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Brief History

Netcapital Financial Corporation was established as a Non-Banking Financial Institution (NBFI) on September 09, 2008 with 100 percent private funds from two individual partners. The total capital was MNT 420 million, and on November 28, 2008 was given permission to give credit services by the Financial Regulatory Committee.

On January 01, 2009 the company started its operations with a team of five people.  And despite the fact that 2009 was a year of financial meltdown, the foundation of future success were built thanks to a concerted effort to provide microloans and currency exchange services to micro-borrowers.  From the day it was established, Netcapital operated profitably. In addition to lending services, foreign currency exchange operations became the most profitable activity.

In March 2009, the number of shareholders in the company increased to 3, resulting in a total share capital of MNT 820 million; thus creating opportunity to increase client numbers; and consequently increase loan portfolio and profitability. This increased capital allowed for numerous marketing channels to be ustilized and the portfolio grew.

Our first branch in Dornogobi province was established as part of our strategy to make microloan services easily accessible to rural customers through opening this branch in a small town.  

In 2010, by meeting the Financial Regulatory Committee minimum requirements for shareholder equity, we were able to obtain a license to expand our activities to include trust account services. As equity increased, Netcapital was able to raise funds through other means such as loans from banks, NBFIs as well as offering a closed bond in 2013.  

2012 was a year of growth as Netcapital increased disbursal and grew from less than 700 active clients to over 2100 over the course of the year.  By the end of the year the total portfolio was approximately $5 million USD.

We continue to open branches around the countryside and in the capital city in line with our mission to offer services to financially underserved entrepreneurs who find it difficult to obtain loans elsewhere. Our Internal Auditor started work in 2013 along with a designated Risk Management Director, HR Director and IT Director.  Corporate Governance was strengthened in 2013 to introduce committees to the managment level and set up a framework for a larger Board.  IT systems launched in 2013 include GrapeBank core banking software, an HRM system and a CRM system.  

As processes and policies formalization improved, and the strategic plan and business plan took shape in 2013, a more concerted effort was achieved to launch the organization positively into the future on strong footing.