CREDIFE (Banco del Pichincha)

General Manager: Paul Alejandro Arias Guevara
Active Borrowers: 84,122
Active Portfolio: $246,811,000
Average Loan Balance: $2,934
Portfolio at Risk > 30 Days: 1.97%
Savers: n/a
Savings Balance: n/a

Statistics as of May 2010

Mission: CREDIFE is dedicated to increasing the incomes of Ecuadorian microentrepreneurs by providing them with key financial services, including credit and savings accounts.

History: October of 1998, Banco del Pichincha of Ecuador enlisted ACCION to help create the microcredit program, CREDIFE. Under the auspices of this technical assistance agreement, ACCION consultants designed and implemented a pilot program based on individual credit methodology. CREDIFE opened its doors to the Ecuadorian public in June 1999.

With 122 branches throughout Ecuador, Banco del Pichincha's pre-existing infrastructure will allow CREDIFE to rapidly expand microlending operations. In addition, Banco del Pichincha's large size ensures a low-cost source of funding that will allow CREDIFE to reach more microentrepreneurs and offer competitive rates of interest. Recently, CREDIFE has opened new customer service locations in cities throughout Ecuador. And, to satisfy consumer demand in diverse market niches, CREDIFE improved the personalization of their financial service products.

ACCION's Role: Formerly a shareholder in the institution, ACCION continues to play a strategic role and serve on the Board of Directors. ACCION also provides technical assistance to support the development of new products and services.

In the area of innovations, ACCION's Channels team helped the institution design routes for proposed mobile branches. Risk and remittance work also continues. Our resident advisor, Luis Orlando Cardenas, continues to support the institution in its internal expansion and product diversification, with special emphasis on the introduction of rural lending.

Borrower Profile: CREDIFE’s clients typically run family-owned or individually-owned businesses and are trying to grow and develop them in the informal and formal sector. They are often small scale producers, merchants, or service providers.

What's New: ACCION is working with CREDIFE on ACCION’s Rural Program, which aims to develop new strategies and methodologies for bringing microfinance services to rural, remote areas of Latin America. A pilot and diagnostic of value chains for maize and sugar cane producers is currently underway.