BancoEstado`s social role and expanding banking

BancoEstado’s social role and
expanding banking services
The story of a successful state owned bank
In Pica, a small town in Chile’s
northernmost first region, the
only way that 10,332 people can
access banking services is trough
BancoEstado’s CajaVecina, in
the Naranja grocery store.
Our ongoing modernization
process will make us a
world-class state owned
bank, which favors social
integration by providing
banking services to those
currently deprived of them.
BancoEstado’s social role and expanding banking services
The story of a successful state owned bank
BancoEstado trace its origin to the creation of the Caja de Crédito Hipotecario
The third phase, currently underway, started in 2000 with a change in
(a mortgage institution) in 1855, the first effort to provide banking services
the bank’s corporate image, to make all Chileans aware of the enormous
to Chilean people. The merger of this organization with the Caja Nacional
modernization undertaken, and continued in 2001 with a strategic alliance
de Ahorros (a savings bank with branches in Concepción, Chillán, Iquique,
between management and employees, based on the values of dignity, honesty,
Punta Arenas and Santiago), the Caja de Crédito Agrario (a farm-oriented
respect and trust. This agreement and a commercial strategy focusing on
bank) and the Instituto de Crédito Industrial (a manufacturing-oriented
low-income sectors have turned BancoEstado into a competitive, relevant
bank), through Decree with the Power of Law (Decreto con Fuerza de Ley
player in the domestic financial system.
Nº 126, 24 July 1953), created the Banco del Estado de Chile, known today as
BancoEstado. On 1 September 1953 it began operations as an autonomous
In 2005, BancoEstado celebrated a century of service to the country, as a
state-owned company, with its own legal status and equity.
modern, efficient company with state-of-the-art technology and first-class
service. A leader in delivering massive financial services to low-income
During its first 20 years, BancoEstado consolidated as Chile’s largest bank,
sectors and those living in isolated parts of the country, it has become an
successfully adapting to the different ideological and economic groups that
effective instrument for expanding banking services to those who traditionally
governed the country during this period, expanding into the sectors that
have been excluded from them, thereby contributing to improving people’s
each government considered to be of high priority.
quality of life and the country’s development.
From 1973 to 1989, during the military government, the bank saw its
The bank has a navigation chart for the coming years, its Strategic Plan
management, productivity, risk, non-performing debt portfolio and other
2006-2010. The main objectives through 2010 are to increase the bank’s
indicators deteriorate, and it fell behind in terms of both technology and
customers from eight to ten million, boost microbusiness customers to
efficiency.
300,000, and increase total services by 50%.
In the climate of economic and social progress that has prevailed since Chile
BancoEstado belongs to every Chilean. Faithful to the spirit in which it was
recovered democratic governance in 1990, BancoEstado has undergone
created, it supports enterprise and fosters savings among individuals.
profound transformations that have allowed it to recover from the structural
crisis and go on to become a world-class, publicly owned financial institution
servicing all Chileans and particularly people on low incomes.
The bank decided it had to put itself on the same level as private banks,
offering competitive services and products, with quality attention, so the
bank’s new authorities gave top priority to modernization to upgrade its
commercial and social functions. This has been implemented in three phases.
The first (1990-1995) involved an emergency stabilization plan, while the
second saw the application of a Strategic Plan (1996-2000) for modernizing
operations and technology and thereby change the management model.
Bills issued by private banks at the end of the 19th century.
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Signage used by the Caja Nacional de Ahorros in the 1920s.
Banco del Estado advertisement, 1956.
Mobile teller, Banco del Estado (Metropolitan Santiago, 1950s).
BANCOESTADO Summary Annual Report 2006
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BancoEstado’s social role and expanding banking services
Landmarks in BancoEstado’s history
Caja Nacional de Ahorros, Puerto Natales, 1928.
Banco del Estado, Antofagasta branch, 1935.
President Ibáñez founds Banco del Estado, 1953.
Monitoring room for the bank’s first
computer, 1970s.
Caja Nacional de Ahorros, Santiago.
Inside head offices.
1855
1910
1928
1988 / 1989
Birth of the
Caja de Crédito
Hipotecario
Birth of the
Caja Nacional
de Ahorros
Birth of the Instituto de
Crédito Industrial
Privatization policy,
capital fell by 41%
1877
Birth of the
Caja de Ahorros
de Santiago
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1926
Birth of the Caja
de Crédito Agrario
1953
Foundation of
Banco del Estado de
Chile was founded
Changing image, BancoEstado, Vitacura branch 2001.
New BancoEstado logo, 2001.
BancoEstado head office.
Inside BancoEstado’s offices, Rancagua.
Employee-management strategic alliance.
1996 / 2000
2001
2006 / 2010
Strategic Plan
Employee-Management
strategic alliance
Strategic Plan
1990 /1995
2001
2005
Modernizing Project
Change in corporate
image
Completes 150 years
serving Chile
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