The CrediAmigo program: urban productive inclusion through microcredit

Abstract

The fifth issue of the WWP Case Study series focuses on a phenomenon that has had an impact on the entire current market microcredit in Brazil: the CrediAmigo, launched by the Banco do Nordeste(BNB) in 1997, is now one of the best consolidated programs of its type in the whole of Latin America. The BNB experience is remarkable in that the bank has not only provided credit services to informal entrepreneurs for over 20 years, but has also succeeded in expanding its services while remaining operationally and financially sustainable. The BNB portfolio has more than two million active customers, and a low default rate among borrowers. The case study explores the continuous innovation and pace of change in business models, guidelines and regulations applicable to this type of financial service.