Initiates operations as a full bank, specialized in microfinance, on May 3, 2010. Banco FIE is the result of an endeavor that began in 1985. Its history is as follows:
Year 1985 was one of dramatic changes in the economic policies of the country. Structural adjustment measures applied to stop very high inflation rates, among other problems, had serious negative consequences for the population at large, already living in a situation of poverty. The immediate consequence of massive lay-offs in state owned companies was the growth of non-formal sources of income for the economically active population throughout the country. Income generating activities with no access to credit.
Five professional women, all of them committed to the social situation of our population, and understanding the working conditions of the informal sector, set out to start a credit program directed at this sector, a service to which the “poor” population had never had access. This is how FIE, the Centro de Fomento a Iniciativas Económicas, was born as a private, not-for-profit, social development institution; the first microcredit program in Bolivia.
FIE decided that its credit service would be similar to that offered by the commercial banks in the framework of Bolivian laws. In this way, FIE sought to show that notwithstanding a person’s “poverty”, if income was achieved through work and effort- and with this income a loan was repaid- there would be no reason to exclude these persons from credit and other financial services. In this way, challenging the tendency in other countries of “solidarity loans” or “village banking”, FIE designed and consolidated its own “individual credit lending” showing its efficacy and preference on the part of the customers.
FIE’s excellent performance (and that of other microcredit programs initiated soon after) encouraged national authorities and international cooperation agencies to consider incorporating these programs within commercial legislation and financial regulation. After 12 years of operating as a private social development institution, maintaining its independence from international networks and consortiums, FIE created the Fondo Financiero Privado FIE S.A., a microfinance entity, regulated and supervised by the Superintendence of Banks and Financial Entities of Bolivia, also authorized to intermediate public savings and provide other financial services such as payment of taxes, water, electricity and telephone utilities, collecting and transferring remittances, and others.
Sustained growth and continued excellent performance as Private Financial Fund, moved its shareholders to transform FIE S.A. into a full banking institution.
In these past 25 years, FIE has disbursed US$1,200 millions in loans to its 129,380 clients, maintaining a PAR> of 1.36%. Savings collected amounted to US$243 millions.
In these past 26 years, FIE has disbursed more than US$2,220 million in loans to its 183,394 clients, maintaining a PAR of less than 1%. Savings collected amounted to US$243 millions
In year 2010 Banco FIE S.A. received the Award of Excellence in Microfinance in Best Practices in Social Performance, awarded each year by the Interamerican Development Bank, to qualifying MFIs.
In year 2011, again from the Interamerican Development Bank, Banco FIE received the Award of Excellence in Microfinance – Best Microfinance institution in Latin America and the Caribbean 2011.
Banco FIE starts its operations with a loan portfolio of the equivalent of US$331 millions to 130,863 clients. As of March 31, 2012 its loan portfolio was US$618,001,732 to 183,394 clients, a savings and time deposits portfolio of US$510,579,379. 483,783 accounts are savings accounts of an average of only US$395. This small amount indicates that this service is mostly used by very low-income clients.
Banco FIE services its clients nation-wide from 142 offices, 40 of which are in rural towns. It also operates 16 ATM machines, 12 in cities that are departmental capitals and 4 in the city of El Alto. Banco FIE employs 2,452 persons, men and women. Of these, 829 are loan officers.
FIE Gran Poder in Argentina |
The migration of thousands of Bolivian men and women to other countries in search of better working and living conditions is not a recent phenomenon. Argentina, neighboring country, has always taken in Bolivian labor force, which today exceeds one million people, the majority living in informal precarious conditions and lacking many basic services. One of these, for the same reasons existing at one time in Bolivia, and further aggravated by their not being Argentinean citizens, is access to finance services.
In the year 2000, knowing the reality of Bolivian migrants in Buenos Aires, a Bolivian resident in Argentina urged the FIE representatives to take contact with organizations of Bolivian migrants in that great city. The perspective of having access to credit for their productive and commercial activities, through a Bolivian finance entity such as FIE, was received with great interest.
FIE Gran Poder S.A. initiated operations in August, 2001, benefitting from the transfer of knowledge of the Bolivian experience derived from the track record of FIE and FIE S.A., adapting this knowledge to the reality of the neighboring country and to the specific needs of the customers, who were initially solely Bolivian. FIE Gran Poder S.A. operates today from 13 offices: 4 in the capital city of Buenos Aires, 8 in the Province of Buenos Aires and 1 in the Province of Salta, providing microcredit to 8,187 clients, men and women: Bolivian, Argentinean, Paraguayan, Peruvian and Korean. As of March 31, 2012 its micro-loan portfolio was of the equivalent of US$15,200,271.
Edpyme Nueva Visón in Perú |
Edpyme NUEVA VISION initiated operations on April 15, 1998. Since then, it achieved a sustained rate of growth positioning it in the microcredit market in Peru. Today NUEVA VISION has the trust of thousands of clients that have benefitted directly and indirectly from the financial support it offers, crystallizing diverse entrepreneurial projects.
We are firmly convinced that the growth of our institution would not have been possible without the support from our clients. This is why we consider ourselves solidary partners of their progress and, to that end, we use our capital and other funds available from national and international financial institutions.
Our loan portfolio is composed mainly of entrepreneurs of diverse manufacturing and commercial microenterprise sectors. Their loyalty is based on a relationship of mutual trust strengthened by the quality service offered by NUEVA VISION’s highly trained staff.
Eleven years of efficient financial intermediation activities are the best proof of a qualified teamwork that has strengthened the institutional equity through reinvestments, new capital increases and strategic alliances.
We have permanent support from top level national and international financial organizations such as Cofide, Foncodes, Agrobanco, Andean Development Corporation (CAF), BlueOrchard, and Oikocredit, Responsibility Global MF, Micro Ventures, Cyrano Management, Triple Jump, Symbiotics, Fogapi, Banco Continental, Scotiabank and Banco de la Nación.
Our wide network of branches works with a team of highly competent professionals as well as with an appropriate technological support. Together, they offer an adequate, efficient and timely service. Our commitment to the clients has rendered the expected results as shown by the noteworthy growth of our client portfolio in the last years.
Our branches are located in Arequipa, Tacna, Juliaca, Cusco, Moquegua and Lima. These branches are part of a program of expansion and decentralization that aims to extend our operations into other regions of Peru. We will continue there supporting the different financial operations of the thousands of microenterprise clients that are being serviced with the quality standards that Edpyme Nueva Visión guarantees.
As of March 31, 2012, our loan portfolio was the equivalent of of US$60,004,215 for 20,821 clients, serviced in our 22 offices in the departments of Arequipa, Cusco, Moquegua, Puno, Tacna and Lima. Two of these offices, in the towns of Moho and Ayaviri in the department of Puno, are shared with Banco de la Nación. Due to its rapid growth in loan products, accompanied by an excellent financial performance, its shareholders decided to transform Edpyme Nueva Visión into a “Financiera” (finance company), a step which will allow it to offer savings products in addition to loans. The process of transformation is now in its final stages.
