This report is part of a series of five case studies conducted under the IFC ‘Business Case for Mobile Financial Service Channels in Microfinance Institutions’ project.
... See More + The purpose is to analyze how MFIs can implement MFS channels to drive profitable growth while extracting lessons helpful to different stakeholders in the microfinance industry, especially in designing better targeted and successful m-banking projects. The ‘Caja Municipal de Ahorro y Crédito Sullana’ (Caja Sullana Municipal Credit and Savings Bank) started operations in 1986 in the municipality of Sullana, Piura in Peru. As of December 2012, the organization had penetrated 11 out of the country’s 1,831 districts through its 70 branches and offices, becoming the fourth largest CMAC by deposit and credit volumes with 205,146 savings and 119,470 credit clients. The bank offers its services through a variety of channels, including branches, banking correspondents, and home-banking among others. The study concluded that even though not all of the benefits of operating through agent networks can be quantified, they still exceed the costs. It is well understood that setting up and operating a network of agents is very costly; and growing these operations may be challenging. Nevertheless, agent transactions cost much less than branch transactions. This generates significant cost savings for those operating in this way. Furthermore, implementing agent networks enables the bank to reach remote places more cost effectively while expanding service points and increasing liquidity and revenues from additional services offered, such as bill payments. Simultaneously, the risk of holding cash at branches is reduced Finally the channel could become essential in realizing one of the bank’s most ambitious social objectives: enhancing financial inclusion in remote areas.
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