Fundefir: Foundation for Rural Finance

Overview

Fundefir, The Foundation for Rural Finance, is a Venezuelan organization that is innovatively addressing the financial needs of the poor. Fundefir establishes communal banks, which are banks run by community residents to serve their local financial needs. By creating an integrated financial service rather than solely providing credit, Fundefir gives bank members simultaneous access to savings, investment, and credit.

Mission

With the mission of stimulating investment and providing credit opportunities, Fundefir has established a network of over 80 communal banks. These banks transform community financial and human capital resources into high quality financial services.

Program

Fundefir's approach of communal banking is helping organize thousands of poor throughout Venezuela to form small banks and reap the resulting financial benefits. Fundefir's model is also distinguished by its specific innovations, which include using community residents’ savings to finance loans, providing loans for a variety of purposes, serving both genders, disbursing dividends, and building human capital in communities. This microfinance model is a new and highly effective approach to grassroots economic development.

Impact

Without Fundefir’s involvement, it would be difficult if not impossible for community residents to access savings, investment, and credit services. Additionally, bank members benefit from enhanced financial literacy and leadership opportunities offered by the communal banks.

Countries of Operation

Venezuela