The bank at your grocery’s door

The bank at your grocery’s door

ChileChile
Organization type: 
for profit
Project Stage:
Growth
Budget: 
$250,000 - $500,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

We take the bank to your grocery’s door, with all the services you need

About Project

Problem: What problem is this project trying to address?

Micro-enterprise segments in Chile have yet low level of banking inclusion, and those who are included don’t necessarily have services suitable for their needs. Chile’s grocery shops are a group that represents clearly that situation. More than 60% are not banking and those who are don’t have proper products to their business. Low customization of financial services appears right from the beginning: to get any product or service, the shopkeeper has to leave or close his store, because he is the only one working there. Some of following steps of this industry are accessibility, valuable and quality offer.

Solution: What is the proposed solution? Please be specific!

Out of the financial industry there are different providers that have achieved offering their services accordingly to micro-enterprise segments. The best examples are the massive consumption products’ providers, such as Coca Cola, selling its products in grocery stores. Coca Cola has created a distribution network that allows it to contact the each client two or three times per month and reach the most distant places of the country. BCI’s question was: will it generate interests for the massive consumption products’ providers to make alliances with banks, in order to offer better financial services and products through their networks? The answer was a definitive yes. Not only from Coca Cola, but from others big companies working with micro-enterprise segment, such as Nestle, Unilever and Masica.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

Through allied providers, we offer an ad hoc portfolio of products and services to their clients: credit, insurance, prepaid accounts, correspondent services and financial education. The “working capital credit” is a very good example. This is a financial product only for buying products of a particular company. It has length according to the product cycle (max. 45 days) and a fixed pricing, in order to simplify the total cost of the product. All the proceeds are made in the store, including the delivery service. The companies’ trucks have an electronic device to receive credit payments (all of which simplify the invoicing process).
Sustainability

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

Our competitors are all the providers offering financial products and services to the micro-enterprise segment. We are now the only ones offering services through these alliances. More social actors will join this innovative model, as we show its success. Meanwhile, we will be growing, attracting more clients.
Team

Founding Story

In 2008 BCI decided to start working with low income segments in Chile. This BCI’s area was developed by people working for many decades in the financial business, along with bank’s and other industries contributors and relevant actors of the technologic field. BCI is a pro partnership bank, with long-term vision. The idea of working with massive products companies was growing naturally. One of the interesting things about this project is that it has no single creator, but many different social actors willing to offer services to low income’s population.
About You
Organization:
Banco de Crédito e Inversión, BCI
About You
First Name

Jose Pablo

Last Name

Arellano R

About Your Organization
Organization Name

Banco de Crédito e Inversión, BCI

Organization Country
Country where this project is creating social impact
How long has your organization been operating?

More than 5 years

Has the organization received awards or honors? Please tell us about them

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Innovation
How long have you been in operation?

Operating for 1‐5 years

Which of the following best describes the barrier(s) your innovation addresses? Choose up to two

Social Impact
Please describe the goal of your initiative; outline what you are trying to achieve

We take the bank to your grocery’s door, with all the services you need

Which barrier(s) to financial inclusion does your solution seek to address? (select all applicable)

Physical and other accessibility obstacles that prevent communities from reaching financial services, The lack of affordable financial products tailored to the needs of underserved and excluded communities,.

If you selected 'other' above, please specify which other barriers to financial inclusion you solution seeks to address:
For which underserved or excluded communities will your solution create access to valuable, affordable, secure and comprehensive financial services?

The Project is focused on the micro-enterprise segment, particularly on grocery stores. They need to finance their products and get investment and insurance for their business, that allows them to grow and generate more final income to support their families.
Each segment has its own special features, but when this Alliances Model shows it success, we will be able to expand it to other micro-enterprise such as cattle farming, forestry and harvesting. We are talking of reaching millions of entrepreneurs.

Could your solution work in other geographies or regions? If so, where?

There are massive product companies and financial services providers almost everywhere. If the Model is successful, those two elements can make it work at a global level.
We have talked with people of three different countries, interested in the model, but we are still in a pilot stage and it needs some adjustments to operate at global level.

If your solution is dramatically successful, how will things be different in 10 years?

It will allow a great number of Latin America and the rest of the world’s micro-entrepreneurs access to financial services and products according to their needs and business growth. It will allow not only access, but also a quality value offer.
Ad hoc financial services and products suitable for everyone is our dream and this Project can make it true.

What will have had to have changed to make this happen?

This Project doesn’t need technologic or law changes, it needs great companies willing to work as a team, to offer the best services to low income’s segments.

What has been the impact of your solution to date?

To date, more than 3,000 clients have received products through these alliances. We are now offering a complete services portfolio.

What is your projected impact over the next five years?

Reach 100,000 grocers clients.

What barriers might hinder the success of your project? How do you plan to overcome them?

There are two main business’ barriers:
- Project’s implementation between two different companies: the bank and the product’s providers. Each one has different business culture and different operating ways, so they have to make an agreement for an ad hoc solution to every single client.
- Most of the clients don’t access to banking services, so they need financial education to accept and trust financial companies and services.

Winning entries present a strong plan for how they will achieve and track growth. Identify your six-month milestone for growing your impact

Since January to June 2013 will visit 40,000 grocers and expecting that 80% of them will show interest in the program.

Identify three major tasks you will have to complete to reach your six-month milestone
Task 1

Conformación y desarrollo equipo de implantación entre el Banco y Coca Cola

Task 2

Capacitación a todos los equipos participantes del proyecto

Task 3

Definición comunicación del Programa a los almaceneros

Now think bigger! Identify your 12-month impact milestone

Since January to December 2013, we expect that every grocer in Chile has received an offer of “the Bank at your grocery’s door”

Identify three major tasks you will have to complete to reach your 12-month milestone
Task 1

Conformar nuevas alianzas Banco – proveedores de productos de consumo masivo.

Task 2

Incorporar mejoras al Programa del primer proceso (primer semestre 2013).

Task 3

Lograr mayor eficiencia en los procesos de entrega de servicios y productos.

Sustainability
Tell us about your partnerships

The most important issue of this program are the alliances. At first, the partners will be massive consumption products’ companies and then industries such as forestry, cattle farming and harvesting.

Are you currently targeting other specific populations, locations, or markets for your innovation? If so, where and why?

One of the advantages of this Project is that it is designed and developed to cover all Chile’s rural and urban areas. We are offering our services to every grocery in Chile.
If by 2014 our project is successful, we’ll think to export it to other countries. The IDB has seen the project and is interested in spreading it.

What type of operating environment and internal organizational factors make your innovation successful?

There two important factors:
The first one is to develop the Project in a national Bank as Bci, very well known in Chile. This allows the project to be well supported.
The second one and even more important, is that everyone in Bci is taking part of a project that will allow offer financial products and services to excluded segments of the population. The project has clear social impact and brings interesting possibilities of sustainable models and medium-term business.

Please elaborate on any needs or offers you have mentioned above and/or suggest categories of support that aren't specified within the list