Skip to main content Accessibility help
×
Hostname: page-component-586b7cd67f-gb8f7 Total loading time: 0 Render date: 2024-11-26T10:51:06.119Z Has data issue: false hasContentIssue false

6 - Banking the Unbanked

Innovative Business Models Championing the Financial Inclusion of Latin America’s MoP

Published online by Cambridge University Press:  16 February 2021

Alvaro Cuervo-Cazurra
Affiliation:
Northeastern University, Boston
Miguel A. Montoya
Affiliation:
Monterrey Tec, Guadalajara
Get access

Summary

Using a series of case studies, we analyze innovative business models aiming primarily at financial inclusion of the LAC MOP segment through consumer goods purchases, simultaneously securing scalability and stakeholder´s profitability. These models simultaneously optimize social and financial returns through the interchangeable use of stakeholder’s resources and capabilities and clear alignment of their interests. Financial institutions absorb consumer goods companies into the value chain as distributors of their (financial) products and services to MoP using the company’s existing distribution channels and their established reputation. Consumer goods companies expand their offers with, for them, unorthodox financial tools and services, financially formalizing and including MOP members while increasing their customer-focus flexibility and sales.Finally, we provide lessons on how to develop inclusive businesses achieving direct developmental impacts through the provision of essential goods, services, and jobs, unlocking new forms of innovation and entrepreneurial activity critical to accelerating inclusive growth of emerging markets.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adrian, T. & Shin, H. 2011. Financial Intermediaries and Monetary Economics. In Friedman, B. M. & Woodford, M. (eds.), Handbook of Monetary Economics 3: 601646. San Diego, CA: Elsevier.Google Scholar
Arping, S., Loranth, G., & Morrison, A. 2010. Public Initiatives to Support Entrepreneurs: Credit Guarantees versus Co-Funding. Journal of Financial Stability 6: 2635.CrossRefGoogle Scholar
Banking News. 2010. BCI Nova y Rabie realizan alianza para facilitar el financiamiento de los almaceneros. Accessed August 16, 2017. www.ebankingnews.com/noticias/bci-nova-y-rabie-realizan-alianza-para-facilitar-el-financiamiento-de-los-almaceneros-003089Google Scholar
BCI. 2011. Informe Sustentabilidad 2011. BCI. Accessed August 15, 2017. www.bci.cl/medios/2012/investor/dectos/rse/BCIInformeSustentabilidad2011.pdfGoogle Scholar
BCI. 2012. Informe Sustentabilidad 2012. BCI. Accessed August 15. 2017. www.bci.cl/medios/2012/investor/bci-sustentabilidad/descargas/informe.pdfGoogle Scholar
Dabla-Norris, E., Deng, Y., Ivanova, A., Karpowicz, I., Unsal, F., VanLeemput, E., Wong, J. 2015. Financial Inclusion: Zeroing In on Latin America. Working Paper 15/206, International Monetary Fund. Washington, DC. Accessed August 13, 2017. www.imf.org/en/Publications/WP/Issues/2016/12/31/Financial-Inclusion-Zooming-in-on-Latin-America-43312Google Scholar
De La Torre, A., Ize, A., Schmukler, S. L. 2012. Financial Development in Latin America and the Caribbean: The Road Ahead. The World Bank. Washington, DC. Accessed August 13, 2017. http://siteresources.worldbank.org/LACINSPANISHEXT/Resources/FLAGSHIP_eng.pdfGoogle Scholar
Department on Economic and Social Affairs. 2010. Rethinking Poverty: Report on the World Social Situation. United Nations. Accessed August 15, 2017. www.un.org/esa/socdev/rwss/docs/2010/fullreport.pdfGoogle Scholar
Ferreira, F., Messina, J., Rigolini, J., López, L. F., Lugo, M.A., & Vakis, R. 2013. Economic Mobility and the Rise of the Latin American Middle Class. World Bank. Accessed February 25, 2017. https://openknowledge.worldbank.org/bitstream/handle/10986/11858/9780821396346.pdf?sequence=5Google Scholar
Foguel, S. & Wilson, A. 2003. Casas Bahia: Fulfilling the Dream. Ann Arbor, MI: The University of Michigan Business School.Google Scholar
García, N., Grifoni, A., Lopez, J. C., and Mejía, D. 2013. “Financial Education in Latin America and the Caribbean: Rationale, Overview, and Way Forward,” OECD Working Papers on Finance, Insurance and Private Pensions, No. 33, OECD Publishing.Google Scholar
Gardeva, A. & Rhyne, E. 2011. Opportunities and Obstacles to Financial Inclusion: Survey Report. Publication 12. Center for Financial Inclusion – Accion International. Accessed August 15, 2017. https://centerforfinancialinclusionblog.files.wordpress.com/2011/07/opportunities-and-obstacles-to-financial-inclusion_110708_final.pdfGoogle Scholar
Gradl, C. & Jenkin, B. 2011. Tackling Barriers to Scale: From Inclusive Business Models to Inclusive Business Ecosystems. Cambridge, MA: The CSR Initiative at the Harvard Kennedy School.Google Scholar
IMF. 2015. Annual Report 2015 – Tackling Challenges Together. Accessed October 15, 2017. www.imf.org/external/pubs/ft/ar/2015/eng/pdf/ar15_eng.pdfGoogle Scholar
Impavido, G., Lasagabaster, E., & García-Huitrón, M. 2010. New Policies for Mandatory Defined Contribution Pensions: Industrial Organization Models and Investment Products. Latin American Development Forum Series, World Bank, Washington, DC. Accessed August 1, 2017. https://digitallibrary.un.org/record/698679?ln=enCrossRefGoogle Scholar
Jenkins, B., Ishikawa, E., Geaneotes, A., & Paul, J. 2012. Inclusive Business Solutions: Expanding Opportunity and Access at the Base of the Pyramid. The World Bank. Accessed August 12, 2017. http://documents.worldbank.org/curated/en/2012/10/17101976/inclusive-business-solutions-expanding-opportunity-access-base-pyramidGoogle Scholar
Jordan, V., Galperin, H., & Peres, W. 2013. Broadband in Latin America: Beyond Connectivity. Economic Commission for Latin America and the Caribbean (ECLAC). Accessed August 12, 2017. http://repositorio.cepal.org/bitstream/handle/11362/37524/LCL3588_en.pdf;jsessionid=B223C960946CB7FE78BB8814754FD45E?sequence=1Google Scholar
Karnani, A. 2007. The Mirage of Marketing to the Bottom of the Pyramid: How the Private Sector Can Help Alleviate Poverty. California Management Review 49/4: 90111.Google Scholar
Lam, C. 2014. 15 frases marcantes de Samuel Klein fundador da casas bahía. Exame. Accessed February 2, 2017. http://exame.abril.com.br/negocios/15-frases-marcantes-de-samuel-klein-fundador-da-casas-bahia/Google Scholar
Leggett, T., Jaitman, L., Guerra, J. A. 2017. Homicide and Organized Crime in Latin America and the Caribbean. In Jitman, L. (ed.), The Costs of Crime and Violence: New Evidence and Insights in Latin America and the Caribbean. Inter-American Development Bank. Washington, DC. Accessed August 15, 2017. https://publications.iadb.org/bitstream/handle/11319/8133/The-Costs-of-Crime-and-Violence-New-Evidence-and-Insights-in-Latin-America-and-the-Caribbean.pdfGoogle Scholar
Lewis, J. A. 2017. The Costs of Cybercrime: Is the Region Prepared? In Jitman, L. (ed.), The Costs of Crime and Violence: New Evidence and Insights in Latin America and the Caribbean. Inter-American Development Bank. Washington, DC. Accessed August 15, 2017. https://publications.iadb.org/bitstream/handle/11319/8139/The-Costs-of-Crime-and-Violence-New-Evidence-and-Insights-in-Latin-America-and-the-Caribbean-Executive-Summary.pdfGoogle Scholar
Prahalad, C. & Hart, S. 2004. The Fortune at the Bottom of the Pyramid. Berkeley, CA: University of California Berkeley.Google Scholar
Roa, M. J., Másmela, G. A., Bohórquez, N., Pinilla, D. A. 2014. Financial Education and Inclusion in Latin American and the Caribbean Programs of Central Banks and Financial Superintendencies. Center For Latin American Monetary Studies. Banco De La República, Colombia. Accessed August 15, 2017. www.cemla.org/PDF/otros/2014-10-Financial-Education-Inclusion-LAC.pdfGoogle Scholar
Roa García, M. J., Másmela, G. A. A., Bohórquez, N. G., & Pinilla, D. A. R. 2011. Financial Education and Inclusion in Latin America and the Caribbean: Programs of Central Banks and Financial Superintendencies. Books. Centro de Estudios Monetarios Latinoamericanos, CEMLA.Google Scholar
Seghal, V., Lauster, S., Mayr, E., & Panneer, G. 2010. Roasted or Fried: How to Succeed with Emerging Market Consumers. Booz & Co. Accessed August 13, 2017. www.strategyand.pwc.com/reports/roasted-fried-succeed-with-emergingGoogle Scholar
Srinivas, P. S., Whitehouse, E., & Yermo, J. 2000. Regulating Private Pension Funds’ Structure, Performance, and Investments: Cross-Country Evidence. Social Protection Unit, Human Development Network, The World Bank. Accessed August 1, 2017. https://mpra.ub.uni-muenchen.de/14753Google Scholar
Terrier, G., Valdés, R., Tovar, C. E., Chan-Lau, J., Fernández-Valdovinos, C., García Escribano, M., Medeiros, C., Tang, M. K., Vera Martin, M., & Walker, C. 2011. “Policy Instruments to Lean against the Wind in Latin America.” IMF Working Paper 11/159, International Monetary Fund, Washington, DC. Accessed August 13, 2017. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.228.6856&rep=rep1&type=pdfGoogle Scholar
The Economist. 2013. Mammon’s New Monarchs: The Emerging-World Consumer is King. The Economist. Accessed August 12, 2017. www.economist.com/news/business/21569016-emerging-world-consumer-king-mammons-new-monarchsGoogle Scholar
The World Bank. 2015. Global Financial Inclusion. The World Bank. Accessed: August 12, 2017. www.worldbank.org/globalfindexGoogle Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×