Market research on micro pensions in Mongolia

22-Oct-2010    Together with local partner XacBank, the P&D Network is developing a market study to research the possibilities of implementing a micro pension provision in Mongolia.

XacBank, founded in 1998, is a community development bank and microfinance institution in Mongolia, and is headquartered in Ulaanbaatar. XacBank aims to contribute to the socio-economic development of the country while creating a fair value for its shareholders, through providing inclusive, value adding, and reliable financial services to all people and entities of Mongolia. 

A mission of the Pension & Development Network, consisting of senior consultant Mr. Joep Schouten and P&D Network Programme Manager Mr. Boudewijn Sterk, visited XacBank in June 2010. The origin of this visit lies with the initial contact between PDN and XacBank, in which the XacBank showed interest in developing and implementing a micro pension product for its clients with the assistance of the PDN. After a meeting with Mr. Ganhuyag (CEO of Tenger Holding) in May 2010 in Amsterdam, the Netherlands, the PDN decided to send a delegation to Mongolia to analyze the possibilities of developing and implementing a micro pension product for the Mongolian market and get a clear view of the Mongolian economy, society and culture.

Mongolia, the size of Western Europe, has a population of around 2.7 million people, with one of the lowest per person density ratios in the world, which makes the operation of a pension provision quite complex. In order to develop a sustainable and marketable micro pension provision for the Mongolian market, more information on the socioi-economic background of XacBank's clients is needed. For this purpose the P&D Network is currently developing a market research (feasibility study), aimed to be conducted in the first quarter of 2011.


By number of branches and infrastructure, XacBank is the 3rd largest bank in Mongolia, with more than 70 branches located in all aymags (provinces) of the country. With 70% of its clients living in the rural areas, Xacbank has successfully implemented franchising, saving and credit cooperatives, as well as a mobile banking scheme and a newly projected Nomadic Banking - mobile phone based banking solution, to assist and reach the banked and unbanked clients in the most remote areas of Mongolia. 

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