The partnership will make more financial services available to Guatemalans, improve productivity of remittances
Microfinance International Corporation (MFIC) has entered a strategic partnership with Banco Industrial, a leading commercial bank in Guatemala, to jointly serve transnational families in Guatemala. The partnership will encompass a range of services to meet diverse financial needs of transnational families comprising remittance senders in the US and recipients in Guatemala. Guatemala received approximately $4 billion in remittances last year, making it the largest remittance recipient in Central America.
The two parties will first build a remittance platform connecting Banco Industrial and ARIAS, MFIC’s money transfer solution. Banco Industrial will pay out remittances sent through ARIAS that are originated by US depository institutions that use FEDGlobal, Federal Reserve Banks’ cross-border payment service. Originators also include Alante Financial , MFIC’s wholly owned retail financial service centres targeted to immigrants.
“It is a great pleasure to partner with Banco Industrial, a reputable and trusted institution among the people in Central America. We hope that this partnership will enable us to extend more value-added services not only in Guatemala, but also in other Central American countries in near future, particularly to Hondurans and Salvadorans together with Banco Industrial,” said Atsumasa Tochisako, President and CEO of MFIC.
“We feel proud of this new alliance formed with MFIC, which helps strengthen Banco Industrial´s commitment to Guatemalans living in the United States, by offering a new option to send money to their relatives, as well as the opportunity to offer financial services that are going to let them invest in Guatemala,” said Luis Prado, Manager of the International Division of Banco Industrial.
MFIC has offered transnational services in El Salvador and Bolivia for over a year, supporting immigrants to realize their dreams. Transnational program is part of the Company’s effort to facilitate the productive use of remittances by linking them to other financial products such as saving accounts, micro-loans, mortgage loans or business loans, thereby dramatically improve the capacity of remittance senders and recipients.
Since May 2010, MFIC and Banco Industrial have offered transnational mortgage loan, which enables Guatemalans living in the US to finance their purchase of home in Guatemala. Clients are able to apply and repay the mortgage loan at Alante Financial branches.
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About MFIC
MFIC is a Washington D.C.-based company that aims to expand affordable and professional financial services to markets where such services have previously been unavailable or overpriced. The Company offers a line of products and services including ARIAS, money transfer solution that enables financial institutions and payment providers to offer competitive remittance services. ARIAS provides “Account-to-Receiver” service for the FEDGlobal ACH payment. MFIC also operates Alante Financial, a financial service centers targeted to unbanked immigrants, and helps remittance senders and their families back home to enhance their economic wellbeing.
About Banco Industrial
With total assets of Guatemalan quetzales (GTQ) 47 billion ($5.8 billion, at GTQ8.03 per $1) and GTQ36 billion in deposits as of June 2010, Banco Industrial S.A. is the largest bank in Guatemala, with a market share of 27% in both assets and deposits. The bank has a commercial orientation, with more than 80% of its loans belonging to this segment.
Banco Industrial has been one of the leading financial institutions in Guatemala for nearly 40 years. The bank targets the Guatemalan corporate sector as a leading provider of trading services to the main companies engaged in international trade in the country. During past several years, the bank has diversified its revenue sources by significantly increasing its retail operations, a strategy that has proved successful now that Banco Industrial enjoys a large and stable deposit base. In 2003, the bank's retail-oriented portfolio accounted for 5% of its total loan portfolio, but now it accounts for 20%.
Banco Industrial's holding company, Bicapital Corp. was created in Panama in 2007 as a vehicle to consolidate the group's assets. Banco Industrial remains the group's core operation, representing 83% of its total assets at year-end 2009. Honduras-based Banco del Pais, which Bicapital bought in 2007, accounted for 15% of total assets at year-end 2009. The holding company had total assets worth close to $6.6 billion as of that date.