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printNov 07, 2007
As part of its strong commitment to Social Responsibility, JPMorgan has announced that it is launching a Social Sector Finance unit in the Investment Bank. The newly created SSF unit will leverage JPMorgan's products and skills to help bring financial services to microfinance and social enterprises around the world. The scope will include capital markets, structured products, and principal investments. The unit will seek to achieve a double bottom line of social benefit and financial returns.
There is not only an urgent need but an extraordinary opportunity to bring financing to microfinance institutions and social enterprises in developing markets. Nearly 3 billion people lack access to basic financial services or face prohibitive costs in terms of interest rates, risk, and convenience. Potential demand for sustainable financial services is immense, at an estimated $300 bn. With growing amounts of private capital looking to be put to work in socially responsible ways, JPMorgan has the opportunity to use its extensive global IB platform to raise capital to support poverty alleviation initiatives in developing economies.
SSF is part of the Investment Bank's increased focus on microfinance as part of our Social Responsibility agenda. Nick O'Donohoe will lead this effort across the business in addition to his existing responsibilities as head of Global Research and a member of the firm’s Executive committee. Nick is passionate about microfinance and has been actively involved in microfinance efforts in Africa.
Christina Leijonhufvud has been asked to run the Social Sector Finance unit, reporting to Nick. Christina started at JPMorgan in 1996, following a career in economic development at the World Bank and in Central Asia. She recently returned to JPMorgan after taking a year-long leave to pursue various philanthropic, research and personal interests. During her sabbatical, Christina worked with Ashoka, the world's leading supporter of social entrepreneurs, to bring financial services to the sector.