2008 - 2010

Upgrading: Transformation of an NGO into a Regulated Financial Entity


Starting in 2008, LFS supported one of the largest NGOs in the Colombian microfinance sector in its intention to transform itself into a regulated financial entity. 

In the first phase of the project, LFS elaborated a strategic plan for the transformation of the partner NGO into a microfinance bank. This included the elaboration of a business plan with 5-year financial projections, a feasibility study of the planned transformation for the supervisory authority, and a plan of consultancies to support the transformation. 

In the second phase, we supported the partner insitution in the strengthening of its credit business and credit risk management function. This involved advice on the improvement of credit policies, processes and procedures, the redesign of training for credit staff and the preparation of a model for the management of credit risks, in line with the requirements of the Central Bank. 

With this support, the partner institution was ready to finalize its transformation into a microfinance bank and to start offering deposit services to its customers.