We are proud to share that our investee Bank Arvand has won a 60 Decibels Social Impact Award for ranking top 3 out of all 32 Asian financial service providers surveyed in the 2024 Microfinance Index.
The MFI Index is the world’s largest financial inclusion index grounded in customer voice, surveying 36,000+ clients of financial service providers in 45 different countries. Winning this award is testament to the outstanding work and dedication of the Bank Arvand team.
Across the world, having access to credit, savings accounts, and other financial services is essential to foster economic development. In Tajikistan, where less than half of the adult population has an account with a formal financial institution, there is a clear gap within the financial services sector. Since its foundation in 2002, Bank Arvand has provided high-quality financial services to entrepreneurs and individuals—particularly women— in Tajikistan thus advancing social and economic growth while expanding opportunities for the people of Tajikistan.
Arvand’s purpose is to create and offer financial products catered toward micro borrowers, rural communities, and individuals who wouldn’t typically have access to financial services.
For the past 13 years, Arvand has worked closely with Incofin, first as a lender, and later in 2014 as an equity investor, to make a difference in the lives of more than 83,000 clients whose average loan amount is just USD 1,675.
From day one, Arvand’s business practices have included a very visible, gender-forward approach. This is especially important for the country´s many female-headed households that are more likely to have lower incomes than equivalent households with a man at the helm. 43% of Arvand’s borrowers are women—one of the highest rates in Tajikistan—and over 75% of customers are rural, while another 76% are low-income (making less than USD 5 per day).
The company is proud to have been one of the first financial institutions in Tajikistan to adhere to ESG strategies, and to design a Green Finance loan. For example, the bank offers home improvement loans with an energy-efficient component, performs energy efficiency assessments for SME borrowers, and conducts energy efficiency trainings for and promotes green initiatives in rural communities. In line with its strategy to grow its environmentally responsible portfolio to 30% by 2027, Arvand is also extending its green and energy efficiency loan options, such as eco-smart agri loans in 2024, and offering energy-efficient equipment and transport leasing by 2026.
Looking to the future, Bank Arvand aims to continue as a pioneer and trendsetter. It is dedicated to promoting environmental solutions, while increasing access to finance in rural areas with a focus on green and climate finance, especially among women and youth.
