Governments and Central Banks
BCEAO, Bank of Namibia, Bank of Albania