Banco Gerador: Banking for the Poor, Financing for Neighborhood Markets
Date
Jan 2011
One of the greatest financial obstacles facing poor suburban and rural communities in Brazil is lack of access to banking. It's expensive to maintain bank branches there and many commercial banks decide not to invest. Residents often must travel long distances and spend time and money to access basic services such as savings, loans and utility bill payments.In a creative solution, Banco Gerador S.A. (BG)
is bringing banking to Brazilians at the base of the pyramid through its "Banorte Todo Dia" program, which licenses mercandinhos -small shops -in low-income communities to offer bank services and financial products.
The Inter-American Development Bank's Opportunities for the Majority is offering a line of credit up to $5 million or its equivalent in Brazilian reais to Banco Gerador S.A. (BG) for its Banorte Todo Dia program to bridge the gap between those with easy access to bank services and those with none.