Customer Snapshot: Overview
Out of their 2.8 million clients, 90% are women
The lack of basic banking services has been a roadblock to prosperity for many in Latin America. For millions of aspiring small business owners across Mexico, Guatemala, and Peru, Compartamos Banco is driving economic development and a better quality of life.
Number of Employees
Line of Business
SAP Consulting, SAP for Banking, SAP Value Management
Mexico City, Mexico
SAP Consulting organization
Customer Snapshot: History
Founded in 1990 by a young impresario named Jose Ignacio Avalos Hernandez, Compartamos Banco began as a small project intended to provide financing to female small business owners with low incomes. Over the past 25 years, it has grown to serve more than 2.8 million customers, more than 90% of which are women, with savings accounts, loans, insurance, and financial education.
Customer Snapshot: Business Model
As one of the largest microfinance banks in Latin America, Compartamos Banco is dedicated to the belief that every small business owner should have access to the basic financial services needed to be successful. By providing savings accounts, loans, insurance, transaction points, and financial education, the bank is working to eradicate financial exclusion by giving aspiring entrepreneurs the tools they need to grow their business and improve their lives.
Customer Snapshot: Success Strategy
From Street-Corner Cart to a Grocery Store
With over 2.8 million clients, 90% of whom are women, Compartamos Banco is changing lives and driving growth in Mexico, Guatemala, and Peru. Elizabeth Diaz, the winner of the 2013 Compartamos Microenterprise Award, is a perfect example of what a difference access to basic financial services can make. Working long hours stocking shelves in a warehouse, Elizabeth had a dream of owning a business.
As Compartamos Banco continued to grow, it needed the technology to support complex and widespread operations. The transition to a for-profit organization that provided group-guaranteed loans meant an immediate need to confront mounting technological challenges. These included how to expand products and services to address new segments and new markets. Additionally, the bank needed a way to handle growing data volumes and increase the efficiency of the origination and portfolio management process. Finally, to ensure strong retention rates, it needed a way to continually enhance the customer banking experience.
Without technology, our current size would be unthinkable. We needed a highly robust technology platform.– Fernando Álvarez Toca, Chief Services Officer, Gentera, holding company for Compartamos Banco
SAP Value Management services allowed Compartamos Banco to establish a plan to:
- Identify potential benefits and calculate return on investment
- Ensure executive alignment for strong project ownership and end-user support
- Establish best practices to monitor value and enact a system for governance and accountability
We decided to choose SAP as a strategic partner because the two companies show a similar level of risk and commitment.– Fernando Álvarez Toca, Chief Services Officer, Gentera, holding company for Compartamos Banco
Enter SAP: The SAP Experience
Compartamos Banco decided to go big and pursue a full-scale banking transformation project with SAP. Working with the SAP Consulting organization, it leveraged SAP service offerings for banking to roll out solutions to support core banking processes. Beginning with launches at 21 offices, the goal of covering roughly 530 service offices and 100% of clients was initiated in Mexico in 2014.
Robust Expansion and Customer Loyalty
SAP for Banking solutions helps Compartamos streamline processes across the organization. That means more time to serve more customers. It is also allowing the bank to integrate operations in multiple countries, driving localized growth and expansion to new markets. New technology combined with SAP Services offerings for banking are also helping Compartamos expand what it can offer to clients, increasing satisfaction and loyalty.
Better Business: Benefits
By helping integrate operations in several countries, SAP for Banking solutions will allow Compartamos Banco to analyze consolidated data with convenience and efficiency. Not only will this unify operations, it will also help spur growth across Mexico, Guatemala, and Peru, as well as ease expansion into new markets.
New technology will help Compartamos Banco bring more than just basic financial services to its clients. It will also allow them to deliver those services online and via mobile device. With a system that can be fully configured an customized to provide a 21st Century banking experience, not only will customers achieve success with Compartamos, they will stay with the bank long into the future.
The benefits should translate into better services for our customers with lower transaction costs and provide access to more products and better conditions, thereby increasing our customers’ loyalty to Compartamos.– Fernando Álvarez Toca, Chief Services Officer, Gentera, holding company for Compartamos Banco
Better Business: Run Simple
Continuing Growth, Innovation, and Prosperity
Compartamos has come a long way since its initial SAP software deployment, but there is still lot of work to be done. Each operating country is still running on a separate system, but unification is on the horizon. And with operations running better than ever and more clients joining every day, the backend – and the millions of people it serves – continues to prosper.
The power to process 4.5 loans per second on peak days
Once Compartamos Banco has fully integrated SAP solutions in Mexico, it will replicate the process in Guatemala and Peru, putting it on a rapid growth trajectory in both regions and preparing it to expand into additional countries. With every new client is a new life changed for the better by opportunity, empowerment, and hope for a better future.
For Compartamos, the future lies in continuing with our strategy of reaching 10 million clients. And SAP will play a very important role in that.– Fernando Álvarez Toca, Chief Services Officer, Gentera, holding company for Compartamos Banco