Ulaanbaatar is cold. Home to XacBank, an early Vittana partner and MIX Global top 100 microfinance institution (MFI), Mongolia’s capital city topped out at 10 below zero during my visit two weeks ago. As I walked from my hotel to the XacBank office for the first time, my breath short in the dry, freezing air, I found myself at the gates of the Mongolian University of Science and Technology (MUST). Gaggles of young people clogged the sidewalk, all of them chatting, clutching books and backpacks, and, inexplicably to me, in no rush to get out of the cold. Weaving through the groups of students was a perfect welcome to the city, and it was fun to think that Vittana borrower and MUST student Nandin-Erdene might be among them. With a smile frozen on my face, I hurried the rest of the way to the office to meet the team at XacBank.
XacBank Headquarters in Ulaanbaatar
When it comes to using microfinance to lend to students, XacBank is ahead of the curve. The MFI piloted a tuition loan product in 2007, and were able to bring the program to scale by 2008. By the time XacBank began working with Vittana in late 2009, they had built up a tremendous body of knowledge about in the ins and outs of student lending—how to research the market, how to connect with younger clients and their families, and how to structure a product that is both useful and affordable. One of Vittana’s most valuable contributions to the field of microfinance is our ability to serve not only as a source of expertise on student loans, but also as a conduit for information to be shared between microfinance institutions. Through Vittana, XacBank’s successes and failures in building a student loan program, become relevant not only to the students of Mongolia, but also to students in places like Peru, Vietnam, and Cambodia.
With a strong student loan program already in place, the XacBank will use its partnership with Vittana to reach even more students. Vittana capital will also allow XacBank to offer students an incentive for timely repayment—at the end of the loan term, XacBank will open a savings account in the student’s name and deposit 9 percent of the interest paid on the loan. So what better way to get the word out than a Vittana Opening Ceremony?
Deparment Director Munhsayhan; Vittana student Odontuya; Vittana Coordinator Densmaa; Partnerships Manager Nick Cain
With two Mongolian television networks, over one hundred students in the audience, and a handful of government officials in attendance, we definitely got the word out. Students in Vittana shirts roamed the schools halls handing out pamphlets and encouraging their classmates to drop by the event. With the room full, and after remarks from XacBank’s CEO and the school’s president, Vittana student Odontuya took the stage to tell the students in attendance about her experience as a Vittana borrower. Afterwards, she was even interviewed by the local news channel. With Vittana all over the local airwaves, XacBank is sure to see an increase in demand, so be sure to keep an eye on our website for opportunities to fund more outstanding Mongolian students!
Odontuya being interviewed about Vittana on Mongolian television.
Vittana banner at the opening ceremony.
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