Chilean bank pursues business opportunities in the low-income microenterprise market
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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.