Question 1

What is Banco Desarrollo?

Accepted Answer

Banco Desarrollo de los Pueblos S.A. CODESARROLLO is a small multi-purpose bank in Ecuador with a strong social mission. The bank specializes in serving rural and urban-popular sectors, focusing on microfinance, agricultural lending, and support for the popular and solidarity economy (Economía Popular y Solidaria).

Operating under the tagline "Invertimos en Humanidad" (We Invest in Humanity), Banco Desarrollo is classified as a small bank within Ecuador's banking system and is supervised by the Superintendencia de Bancos. As of recent reports, the bank serves over 200,000 clients with a loan portfolio exceeding USD 149 million.

Question 2

When was Banco Desarrollo founded?

Accepted Answer

Banco Desarrollo's origins trace back to 1970 when Monsignor Cándido Rada founded the Fondo Ecuatoriano Populorum Progressio (FEPP), the first credit fund for poor rural communities in Ecuador and Latin America. This initiative was designed to combat poverty and usury by providing financial services to marginalized populations.

In 1998, the Grupo Social FEPP promoted the creation of the Cooperativa de Ahorro y Crédito "Desarrollo de los Pueblos Ltda." (CODESARROLLO) to participate in the financial market with an inclusive perspective and preferential option for people with low economic resources. On March 1, 2014, the cooperative transformed into Banco Desarrollo de los Pueblos S.A., becoming the first bank dedicated to popular and solidarity finance in Ecuador's private sector.

Question 3

Where is Banco Desarrollo headquartered?

Accepted Answer

Banco Desarrollo is headquartered in Quito, Ecuador, at Ladrón de Guevara E13-408 y Barcelona. The bank's central office coordinates operations across the country and houses the main administrative and strategic functions of the institution.

Question 4

Where does Banco Desarrollo operate?

Accepted Answer

Banco Desarrollo operates in 14 provinces throughout Ecuador, maintaining approximately 23 branches and service points across the country. The bank has a strong presence in rural and semi-urban areas, with approximately 63% of its loan portfolio serving rural communities.

The bank strategically positions its branches in areas where traditional banking services are limited or absent, ensuring financial inclusion for agricultural producers, artisans, small merchants, and local financial structures in remote regions of Ecuador.

Question 5

What services does Banco Desarrollo offer?

Accepted Answer

Banco Desarrollo offers a comprehensive range of financial products and services tailored to the popular economy sector. Credit products include microcredit, agricultural loans, consumer credit, and loans to local financial structures (cooperativas de ahorro y crédito, community banks, and savings groups).

Savings products include checking accounts, savings accounts, and time deposits. The bank provides remittance services for Ecuadorian migrants abroad, facilitating money transfers and helping retain capital in local communities. Transaction services include payments of basic utilities, national and international transfers, and access to ATM networks through both proprietary machines and the BANRED interbank network.

Digital services have expanded significantly, including electronic banking for individuals and businesses, mobile banking applications, and the CODE EFECTIVA debit card with chip technology. The bank is actively working on online account opening, fixed-term deposit applications, and online credit requests as part of its digital transformation strategy.

The bank also offers specialized green finance products such as CrediEcológico, designed to finance renewable energy projects, soil regeneration, and agro-ecological production.

Question 6

What makes Banco Desarrollo unique?

Accepted Answer

Banco Desarrollo distinguishes itself as Ecuador's only private-sector bank dedicated exclusively to popular and solidarity finance. The institution maintains a Christian-inspired mission with a social vision, operating under ethical principles that prioritize poverty reduction and sustainable local development over profit maximization.

The bank's unique dual financing model serves both individual clients and Local Financial Structures (Estructuras Financieras Locales - EFL), such as cooperatives and community banks, effectively multiplying its impact by strengthening grassroots financial organizations. This approach positions Banco Desarrollo as both a direct financial services provider and a second-tier institution supporting community-based finance.

The bank demonstrates strong commitment to environmental sustainability through its green finance strategy, participating in international programs like the Triple Inclusive Finance (TIF) Program supported by the European Union, COFIDES, and AECID. In 2021, Banco Desarrollo improved its risk rating from BBB+ to A-, reflecting solid institutional management and financial stability despite challenging economic conditions.

Question 7

What type of financial institution is Banco Desarrollo?

Accepted Answer

Banco Desarrollo is classified as a Banco Múltiple (Multi-Purpose Bank) within Ecuador's small bank segment (Bancos Pequeños), as defined by the Superintendencia de Bancos de Ecuador. This classification allows the institution to offer a full range of banking services while being subject to regulatory oversight specific to its size and operational scope.

Unlike traditional commercial banks that focus on maximizing shareholder returns, Banco Desarrollo operates as a social bank with a mission-driven approach. The institution combines characteristics of development banking and microfinance, specializing in financial inclusion and support for the popular and solidarity economy sector, which includes small producers, cooperatives, and community-based financial organizations.

Question 8

How does Banco Desarrollo support the popular economy?

Accepted Answer

Banco Desarrollo plays a crucial role in Ecuador's popular and solidarity economy by providing wholesale financing and technical support to Local Financial Structures (EFLs). These grassroots organizations include savings and credit cooperatives, community banks, rural savings groups, and other local financial entities that serve their communities.

The bank captures resources from various cities in Ecuador and abroad, channeling these funds to rural and urban-popular sectors. By strengthening EFLs, Banco Desarrollo enables local communities to retain savings and reinvest them locally through credit, fostering economic development, job creation, and community empowerment. This model helps communities develop financial autonomy and reduces dependency on predatory lending.

The bank provides training and capacity building to help EFLs operate professionally while maintaining their social mission, ensuring that "savings and credit are done well" according to the institution's philosophy.

Question 9

What is Banco Desarrollo's approach to digital transformation?

Accepted Answer

Banco Desarrollo has undertaken significant digital transformation initiatives since converting from a cooperative to a bank in 2014. After stabilizing its core banking system, the institution implemented controlled structural changes including proprietary ATM systems, transactional systems for individuals and businesses, and satellite systems for risk management, compliance, and internal auditing.

In 2016, the bank deployed a service integration bus for transactional services, supporting digital banking platforms, mobile banking, electronic wallets, and comprehensive transaction infrastructure. The institution owns its source code and maintains an in-house development team, providing direct control over system maintenance, updates, and customization to meet client needs.

The digital strategy focuses on creating intuitive, easy-to-understand platforms suited to the bank's primarily rural clientele. During the COVID-19 pandemic, 90% of the bank's transactions shifted to digital channels, accelerating adoption. The bank continues developing online services for account opening, term deposits, and credit applications while working to transform its CODE EFECTIVA withdrawal card into a full debit card integrated with global payment networks.

Banco Desarrollo

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About Banco Desarrollo in Ecuador