Project detail - JSC CREDO BANK-Nasira portfolio

Who is our customer?

Credo started operations as a foundation in 1997. It transformed into an MFO in 2005 and received its full banking license in 2017. In 2021 they successfully acquired Finca Bank Georgia (FBG) and now ranks # 5 in terms of loan portfolio (USD 751mln in FY2023) and # 7 in terms of assets out of 14 banks in Georgia. Credo’s core focus is to provide sustainable financial services for MSMEs, with 55% of the loan portfolio represented by microloans and 26% by SMEs. Credo has a wide regional outreach through its 87 branches and offers its more than 350,000 clients specialized products serving the needs of Georgian micro businesses, most of them being active in agriculture (~40%) and rural areas; 52% of them are women-led businesses.

What is our funding objective?

General Objective. Enhancing Credo’s capabilities to offer innovative, efficient, and customer-centric financial services to the Nasira target end-borrowers. This is an umbrella project that contains four sub-projects, each of those having specific objectives as follows: 1. Operational efficiency. Boosting efficiency in customer interactions and improving strategic decision-making by aligning the CRM with the bank’s Key Performance Indicators (KPIs). Currency, Credo lacks a Customer Relationship Management system (CRM) that offers valuable insights to better serve its client base. Consulting services are requested to develop tools that enable the bank to: - Run data-driven automated and targeted marketing campaigns. - Centralize a sales pipeline database, available, to enhance the Customer Experience (CX). 2. Improving the understanding of key market segments. Two market scans will be commissioned to better understand commercial preferences, behaviors, market sizes, priority sectors, and distribution strategies that could help the bank further accelerate the onboarding of clients in the MSME and youth spaces, which are both core Nasira beneficiaries. The expected outcome is a more robust product offering responding to the current demand for financial products in the entrepreneurial and MSME spaces. 3. Increasing staff retention and employee satisfaction. It’s a comprehensive training package including: - SME Officers. The focus is on Improving the sales and negotiation skills of MSME loan officers to better engage clients and drive revenue. - Leadership Development for middle managers, with an emphasis on strengthening leadership, communication, and emotional intelligence among mid-level managers to prepare them for senior roles and enhance the bank’s operational efficiency. - Tech Team. It will be centered around building the skills of Credo Bank’s technical team to promote innovation, digital transformation, and independence from external vendors. 4. Proce

Why do we fund this investment?

Credo Bank is a long-lasting client that has received TA support in the past, which helped the organization transition from a Microfinance Institution (MFI) to a commercial bank. In this new phase, the Bank has requested support to strengthen its operations through a multidimensional approach that encompasses people, products, and processes. From an impact perspective, this project would signify a significant leap for Credo to be able to build up a more robust portfolio and better manage it. Ultimately, this will result in better products and services for core Nasira end-borrowers: the youth, companies operating in agri-value chains, and female-led businesses and micro-enterprises.

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Date	Total FMO financing
7/24/2024	GEL 32.24 MLN
7/24/2024	GEL 1.23 MLN