"El crédito no bancario: una alternativa para la bancarización y la reducción de la pobreza. El caso del "Crédito Fácil para Todos" de CODENSA"

Abstract

"This paper evaluates the social impact of a non-banking financial credit program offered by a public utilities company operating in Bogotá, Colombia (codensa). The program consists of providing consumer loans to customers for the purchase of durable goods. We use different approaches for the analysis. First, using credit bureau data, we find that the scheme boosts and accelerates access to bank credit. Second, we show that a large number of borrowers are poor, and given that the loans allow individuals to acquire and possess durable goods (assets), reducing vulnerability to poverty and helping mitigate the effects of income shocks (consumption smoothing), the program has an additional positive social effect. By estimating a multidimensional measure of poverty we find that the credit program increases individuals welfare through three channels: access to the company s financial resources, access to new bank credit (bancarization) and possession of durable goods. The paper suggests that this case study serves as a good example of the relevant role that non-banking institutions can play in improving and expanding access to financial services in developing countries."