| VIEW FROM THE TOP
A CREDIT PRODUCT FOR THE BASE OF THE PYRAMID JULIO CARRANZA Director General of BanCoppel 46
Q: What elements allowed BanCoppel to succeed in
Q: How does BanCoppel adjust its business model to meet
penetrating the base of the social pyramid?
the needs and interests of its clients?
A: BanCoppel is the sole bank that offers clients a credit
A: We are a regulated financial entity and strictly comply
card even if they are unable to fully prove their income.
with legal and operational regulations. These are designed
This does not mean that BanCoppel is irresponsible
to protect our customers’ money, investments and savings.
when lending money. In fact, the bank invests heavily in
In addition to complying with all regulations, we created a
technology, systems, software and educational strategies
model that allows us to determine if we can lend money
so its clients can avoid nonpayment.
to a person or not.
We adapted our products to our customers’ needs. For
When we welcome a first-time customer, we digitize their
example, our credit card has a longer expiration date than
fingerprints as a personal identification. This technology
those offered by other banks. We lend money to carpenters,
eases the management of our clients’ needs because,
plumbers, taxi drivers, housewives, teachers, small businesses
frequently, they do not carry official identification. Also,
owners or other people who would normally be excluded from
we personally visit our clients at their homes to verify three
mainstream banking, leaving them without options because
facts: that the client is who he claims to be, that the client
they are unable to prove their income. The base of the social
lives where he says he lives and that he is employed where
pyramid has been neglected too long. BanCoppel decided
he says he works. Although these visits represent higher
to pay attention and serve this social segment, creating a
operating costs, they are helpful tools to provide us with a
uniquely innovative and efficient business model that has
clear vision of our credit portfolio.
attracted more than 30 million clients, issued over 4.5 million credit cards and granted almost 700,000 personal loans.
Q: How does BanCoppel integrate technological solutions to its offering?
BanCoppel is the second-largest issuer of debit cards in
A: A few years ago, our competitors were financial institutions
Mexico and the third issuer of credit cards. The bank has
like Banco Azteca, FAMSA, Compartamos, pawn shops or
more than 16 percent market share in remittance flows,
SOFOMES. Today, the competitive boundaries have expanded
which ranks BanCoppel as the second-biggest remittance
due to technology, which is why we have made substantial
payer in Mexico. Over 50 percent of the customers who
investments in technology. For example, more than 95 percent
open a bank account with BanCoppel do not have another
of the phones sold in Mexico are smartphones and, although
account with other banks and 40 percent of those who
not everyone who buys a smartphone can afford internet
get a loan from us lack a credit score. Approximately 54
packages, there are many open Wi-Fi networks that give
percent of BanCoppel clients are women and the bank
people access to a free internet connection.
opens 600,000 new accounts every month. We have over 1,100 offices located in more than 400 cities in Mexico.
When it comes to high-tech solutions, it is important to
Cities with over 100,000 inhabitants have a Coppel store
remember that we meet the needs of different generations.
and a BanCoppel office. Although the bank’s offices are
Millennials do not want to go to a bank and wait their turn;
located inside the stores, their operations are independent.
they want everything to be quick and simple. But we also have customers who prefer to visit a bank. Although millennials are the customers of the future and we understand that they
BanCoppel is a banking institution and part of Grupo Coppel.
prefer to use the internet, we believe that our offices will not
It focuses on providing banking services to the base of the
disappear. It is possible that in years to come technology and
social pyramid. BanCoppel obtained its registry as a banking
digitalization of services will lead customers to visit banks
institution from the CNBV in 2007
less frequently but they will continue to do so.
