Peru

Small and medium enterprises (SMEs) often face greater credit constraints than large firms because they lack audited financial statements and other information about their operations, and as a result, financial institutions have difficulties assessing the risk of lending to them. The Entrepreneurial Finance Lab (EFL) has developed an alternative credit information tool, based on psychometrics, which can potentially be used by lenders to better screen loan applicants.

Modelo Perú, a first-of-its kind payments initiative in Peru, will mark its one year anniversary. The initiative established an interoperable nationwide payments platform, Bim, with a particular focus on expanding access to underserved customer segments. Thirty three institutions, including microfinance organizations, commercial banks, and telecos, are participating in the platform, which was spearheaded by the Bankers’ Association of Peru (ASBANC). The interoperable mobile money platform is already a financial services feat.

Small and medium enterprises (SMEs) often face financial constraints because they lack audited statements and other information about their operations, and as a result, financial institutions have difficulties assessing the risk of lending to them.

The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, recently approved a technical cooperation grant of more than $900,000 for a project with the Fortalecer Savings and Credit Cooperative in Peru that will give 1,500 small-scale rural farmers access to tailored financing, improve their skills and products, and link them to profitable markets.

A fund managed by IFC Asset Management Company is investing $25 million in Banco Interamericano de Finanzas, S.A. (BanBif), the fifth largest bank in Peru.

Access to finance remains a challenge for some micro, small, and medium-sized enterprises (MSMEs) in Peru, particularly informal enterprises with no borrowing history in the formal financial system. Lenders lack the tools to reach these borrowers with sufficient scale and control over risk due in part to the shortcomings of current screening technologies.

This presentation goes over the following points:

Women Entrepreneurs in Peru
Microfinance in Peru
Peruvian Strategies to promote financial inclusion
Financial Inclusion Programs
Measuring Progress
Conclusions