Juana Hanco Quispe (25 years old) is one of the clients served by Financiera Confianza through Ahorro para Todos (Savings for All) in Abancay
- Up to date, 470 clients from the Abancay rural areas have opened a savings account, 90% of which are women
- 90% of the new female clients have had, thanks to Financiera Confianza, their first access to the financial system
Financiera Confianza is the first private institution in Peru “that has decided to lead and commit to deliver a savings program in rural areas like Abancay, where Ahorro para Todos (Savings for All) has been implemented seven months ago, a program that is currently showing good results”, noted Martín Naranjo Landerer, the institution’s general manager.
On the 1st of March 2014, Financiera Confianza implemented the Ahorro para Todos program with funding from MIF, CAF, CitiFoundation, AusAid and the MFI itself. This project seeks to improve the lives of people living in rural areas who have fewer resources through savings accounts, which allow them to build minimum financial capacity to start and establish productive activities. At a later stage, the program will promote other financial products like productive loans, with the aim to maintain the household’s self-sufficiency and reduce its vulnerability.
Martín Naranjo also highlighted the program’s achievements: it has 470 savings clients up to date, from the Abancay (rural) area, out of which 90% are women. Likewise, 90% of the new female clients, have had their first access to the formal financial system, thanks to Financiera Confianza. Until September 2014, accumulated savings in the MFI amounted to PEN 126, 233.54.
“This shows Financiera Confianza’s social commitment, an institution that aims to create development opportunities for people at the base of the pyramid. Savings is undoubtedly important to create financial literacy in low-income families, and it could also mark the beginning of a productive activity that would guarantee sustainable development- the only way to permanently eradicate poverty. And this is precisely what we propose to do in Financiera Confianza, through Productive Responsible Finance”, added Naranjo.
The savings program goes with a complete module for financial education, designed to be entertaining and participatory, so that the entrepreneurs who join the sessions could easily grasp the basic concepts. During 2014, nearly 200 clients have received financial education training. The program has been conceived to be operational up to 30 months and aims to serve more than 80,000 financially-excluded women from the rural areas.
Martín Naranjo further shared that between September 2013 and September 2014, the number of rural savings clients increased 13.5%, while those living in urban areas increased 11%. Additionally, on September 2014, the MFI registered that 1 out of 5 savings clients live in rural areas (20.5%).
Financiera Confianza targets a wider and deeper outreach (serving more low-income people), to foster their sustainable development through the Productive Responsible Finance methodology, which includes responsible credit evaluation based on the clients’ businesses and capacity to generate net income. It is to be noted that the MFI’s portfolio shows one of the best quality indicators of Peru’s microfinance system.
Financiera Confianza measures its social impact. This evaluation shows that in 2013, their clients’ sales have increased 14%, while their net incomes grew by 12% and assets have tripled. 35% of them were able to cross the poverty threshold.
The institution works through one of the largest networks with the widest rural outreach on a nationwide level. During the past year, 44,187 of their clients have accessed their first loan in the formal financial system.