Lessons in Microfinance Downscaling: The Case of Banco de la Empresa, S.A.
Wenner, Mark D.; Campos, Sergio
Few commercial banks have engaged in profitable microfinance lending despite repeated attempts by donor agencies to entice their entry. The case of Banco de la Empresa, a Latin American private bank, illustrates how penetration of the microenterprise market segment could evolve. This paper reviews the bank's experience with microfinance, what its motivations were for starting such a program, what adjustments it made in operating procedures and what risks the program faced. The study is based on a real experience of the Inter-American Development Bank but in order to preserve the confidentiality of the institution studied, names, dates and other non-critical data were changed.