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regeneration & development
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Peruvian microbusinesses equipped for the global market

Solution enables greater support for micro-entrepreneurs in urban and rural areas

The challenge

Throughout Peru, a network of 12 CMACs (Cajas Municipales de Ahorro y Credito) are in operation to service the financial needs of one million micro-entrepreneurs in urban and rural areas.

CMACs are wholly owned by their local municipality. By focusing on micro- entrepreneurship, they serve a group that is largely ignored by most banks. However, with an expanding Peruvian economy, the needs of micro-entrepreneurs have grown beyond what CMACs can provide. Many sought international trade finance products in order to trade and compete effectively.

The solution

Working with the CMACs' national coordinating federation (FEPCMAC), Citi has designed a solution to integrate CMACs and their micro-entrepreneur clientele into the international trade market.

Banking services are now available to send and receive money transfers worldwide, along with vital international trade products including import/export letters of credit and import/ export collections.

CitiDirect provides all CMACs with implementation and staff training, as well as the necessary bank accounts to facilitate international trading.

The result

The horizon is now broader for Peru's micro-entrepreneurs. CMACs are equipped to work with international export credit agencies or credit programs where needed, which bring benefits in terms of pricing and product offering. CMACs also have access to Citi's unmatched expertise in this area, as well as its global network and electronic banking platform, CitiDirect.