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SALTO - AID₁ estimates that approximately 88.8% of micro entrepreneurs have yet to be serviced by formal financial institutions in Ecuador. This equals approximately 702.000 families. An important percentage of them are in debt with loan sharks, whose annual interest rate is 150%. Banco Solidario has serviced 134.072 families of micro entrepreneurs, helping them – as a whole – save $161 million dollars.

1. SALTO (a joint Project of USAID/Ecuador); National Micro enterprise Survey in Ecuador. Quito, 2004.

We give loans to those who need them most

• Clients that participated in the survey affirm that loans allow them to have an income, even when the business does not yet make a profit.
• All clients have been able to generate “a little extra” (Money) that helps them cover their families’ expenses.
• Individual clients generate greater excess money that allows them to grow their business and create jobs for their relatives, in a form of micro enterprise called “famiempresa”.
• Micro entrepreneurs that have some employees show signs of effective management actions; their salaries’ structure is based upon commission on sales.
• In all cases the loans are used for working capital and/or purchase of fixed assets.

SOURCE: Study on LOAN IMPACTS, performed with funds from the Spanish Technical Cooperation Agency.

Social Profitability Indicators

1. 1. Poverty reduction
• Loans: to those who don’t have access
  Loan Portfolio vs. Loan Sharks
  Savings of $161 million dollars per year, which can instead be used in expanding the clients’ businesses, for education, housing, health insurance, etc. Loans improve their quality of life.
• Bancarization: Gives opportunities to those who didn’t have them before. Bancarization index in 2008 – for clients who have never had any interaction with a Financial Regulated Institution – is 38%. In Ecuador only 2.1 million people – of the 13.5 million inhabitants and the 4.5 million of the economically active population – have access to loans in the financial sector. The banking exclusion generates a social cost to these families; it obstructs their abilities to grow, and it diminishes their self- esteem. Solidario is an INCLUSION bank. The majority of clients are women (60%), of which 63% are head of their households. On average, 4.6 members of a certain household depend on the woman’s income. Scholastic levels are very basic: 22% know how to read; 36% have primary education level; 35% secondary education level.
• Insurance: for those who need it most
• 163.439 loans with life insurance
• 79.211 loans with fire and natural disaster insurance
• Insurance coverage with immediate responses for emergencies



2. 2. Employees’ benefits:
• Percentage of employees with health insurance: 100%
• Percentage of employees that had their annual check-ups done: 100%
• Other benefits: (In-house employee survey, 2008):




Indicator	% that always or almost always agree
At the bank one can find open communication, integrity and high competencies	74%
I am proud of my job, my team, and the institution as a whole	80%
I would say the Bank is a great place to work	81%