BCI Business Strategy: Extending Financial Services Through Supply Networks
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. BCI concluded that the microenterprise market, largely ignored,could fit into its growth strategy, offering both profits and an opportunity to help fulfill the bank's social mission.