CapPlus enables financial institutions in emerging markets to serve small businesses more effectively and profitably.

Capplus Services

Increasing finance to small businesses

Dedicated to increasing people’s economic opportunities by strengthening financial services to small businesses, CapPlus provides financial institutions with strategic and operational capacity building, training and peer learning, and pilots of innovative solutions to expand markets.

Services
Capplus Services

$0.0bn

disbursed across clients' 8.3 Mn development loans

0%

Median compound annual growth rate in clients’ loan portfolios

Developing a New Business Model for Serving MSMEs

Khushhali Bank Limited, Pakistan

Based in Islamabad, Khushhali Bank Limited (KBL) is the largest microfinance bank in Pakistan, with 118 branches throughout the country serving almost 500,000 borrowers. KBL was founded in 2000 as part of the government’s Poverty Reduction Strategy and Microfinance Sector Development Program, specifically to act as a catalyst in stabilizing the country’s newly formed microfinance sector. CapPlus is KBL’s partner in supporting its transformation into a full service MSME bank .

Results
CapPlus worked with KBL to create and launch an MSME pilot program – it is now KBL’s fastest growing, high-quality portfolio and is on target to reach USD180 million by 2020.

Approach
CapPlus was an active partner in designing new products, establishing procedures, and implementing a recruitment strategy to attract the best-qualified loan officers to support the bank’s growth. The CapPlus team worked with KBL to develop a capacity building plan focused on the MSME business pilot, while also examining branch operations, operational efficiency, credit risk management, IT, human capital, branding and marketing, and communications. CapPlus continues to work with KBL in these areas through a long-term technical assistance plan.

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Maintaining Growth through Technology

Reliance Financial Services, The Gambia

Founded in 2006 by three Gambian professionals, Reliance Financial Services (RFS) operates as a savings-led financial company deeply committed to the development of the Gambian people. To provide financial services to the “average Gambian,” especially those at the base of the economic pyramid, RFS, with CapPlus support, began serving small businesses soon after its founding and it proved to be a profitable and fast growing segment.

Results
A technology plan developed by the CapPlus team guided RFS through a successful IT system conversion that was critical to supporting the institution’s growth. By following the detailed roadmap to set up in-house IT capacity, RFS is now able to manage its IT infrastructure, assets and activities effectively.

Approach
CapPlus assisted RFS in an IT system conversion and strengthening of its IT department, working to identify overall business objectives, current levels of IT capabilities, and risks associated with the upgrade of the core banking solution. A CapPlus banking expert provided guidance, oversight and implementation support for the IT department, including annual planning and budgeting, asset management, data management, and security.

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Seizing Opportunities to Serve SMEs

IDLC Finance Limited, Bangladesh

IDLC Finance Limited (IDLC) was created in 1985 as the first leasing company in Bangladesh. It is now the largest multi-product, nonbank financial institution in the country, with two subsidiaries on the Dhaka stock exchange, more than 20 branches, and 800 employees. IDLC focuses on the corporate, retail, and SME sectors with aggressive growth plans to be the leader in SME finance in Bangladesh. CapPlus conducted a diagnostic, which served as the basis for a long-term implementation plan to achieve IDLC’sambitious targets.

Results
IDLC is now following a comprehensive roadmap to implement the changes necessary to make SME finance its leading business line. Management wholeheartedly acknowledges CapPlus’ role in assessing its strengths, challenges and opportunities, as well as providing guidance for addressing weaknesses and taking advantage of market opportunities.

Approach
CapPlus conducted a small business banking diagnostic to identify high impact opportunities for improvement. The diagnostic is a comprehensive assessment tool that analyzes the drivers of SME Banking success and overall strategic and operational improvements that are necessary to successfully serve small businesses.

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Case Study: A Review of the IDP Rising Schools Program at Sinapi Aba in Ghana

A Review of the IDP Rising Schools Program at Sinapi Aba in Ghana

Trying to serve a rural, low income population is never an easy task for a financial institution – and providing finance to the affordable private primary schools that serve this market is even tougher. A unique pairing of a funder, the IDP Foundation based in Chicago, Illinois, and an MFI lender in Ghana, Sinapi Aba, developed a formula that profitably serves this market, reaching the “higher hanging fruit” among private schools. The program demonstrates that commercial financial institutions can be sustainably lending to low cost private schools.

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For over a decade, CapPlus has been committed to reducing poverty by expanding and strengthening financial institutions’ services to SMEs.

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