Colombia

Case Studies Banco Caja Social SAVERS' NETWORK "Tres Fronteras"

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Country Facts

General Approach to Regulating
Based on the Comparative Database on Microfinance Regulation by the IRIS Center of the University of Maryland

	Commercial Banks (Establecimientos Bancarios)	Financial Corporations (Corporaciones Financieras)	Commercial Finance Companies, Leasing Companies (Compania de Financiamiento Comercial	Finance Cooperatives	Savings and Credit Cooperatives and Multiactive Cooperatives with a Savings and Credit Section
Definition or description of institution	Financial institution that accepts on-sight or term deposits, mainly with a view toward providing credit.	The main objective is to accept term deposits in order to provide credit to promote the creation, transformation or expansion of enterprises.	The main goal is to accept deposits with a view toward extending credit to facilitate the commercialization of goods and services.	Cooperatives specialized in financial activity such as taking sight or term deposits from members or third parties, in order to place them again through loans, discounts or other forms of credit.	S & C Cooperatives: cooperatives offering credit and savings only to members. cooperatives offering credit and savings only to members. Multiactive Cooperatives: offer a wide range of services, including a specialized section of credit and savings to its members, but only when socio-economic conditions warrant it, prior authorization from the regulator. : offer a wide range of services, including a specialized section of credit and savings to its members, but only when socio-economic conditions warrant it, prior authorization from the regulator.
Guidelines & restrictions on financial services	Permitted: Detailed and exhaustive list of activities: Articles 7 - 9, 111, 118 Estatuto Organico Prohibited: Article 10 idem.	Permitted: Detailed and exhaustive list of activities: Articles 12-13, 111, 118 Estatuto Organico	Permitted: Detailed and exhaustive list of activities: Articles 24, 26, 111, 118 Estatuto Organico	Permitted: Detailed and exhaustive list of activities: Articles 26,27, 111, 118 Estatuto Organico	Same as Finance Cooperatives

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Case Studies

Banco Caja Social (BCS)
"The Provision of Microfinance Services by Savings Banks: Selected Experiences from Africa, Asia and Latin America", 2004, pages 45-49
By: Hugues Kamewe and Antonique Koning

In terms of assets, Banco Caja Social (BCS) is the 16th largest in Colombia's financial sector with a share of 2-2.5% of the market in loans and deposits. In its early days, BCS operated rather like a traditional savings banks, focusing on the mobilisation of savings, but later on the lending business was introduced. Savings products vary in terms and remuneration offering different combinations to meet different clients' needs as well as flexibility in withdrawals for certain products.

The success of mobilising savings is partly thanks to the design and development of appropriate products -including products with self-explanatory and memorable names, easy access, and providing constant advice. For example, there is a savings account called "cuenta de ahorros progrese" which has a didactic element orienting people to save in a progressive manner. The minimum amount to open such an account is around US$50 after which you can save in parts of around US$15 at a time. The savings account offers preferential access to loans of up to 3 times the balance of deposit when held for at least 6 months, and when a balance of around US$140 has been reached in the account. So far, 7% of the 60,000 clients have received a loan. Another example is the "Ahorro programado alcance su casa," which assists clients in saving for buying a house, and at the same time, complies with requirements the government poses for its social housing finance programme.

From mandatory to commercial voluntary savings: Banco Caja Social, Columbia

In the early 1990's Banco Caja Social converted from being a "caja de ahorros" into a commercial bank. This one-page case describes the changes and challenges that the conversion and the permanent demands of a highly competitive market brought to Banco Caja Social.

This case study can be found in Savings Operations for the Poor: An Operational Guide, edited by Madeline Hirschland, forthcoming from Kumarian Press (1294 Blue Hills Avenue, Bloomfield, CT 06002).

Savings Mobilization Strategies: Lessons from Four Experiences, 1998.
CGAP

Around the world, poor households save in various forms and for various purposes. Although empirical evidence suggests that the poor would deposit if appropriate financial institutions and savings facilities were available, little progress has been made to establish microfinance institutions (MFIs) as full-fledged financial intermediaries. In fact, today most MFIs offer only credit, and savings mobilization remains the forgotten half of microfinance. The CGAP Working Group on Savings, formed in 1996 and chaired by GTZ (representing Germany), has recently completed case studies of four deposit-taking MFIs and a related comparative paper. This note represents a synopsis of these studies.

Savings Products of Banco Caja Socia (Colombia), 2005

Olga Lucia Martinez, Microfinance Manager of BCS, describes in detail the different characteristics and target groups of five of their savings products: "Subediario", "Progrese", "Tradicional", "Alcance su Casa" and "Tuticuenta"

Los productos de ahorro de Banco Caja Social (Colombia)

En esta presentacion, Olga Lucia Martinez, gerente de microfinanzas de BCS, describe en detalle las diferentes caracteristicas, propositos y audiencias de sus cinco productos de ahorro: "Subediario", "Progrese", "Tradicional", "Alcance su Casa" y "Tuticuenta"

SAVERS' NETWORK "Tres Fronteras", 2002
Contact Person: Martin Hildebrand

The network of savers "Tres Fronteras" (Three borders) is an initiative led by women, mainly heads-of-household, in the Amazon town of Leticia. It was started over two years ago, by a group of people from the poorer area of town, who through a process of daily savings, solidarity and mutual support, have managed to consolidate a dynamic cycle of savings and credit-loans. Their aim is to seek alternatives to satisfy their own daily needs, and to solve their housing problems. The group of savers involves people of all ages, and from the three countries that form this border region (Colombia, Brazil, Peru). This creates a harmony between generations, equality among members, and promotes a spirit of cooperation.