OXUS Network


13 April 2018

OXUS Kyrgyzstan exceeds 6,000 active clients

Founded in 2006, OXUS Kyrgyzstan had its first profitable year since 2012 and for the first time exceeded the number of 6,000 borrowers in 2017.

Whilst the Russian crisis of 2015 posed challenges for OXUS Kyrgyzstan, the MFI has experienced the most successful period in its 12-year history; a net income more than USD 55k marks the most profitable year ever, and for the first time the number of 6,000 clients has been exceeded. Moreover, the MFI is currently opening two new branches to respond to the all-time high demand for its services. These new branches are located in areas of low credit penetration, according to OXUS Kyrgyzstan’s social mission.

Interview with CEO Denis Khomyakov

What is the recipe for OXUS’ success in Kyrgyzstan?

Key is the dedicated staff, who contribute to the development of the organization with all their efforts! Secondly, our good relationship with investors, fostered with the assistance of Mr. Duquet (CEO Oxus Group), is one of the central pillars of our success. At this point, I would like to thank several of our funding partners that were key in enabling us to finance more microentrepreneurs: Grameen Credit Agricole, Alterfin, ADA, Symbiotics, Invest in Visions, Incofin, and others. Moreover, we established relationships with a number of local banks and international MiVs, and the support we get from them is truly making a difference for us.

What are you doing different to other MFIs?

Being small in size compared to some large microfinance actors in Kyrgyzstan, we follow the precept “small is beautiful”. This enables us to pay a lot of attention to the communication with the client by giving every interaction a human approach.

One of the first clients

This entails talking to all clients in their respective language and using tailored services, which are needed by the client. Moreover, we are quite fast in disbursements – the biggest part of our loans are disbursed within 24 hours. Another central element of our strategy is to provide a lot of training to empower all of our staff members.

What is the importance of the recent branch opening? Is it part of a wider strategy?

We increased the presence in the city of Bishkek by opening structural units at Alamedin market (2017) and Osh market (2018). The Kara-Suu structural unit will support our expansion within rural regions to serve more agricultural and rural clients. For 2019, we plan to open two new points in the country.

With new branches we expect to increase the outreach. The openings in 2017 and in 2018 are the first points of sales after the consolidation of the company focusing on optimization of the network structure, processes, staff allocation, and investors’ relations. This is a strong message towards stakeholders and staff about the future of OXUS in Kyrgyzstan.

OXUS Kyrgyzstan’s number of active borrowers grew by 14% in 2017 and for the first time exceeded 6,000. How was this possible?

The number of clients was reached due to the hard work of the field staff in acquisition and fast disbursements. Changes towards a less collateral approach simplified the process and gave clients the possibility to take loans only with one guarantor. The affordable funding in 2017 allowed us to decrease the interest rates and be more attractive to clients as well.