Our Strategy | Industry
The micro-finance industry was born in 1950 through a non-sustainable business model focused on subsidies for the land.By 1970 given its low impact on rural communities, the concept evolved into a self-sustainable business model. At that time in Bangladesh, Bolivia and Indonesia the concept of personal loans without physical guarantee for people with no access to the formal financial sector was created.
Since the model has proven self-sustainable, profitability has come into play and private capitals and multilateral institutions have begun financing this industry.
At present the microfinance industry is considers as a key driver for economic developmet in emerging markets. It objectives are aligned with those of the World Bank.
- Reduce poverty.
- Improve the standards of living.
- Promote a sustainable growth.
- Invest in people through credit, technical assistance and training.
There is a great business potential in financial services in Latin America for at least the next 10 years.
The main reason is the coincidence of a series of structural factors described below:
1. Only 30% of the population in Mexico, Colombia and selected countries in the Americas, have access to financial services.
2. In Mexico, the difference in family income in households with without access to financial services is 1 to 3 as can be seen below:
3. A market with low penetration and high growth levels is very attractive.
4. Successful players in the sector are experiencing unprecedented return on equity numbers.