Consulting Services to Commercial Banks and Financial Institutions: Creation of a New Microfinance Provider (Te Creemos), Mexico

Origin of funding: Te Creemos

CONTEXT:
Farmacias del Ahorro is an extremely popular chain of drugstores in Mexico. Created in 1991, it now has 350 drugstores in important cities of the Republic of Mexico, and is in direct contact with existing and potential microfinance clients.
Farmacias del Ahorro has called on PlaNet Finance México to support the implementation of a microfinance programme called Te Creemos.

OBJECTIVES OF THE PROJECT:
The objective of this project is to create a new financial institution providing microfinance services through an existing network of drugstores in Mexico. This objective will be reached thanks to :
- the development of a business model including microfinance best practices
- the provision of a technical assistance package to launch the microfinance activity
- support in presenting an application to operate as a Regulated Financial Institution

IMPACT/RESULTS:
- At the end of the programme, Te Creemos gathered its first 4,200 clients, for a total portfolio of € 1,200,000.
- 48 staff have beneficiated from PlaNet Finance's microfinance trainnings and expertise.

PLANET FINANCE'S TASKS IN THE PROJECT:
1. Provision of consulting services to develop the business model, operational manuals and business plan;
2. Organisation of technical and field training in credit services, accounting and risk management, product design and market research and application to operate a microfinance institution according to law requirements.
3. Design, creation and evaluation of the company, personnel, information system and business model.
4. Integration of the application that will be presented to the Mexican authorities to operate a SOFIPO (Sociedad Financiera Popular - legal figure approved by the CNBV, according to the Law "Ley de Ahorro y Crédito Popular")