Chilean bank pursues business opportunities in the low-income microenterprise market

Where others see obstacles, Chile’s Banco de Crédito e Inversiones (BCI) sees opportunities.

About 64 percent of Chile’s one million microenterprises, which account for 60 percent of the nation’s employment, lack access to banking services, a drawback for the country’s otherwise exemplary economic performance.

Banks are often reluctant to extend financial services to low-income entrepreneurs because of what they consider excessive risk, represented by the lack of a credit history for borrowers, their low incomes, and relatively low levels of education. This market is also associated with high service costs.

Source:

http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=35109054

Further information


Categorisations

Partnership types

Doing business with the poor

Regions / countries / territories

Americas: Chile

Global issues

Financial accessibility and management; Trade and development

Business sectors

Finance