SITUATION OF SMALL AND MICRO ENTERPRISE

Development of a new economy in our countries – emerging sectors .

In Peru, 98% of local enterprises belong to the small and micro enterprise sector .

Bureaucracy and poor access to credit .

Highly adaptable, dynamic enterprises which cannot project on a long term .

MIBANCO PROPOSAL

Acción Comunitaria (Communitarian Action) is a non-government organization which supports entrepreneurs of small and micro enterprises, present in Peru since 1969.

After 30 years of experience, it creates MiBanco, the first Peruvian private bank which assumes the responsibility of concentrating its efforts on the financial support for the development of micro and small enterprises.

FINANCIAL INTERMEDIATION

MiBanco

People resources, public and institutional

National and International Financial Organisms

Capital Market

Stockholders

Passive Products and Services

In debt

Securities Emission

Patrimony

Micro enterprises

Small enterprises

IFI’s and others

Dependants

Stockholders and workers

Channels Channels

Sources Beneficiaries

Active Products and Services

Treasury Money Market

Investments

Financial Surplus (Utility)

OPPORTUNITY

Entrepreneurs of micro and small enterprises, avid for resources .

A business of great volume but high risk

CHALLENGES

Provide a modern banking service to an atomized market with little banking culture.

Follow the pace of a change reality that is quicker than normal.

Achieve an identification with each of our customers creating a banking service according to each particular reality.

THE PILLARS FOR ASSUMING THE CHALLENGE

CULTURE TECHNOLOGY

• Identification with the customer.

• Uphold our promises.

• The best disposition.

• Go beyond expected.

EDUCATE MICRO AND SMALL ENTERPRISE IN BANKING TERMS

PERSONNEL

• Empowerment.• Training.

• Agility.• Follow-up.• Control.• Precision.

FIRST LINE PRODUCTS AND SERVICES

STEPS APPLIED TO REALITY

We start by identifying that which creates value for the customer

1. Need for a bank-educated payment between

customers and suppliers.

2. Need for fast response to credit demands of

customers with a reduction of risk for the bank.

3. Need for educating customers in banking terms in

order to reduce risk.

We identify the internal processes ADHOC

1. Payment system through specific credit line for

customers and suppliers

2. Customer evaluation system containing necessary

information and in real time

3. Customer Attention and distribution system

permanently informed of their situation.

How to reach the clients efficiently and effectively

.

1. Access to electronic banking

2. Customer data scoring

3. Automated sales force (Palm Pilots)

THEREFORE TECHNOLOGY IS WHAT MAKES THE ABOVE POSSIBLE

DATA SCORING

PRODUCT DESCRIPTION

Online system of customer’s bank movements and payment history.

Credit evaluation module.

Business advisors and sales forces can enter the system to evaluate future expenses for a specific customer.

BENEFITS

Speed in response to client.

Risk reduction.

TECHNOLOGICAL SUPPORT

Development of datamart and data warehouse.

Conectivity and hardware in commercial branches.

Information storing by different means (Cards, electronic bank, ATM)

Information digitalization and normalization.

AUTOMATED SALES FORCE

PRODUCT DESCRIPTION

Development of an automated system for sales forces that allows the input of customer-related data using Palm handhelds.

Sales force synchornizes the information obtained from contact with the customer with information contained in the bank’s data warehouse.

BENEFITS

Agility in the storing and exchange of information.

Information digitalization and normalization.

TECHNOLOGICAL SUPPORT

Normalization and identification of relevant data to consider in the system.

Software development for mobile sales force.

Implementation of necessary hardware (palm pilots, synchronization centrals).

ELECTRONIC BANK

PRODUCT DESCRIPTION

Development of systems that will allow the electronic transaction between customers and different economic agents, both national and international.

BENEFITS

Opening to new customers and transactions.

Agility in operations.

TECHNOLOGICAL SUPPORT

Web Page development, transactional systems and databases.

Infrastructure in output mouths. (ATM, POS, Agency systems).

Conectivity.

Digital certificates (VISANET).

DISTRIBUTION CARD

PRODUCT DESCRIPTION Credit card granted to clients with a specific line of funds to pay to a certain supplier. Each card may contain multiple credit lines. The supplier visits the client and the latter pays for products with the credit card and

specific line assigned to that supplier.

BENEFITS Customer obtains credit fast. Order for the customer in the payment issue. Reduction of the accounts receivable cycle of the supplier. Bigger follow-up of the client’s history. Risk reduction.

TECHNOLOGICAL SUPPORT Real time system of account conciliation. Wireless hardware y POS handed to the supplier’s sales force. Risk analysis system and fast and secure emission of credit lines.

PRODUCTSINTERNAL PROCESSES

Savings

Previable funds

Current Accounts

Debit cards

Credits

Commercials

Consumption

Time deposits

Mortage

CREATION OF VALUE

Management controlBusinessFinancesRisks

T E C H N O L O G Y

KnowledgeManagement

Exploitation Data Mart

Data Warehouse

Window

Business

BackOffice

ElectronicBank

Internet

MobileBank

PhoneBank

PointsOf Sale

CULTURE TECHNOLOGY

• Identification with the customer.

• Uphold our promises.

• The best disposition.

• Go beyond expected.

EDUCATE MICRO AND SMALL ENTERPRISE IN BANKING TERMS

PERSONNEL

• Empowerment.• Training.

• Agility.• Follow-up.• Control.• Precision.

FIRST LINE PRODUCTS AND SERVICES

T E C H N O L O G Y

CULTURE

• Identification with the customer.

• Uphold our promises.

• The best disposition.

• Go beyond expected.

EDUCATE MICRO AND SMALL ENTERPRISE IN BANKING TERMS

PERSONNEL

• Empowerment.• Training.

FIRST LINE PRODUCTS AND SERVICES

The product is important

Culture is more important

There are fundamental elements to create value in the enterprise:

But technology is the vehicle the will allow us to deliver such value in the right place and time

RESULTS UP TO OCTOBER 2002

Disbursed US$ 295’858 US$ 417’820Customers served 456,131 577,851

Gross investment US$ 61’327 US$ 78’795Active customers 77,942 94,431Arrears 2.80% 2.94%

Covering 147% 150%

A December 2001

A October2002

CUSTOMERS

33,85841,344

58,088

92,619

150,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1998 1999 2000 2001 2002

THANK YOU