Our key differentiators

Socially responsible services

Through the ASA Model of Microfinance

Through its heritage and close association with ASA, the Association of Social Advancement, based in Bangladesh, ASA International has a long heritage in the microfinance industry. From inception, we benefited from early access to ASA NGO Bangladesh’s know-how, industry technical expertise and experts. ASA International was founded to adapt the ASA Model to fit the diverse countries in Asia and Africa where we offer microfinance services. The ASA operating and lending model is focused around six distinctive features, emphasising our social responsibility commitment to both clients and staff:

• Loans with market-based interest rates
• Group selection without joint liability.
• Collateral-free loans with a moratorium on loan repayments in emergency situations.
• Loans for primarily income-generating activities.
• Full repayment before qualifying for new loans and repeat loan cycles with set limits.
• Training and development of operating staff in-house and no bonus incentive.

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Diversified risk profile

Due to presence in thirteen emerging and frontier markets

ASA International’s overall risk profile is diversified across thirteen markets in Asia and Africa. The impact of principal risks on the business is different at any given time from country-to-country, which provides a powerful risk mitigation effect.

The risk management features embedded in the ASA Model, such as managing credit risk, have a positive impact on ASA International’s financial and risk profile. In 2024, as a result of the inflationary environment and currency depreciations, the liquidity, exchange rate and inflation rate risks remained elevated.

The addressable market is estimated at 376m prospects in existing countries of operation, according to the World Bank. The Group is well placed to capture this significant breadth of market opportunity by continuing to increase its penetration in current as well as in future markets in Asia and Africa.

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Proven credit methodology

As a result of staying close to clients

Managing credit risk is an integral and essential part of ASA International’s operating and business model. Loan officers foster close client relationships, quickly identifying repayment or other issues, as well as disbursing new, larger loans to qualified clients over time.

The client assessment and admission process may take up to 14 days for a first cycle loan, ensuring only clients committed and able to grow their businesses are accepted and protecting clients from becoming over-leveraged.

The credit methodology results in low credit losses, which in combination with the low cost of operations, leads to attractive financial returns.

Highly scalable

Decentralised business model

Our experienced management team makes sure the ASA Model is executed in a disciplined way across all of our markets. The operations are highly standardised through the use of an operations manual and are almost identical across all operating markets. Client selection and loan sizes are decided at the branch level.

Supporting the branch model, a digital channel will also be introduced via mobile devices, market-by-market over the coming years as part of our digital transformation strategy. Over time, we also aim to take deposits more widely from clients, which will increase the closeness of the client relationship and reduce the overall client risk profile. As part of the deposit strategy, ASA International is in the process of ensuring we have deposit-taking licences in all operating subsidiaries. Six countries currently have obtained deposit-taking licences.