banco de Crédito del Perú (BCP), a major financial institution in South America, is making headlines with a dual strategy aimed at boosting growth and expanding its customer base. The bank is not only planning to offer weekly loan options but also investing a staggering $650 million in a hybrid cloud infrastructure upgrade.
This ambitious technological transformation, a partnership with Microsoft Azure and Kyndryl, is designed to modernize BCP’s systems and allow for greater flexibility in loan repayment schedules.”Not only can Peruvians be banked through savings, but also through credit, but the old technological infrastructures are a bit constrained to make changes. Although they allow traditional credits to operate correctly with monthly installments, they are not as flexible with other payment schemes,” explained David Sáenz, BCP’s central manager of Technology and Data.
The move to weekly loan options reflects a keen understanding of the diverse income streams of manny Peruvians. Sáenz elaborated,”To get closer to more Peruvians we need to accommodate their flows of income. Ther are people who earn weekly or biweekly, not necessarily monthly, it may be that someone does not want to pay for several months and repay everything at the end of a term or, perhaps, take a loan in the morning and return it the same afternoon.” This innovative approach aims to make financial services more accessible to a wider segment of the population.
The $650 million investment in hybrid cloud infrastructure is equally significant. This upgrade, involving the installation of 154 Lenovo ThinkAgile VX servers, will optimize BCP’s data center and reduce its server fleet. The bank’s data center, located in La Molina, Peru, boasts Uptime Tier III certification.This considerable investment underscores BCP’s commitment to technological advancement and its ability to compete in an increasingly digital financial landscape.
BCP’s expansion ambitions extend beyond Peru. The bank has already demonstrated a proactive approach to international growth, having spun off its domestic investment bank and acquired franchises in Colombia and Chile. while credit expansion in the peruvian banking system is expected to moderate from 18-20% year-on-year to 12-15% this year, BCP aims for double-digit growth, autonomous of the overall Peruvian economic growth projected at up to 3%.
Sáenz concluded with an optimistic outlook: “Very soon we will see this new credit offer.” This statement signals a significant shift in the Peruvian banking sector and highlights BCP’s commitment to innovation and financial inclusion. The bank’s strategic moves are likely to have implications for other financial institutions,both in Peru and perhaps across Latin America,prompting them to consider similar strategies to remain competitive.
BCP’s Digital Drive: Expanding Financial access in Peru
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Banco de Crédito del Perú (BCP), a leading financial institution, is accelerating its digital transformation strategy to substantially expand financial inclusion across the country. This ambitious initiative leverages the bank’s popular mobile payment app, Yape, and its robust mobile banking platform to reach underserved populations.
According to a BCP executive, “There is room for it, savings through wallets in Peru have grown, on the credit side that has not happened.Credicorp studies show a level of 26% of financial inclusion and when you look at the percentage of Peruvians with formal credit in any entity is only one fifth of the PEA,” indicating a significant untapped market for financial services.
This expansion isn’t just about offering digital alternatives; it’s about reshaping the financial landscape. The infusion of resources will provide scalability in products, leading to more efficient services. “The client may not feel this benefit as directly, but we will be able to continue with free and more efficient Yape,” the executive explained.
With nearly 17 million users and 800 million monthly transactions, Yape serves as a powerful tool for broadening financial access. its widespread adoption positions it as a key driver of financial inclusion in peru.
Digitization is key to BCP’s strategy. While the BCP mobile app and Yape are already widely used, the bank recognizes the need to further digitize operations currently limited to physical branches.
“Speaking of the purchasing phase, allowing products to be purchased virtually, we are at 70%; In terms of transactionality, we have the task almost done; and in service, which involves the after-sales stage, we are still halfway there,” the executive stated, highlighting the ongoing efforts to fully digitize the customer experience.
BCP aims to fully digitize its customer interactions, bringing all aspects of the value chain to 100% digital accessibility. The ultimate goal is to enable customers to conduct any banking procedure through mobile banking.
This article is based on reporting from a Peruvian news source and has been adapted for a U.S. audience.
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BCP’s Digital Push: Building Financial Inclusion in Peru
David Sáenz,BCP’s central manager of Technology and Data,discusses the bank’s enterprising strategy to leverage technology and empower greater financial access for Peruvians.
World Today News: Banco de Crédito del Perú (BCP) is making waves with its dual approach to growth – introducing weekly loan options and investing heavily in hybrid cloud infrastructure. Can you elaborate on the rationale behind these moves?
David Sáenz: At BCP, we are constantly striving to remain at the forefront of the financial landscape in Peru. This requires understanding the evolving needs of our diverse customer base.Conventional monthly loan repayment schedules don’t always align with the income patterns of all Peruvians. Many individuals earn weekly or biweekly and need more flexible repayment options. Our weekly loan program aims to bridge that gap and make financial services more accessible.
Simultaneously, we’re significantly investing in a hybrid cloud infrastructure upgrade. This isn’t just about staying ahead technologically; it’s about creating a robust and scalable platform that can support our innovative initiatives, like the weekly loan program, and future growth.
World Today News: Your investment in hybrid cloud, a $650 million project with Microsoft Azure and Kyndryl, is substantial. What specific benefits do you expect to see from this transformation?
David Sáenz: This investment is a testament to our commitment to technological advancement. By leveraging the power of the cloud, we’ll optimize our data center’s efficiency, reduce our server fleet, and enhance data security. Ultimately,this translates into faster,more reliable services for our customers and a more agile platform for future innovation.
World Today news: BCP has been quite active internationally, spinning off its investment banking operations in Peru and acquiring franchises in Colombia and Chile. What role will international expansion play in BCP’s future strategy?
David Sáenz:
While Peru remains our primary focus, we recognize the potential for growth in other Latin American markets. Our international maneuvers demonstrate our ambition to expand our footprint strategically and leverage our expertise to serve a wider customer base.
World Today News:
Peru’s banking system is projected to experience a slowdown in credit expansion this year. How will BCP navigate this shift while still pursuing its ambitious goals?
David Sáenz:
We are fortunate to have a strong and diversified portfolio. We are confident in our ability to maintain double-digit growth despite the overall market conditions. Our focus on innovation, particularly through initiatives like the weekly loan program, will allow us to tap into untapped segments and drive lasting growth.
World Today News:
what message would you like to convey to Peruvians about BCP’s commitment to financial inclusion?
David Sáenz:
At BCP, we are committed to ensuring every Peruvian has the opportunity to participate in the formal financial system. Our investments in technology, our innovative product offerings, and our dedication to understanding the needs of all Peruvians demonstrate our dedication to making financial services more accessible and inclusive. We believe that financial inclusion is crucial for the economic growth and well-being of our nation.
