Global Microfinance Group SA is a Swiss holding company formed in July 2004 to bring private capital to profitable growth opportunities in the rapidly expanding microfinance industry.

The mission is to induce economic development by resolving capital constraints to growth for micro and small businesses, while providing competitive returns to investors through a sustainable business model.

Funded by a diversified base of private and institutional investors, GMG focuses investments in new or existing specialised institutions that provide financial services to micro and small businesses.

Business Strategy


GMG actively seeks or creates opportunities by either acquiring/buying into existing microfinance entities or starting new institutions. Positioning itself to take advantage of openings for growth (through start-ups) and consolidation (through buy-ins/buy-outs), GMG can facilitate access for private investors to high-return investments on the ground.

GMG thus differs from many of the existing microfinance funds in that it does not wait for profitable investment opportunities to come its way; rather, it has or develops the institutional capacity to create such opportunities by establishing greenfield institutions in promising markets. The hands-on, buyout approach that GMG would like to apply to institutions that have turnaround potential or operate in markets ripe for consolidation - while typical of mainstream private equity funds - is also rather novel in the microfinance industry.

GMG operates as a single platform for funding, building and managing microfinance institutions. In this way, GMG expects to be able to:

- provide a gateway for private investment in a global portfolio of micro and small business banks;
- exploit economies of scale by spreading costs and sharing best practices across portfolio banks;    and
- diversify risk across investments in different geographical markets.

The long-term aim of GMG is to develop a diversified portfolio of micro and small business banks in emerging markets worldwide, moving forward with at least two new investments in greenfield or brownfield institutions per year. Once GMG has acquired the necessary scale, GMG and the underlying operational entities will seek to tap capital markets for debt and/or equity to finance future growth, thus providing investors with enhanced investment opportunities and attractive exit possibilities.

Value Proposition


The value proposition of GMG lies in supplying capital, know-how, management talent and corporate governance to new or early-stage microfinance institutions with significant growth potential. Its hands-on approach leverages the project management skills and financial expertise of a management and advisory team with a combined track-record of 100 years of relevant experience. In this way, GMG provides a gateway for private capital to attractive investment opportunities in nascent microfinance institutions. The business model of GMG exploits economies of scale by spreading costs and sharing best practices across invested companies, while at the same time diversifying risk through investment in several geographical markets.

To provide the necessary ingredients for profitable and sustainable growth, professionals from the GMG team (or from its contact network) will be seconded to the operational entities on a long or short-term basis, in order to develop local managers and institutionalise the required knowledge base.

GMG will set up or refine credit processes and procedures; implement appropriate information systems (either its own proprietary software or, if required, more comprehensive IT solutions); and generally establish or restructure an operating model that has been tested successfully in a variety of markets and with different organisations (see Locations and Projects). GMG will closely supervise its evolving portfolio of microfinance companies and play a key role in defining their corporate strategy. Members of the team will take at least one position on the Board of Directors of investee institutions.

Microfinance Strategy, a consulting company working closely with GMG, will support its investments with human resources and know-how. Microfinance Strategy and its consultants have carried out financial sector and microfinance projects for clients such as IADB, KfW and EBRD in Latin America, Asia and Eastern Europe and strategy projects for DAX-30 and other corporations in Western Europe.

Information Systems


GMG System®

Information technology is a key component of the operating model. GMG has developed GMG System®, a proprietary software package providing for the client and credit portfolio management of microfinance institutions. The system has been perfected through experience gained by years of on the ground application.

Four modules constitute the core of GMG System® and cover the principal information requirements with respect to clients, loans, payments and reporting. The system provides standard and customised reports in real-time, which is crucial for loan collection and general loan portfolio administration. Information can be accessed from different geographical locations, thus allowing branches to operate with minimal IT infrastructure while enabling data consolidation at headquarters in real-time.

The platform used for the system architecture provides for communication through local LAN, Internet and WAN networks. Different types of ’client interfaces’ (e.g. pocket PCs and desktops with MS Windows) will be able to access the system, thus providing the required flexibility for future process innovation.

The technology underlying GMG System® has a number of important features:

- Flexibility in expanding the number of applications, users and data processing capacity
- Ability to process and store practically unlimited transaction volumes
- Easy use in different geographical locations at low additional cost
- Continuous transaction capability, even with temporary server disconnections; and
- Efficient communication via Internet

Future development should allow GMG System® to run exclusively on Internet connections, as well as facilitating the provision of online banking services. Modules for new banking products (e.g. deposits) and additional functions (e.g. accounting) are also likely to be developed in the future.