XacBank

XacBank was established in late 2001 as a result of merger of the two largest non-banking financial institutes in Mongolia, “Goviin Ekhlel” LLC and “X.A.C” LLC,. XacBank was the first non-banking financial institutes in Mongolia to receive Banking license from Bank of Mongolia. Goviin Ekhlel LCC was established by Mercy Corps in December 1999 with funding from USAID as a non-banking financial institute serving small and medium-sized enterprises. X.A.C., LLC began in 1998 under the Micro Start Mongolia Project under UNDP, later transformed into Mongolia’s first non-banking financial institutions by uniting the financial services activities of six local NGO’s.

After its establishment, in 2002 XacBank made its head start to become national bank by maintaining its presence in every province of Mongolia. XacBank introduced the “Future Millionaire” children’s savings which later became National Brand owned by 1 in 5 children in Mongolia. In 2004, IFC invested in XacBank, by which the Bank became the first domestic commercial institution to receive high-profile international funding. The Bank joined Global Reporting Initiative and UN Global Compact principles to improve corporate transparency and CSR management. It has been named as one of the top 100 microfinance institutions globally by Forbes magazine in 2007. XacBank was the first bank in Mongolia to receive international ratings from Moody’s Investors Service as well as the first bank to establish Customer Contact Center delivering customer services via online and by telephone. In 2008, XacBank launched ATM, internet and message banking service as part of the Nomadic Banking drive to make banking services accessible to the most remote parts of Mongolia. In 2009, XacBank successfully made its first step into an operational expansion outside of Mongolia by investing directly to Molbulak Microfinance Institution in Kyrgyzstan.