In May 2005 KfW Development Bank commissioned LFS to implement a microfinance training and institution building project at the non-bank financial institution in Mongolia, in connection with a credit line.
The institution was established by the EU TACIS Programme in 1999, with the aim of promoting the Mongolian SME sector by granting loans to small and medium-sized business. The objective of the KfW project was to help the institution expand its business into microfinance by the design and implementation of new products for micro entrepreneurs.
For this purpose, LFS was responsible for capacity building and the establishment of a fast growing and high quality micro loan portfolio. LFS services comprised advice to the management and shareholders to improve corporate governance, design and implementation of a competitive micro lending technology, product development, training of loan officer and management and the regional expansion of micro lending into five branches of the partner institution. Furthermore, we developed a strategic business plan and implemented an appropriate Management Information System.