Banco Pichincha has been developing several strategies to boost social inclusion and improve gender dynamics in Ecuador. The bank now has an impressive portfolio of projects that fit under the corporate responsibility banner.
Led by chief executive Santiago Bayas Paredes, the bank began to build out its social programmes in the rural sector, a natural place to start given its strength in agrarian finance. Since 2019, the firm has been partnering with Rabobank to increase the financial inclusion of workers in the agriculture sector and boost rural living conditions in Ecuador.
Much of this strategy is delivered by the professionalization of value chains in the country, with the bank working with big purchasers of crops to foster associations and other collaborative sourcing strategies, which result in better pricing and security for small producers.
Once the supply chain is formalized, the small producers can not only use contracts to finance improvements and increase productivity, but there are also efficiencies in terms of technological investments that can be made at the association level.
The bank has also launched four different Agro Schools that focus on the shrimp, banana, cocoa, milk, poultry and cereal sectors to further professionalize the base of the agricultural supply chain.
In 2022, Pichincha added 52,000 new agricultural clients (micro-entrepreneurs and low-income clients) – 19% of the bank’s agricultural credit portfolio is represented by this segment, with five out of 10 of these loans provided to women. The bank dubs the creation of an ecosystem that links all the actors, from primary producers up to buyers, ‘The productive chain’, and it is clearly not only helping clients but boosting the bank’s exposure to the sector.
While Pichincha’s agricultural strategy clearly helps women in Ecuador, the bank also launched a programme called Ser Impulso Mujer to help women in the country on two fronts. The first focuses internally in the bank and has improved both the policies and culture around women’s maternity leave and subsequent reintegration into the bank. The bank also identifies its high-performing women and helps to ensure promotion through the organization is optimized.
The bank has boosted it efforts with this low-income segment to help Ecuadoran business rebuild after the pandemic
From an external perspective, Pichincha focuses on boosting the provision of financial and non-financial services to women in the country. This has led to an increase in the volume and number of transactions extended to women, particularly in the micro company segment.
More generally, the bank has boosted it efforts with this low-income segment to help Ecuadoran business rebuild after the pandemic. Its non-financial support – ranging from reducing paperwork to speeding up decision making and disbursements – has helped strengthen the bank’s performance and commitment to help those at the periphery of the financial system of Ecuador.
