Financiera Compartamos (FC) started as a project in 1990 to provide help and support for economically disadvantaged communities. Its rapid growth led to its transformation into a financial institution Financiera Compartamos 'S.A. de C.V., S.O.F.OL.' in 2000. At the beginning of 2001, FC had approximately 67,000 clients. It aims to ultimately reach over one million clients. FC has operated on a self-sufficient financial basis since 1997. Although the overwhelming majority of its clients are part of the "Generadoras de ingresos" (village banking-like methodology), FC serves a growing clientele of urban borrowers in Mexico City through individual loans and "solidarity" groups of approximately five members. FC has 32 branches located in 10 states and Mexico City. Four of these states are ranked amongst the poorest six in Mexico.
Mission: The mission of FC is to provide financial services to disadvantaged people. The main objective is to create opportunities for economic growth and promote personal and social development of their clients.
Targeting Methodology: FC works with enterprising individuals who live in unfavorable conditions. These men and women operate microenterprises that usually employ one or two people of the same family. Most FC clients live in rural areas and are involved in different economic activities. The only direct targeting criteria set by FC is with the "Generadora de Ingresos" product, in rural areas. This is only available to women, preferably to those with a microenterprise. Indirect targeting methods include small loan sizes and requirements of attendance at weekly meetings.
Results of the Poverty Assessment of Clients: The figure below shows the poverty level of clients relative to the population they are in (non-clients). The population (non-clients) is divided into three equal terciles - the poorest third, the less poor, and the better off. Slightly over 25% of clients were ranked in the poorest poverty tercile, compared to 33% of the general population. Within the middle tercile registering less-poor households, clients made up 24% and in the better off tercile, they made up 50%. Compartamos clients thus tend to be less poor than non-clients.
Percentage of clients within the three poverty groups
However, it is important to point out that four out of the five states that the survey was conducted in, ranks as the most impoverished states in Mexico. FC clients, though generally better off than non-clients, are therefore amongst populations in the poorest regions in Mexico. Additionally almost all FC clients have no other alternative sources of financial services. This is primarily because of their economic conditions. FC, therefore has provided an extremely useful service in extending financial services to the un-served and underserved. Given its strong financial performance it would seem that it is a service that is highly valued by its clients.