In 2001, XacBank (pronounced “hahs bank”) was created as the result of a merger between two of the largest non-bank financial institutions in Mongolia – X.A.C., (a Mongolian acronym for “Golden Fund for Development”) started in 1998 under UNDP’s MicroStart Mongolia project, and Goviin Ekhlel (Mongolian for “Gobi Start”), established by Mercy Corps in 1999 as part of USAID’s Gobi Initiative project.

It currently serves approximately 16,000 micro clients at 76 branches in all 21 aymags (provinces) in Mongolia, making it the largest microfinance institution in the country.

XacBank’s successful transition from development project to a profitable, commercial bank with a social mission is a model in the world of microfinance. An innovative and dynamic approach has allowed the Bank to continue to thrive in Mongolia’s increasingly competitive financial services environment.

Vision: XacBank will be the dynamic leader in providing inclusive financial services and innovative products through an extensive network of branches and partners. The Bank will further grow its market share and support the development of competitive Micro, Small and Medium businesses in Mongolia by using the information communications technology together with personalized customer services.

Mission: To contribute to the sustainable development of Mongolia that can come only from educated and skilled people and competitive and dynamic businesses concerned equally about Planet, People, and Profit. The Bank will provide equitable access to transparent, reliable and responsive banking products and services to the Bank’s clients, including its traditional Micro-entrepreneurs as well as Small and Medium businesses.

Credo: We believe our first responsibility is to our clients – rural and urban residents of Mongolia micro and small business people, herders and employed people without conventional access to financial services.

• In meeting their needs, everything we do must be of high quality.

• We must constantly strive to reduce our costs in order to maintain reasonable prices.
• Client’s orders must be serviced promptly and accurately in a friendly fashion.
• Our business partners must have an opportunity to make a fair return.
• We are responsible to our employees, men and women, who work with us throughout Mongolia.
• Everyone must be considered as an individual.
• We must respect their dignity and recognize their merit. • They must have a sense of security in their jobs.
• Compensation must be fair and adequate to performance
• Working conditions must be clean, orderly and safe.
• We must be mindful of ways to help our employees fulfill their family and social responsibilities.
• Employees must feel free to make suggestions and complaints.
• There must be equal opportunity for employment, development and advancement, adequate to qualification and performance.
• We must provide competent management, and their actions must be just and ethical.
• We are responsible to the communities, in which we live and work.
• We must be good citizens – abide by the laws, support good work and charities, and bear our fair share of taxes.
• We must encourage civic improvements and better health and education.
• We must maintain in good order the property we are privileged to use, protecting the environment and natural resources as our own.
• Our final responsibility is to our shareholders.
• Business must make a sound profit.
• We must experiment with new ideas.
• Research must be carried out, innovative programs developed and mistakes paid for.
• Reserves must be created to provide for adverse times.

When we operate according to these principles, our clients will benefit from our services, our employees will have higher morale, and shareholders should realize a fair return, which should lead to development of Mongolia.

XacBank on Kiva:

At the end of this loan, non-delinquent borrowers will be given back 9% of the interest he or she paid, due to the 0% interest capital XacBank received from Kiva. The repaid interest will be placed in a XacBank savings account, giving the borrower an additional financial tool.

Make a loan to a Mongolian borrower here

Join the Mongolia lending team here 

To learn more about XacBank, visit their website here 

August 9, 2011

XacBank has $24,281 in loans on Kiva currently in arrears out of a total outstanding portfolio of $1,370,913. As a result, its delinquency rate as expressed on the Kiva website is currently 1.77%.

Kiva is working closely with XacBank to get outstanding repayments cleared and repaid to Kiva lenders, and hope to receive the expected payment soon. Once this payment has been received and distributed to Kiva lenders, XacBank's delinquency rate as expressed on the Kiva website should fall to a rate that reflects the amount that borrowers have yet to repay. 

We will keep this page updated as new information becomes available.