XacBank

XacBank

File:Xacbank Logos-01.jpg XacBank
Industry	Financial services
Headquarters	Ulaanbataar , Mongolia
Key people	Bold Magvan (CEO)
Services	Banking
Website	www.xacbank.mn

XacBank (Mongolian: ХасБанк) is Mongolian banking and financial services company headquartered in Ulaanbaatar. XacBank was founded in 2001 following the merger of “Goviin Ekhlel” LLC and “X.A.C” LLC, two largest non-banking financial institute in Mongolia. The Bank serves individual consumers, small and medium-sized enterprises (SMEs) and corporate customers by providing full range of banking, insurance and other value add financial products and services. The Bank provides financial services through an extensive national branch network of 86 retail and 2 business service branches along with digital channels including ATMs, Internet and Mobile banking with team of 1,700 employees serving 700,000 customers all over Mongolia.

History

1998-2001

XacBank was established in late 2001 as a result of merger of the two largest non-banking financial institutes in Mongolia, “Goviin Ekhlel” LLC and “X.A.C” LLC,.XacBank was the first non-banking financial institutes in Mongolia to receive Banking license from Bank of Mongolia. Goviin Ekhlel LCC was established by Mercy Corps in December 1999 with funding from USAID as a non-banking financial institute serving small and medium sized enterprises. X.A.C., LLC began in 1998 under the Micro Start Mongolia Project under UNDP, later transformed into Mongolia’s first non-banking financial institutions by uniting the financial services activities of six local NGO’s.

2001-2010

After its establishment, in 2002 XacBank made its head start to become national bank by maintaining its presence in every province of Mongolia. XacBank introduced the “Future Millionaire” children’s savings which later became National Brand owned by 1 in 5 children in Mongolia. In 2004, IFC invested in XacBank, by which the Bank became the first domestic commercial institution to receive high profile international funding. The Bank joined Global Reporting Initiative and UN Global Compact principles to improve corporate transparency and CSR management. It has been named as one of the top 100 microfinance institutions globally by Forbes magazine in 2007. XacBank was the first bank in Mongolia to receive international ratings from Moody’s Investors Service as well as the first bank to establish Customer Contact Center delivering customer services via online and by telephone. In 2008, XacBank launched ATM, internet and message banking service as part of the Nomadic Banking drive to make banking services accessible to the most remote parts of Mongolia. In 2009, XacBank successfully made its first step into an operational expansion outside of Mongolia by investing directly to Molbulak Microfinance Institution in Kyrgyzstan. XacBank’s Eco Banking Department, established in 2009, is the first and only private banking unit in Mongolia dedicated solely to providing environmentally sustainable financial solutions. XacBank, focusing on its triple bottom line of Planet, People, and Profit, has become the leader within the Mongolian banking sector in providing access to credit for consumers and businesses looking to improve energy efficiency or bring clean technologies to the Mongolian market.

2010-Present

Aflatoun, the financial education program initiated by XacBank for children age of 8-14 was first implemented in 2010. Since then it has been reached to over 38,000 children in Mongolia. XacBank was the first bank in Mongolia to develop the mobile banking app. The Bank set Trade financing services and correspondent banking relationships with CommerzBank, Korea Exchange Bank, Bank of China and Sumitomo Mitsui Banking Corporation. For the first time in Mongolia, in 2013, XacBank has issued USD 9.8 million corporate bonds on the Luxembourg stock market, in cooperation with Symbioticks Microfinance Fund. Cooperation Agreement has been signed with German DEG and BIO financial institution from Belgium, to act as security trustee bank. XacBank welcomed National Bank of Canada (NBC) as its newest shareholder in 2015. The investment in XacBank was made through the holding company of XacBank - TenGer Financial Group (“TFG”). NBC’s investment in XacBank and TFG is the first investment by a foreign commercial bank in the financial sector of Mongolia. Through XacTugul Campaign for tree planting, XacBank has created 27 meadows in 21 province by planting more than 32,000 trees. For the social performance of the Bank , Planet Rating, the global microfinance rating agency granted grade ‘4’ Satisfactory to XacBank. This rating is considered among the highest in Asia and among the top 15 worldwide. By the Planet Rating’s ranking, XacBank has been awarded with Client Protection Certification on 25 August 2015 as the first organization in Mongolia to implement The Smart Campaign’s Client Protection Principles.

TenGer Financial Group LLC

Founded in 1999 as one of the first non-bank financial companies in Mongolia and was initially known as Goviin Ekhlel. It then became a holding company of XacBank upon the merger of Goviin Ekhlel with X.A.C. (Golden Fund for Development) two major non-bank financial institutions in 2001, which created XacBank and X.A.C.-GE Holding. X.A.C.-GE Holding was renamed TenGer Financial Group. It is a parent of XacBank and other companies such as Tenger Insurance, ХасLeasing and ХасSecurity.

TenGer Financial Group's shareholders comprise well known international institutions, such as IFC, EBRD and Mercy Corps, and local business entities.

On September 3, 2012, TenGer established the first Sino-Mongolia Micro Finance Institution along with four other investors such as IFC. With the combined international microfinance knowledge and experience of its investors, TianRong is in a unique position to lead in the microfinance sector in Xinjiang, China and elsewhere in Central Asia.

Products and Services

XacBank’s core products include current and savings accounts, various credit and lending products, as well as both domestic and international remittances.

Moreover, XacBank provides not only credit and debit card products such as MasterCard and VISA card being an associate member of these organizations, but also, popular international remittances and settlements through SWIFT, EUROGIRO and Western Union being a principal member of these networks.

The main product categories

• Deposit
• Loan
• Leasing
• Remittance
• Electron banking
• Trade finance
• Training and Consulting

Main Funding Sources

• Loans
• Savings
• Shareholder capital

Largest funder

• TenGer Financial Group LLC

Network

Primary network

MFC (Microfinance Centre for Central and Eastern Europe and the New Independent States), EuroGiro network, Western Union, Swift network, GRI (Global Report Initiative)

Secondary network

MasterCard Worldwide, Visa International

Honorable Mentions

In 2008, XacBank had the privilege of co-hosting the 11th Annual Conference of Microfinance Institutions, under the patronage of the President of Mongolia, where MFC (Microfinance Centre for Central and Eastern Europe and the New Independent States) held its first ever conference in Central Asia. The microfinance industry is maturing, and the conference addressed the changes taking place, with investors arriving on the scene in force, and the need for traditional MFI models to upgrade with new technology and business practice. Microfinance generally refers to loans, savings, payments, and insurance services targeted at low-income clients.

See also

• List of banks
• List of banks in Mongolia

References

MicroFinanceFocus.com

External links

• XacBank.com XacBank official site
• TenGerFinancialGroup.com, TenGer Financial Group official site