Best bank: Banco Industrial
The Guatemalan economy had a turbulent time in 2023. The election of Bernardo Arevalo in early 2024 should improve relations with the US and potentially lift the country’s economic outlook, but the social challenges that have plagued Guatemala through times of economic expansion and contraction alike are resistant to superficial measures.
However, the country’s banks are taking the lead in trying to bring the large numbers of unbanked Guatemalans into the financial system and helping to ‘grey’ the black economy. The country’s banking penetration – the loan-to-GDP ratio was 38.6% at the end of December 2023 – is low even for a region that traditionally has low levels of financial inclusion.
The country’s best bank, Banco Industrial, grew the number of its banking agents and third-party points of sale, particularly in rural areas, from 3,227 in 2022 to 4,493. Transactions from these points of sale increased by 36% to 41 million transactions. The bank has also launched Zigi, a digital bank that enables universal, easy and secure money transactions – and also has a specific focus on bridging the gap in the banking infrastructure and empowering underserved communities.
Banco Industrial is continuing its proactive outreach to those already within the banking system to try to generate operational leverage from its recent investment in its digital platform. The signs are positive: Banco Industrial increased its market share to 29.2% in total assets, 29.1% in total loans and 27.6% in total deposits. The bank’s net income also grew by 13.1% in 2023, to $339.2 million, representing a return on equity of 25.8% and a return on assets of 2.0%.
Best international bank: Citi
Citi’s revenue in Guatemala reached $50.6 million last year, up by 26.3% year on year. Profit before tax of $21.7 million was up by 49.9%.
Key digital initiatives included the launch of digital onboarding for treasury and trade solutions clients, alongside the introduction of the CitiDirect BE corporate banking platform in Guatemala. This contributed to cost reduction of more than 25% over the past four years. Citi is targeting a further 45% reduction by 2024/2025 through efficiency enhancements and digital innovation.
Best digital bank: Banco Industrial
Banco Industrial facilitated over 360 million electronic transactions last year, representing 28.6% year-on-year growth. This was fuelled by a substantial increase in the bank’s active user base, which reached approximately 1.4 million by the end of the year.
The bank launched its digital bank, Zigi, which was a significant catalyst for financial inclusion in Guatemala. Zigi successfully reaches rural communities, enhancing their access to financial services. By December 2023, it had over 100,000 registered users, processed more than 250,000 transactions and disbursed $890,000 in remittances.
Best bank for corporates: Banco Industrial
Banco Industrial grew its corporate loan book and service network last year, while also making improvements to its digital platform for corporates.
The corporate loan portfolio grew 11% to Q66.8 billion ($8.6 billion), accounting for 66.8% of the overall loan portfolio. This represents 38.6% of all corporate loans in Guatemala.
Industrial also enhanced its electronic business banking platform, Bi-Banking, by introducing a digital adviser functionality. By the end of the review period, the platform’s user base exceeded 78,000.
