Submitted by

Banco Pichincha

Logo of Banco Pichincha

<div>Grupo Pichincha is an Ecuadorian based business group focused in the banking and insurance sector with...

17/08/2022 Banking Innovation


Digitizing microentrepreneurs in Ecuador

Innovation presentation

The pandemic encouraged the micro entrepreneur client to evolve, every time our microentrepreneur clients have and use digital tools increasing the use up to 61%, their need to be able to be in digital media that gives them speed to acquire, sell or buy merchandise is increasing, for this reason from Banco Pichincha we seek to meet that need and motivate them not only with financial education but also digital.

Along the way, several improvements have been implemented in terms of the customer experience, involving users in collaborative sessions and research.

For this innovation project, we have worked hand in hand with the commercial system and the micro-loans sales force.In Ecuador, it is estimated that only 4.22% of the total adult population that has access to the financial system (32%) uses the different digital banking tools (Asobanca, April 2021).

Through digital microcredit, it seeks to promote digital inclusion, as well as connect with the needs of microentrepreneurs who, due to their daily activities, seek agility in financial processes that does not interrupt the continuity of their businesses.

At the moment within the country There is no process created for digital solutions for microentrepreneurs, which allows them to obtain their micro-loans in a 100% digital way, without having the need to wait for a credit executive to come to visit them, without having the need to close their businesses, documents, without signatures of spouses or guarantors. Being in the exact place where our microentrepreneurs need us.

Through our new technological tool we give micro-loans in just 5 minutes, at any time, without the need for information gathering, controlling the methodology and recovery and educating our microentrepreneurs financially and digitally throughout the country.

The online microcredit came to be the first 100% digital product in the country and the region, Not only did we digitize the process, but we also managed to give our clients the benefits they were looking for, in order to make them feel supported and appreciated for being great clients.

Uniqueness of the project

A new team came to life in the bank’s Digital Center, away from the traditional world of Microfinance, a cell focused on digitizing the credit application process for the segment was born. Little by little, people were integrated and an agile, multifaceted, mature and customer-focused team was built, which from the beginning generated a product that added value to the user without taking much time, resources or effort. This is how the digital microcredit MVP was created, a minimum viable product that would meet the needs of customers as soon as possible, with many opportunities for improvement and growth ahead, but fulfilling its function from the beginning.

Last but not least, we generate a differentiated offer of financial advice through our CRECER platform of Banco Pichincha with digital offers of financial and digital education such as OVANTE of Acción Internacional, financial education courses, business school, talks, and savings campaigns to prevent over indebtedness and maintain healthy finances.

As clients who do not normally work with digital media, and therefore have greater challenges, as an institution we make sure to support the client by helping them migrate to other alternatives that allow them to access and learn about digital issues so that the transition is increasingly simple.

We currently have an effectiveness of 14% but we already have a 26% placement share in the entire Microfinance world in Banco Pichincha.

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