“El Milagroso,” a savings product designed by Accion for Finamérica, has won the 2013 Accenture Colombia Innovation Awards in the category of Financial Services. The product, designed as a part of a multi-year project funded by the Bill & Melinda Gates Foundation and spearheaded by Accion to design savings products specifically for Latin America, makes savings more attractive to existing credit clients, thus helping them to reduce vulnerability.
“El Milagroso” – which loosely translates as “the miraculous” – is a voluntary savings account offered to clients who have credit products with Finamérica. Clients may set monthly savings contributions at 5, 10 or 15 percent of their installment plan, and depending on the savings amount achieved over time, they obtain a discount on their credit interest rate of anywhere between 3-6 percent. The more clients save, the less costly their loans become.
Clients make savings deposit at same time as they pay their loan. The product takes advantage of the client’s payment habit and contributes to “the miracle” of converting credit into savings.
“El Milagroso” was launched in early 2012
Number of clients increased 200 percent during 2013
Finamérica obtained almost 30,000 savings clients through this product
Average balance per account increased from U.S. $5 to $35
The product helps to confirm that savings clients have better repayment rates.
Portfolio at risk indicator (PAR) is 50 percent lower in “El Milagroso” clients than in other Finamérica clients
Accenture believes that innovation is a key factor to economic and social development. The Accenture Innovation Award was created in 2012 to motivate companies that are creating value and generating progress in the economy and society. It recognizes and rewards the most innovative products and services in Colombia in five categories:
Communications, Media and High Technology
Consumer Products and Services
Corporate Social Responsibility
For more information visit www.accenture.com
Accenture is one of the world’s leading organizations providing management consulting, technology and outsourcing services, with approximately 275,000 employees; offices and operations in more than 200 cities in 56 countries; and net revenues of $28.6 billion for fiscal 2013. For more information, visit www.accenture.com