To boost digital lending for women and small businesses in Mongolia, IFC provides M bank $30 M
The first digitally oriented bank in Mongolia, M Bank, received $30 million from the International Finance Corporation (IFC) in order to expand digital lending to women and small businesses in the nation.
IFC said in a statement that the two have teamed up to launch an innovative program in Ulaanbaatar with the goal of expanding digital lending for small and medium enterprises (SMEs) in Mongolia, including women-owned businesses.
The program is a component of IFC’s ongoing initiatives to support the nation’s financial sector in becoming more inclusive and sustainable.
M Bank will receive up to $30 million in funding from IFC, with 25% of the funds designated for SMEs run by women.
IFC and M Bank have been collaborating as part of the program to increase the range of SME finance and supply chain finance goods and services that they offer.
In order to support M Bank in creating and implementing an environmental and social management system, IFC will also offer technical advice.
About 70 percent of the workforce and 17.8 percent of the GDP of Mongolia are employed by SMEs, of which two thirds are owned by women.
Only roughly half of SMEs in the nation receive bank financing support, making it difficult for them to obtain financing.
In 2019, the World Bank Enterprise Surveys found that 31% of Mongolian businesses surveyed reported having full credit constraints—a higher percentage than the average for other East Asian and Pacific nations.
“At the forefront of digital transformation in Mongolia, M bank is optimistic that our partnership with IFC will further enhance our digital lending capabilities and provide tailored financial solutions to customers across the country,
“We are also excited to pilot specific financial services for local businesses and merchants participating in supply chain.” said Temuulen Batmunkh, Deputy Chief Executive Officer, M bank.
The statement claims that since acquiring its commercial banking license in February 2022, M Bank has expanded quickly.
As of December 2023, M bank, which has almost 40,000 borrowers and total assets of over $200 million, is fully owned by MCS Group, one of the biggest corporations in Mongolia. The bank aims to expand by utilizing MCS Group’s nationwide network.
“Mongolia, as the most sparsely populated country, can greatly benefit from digital solutions to expand access to essential services nationwide,
“We are excited to leverage our capital and expertise in supporting a digitally-focused bank in the country to promote market competitiveness and inclusive economic growth,” said Rufat Alimardanov, IFC Resident Representative for Mongolia.
