The Banco Solidario Program to Support Ecuadorian Immigrants in Spain

 This is an original MFMI resource

Author: Donaire, Victor
Publication Date: 2005
Publisher / Source: INCAE Business School
Length: 22 Pages
File Type: PDF
Language: English
Country: Ecuador
Topics: Innovation, Marketing/Demand, Strategic and Business Planning
Keywords: immigrants, Ecuador, marketing, strategy, alliances

Notes:

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Abstract

In mid-August 2004, Santiago Ribadeneira, the Executive President of Banco Solidario in Ecuador, was once again going over the report on the mission that he had sent to Spain to evaluate the bank?s program for Ecuadorian immigrants in that European country. The program, one of the most innovative that Banco Solidario offered, had been developed over the past two years. For immigrants a typical transfer cost from Spain ranged between ?12 and ?202 (See Table 2, p. 8) per transfer. At times, however, depending on how it was sent, the cost could represent up to 10% of the transfer?s value. On the other hand, an immigrant in Spain could send a transfer to Banco Solidario at no cost; the only requirement was that the immigrant have a savings account at Banco Solidario. In and of itself, this fact made the Banco Solidario program very innovative and gave the bank a huge advantage. Although demand for the program?s services had grown, the report from Spain indicated that there were many problems with the attention given to the customers at the Spanish savings banks (?Cajas de Ahorro?). Banco Solidario had established alliances with these savings banks to be the immigrant contact point in Spain. The savings banks took the funds that Ecuadorian immigrants wanted to transfer to their country and sent them to Banco Solidario in Ecuador. There, Banco Solidario was responsible for distributing the remittances to the indicated recipients designated by the people sending the money from Spain (Appendix 1). Santiago Ribadeneira had called a meeting with bank managers associated with the program for immigrants. In the meeting, Santiago hoped that the group could define which distribution channel to use to take their services to Ecuadorian immigrants in Spain. If the service offered in Spain was not accompanied by quality attention and respectful treatment toward the immigrant, it would be violating the bank?s mission, and the program?s future could be affected.