Credit cards for lower-income households in Central America
10-10-2005
Banco Uno Panama and Banco Uno El Salvador are granted a seven-year loan totaling USD 27.5 million by the Netherlands Development Finance Company (FMO) and its German partner DEG. The loan is to be used to extend Banco Uno's credit card services to lower-income households. This will give many such households in Central America for the first time access to financial services. This will allow them to borrow and save money and thus gain access to the formal economy.
Grupo Financiero Uno provides financial services by making credit cards available to low and middle-income households. Banco Uno has been highly successful in reaching these groups. For many of them the Uno credit card represents their first dealings with a bank. In providing the credit card Banco Uno is opening up its financial services to families on lower incomes as well. FMO Investment Officer Jaap Reinking: "For households on a lower income a credit card opens the door to all sorts of opportunities and increases the living standard for a low-income household significantly. Apart from lower-income households many small entrepreneurs also make use of the credit card services in order to finance their businesses."
Senior Investment Manager Thomas Kessler, DEG, adds: "It must also be emphasized that Banco Uno attaches great importance to closely accompanying its borrowers, among other things by informing them in detail on the responsible use of credit cards. Being the first long-term international financing to Banco Uno, the loan provided by DEG and FMO will have a signaling effect, encouraging further investments into technological innovations."
