Microfinance International Corporation (MFIC) has entered into a strategic partnership with Banco Agrícola, the largest commercial and consumer bank in El Salvador, to jointly serve transnational families in El Salvador. The partnership will allow Salvadorians in the U.S. to send money back home at a low cost. Salvadorians will then be able to apply the funds towards financing a home purchase in their home country.

Banco Agrícola will pay out remittances sent through ARIAS, MFIC’s money transfer solution, that are originated by U.S. institutions. Originators will also include Alante Financial, MFIC’s wholly-owned retail financial service centers targeted at immigrants.  Alante Financial will collaborate with Banco Agricola to offer financing for a home purchase or improvement by the remittance senders and their family members in El Salvador.

“We are very excited to partner with Banco Agrícola, a leader and trusted financial institution in El Salvador,” said Atsumasa Tochisako, President and CEO of MFIC. “We hope this partnership will allow us to extend more value-added services to Salvadorians and improve the productivity of remittances.”

Banco Agricola’s Remittance Manager, Claudio Gochez, said, “ As leaders in the remittance market in El Salvador, we are fully committed to continue serving our fellow countrymen in the United States by allying with professional partners, such as MFIC.”

MFIC has offered transnational loans and remittances to El Salvador for the past years, supporting immigrants who strive to improve life in their native country while working in the U.S. The transnational program is part of MFIC’s effort to facilitate the productive use of remittances by linking them to other financial products such as savings accounts, micro-loans, mortgage loans or business loans, thereby dramatically improving the capacity of remittance senders and recipients.

Banco Agrícola offers a complete range of products and services to more than a million customers and has the largest branch network, more than 600 service points in the country to connect remittance senders and receivers.

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About MFIC
MFIC is a Washington D.C.-based company that aims to expand affordable and professional financial services to markets where such services have previously been unavailable or overpriced. The Company offers a line of products and services including ARIAS, money transfer solution that enables financial institutions and payment providers to offer competitive remittance services. ARIAS provides “Account-to-Receiver” service for the FEDGlobal ACH payment. MFIC also operates Alante Financial, a financial service centers targeted to unbanked immigrants, and helps remittance senders and their families back home to enhance their economic wellbeing.

About Banco Agrícola
Banco Agrícola is the largest bank in El Salvador with a market share of 30 percent in  terms of assets and 2,600 employees as of year-end 2010. Banco Agrícola  is  a  universal bank that offers a full range of banking products and services. Bancolombia S.A., the largest banking institution in Colombia, through Bancolombia Panamá S.A., is the majority owner of Banco Agrícola.

Washington, DC – Microfinance International Corporation (MFIC), the parent company of Alante Financial, has entered a strategic partnership with Fedecredito, the largest federation of credit associations and workers’ banks in El Salvador, to jointly serve Salvadoran transnational families.  The partnership will encompass a range of services to meet diverse financial needs of transnational families – remittance senders in the US and recipients in El Salvador.

The two parties will first launch transnational mortgage loan program, which enables Salvadorans living in the US to finance their purchase of a house in El Salvador.  Clients are able to apply and repay the mortgage loan at Alante Financial.

“I am delighted to partner with Fedecredito, which shares the mission of fostering economic wellbeing of hard working people.  The partnership will enable us to offer more value-added and quality services to fellow Salvadorans,” said Atsumasa Tochisako, President and CEO of MFIC.

Macario Armando Rosa Rosales, President of Fedecredito stressed that “We have served Salvadoran people over 68 years.  The partnership with MFIC completes our service offerings, strengthens the relationship with Salvadorans abroad.  In order to satisfy the needs of Salvadoran families and to fulfill our commitment to work with fellow Salvadorans living in the United States, we will try to expand the supply of credit products and facilitate access to credit on favorable terms with the support of MFIC.”

MFIC has offered transnational services to Salvadorans for over a year through the partnerships with microfinance institutions.  Transnational program is part of the Company’s effort to facilitate the productive use of remittances by linking them to other financial products such as saving accounts, micro-loans, mortgage loans or business loans, thereby dramatically improve the capacity of remittance senders and recipients.  The partnership with Fedecredito will contribute to expanding the delivery of the service.

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About MFIC
MFIC is a Washington DC based company that aims to expand affordable and professional financial services to markets where such services have previously been unavailable, are overpriced or disconnected from mainstream banking.  The Company offers a line of products and services that enable financial services providers to deliver innovative services.  MFIC also operates Alante Financial, a financial service centers targeted to unbanked immigrants, and helps remittance senders and their families back home to enhance their economic capacity.

About Fedecredito System
Fedecredito System is federation of credit associations and workers’ banks founded in 1938 in El Salvador.  It has more than 115 service points across El Salvador, offering financial services such as credit, savings, remittances and payments, among others.

Atsumasa Tochisako, President and CEO of Microfinance International Corporation, is awarded the first Social Entrepreneur of Year Award in Japan by the Schwab Foundation in recognition of his work in building financial infrastructure for the poor.  Tochisako joins the group of seventeen entrepreneurs selected across the world this year.

The Award ceremony took place in Tokyo on September 3, 2009 in the presence of the selection committee members such as Sadako Ogata, President of the Japan International Cooperation Agency, Kakutaro Kitashiro, Chairman of ISL and Senior Advisor to IBM Japan, and Hilde Schwab, Co-Founder and Chairperson of the Schwab Foundation.

Since its foundation in 2000, Social Entrepreneur of Year Award program has identified more than 100 social entrepreneurs in 40 countries to support their innovative, sustainable and effective solutions for social and ecological problems.  It was the first Award in Japan and was co-sponsored by Institute for Strategic Leadership (ISL) Center for Social Innovation.

Washington, D.C. – Microfinance International Corporation has entered a strategic partnership with Union Andina, a private company offering housing finance to its Latin American immigrants in Europe and the United States for the acquisition of real estate in Bolivia, Colombia, Ecuador and Perú. The two companies will work together to help Bolivian immigrants in the Washington DC region purchase a new house in Bolivia.

The step is part of MFIC’s efforts to help immigrants to gain better access to financial services at both sides of the remittance chain improve their economic well being.  Since 2006, MFIC has offered “transnational loans,” which enables immigrants to apply for and repay a loan to finance their home purchase or invest in a business in their home country with a partnership with Central American financial institutions.  The partnership with Union Andina will enable us to expand our product offerings to the Bolivian immigrant community through our network of Alante Financial branches,” said Romi Bhatia, Vice President of International Operations.

“Our products meet our clients and their families’ needs and expectations, contributing to enhance their quality of life and allowing them to create wealth for their future,” said Andy Altena, President of Union Andina. Union Andina has helped more than 5,000 immigrants to buy a house in Ecuador, Perú, Bolivia and Colombia since it began operations in 1998.

MFIC is a Washington DC based private company whose mission is to make affordable financial services available to immigrants and their families.  While offering customized financial services to emigrated bread-winners through its Alante Financial branches in the Mid-Atlantic region, the company provides various services to microfinance institutions in developing countries to help them build capacity, contributing to the grass-root economic development.

April 4, 2009 (Washington, DC) Atsumasa Tochisako, President and CEO of MFIC, was chosen as one of “America’s Most Promising Social Entrepreneurs” by Business Week.

Tochisako is one of 25 entrepreneurs who were chosen out of 200 plus nominees recommended by members of the social venture community.  He is the only one in the financial sector.

“As we work hard to overcome numerous challenges in practicing ‘social business’ in the financial sector on a daily basis, we are extremely delighted and encouraged by the news,” said Tochisako.  The financial sector is highly regulated, putting a tremendous compliance burden on the service provider.  In addition, MFIC’s unique approach to poverty alleviation – empowering remittance senders and leveraging migrant remittances for the economic development in their home countries – does not always fit the conventional funding models.  Nevertheless, in recognition of the importance of financial access for institutions and individuals in a healthy economy, MFIC is committed to its mission of making professional financial services available to the poor worldwide.