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University of The Punjab (Gujranwala Campus)

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Company: FINCA BANK

University of The Punjab (Gujranwala Campus)
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Submitted To:

PROF. ABRAR HUSSAIN

(LECTURARE of PUGC)

Submitted By:

Najeeb Ullah (BB15137)
 Hamza Naeem (BB15145)
 Raheel Kamal (BB15118)
 Abaid Ullah (BB15138)
 Haseeb Khalid (BB15119)

DATE: SEPTEMBER 22, 2016

SIGNATURE: ----------------------
LETTER OF AUTHORIZATION
PROF. ABRAR HUSSAIN
PUNJAB UNIVERSITY GUJRANWALA CAMPUS
GUJRANWALA
SEPTEMBER, 09, 2016

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Dear Student:
I am pleased to assign you to undertake a research on the following topic

Topic: FINCA BANK

I hope this report will contribute appreciably in developing you as quality oriented
objective researcher with a vision to play a significant role in setting up new
tradition of academic excellence.
It is to note that all information and data collected should be utilized for academic
purpose only.

MR. Abrar Hussain

Lecturer
Punjab University

LETTER OF ACCEPTANCE

Dear Sir:
We hereby accept the offer to write a report on the topic Finca Bank. We accept all
the terms of reference which are decided by you and be promise to avoid obey the
rules and try to produce an objective report.

Sincerely,
Najee bUllah (BB15137)
Hamza Naeem (BB15145)

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Raheel Kamal (BB15118)

Abaid Ullah (BB15138)
Haseeb Khalid (BB15119)

LETTER OF TRANSMITTAL
ABAID ULLAH
QILA DEDAR SING
Gujranwala, Pakistan.
September 22, 2016
Prof. Abrar Hussain
University of Punjab Gujranwala Campus,
Near Ali Pur Chowk.
Respected Sir, Abrar Hussain:

Here is the report you asked us to prepare. We took Finca Bank for our final
project submission MONEY BANKING AND FINANCE. This report has been
prepared as an assignment for MBF given by our respected teacher.

Report tells all the information about Finca Bank including Intro, History, Mission,
Vision, Loans, Savings, Financial resources, and SWOT.
We are very thankful to Sir, Abrar Hussain who provides us opportunity of
practical experience to explore the structure of Finca Bank. And we become able to
understand the working system in any organization and to improve our knowledge.

Cordially,
Mr. ABAID ULLAH

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DEDICATION:

We would like to dedicate this research report affectionately to our

beloved and caring parents who always support us in our ups and
downs and to our honorable teachers without whom we were unable
to complete this report and Whose, Love, Affection, Motivation,
Patience, Support & Spiritual Inspiration Give us Encouragement. To
be here in this institution at this level, we are just because of our
parents and our teachers, especially their training, guidance, love,
affection and motivation. We pray that we serve our parents and
teachers as best as we can.

ACKNOWLEDGEM
ENT:

“TO HIM BELONGS THE

DIMENSION OF THE
HEAVENS AND THE EARTH,
IT IS HE WHO GIVES LIFE
AND DEATH AND HE HAS
POWER OVER ALL THINGS.”
(AL-QURAN)

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First of all we thank Allah Almighty the most beneficent and

merciful who gave us strength, patience and inspiration needed to
complete this task, which is essential requirement for the
completion of our project.

More than anybody else we would like to acknowledge SIR

ABRAR HUSSAIN, it was only due to her guidance we had
opportunity to gain the latest hand on knowledge conducting on
FINCA BANK
After her, we are highly indebted to our University of Punjab
Gujranwala Campus and faculty of BUSINESS ADMINISTRATION
DEPARTMENT for providing us the facility of doing BBA (Hons.)
We are also very thankful to all our fellows who Guide us in all the
manners we required.

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TABLE OF CONTENTS

Contents Page

 Executive Summary: ............................................................................... 10

 Introduction:.............................................................................................. 11

 History In Worldwide: ........................................................................... 12

 History In Pakistan: .................................. Error! Bookmark not defined.4

 Finca Sub Branches: ................................. Error! Bookmark not defined.5

 Finca Franchise In Pakistan: ................. Error! Bookmark not defined.6

 Mission and Vision .................................................................................. 17

 Main Services: ........................................................................................... 18

 Savings: ........................................................................................................ 18

 Loans ............................................................................................. 25

 Financial Services: ................................................................................... 31

 Clearing Department................................................................... 34

 SWOT: ......................................................................................................... 35

 Conclusion: ................................................................................................ 38

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LIST OF ILLUSTRATIONS

Figures page

 FIGURE #1: ................................................................................. 12

 FIGURE #2 : .............................................................................................. 11

 FIGURE #3: ............................................................................................... 14

 FIGURE #4: ................................... Error! Bookmark not defined.5

 FIGURE #5: ............................................................................................... 17

 FIGURE #6: ............................................................................................... 18

 FIGURE #7: ............................................................................................... 20

 FIGURE #:8…………………………………………………………21

 FIGURE #:9…………………………………………………………25

 FIGURE #10........................................................................................26

 FIGURE #11........................................................................................31

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Summary
For the last 30 years, we have been helping people reshape their lives through our
modern and innovative banking in 23 countries around the globe. Our unmatched
financial and superior customer services have earned FINCA the satisfaction of
millions of customers worldwide. FINCA is a name you can trust.

FINCA Pakistan, part of a global FINCA network, is a forward looking bank that
operates in more than 85 cities across Pakistan. We provide state-of-the-art
deposit and payment solutions including micro-credit facilities aimed at improving
livelihoods in the country.

FINCA Microfinance Bank Ltd is a licensed deposit-taking microfinance bank

regulated by the State Bank of Pakistan. FINCA Microfinance Bank Ltd offers
ATM facility and access to over 9,000 ATMs nationwide through 1Link, IBFT
facility to transfer funds among FINCA account holders and to any other 1Link
member bank accounts, online banking, instant SMS alerts on every transaction,
personalized cheque book, world class customer services and much more.

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Introduction
Bank:
Bank is the institution which deals with money it receives our deposits and provide
loan to needy people.

Finca bank Ltd:

’Foundation for Inter National
FINCA stands for ‘

Community Assistance’’
FINCA is Microfinance organization and nearly in future it will be gona
commercial. Thenit will be the one and only bank in Pakistan which performs the
functions of commercial and microfinance bank at the same time. The head office
of FINCA is in Washington DC. And their sub branches are opened in more than
23 countries including Pakistan it is the international banking change and due to
which it perform many functions of international banking easily than can’t be
performed by the other banks.

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History
FINCA’s History worldwide:

[FIGURE: 1]

 1980-1990: The Dawn of Microfinance

It is the early stage of the finca bank in which JOHN HATCH conceives Village
Banking. His plan enables poor Bolivian farmers with no collateral to access loans

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through a collective guarantee.FINCA launches its first village banking programs

in Latin America.

 1991-2000: New Continents, New Clients, New

Services
In this era FINCA co-sponsors the first-ever Microcredit Summit. The Summit
attracts practitioners, advocates, educational institutions, financial institutions, non-
governmental organizations, donors and others from around the world to coalesce
to a common goal: To eliminate poverty.FINCA launches five new programs in
Eurasia.in 1999 FINCA offers micro-insurance.

 2001 – 2010: Microcredit Comes of Age

In 2003 FINCA Afghanistan becomes the first microcredit program in the country.
Then in 2007 FINCA launches the Village Banking, a commitment to provide
financial services to one million clients living in poverty. After that in 2009
FINCA introduces “branchless banking.” Point-of-sale, ATMs and cell phone
banking programs expand FINCA’s outreach and lower transaction costs. After
offering such services in 2010 FINCA celebrates 25 years of providing financial
services to low-income entrepreneurs.

 2010-today: Meeting the Needs of a Global Market

In 2011 FINCA launches FINCA Microfinance Holding Company LLC. The first-
of-its-kind socially responsible investment partnership for microfinance. Then in
2013 FINCA reaches 1 million clients.

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FINCA history in PAKISTAN:

[FIGURE:2]

After acquiring majority shares in 2013, FINCA Microfinance Bank opened its
doors to the people of Pakistan and also became part of the FINCA’s global
family. In 2008the bank was founded with a mission to alleviate poverty in
Pakistan. Then in 2009the bank started its deposit based operations across its
branch network. After that in 2010the bank launched its ATM operations and
strengthened the branch network across Pakistan in 2011 Bank was awarded
silver award for social performance reporting from MIX market. Then in 2012
Launched gold backed lending and crossed 1 billion in outstanding GLP. After that

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in 2013 FINCA brand was launched in Pakistan as FINCA Microfinance Bank

Ltd. In the same year, the bank started offering employee banking services and the
running finance facility. And in the recent years 2014the bank crossed 75,000
borrowers across Pakistan. The network touched ‘100 location mark’ across
Pakistan. FINCA also launched agri lending, IBFT facility and the mobile banking
project; Inaugurated FINCA Pakistan’s 1st priority branch in Lahore. FINCA was
also awarded the seal of transparency certificate for the Year 2014 as a result of
participation in the transparent pricing initiative.

Finca sub branches

Finca branches on the globe:
Finca provide its services in approximately 23 countries till today and offers their
services more than 50,000 customers.

[FIGURE:3]

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Finca franchises in Pakistan:

There are more than 500 franchises of finca in all over the Pakistan. The head
office finca Pakistan is in LAHORE and there are any branches in near cities like
Gujranwala Multan Islamabad Jhelum Gujarat Faisalabad and many other cities.

[FIGURE:4]

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Mission and Vision

Mission:
FINCA’s mission is to alleviate poverty through lasting solutions that help people
build assets, create jobs and raise their standard of living.

Vision:
FINCA’s vision is to build a global network of sustainable and scalable social
enterprises that improve lives worldwide.

[FIGURE:5]

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Main services
The main services that are offered by the FINCA to their customers are as follow.

 Savings
 Loans
 Financial services

Savings
Bank account is a sort of agreement between bank and account holder
in which not only the amount but also the valuables and documents can b deposited
into the bank.

[FIGURE:6]

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Causes of opening a Bank account:

 Safety of cash:
Cash is not considered safe in houses.So people deposit
their surplus cash into the bank from safety point of view.

 Source of income:
Many people deposit their savings into the bank to
make them a source of income.

 Saving motive:
Low income persons deposit their savings into the bank to
secure their future planning.

 Facility in Business:
Many business men keep the account with bank to
make their receipt and payment easy.

 Foreign Trade:
Bank provides many facilities to make the dealing of
foreign trade easy and secure such as opening L.C etc.

Investment:
Many people deposit their money into the bank for investment
purpose.

Opening Of Bank account:

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Selection of Bank and Branch

Selection Of Account
Contact with Bank
Getting Form
Documents Attached
Specimen signature card
Issuance of Account Number
Deposit Of Amount and Documents

[FIGURE:7]

Selection of Bank and Branch:

First of all the customer has to choose the
suitable bank and the branch of the bank. The customer prefers that bank which
provides maximum facilities.

Selection of Account:
While opening an account, the nature of different
accounts must be observed.

Bank accounts in finca:

FINCA Microfinance Bank offers you competitive saving products coupled with
advanced banking facilities; such as ATM facility, IBFT facility, SMS Alerts, fast
and convenient account opening procedure, Personalized Cheque Books, FREE
banking, Online banking and much more.

Our variety of product options give you the flexibility to invest as you prefer, in
order to earn the highest profit returns. With presence in more than 85 cities and
growing, we at FINCA value your time and investment.

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Finca bank deals with different types of accounts in different countries like current,
saving, and fixed deposit but in Pakistan finca offers the following accounts.

 Sahoolat current account

 Mohafiz term deposit
 Thafauz term deposit
 Rozana munafa in Pakistan
 Aitemad bachat account

[FIGURE:8]

1. Sahoolat current account

Sahoolat current account is suitable for business community. It supports
people who are looking for banking services that provide quick solution in
transactions at minimal cost. It is convenient and fast access to money transfer

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payments to business partners across Pakistan. Current account easier the life of
trader because you withdraw and deposit money from bank at any time during
banking hours. Interest is not allow and charged on sahoolat current account.

Features:
 Personal cheque book facility
 SMS alert on every transaction
 Overdraft facility to their valuable customers
 Online banking
 ATM facility
 IBFT facility

2. Mohafiz term deposit

This account is for senior citizens, pensioners, retired military
personnel and widows. Mohafiz term deposit is ideal product for individuals who
are looking to save money and maximum return for better future.

Features:
 Senior citizens (age 55 or above)
 Profit rate up to 13.00 percent
 ATM facility across 1 link network
 Online banking
 IBFT facility
 Personalized cheque book
 SMS alert on every transaction

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3. Rozana munafa
Rozana munafa account offers you to bring prosperity in life
through profit and saving. It offers you to acquire day to day financial needs.
High rate of return make your living standard better without any transactional
limit.

Features:
 Monthly profit up to 7.5 percent
 ATM facility across 1 link
 Personal cheque book
 Online facility
 SMS alert on every transaction
 IBFT facility
 No transactional limit

4. Aitemad bachat account

Aitemad saving account is an all purpose saving account. It
allows us to safe today for brighter future with minimal transactional need.
Finca provide opportunity to customers enjoy full banking services and enjoy
decent profit at the same time. Through this account you can avail a 5 percent
profit on your minimum monthly balance. This account is opened to promote
saving in country. It is suitable for salaried and low income people.

Features:
 Online banking
 Personal cash book

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 ATM facility across 1 link

 SMS alert on every transaction
 IBFT facility

5. Tahafuz term deposit

It is a type of fixed deposit account. You invest today and take more
for flourishing tomorrow. It is for individuals, joint account holder and
companies who invest today and make your goodwill better. Bank will give you
up to 12 percent profit on this account. Usually this type of account is suitable
for rich people.

Features:
 Minimum investment of Rs 50000 with no maximum limit
 Profit rate up to 12percent
 ATM facility across 1 link
 IBFT facility
 SMS alert on every transactions

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Loans
Bank loans are available to finance the purchase of inventory and equipment as
well as to obtain operating capital and funds for business expansion.

[FIGURE:9]

Causes of landing loans:

Peoples landing loans to expand their business and some students landing loans to
build their carrier and the farmers and other workers lend loans for some specific
projects or meet the necessities of their life at that time.

Loans advances by finca:

FINCA Microfinance Bank ltd offers different types of loans specially offers for
running micro, small and medium types of loans. A little research is conducted to
introduced this products. This types of loans are established according to the
requirements of our customers and facilitate them and bring credit facilities to our

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customers. We take proud to providing the fastest turn around the time to
processing the loan applications. Our loans offers provide extra services to the each
and every customers of FINCA Bank client. Our bank give better and good
services to our clients as compared to the other banks. We give loans to our
customers as compared to their needs because they can fulfill their needs easily.
FINCA Bank offers six types of loans to our customers as compared to their needs
because they fulfill their essential needs. We offers loans to the customers as
compared to their needs. There are six types of loans are as follow.

 Kamyab Kashtkar Karza.

 Barwaqt Suneri Karza.
 Maal Maweshi Karza.
 Kamyab Karobari Karza.
 Zarai Karza.
 Enterprise Lending.

[FIGURE:10]

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1. Kamyab Kashtkar Karza:

This type of loan are issued for the farmers of Pakistan. With the help of Kamyab
Kashtkar Karza you can expand your farming business and also earn profit. And
also a enjoyable and affordable installment plan against loan. This type of loan are
issue to the farmers because they expand their business and to support our family.
In this way the people who borrow loan can improve their living standard.

Features:
 Easy to understand
 Affordable installments
 SMS alerts on every transaction
 Better living standard

2. Barwaqt Suneri Karza:

This type of loan are designed for the individuals of micro-enterprenuers both men
and women who run the business and require capital and purchasing fixed assets.
These funds are require any gold ornaments etc that customer has owns. This loan
customer can get within the 24 hours to contact with the bank after the fulfill the
some documents.

Features:
 Convenient and easy to understand
 Easy installments
 SMS alerts
 Online Banking
 IBFT facility

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3. Maal Maweshi Qarza:

Agricultural is the backbone of Pakistan economy. This sector need to
development and in this way the economy of our country are also developed. In
this way this type of loans are issues to fulfill the customer’s needs and wants and
also developed the country economy. We are offer loan to micro and small dairy-
entrepreneurs to increase their productivity or fulfills their capital needs. If the
agricultural are strong then the economy of the country are also strong.

Features:
 Easy to understand paper work
 Loan insurance
 Easy installments
 Online banking
 24 hours services
 Personal cheque book
 SMS on every transaction
 Better living standard

4. Kamyab Karobari Qarza:

This loan has been specially design to fulfill the needs of the individual micro-
entrepreneur both men and women who have running business and require capital.
Those businessmen who has interested in this type of loan can avail the facility by
completes some terms and conditions for this loan. In this way people expand their
small business and also improve their living standard.

Features:
 Easy installments
 Less interest

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 Online Banking
 Suitable for businessmen
 Expansion of business
 Easily Understand

5. Zarai Qarza:
We believe in the access to financial services for all the people. Zarai Karza is a
product to motivation to bring our services to your doorstep. If you are related to
the agriculture business or field and require a quick loan to meet your funds or
periodical business requirements or needs, you have reached the right place.
Through easy terms and conditions and flexible repayment conditions you can take
advantage of Zarai Karza. The repayment of the principal loan amount is collected
on a seasonal basis in sync with the crop cycles in Pakistan. In this way we can
developed the agricultural sectors and country economy are also developed.

Features:
 Convenient to understand
 Bullet Repayment
 SMS alert
 Online Banking
 IBFT facility
 Expansion Of Business

6. Enterprise Lending:
This type of loan is targeting toward the small and medium enterprise of Pakistan.
Interested entrepreneurs can avail the loan amount up to Rs. 500,000 from FINCA
Microfinance Bank and ensure to stable business. This facility is also available for
gold ornaments. This type of loan is suitable for businessmen.

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Features:
 Easy to understand requirements
 Easy monthly loan installments
 SMS alert
 Online banking facility
 High Living standard
 Expansion of business

Overdraft
FINCA provide over draft services to their trustful customers. The regular
customers have facility of withdraw the money more than they deposit for the fixed
period of time. Bank provide overdraf facility to the current account only.

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Financial services
Finca Micro finance Bank Limited is a licensed deposit taking bank
regulated by the state bank of Pakistan: one of the fastest growing micro
finance network with a presence in more than 85 cities. The current
rating is short term or long term.

FIGURE:11

 IBFT Facility:

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Transfer funds instantly between all 1 link member

bank within a matter of seconds.

 ATM:
Finca provides their customer to the tam facility. They can with
draw money after banking hours. And they can transfer their
money through the atm.

 Online Services:
Online Facility gives you the convenience of using your funds
anywhere in Pakistan. They can online their cash easily in business
transactions to their customers. Some times in business the
customer feel threat to take cash in travelling so they can online
their cash to their customers.

 Personalized Cheque:
Book is just the start of a warm relationship
with FINCA.A customer can only sign the cheque and give it to the bank
for the cash. It’s like an order for the payment of cash to the bank.

 OTC Bill Payment:

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It enables us to pay all your utility bill, electricity

bill, Gas bill in all over the near branches of Finca bank. It saves the
time of customers. The customer can easily paid their all the bills in that
branch. Sometimes the gas bill will not be received after the due date in
post offices. The finca provides their customers to pay their bills in their
bank after due date.

 Call Center:
Finca is now working 24/7, with qualified staff always
present to assist you with all of your queries. You can contact us at 042-
111-111-562.

 Home Remittance Service:

Now you can receive money from anywhere in the world sent via
XPress Money from all our branches throughout Pakistan.

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Clearing department
Clearing is a system by which bank exchange their cheques and other
instruments drawn on each other to clear the debts.
There are two types of clearing department.

Inward clearing:
In this department bank does payment on the behalf of the customers.
Outward clearing:
In this type bank collects on the behalf of customer.

[FIGURE:12]

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Swot analysis

Strength:
 The main strength of finca bank is to evaluate poverty from the country.
 To provide extra loans to farmers to expand their business.
 They provide better living standards to peoples.
 They work specially for the welfare of the women’s.

Weakness:
 The main weakness of the finca bank is that they are not commercial till
now.
 The other weakens of finca bank is that they provide weak online services.
 They bear high staff turnover.
 The next weakness is to they have weak management.

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Opportunity:
 They provide ATM facility 24 hours.
 They provide Xpress exchange directly from abroad.
 They work easily internationally because it is an international organization.
 They provide online banking

Threats:
 Provide small loans and expect high changes.
 They have threats of other banks because they are not commercial.
 They have threats of less advertising.
 They have threats of state bank of Pakistan to work commercial

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The conclusion to do a complete analysis of a FINCA bank is that it is the only

organization which is working internationally and many facilities of the
international banking system are provided by this bank easily. The main
purpose of the FINCA bank is to evaluate poverty rom the country and provide
many sources of working and become independent for the women’s of the
country.

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University of The Punjab (Gujranwala Campus)