Microfinance and Social Impact Investment: affecting positive change

Microfinance is a proven and effective tool to empower marginalized populations through the provision of small loans and other financial services. More than 60 percent of people in the developing world do not have access to formal job opportunities; microfinance enables the poor to generate income through self-employment.

Microfinance & Social Venture Funds

In 1997, Deutsche Bank became the first commercial bank to establish a fund to support the microfinance sector. The Bank provides loans to microfinance institutions (MFIs) worldwide and has served over 130 MFIs in 50 developing countries, benefitting as many as 3.8 million micro-borrowers. Over the last decade, Deutsche Bank has been a constant advocate in emphasizing microfinance’s essential social objectives. The Bank has used its leadership position to establish ethical principles for the industry and recently launched a fund dedicated to MFIs that pursue customer service excellence.

Due to Deutsche Bank’s investments, MFI clients in underserved areas have been able to finance and build small businesses that range from raising livestock to creating and selling traditional handicrafts. Through its work in the microfinance sector, Deutsche Bank continues to pioneer socially responsible and sustainable methods towards poverty alleviation.

Customers first

Deutsche Bank was one of the architects of the Smart Campaign, which aims to embed client protection practices within the microfinance industry. These are the principles institutions must follow:

  • Appropriate product design and delivery
  • Prevention of over-indebtedness
  • Transparency
  • Responsible pricing
  • Fair and respectful treatment of clients
  • Privacy of client data
  • Mechanism for complaint resolution

    Source: smartcampaign.org

Social Impact Investment

Social Impact Investment

It is increasingly acknowledged that governments and charities alone cannot solve global challenges. The nascent social enterprise and impact investment sectors hold great promise in enabling private capital to be used towards addressing broad societal needs. Projects emerging from both the nonprofit and for-profit sectors have the potential to generate significant social and environmental benefits while also realizing financial returns. A key challenge to the sectors’ growth, however, is an inefficient flow of capital to opportunities.

Since 1997, the Bank has been leveraging its unique platform and capabilities to develop and scale mission-driven social enterprises. Through its leadership and collaborative efforts, the Bank has explored new pathways for other investors to direct their investment capital towards societal benefit. Deutsche Bank has consistently been a pioneer in the sector in responding to new and evolving needs; the 50 million US dollars Essential Capital Fund was most recently launched in 2012 to supply high-risk capital towards the growth of early-stage social enterprises throughout the world.

Deutsche Bank’s funds have supported a wide variety of high-impact social enterprises, including financing eye care hospitals in developing countries through the Eye Fund and supporting high-quality, low-cost education in Africa with Bridge International Academies. With its innovative social finance funds, Deutsche Bank is making markets work for all segments of society.

Long-term engagement

$ 1.67 bn

financing provided to micro-borrowers by Deutsche Bank since 1997.

G8 conference addresses social impact investment

For the first time, social impact investment has been discussed at the Group of 8 conference in London on June 6, 2013. In London, several keynote speakers addressed the topic, among them Colin Grassie, CEO of Deutsche Bank UK. He outlined the scale of social problems in the UK and highlighted the critical role the private sector can play in helping to tackle these challenges.

Grassie said: “With sufficient engagement from institutions like Deutsche Bank, impact investment has the ability to become an asset class of true significance. It should be fully integrated into the business model to make it not just a ‘nice to have’ but an integral part of business.” Deutsche Bank is one of the world's largest impact investment advisors. The G8 conference is expected to help boost the growing social impact investment market by exploring issues such as sustainable agriculture, affordable housing, clean technology, and financial services for the poor.

You might be interested in

Kirill Petrenko

Deutsche Bank and Berliner Philharmoniker

For more than 30 years, Deutsche Bank and the Berliner Philharmoniker have enjoyed a close partnership. Together, we enable future-oriented initiatives that aim to give the general public access to classical music. more
Junge Deutsche Philharmonie

Junge Deutsche Philharmonie

For more than 40 years, the crème de la crème of young German orchestra musicians have joined the ranks of this award-winning orchestra. Deutsche Bank has long supported this outstanding youth orchestra. 
Junge Deutsche Philharmonie
English Theatre Frankfurt

English Theatre Frankfurt

The English Theatre in Frankfurt am Main is the largest English-language stage in continental Europe and has a broad repertoire. Deutsche Bank has supported the theatre and its educational program for many years.
English Theatre Frankfurt
Deutsches Romantikmuseum

Deutsches Romantik-Museum

Deutsche Bank is an initiative partner of the new Deutsches Romantik-Museum in Frankfurt am Main. The museum is slated to be completed in 2020. It will offer visitors a unique opportunity to delve into a key epoch of German and European intellectual history. more
This website uses cookies in order to improve user experience. If you close this box or continue browsing, we will assume you agree with this. For more information about the cookies we use or to find out how you can disable cookies, click here.