savings banks` socially responsible activities, a wealth of experience

INSIGHTS FROM WSBI MEMBERS
IN AFRICA, ASIA AND THE AMERICAS
September 2007
To be read in conjunction with
the European Savings Banks
Group Report
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REPORT
SAVINGS BANKS' SOCIALLY RESPONSIBLE
ACTIVITIES, A WEALTH OF EXPERIENCE
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CSR experiences from ESBG (European Savings Banks Group) members
are listed in an additional separate report,
available at www.savings-banks.com or
by sending an e-mail to [email protected].
A COMMITMENT TO UNITED NATIONS
GLOBAL COMPACT PRINCIPLES
The World Savings Banks Institute’s declaration of participation to the United Nations (UN) Global
Compact initiative in August 2006 reflected the collective and strong commitment of its members in
favour of sustainable development and Corporate Social Responsibility, worldwide. WSBI, as a business
organisation, will give input to improve the uptake, implementation and strategic integration of UN
Global Compact Principles into its members’ business activities.
The UN Global Compact, launched in 2000, brings together about 2 300 participants in more than
80 countries, from all sectors of activity and with various statuses –individual companies, business
organisations, civil society organisations, academics etc. Membership requires the endorsement of
10 principles, in the fields of human rights, labour, environment and anti-corruption. Participants are
expected to publicly advocate these 10 principles and support appropriate public policies.
WSBI members' initiatives described in the present report converge with the UN Global Compact
general objectives. They more specifically focus on Principle 1 (support and respect of the protection
of internationally proclaimed human rights), Principle 6 (elimination of discrimination in respect of
employment and occupation), Principle 7 (support to a precautionary approach to environmental
challenges) and Principle 8 (promotion of greater environmental responsibility). WSBI participation to
the UN Global Compact will raise the overall profile of savings banks with international and European
Union institutions and demonstrate further their commitment to socially responsible banking activities
and practices. It will also reinforce the engagement of its Members, already part on an individual basis
of the UN initiative (Banco Estado Chile, Caixa Economica Federal (Brazil), Swedbank (Sweden), Caisse
Nationale des Caisses d’Epargne (France), and a number of the Confederación Española de Cajas de
Ahorros (CECA) members).
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Your contact
Chris De Noose
Chairman of the Management
Committee
Tel. + 32 2 211 11 11
Email: [email protected]
TABLE OF CONTENTS
INTRODUCTION ....................................................................................................................9
About Corporate Social Responsibility .....................................................................................9
Savings banks’ CSR commitment .............................................................................................9
Purpose and objectives of the Report ......................................................................................9
COMMITMENT TO SOCIETY, FOUNDATION OF SAVINGS BANKS' CSR
APPROACH ...........................................................................................................................11
1. SAVINGS BANKS, KEY PLAYERS FOR LOCAL ECONOMIC
DEVELOPMENT ..............................................................................................................11
1.1. Partnering with local authorities .....................................................................................11
Caixa Economica Federal, Brazil - A Channel for Welfare Benefits .........................................11
Peruvian Savings banks - Distributing profits for local development .......................................11
Government Savings Bank, Thailand - National Village and Urban Community
Fund Program .......................................................................................................................11
Caixa Economica Federal, Brazil – Best Practices in Local Management Program ...................12
Sberbank, Russia – Pilot Project of Social Restructuring .........................................................12
Industrial and Commercial Bank of China Ltd – Assistance to Poverty Alleviation .................12
1.2 Building the bridge between economic and social needs: microfinance projects .......13
Banco BCSC, Colombia - “Creemos” (We Believe) microfinance programme .........................13
Government Savings Bank, Thailand - Extensive microfinance programmes ...........................13
Banco Estado, Chile - The biggest microfinance programme in the country ...........................14
Tanzania Postal Bank - Group-based microcredits ..................................................................14
National Development Bank, Egypt –Commercial and social values in Microfinance ............14
Bank Simpanan Nasional, Malaysia – Microfinance Loans ......................................................15
1.3. Encouraging local entrepreneurs ....................................................................................15
Caja Municipal Cusco, Peru – Rehabilitation of commercial areas ..........................................15
Government Savings Bank, Thailand – One Sub-district Ten Entrepreneurs Project .................16
1.4. Contributing to financial inclusion ..................................................................................16
Caixa Economica Federal, Brazil - A broad strategy for an inclusive financial system ..............16
Banco BCSC, Colombia – Large impact with the unbanked ................................................16
Banco de Ahorro Nacional y Servicios Financieros (BANSEFI), Mexico – A Technological
Platform for the Popular Savings and Credit Sector ...............................................................17
2. SAVINGS BANKS, SUPPORTERS OF SOCIAL INCLUSION ...............................18
2.1. Development and Solidarity initiatives ...........................................................................18
Banco BCSC, Colombia - Peace and development projects in conflict areas...........................18
Zimbabwe People’s Own Savings Bank - Solidarity programmes ............................................18
Government Savings Bank, Thailand - Reintegration into Society Project ...............................18
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2.2. Supporting disabled groups .............................................................................................19
National Savings Bank, Sri Lanka - Helping people with visual impairment ............................19
National Savings Bank, Sri Lanka – Ranaviru Seva Fund .........................................................19
2.3. Providing support for education .....................................................................................19
Caixa Economica Federal, Brazil - The Adolescent Apprentice Program..................................19
Banco Estado, Chile – 170 Scholarships for children of its clients .........................................19
Tanzania Postal Bank – Supporting basic education infrastructure .........................................20
Hatton National Bank, Sri Lanka – HNB School Library Project ...............................................20
National Savings Bank, Sri Lanka – Support to Younger Generation ......................................20
Kenya Post Office Savings Bank - Donating textbooks, supporting students ..........................20
Bank Simpanan Nasional, Malaysia – Outreach Programme ...................................................21
2.4 Support for women ..........................................................................................................21
Caixa Economica Federal, Brazil – Facilitating national registration to women ........................21
3. SAVINGS BANKS, ACTIVE CONTRIBUTORS FOR THE IMPROVEMENT
OF COMMUNITY LIFE ..................................................................................................22
3.1. Assisting for the most urgent and basic needs...............................................................22
Kenya Post Office Savings Bank - Support for the Orphans and Vulnerable Children ............22
Caixa Economica Federal, Brazil - Contributing to eradicate extreme poverty and hunger .....22
Zimbabwe People’s Own Savings Bank - HIV and AIDS Policy: awareness and programs........22
Banco Popular de Ahorro, Cuba –Equipping homes with electrical appliances .......................23
3.2. Supporting disaster recovery ...........................................................................................23
National Savings Bank, Sri Lanka- Supporting disaster recovery ............................................23
3.3. Strengthening community development ........................................................................23
Caja Municipal Cusco, Peru – Credit for Housing Associations ..............................................23
Banco Estado, Chile - Rehabilitation of a coal mine into a high-tech centre ..........................24
Bank Simpanan Nasional, Malaysia -Relationship with the local community ..........................24
America’s Community Bankers and Habitat for Humanity Partnership – Building homes
with their own hands ............................................................................................................24
Kenya Post Office Savings Bank – Profits invested in community projects .............................25
Government Savings Bank, Thailand – Volunteers for Social Development Project .................25
3.4. Developing financial education projects to improve living conditions ........................26
Postefinances, Senegal - Savings Accounts for the “tout petits” ...........................................26
Government Savings Bank, Thailand - School Based Banking Scheme ...................................26
Bank Simpanan Nasional, Malaysia - Programme for habit of savings ....................................26
Kenya Post Office Savings Bank - Investment Symposium for athletes ...................................27
WSBI collaborates with Aflatoun programme .......................................................................27
PostBank Uganda Limited – Successful alliance to promote schoolchildren savings ................27
3.5. Promoting national heritage and culture for all ...........................................................28
Caixa Economica Federal, Brazil -Encouraging Brazilian artistic production ............................28
National Savings Bank, Sri Lanka – Contribution to the Religious Activities............................28
3.6. Supporting national sport ...............................................................................................28
Zimbabwe People’s Own Savings Bank - Sport Development ................................................28
Caixa Economica Federal, Brazil - Sponsoring national athletes .............................................28
National Savings Bank, Sri Lanka –Supporting Taekwondo ....................................................28
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SAVINGS BANKS' INCLUSIVE AND INNOVATIVE APPROACH TO CSR ..........29
1. SAVINGS BANKS, EXPERIENCING SUSTAINABILITY MANAGEMENT
AND REPORTING PRACTICES ....................................................................................29
Fundación Social and Banco BCSC, Colombia - Pioneers in sustainability management
and reporting practices (SMR) ...............................................................................................29
2. SAVINGS BANKS, ADVANCING THE CSR PRINCIPLES .....................................30
Caisse de Dépôt et de Gestion, Morocco - Improving awareness of CSR ...............................30
WSBI/ESBG CSR Committee – Sharing CSR initiatives worldwide ...........................................30
3. SAVINGS BANKS, CONDUCTING DIALOGUE WITH STAKEHOLDERS ........31
3.1. Accompanying customers ................................................................................................31
Caixa Economica Federal, Brazil - The client service centre .....................................................31
Banco BCSC, Colombia - Market segmentation creating added value for
microentrepreneurs ................................................................................................................31
3.2. Encouraging workforce quality development ................................................................32
Zimbabwe People’s Own Savings Bank - Career and Entrepreneurial Development ................32
Banco Estado, Chile - “The change is with the people” programme ......................................32
Caixa Economica Federal, Brazil - Profit Sharing and training programs .................................32
Bank Simpanan Nasional, Malaysia - Performance-based culture ...........................................32
Bank Simpanan Nasional, Malaysia – Financing package for civil servants and employees ......33
Banco Popular de Ahorro, Cuba –Training for employees .....................................................33
3.3. Implementing transparency and corporate governance principles ..............................33
Zimbabwe People’s Own Savings Bank - Guidelines on corporate governance ......................33
Government Savings Bank, Thailand – Implementation of Good Governance practices ..........33
Caixa Economica Federal, Brazil - Participative management ..................................................34
3.4 Participating in national and international fora .............................................................34
Banco BCSC, Colombia – Active participation in national and international debates .............34
4. SAVINGS BANKS, ENTERING THE FIELD OF ENVIRONMENT .......................35
Caixa Economica Federal, Brazil - Selected environmental actions (garbage collection,
recycling of paper and cartridges, water etc) ..........................................................................35
Government Savings Bank, Thailand – Clean Energy Project for public vehicles ......................35
5. SAVINGS BANKS, DEVELOPING SOCIALLY RESPONSIBLE SERVICES
AND PRODUCTS ............................................................................................................36
5.1. Going to the people to widen the outreach ..................................................................36
Zimbabwe People’s Own Savings Bank - Outreach programmes through mobile banking ......36
Government Savings Bank, Thailand - Poverty Eradication Caravans ......................................36
Caja Municipal Cusco, Peru – Bank on wheels (Cajabus) .......................................................36
Banco Estado, Chile –Reaching fishermen in remote Chilean islands .....................................36
Bank Simpanan Nasional, Malaysia – Social branches in rural area .........................................37
5.2. Developing innovating solutions to respond to people’s needs ..................................37
Caja Municipal Sullana, Peru - Maximizing remittances impact ..............................................37
National Savings Bank, Sri Lanka - Gaurawa deposit scheme .................................................37
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Caixa Economica Federal, Brazil - Turning income into savings and credit opportunities ........37
Banco de Ahorro Nacional y Servicios Financieros (BANSEFI), Mexico –
L@Red de la Gente programme ............................................................................................38
Banco Estado, Chile – “Cajas Vecinas” Project ......................................................................39
Banco de Desarrollo Rural (BANRURAL), Guatemala – Providing health insurance and
facilitating consular assistance ..............................................................................................39
National Savings Bank, Sri Lanka – Mihindu Sevana Scheme..................................................39
COMMITMENT TO SOCIETY, FOUNDATION OF
SAVINGS BANKS' CSR APPROACH ...... 11
INTRODUCTION
About Corporate Social Responsibility
Corporate Social Responsibility (CSR) is commonly understood as the business contribution to
sustainable development, and covers companies’ active participation in different fields: human rights,
human resources, relations with clients, suppliers and other stakeholders, corporate governance,
environment and contribution to community and society. It is increasingly viewed, across the world and
across all business sectors, as a strategic issue to ensure the development of a sustainable world, and
to enhance business competitiveness. It is high on the policy priority lists of a number of international
organisations, who seek to increase businesses’ awareness and involvement.
Savings banks’ CSR commitment
Savings banks across the world have a long history of commitment to the communities in which
they operate: contributing to the improvement of living conditions, supporting the local economic
development and building greater social cohesion in the local communities where they operate is an
integral part of their identity and one of their distinctive features amongst financial players. On all
continents, savings banks remain a key social actor, seeking to bring value and return to the citizens
and communities surrounding them. Contribution to society achievements therefore remain the core
of their socially responsible involvement.
However, on a increasing number of markets around the world, these commitment to society activities
traditionally developed by savings banks stand as one of the pillars of a broader CSR approach. Savings
banks progressively introduce CSR concerns in their banking activities and professional practices,
involving all stakeholders for the development of inclusive and innovative CSR policies and programmes.
Thus, they seek to cover several or all CSR components, economic (e.g. regional development, financial
inclusion), social (e.g. workforce development), and environmental (e.g. protection of the environment
campaigns).
Purpose and objectives of the Report
The main purpose of this report is to illustrate the diversity and wide-range of CSR policies and
projects launched by savings banks across the world, based on concrete case studies provided by
WSBI Members. The report will be frequently updated including new case studies received from WSBI
members. A first version of the report was published in July 2006. The present is an updated version
completed in September 2007 with the contributions of 22 members from 20 countries. This report
must be read in conjunction with the ESBG report, which presents a series of experience from European
Members*.
* Available at www.savings-banks.com or by sending an e-mail to [email protected]
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COMMITMENT TO SOCIETY,
FOUNDATION OF SAVINGS BANKS' CSR
APPROACH
1. SAVINGS BANKS, KEY PLAYERS FOR LOCAL ECONOMIC
DEVELOPMENT
1.1. Partnering with local authorities
Caixa Economica Federal, Brazil - A Channel for Welfare Benefits
Caixa Economica Federal is the largest publicly owned bank in Latin America. In 2007, CAIXA has
around 33 million bank accounts. It is also the only bank present in all of the 5.562 municipalities of
Brazil. Caixa is a member of the United Nations Global Compact.
Caixa Economica Federal’s network and operations play a key role in the federal government
programmes to fight poverty, promote social inclusion and minimize inequalities. It contributes in
uniting all federal government welfare revenue transfer programmes, involving more than 10 million
social security accounts and benefiting approximately 43 million people. Caixa transfers the federal
government welfare and also transforms these social security accounts into bank accounts, which are
an important step in promoting financial inclusion and providing access to other banking services.
Evidence reveals that once people are given the opportunity to have a bank account, they start building
a savings culture and having a credit history which is vital to develop any business. More importantly,
acting as a channel for welfare benefits, Caixa caters to the needs of the poor in terms of financial
inclusion and financial education, developing programs such as “Inclusive financial system”1.
Peruvian Savings banks - Distributing profits for local development
In Peru, the creation of the Cajas Municipales de Ahorro y Crédito (CMACs) was undertaken with
the specific objective to have decentralised financial institutions oriented towards those segments of
the population who lack access to the formal financial system. At the beginning of 2006, all CMACs
together had 883,000 clients. All CMACs are situated in the provinces but most clients are situated
in urban areas (only one fifth of the clients operate in rural areas). 45% are women. Around half of
the microenterprise clients of CMACs have an income level below the per capita GDP and a quarter
earns less than US$ 1000 a year. Besides targeting this clientele, which indirectly contributes to local
entrepreneurship, CMACs reinvest a part of their profit in socio-economic development by financing
projects in their provinces (up to 50%).
Government Savings Bank, Thailand - National Village and Urban
Community Fund Program
Government Savings Bank of Thailand (GSB) supports the National Village and Urban Community Fund
Program: a fund of US$ 25,000 has been distributed out of the national fund to set up a revolving fund
in 8,000 villages and urban communities. Individuals and households borrow from the revolving fund in
their community. The fund is aimed to support those activities that expand employment opportunities,
1 For more information on this programme, see Part I, Section 1.4., page 16.
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create more job opportunities, generate income or increase earnings, reduce expense and alleviate
emergencies. Under the program, GSB and the Bank for Agricultural Cooperatives lent US$ 2 billion to
the National Village Fund Office. As of August 31, 2007, 61,915 villages and urban communities are
registered. Of this total, 61,085 were allocated funds.
Caixa Economica Federal, Brazil – Best Practices in Local Management
Program
In 1999, CAIXA Best Practices in Local Management Program was created in order to stimulate and
disseminate the Brazilian experiences, product of partnerships between public and private institutions
and communities that CAIXA is supporting technically and financially.
CAIXA Award for Best Practices represents the commitment of CAIXA to further the implementation of
the United Nations Human Settlements Programme (UN HABITAT) Agenda in Brazil and the Millennium
Development Goals. According to its Program Guidelines, CAIXA is responsible for awarding the ten
best Practices every two years, using selection criteria based on the methodology of the UN HABITAT. To
encourage replication of winning practices, in cooperation with the UN HABITAT, CAIXA supports their
nomination for the Dubai International Award for Best Practices in Improving the Living Environment.
One of the best practices awarded in 2005-2006, consisted in a waste recycling program in the
city of Lençóis Paulista. The project revitalized a recycling and composting factory and organized an
environmental education initiative to establish selective waste collection as an everyday practice in the
municipality. It also employed members from the Lençóis Paulista Association of People with Disabilities
(Adefilp), to work in the renewed factory.
As the Brazilian Practices have been recognized in international forum, this confirms the interest in
Brazil's successful experiences in sustainable local development. In order to respond to this interest,
CAIXA keeps information available at internet (as case studies, guidelines manual for replication, web
site), publishes books and films on video (VHS) and maintains an exhibition on the Best Practices that
travels to different places. All of this information is directed to Brazilian municipalities, universities and
communities2.
Sberbank, Russia – Pilot Project of Social Restructuring
The government has entitled Sberbank with the responsibility for servicing the pilot project of social
restructuring of the Russian Far North regions. One of its objectives is to assist those people that
want to migrate from Northern regions. Using “federal housing certificates” migrants receive housing
allowances that are transacted by Sberbank. Only in 2005, Sberbank handled 2,045 real estate
transactions using the federal certificate. This represented US$11.04 million in total value.
Industrial and Commercial Bank of China Ltd – Assistance to Poverty
Alleviation
Industrial and Commercial Bank of China Ltd (ICBC) is the largest bank with nation-wide banking
network in China. For years, it partners with designated local authorities, and assists in the alleviation
of poverty in remote areas by efforts of provision of education and sanitation assistance, and disaster
relief. In 2006, the bank donated a total of US$214,000 to the designated areas. Employees were also
organized for voluntary donation of US$ 14,400 to help the local people in areas that were suffering
from the severe draught.
2 For more information see http://melhorespraticas.caixa.gov.br
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1.2 Building the bridge between economic and social needs:
microfinance projects
Banco BCSC, Colombia - “Creemos” (We Believe) microfinance
programme
Banco Caja Social, one of the two subsidiaries of BCSC, was created back in 1911 with the mission
to be the leading bank for financing low-middle income clients and micro and small and medium
enterprises (SMEs). According to the bank’s own estimates, in 2006 the microcredit portfolio of Banco
Caja Social represented 21,4% of the total Colombian microcredit portfolio. 61% of the bank’s
portfolio comes from clients with a monthly income of less than US$ 611.
Segmentation and innovation are strategic pillars on which BCSC manages the expansion of its services
catering to the needs of its target clientele. It has created “Creemos”, a microfinance programme
targeting microentrepreneurs with a monthly sales turnover of less than US$ 2,500. The microloans
are given taking into account the client’s future payment capacity and are not based on collaterals.
Personal references and overall household expenses are part of the credit analysis.
Created as recently as June 2004, it had in September 2005 already 4,259 customers and had granted
US$ 3.58 million with an average loan size of US$ 782. Past due loans were only 2.26% of the total
portfolio. Average savings in the account amount to US$ 125. Since then, the program has been
expanding considerably, in 2006 more than US$19,6 million were granted in 23,347 credit operations.
Up to date the project has served 24,570 microentrepreneurs. 70% of these clients did not have any
relationship with the banking sector before.
Government Savings Bank, Thailand - Extensive microfinance
programmes
The Thai Government has initiated several policies and measures to alleviate and eradicate poverty in
Thailand. Government Savings Bank (GSB) has taken part to the implementation of the Government’s
policy. Individually and in collaboration with other financial institutions and government agencies, GSB
has provided financial services under a number of programmes which include:



People’s Bank Program: it was established by GSB to expand financial opportunities to street vendors
and other small entrepreneurs through micro-finance schemes. GSB requires personal guarantee or
cross guarantee among the group of borrowers as collateral. The small entrepreneurs need to save
up as a precondition for securing a loan and GSB provides them with occupational trainings. The
amount of each loan is decided on the basis of the borrowers’ investment need and their ability to
repay. The amount of the first loan will not exceed US$ 750 and the repayable borrowers can apply
for a second loan up to US$ 1,250. A loan amount up to US$ 375 must be repaid in 13 monthly instalments. The repayment terms of 25 months and 37 months will apply for a larger amount of loan
but not exceeding US$ 750 and US$ 1,250 respectively. For all cases, there is a one-month grace
period. Over the first 7 months of 2005, 108,599 loans which amounted to US$ 78 million were
provided under the People’s Bank Program. As of August 31, 2007, the project had 1.36 million
members.
Asset Capitalization Program: launched in 2004, it intends to create access to capital for the poor
who have assets but with limited access to capital for use in funding existing or new business ventures. Documents guaranteeing the lease rights for selling goods at stalls administered by municipalities and some government agencies are used as collateral for loans. A loan amount is in the range
of US$ 1,250 to US$ 7,500 depending on the borrower’s investment need. The interest rate is 12 %
per annum and the repayment term ranges from 3 to 5 years before the expiry date of the lease right.
As of 2nd February 2005, a total of 2,054 loans which amounted to US$ 4.12 million were extended.
People’s Debt Restructuring Program: it was created to help over 700,000 non-agricultural debtors
who owe less than US$ 2,500 to unconventional lenders. The branches of GSB take part in the negotiations with creditors for partial write-offs of the debts and then refinance the remaining amount
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at a lower interest rate. GSB also provides debtors with occupational training. As of July 31, 2007,
8,488 debtors were refinanced the total debt of about US$ 6.81 million from unconventional lenders
through this program.
Banco Estado, Chile - The biggest microfinance programme in the
country
Banco Estado is the largest bank present in most of the provinces in Chile. It services 10.2 million
accounts through over 378 outlets, has 88% of the total number of accounts in the Chilean financial
system. Banco Estado runs a microenterprise programme that is a national leader with over 40% of
the market. In 2006 it served 219,069 microentrepreneurs; about one third of them achieved access to
a financial institution for the first time. This programme is serviced through 124 specialised platforms
throughout the country and has a recovery rate of 99% of loans. Other important features are that
half of customers are women and more than 90% of credits are processed without guarantees. Banco
Estado also operates the Chilean state small business guarantee fund (FOGAPE), which has become an
important instrument to enhance access to finance. The number of annual operations has nearly tripled
in the past three years to reach 30,000 in 2003 of which 70% are carried out in regions.
Tanzania Postal Bank - Group-based microcredits
Tanzania Postal Bank set up a microcredit scheme for micro-entrepreneurs and low-income households
both in rural and urban areas. This started in 2001 on a pilot basis in one district but has since been
rolled out to other locations. Only group-based microcredits have been extended typically to groups
of five, who can borrow between US$ 50 and US$ 600 at 2.5% per month for six to twelve months.
To reduce administrative burdens, groups are clustered. By 31 December 2002, the total value of
disbursed micro-loans stood at US$ 1.9 million extended to 4,235 clients (80% female) in 676 groups
out of whom 41 had fully liquidated their first round loans. Within the microcredit scheme a special
facility exists to provide seasonal agricultural finance.
National Development Bank, Egypt –Commercial and social values in
Microfinance
National Development Bank (NBD) has developed a microfinance program since 1989 based on both
a commercial attitude and its social mission. It has implemented its program in collaboration with
international donor agencies i.e. United States Agency for International Development (USAID), Swedish
International Development Cooperation Agency (SIDA), United Nations Children Fund (UNICEF) and
the Ford Foundation, thus becoming the first private sector bank to participate in microfinance in the
Egyptian market.
Through the adoption of its own loan delivery mechanism and its extensive branch network
infrastructure, the microfinance program has proved to be an efficient, sustainable and profitable
channel for boosting microfinance throughout Egypt. NBD has also proved through its pro-poor
approach that low-income costumers are bankable and abide by their financial obligations and
commitments.
NBD started its program with 4 specialized microfinance units in 1989. The program presently covers
17 Egyptian governorates with 42 Units, from which 29 are rural specialized units.
It has a strong accent on women empowerment through implementing two women oriented programs
in Upper Egypt (Qena and Luxor). It has also helped to solve the unemployment problem for university
graduates by recruiting local staff members. The overall staff in the microfinance program amount to
400 employees. As of 31 December 2006, there have been 464,403 disbursed loans, for a value of
213,787,200 US$. The repayment rate is of 99.7%.
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Bank Simpanan Nasional, Malaysia – Microfinance Loans
In 2007, Bank Simpanan Nasional (BSN) has been selected by the Central Bank of Malaysia to provide
microfinance loans to small or micro entrepreneurs who would otherwise have difficulty accessing
finance by conventional channels as they do not have collateral to offer, or financial skills to prepare
cash flow projections. Collateral is not required for microloans, the application form is simple and
easily understood and the eligibility criteria is easier to comply with. However, the micro businesses
must be viable and runned by dedicated entrepreneurs who display the drive and tenacity to make
their ventures work. To date more than 1,000 applications have been assessed for loans ranging from
US$ 1,400 to US$ 14,000. Most of the applicants are single mothers and people with no education
degrees.
1.3. Encouraging local entrepreneurs
Caja Municipal Cusco, Peru – Rehabilitation of commercial areas
Caja Municipal Cusco’s (CMAC Cusco) mission is to promote social and economic development in
its region by providing financial support to small and micro enterprises. CMAC invests in regional
activities and assists informal sectors in becoming financially independent by integrating them into the
productive economy. CMAC allocates a part of its assets to finance social activities; one example is
financial support for victims of violent aggressions (especially women and children).
A successful example of these activities is the rehabilitation of Cusco’s commercial areas project, which
contributed to the reorganization of Cusco and gave a more sustainable business environment to its
former street vendors.
About 7000 street vendors received credits to buy their own stands inside newly created commercial
centres, which additionally were financed by CMAC Cusco. The main aim of the project was to provide
street vendors with their own fix stand, a way to make them pass from informality to formality. Vendors
had to provide a minimum documentation about their activity and after the assessment of the activity
by a special Committee, the vendor was granted a loan. The Association of Street Vendors, formed
to the purposes of this project, had to pay 20% of the investment, while the remaining 80% was
financed by CMAC Cusco.
The change has been quite visible in Cusco’s streets: nowadays visitors and locals can actually
appreciate some of the houses and buildings that before were full of street vendors. This reorganization
has also contributed to have a cleaner and safer city. For the street vendors, there have been also many
advantages: their stands are now cleaner and organized, they are attracting more clients and more
importantly the formalization of their businesses assures a sustainability of their operations in the long
term.
Government Savings Bank, Thailand – One Sub-district Ten Entrepreneurs
Project
The Government Savings Bank in Thailand launched a special project to assist the small entrepreneurs
to run their business with efficiency, stability and sustainability. With support of the Community
Development Department of Agricultural Extension, GSB provided training for small entrepreneurs.
The purpose of the training is to allow entrepreneurs to apply the knowledge gained to improve and
develop their products for higher quality and competitive advantage.
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1.4. Contributing to financial inclusion
Caixa Economica Federal, Brazil - A broad strategy for an inclusive
financial system
Caixa Economica Federal has developed an overall strategy to target the low income population in
Brazil. The extensive strategy includes, among others:
 Establishment of partnerships with civil society organizations -such as worker cooperatives, trade
unions and churches-, in order to analyse the potential to include these associations as microfinance
correspondents, where some of its members can become credit officers to distribute microcredits.
Working with these community associations allows Caixa to identify the particular needs of the
community as well as its strengths on which a business project can be developed. It also helps to
identify the microenterprises that need financing to grow;

Provision of financial education aiming at giving people basic financial knowledge and bringing back
self-confidence. Classes include basic concepts of business and financial management, as well as the
use of financial services. Training for credit officers is also provided. Some classes include international
trade basic knowledge, aiming at creating an export culture among micro entrepreneurs;

Improving banking inclusion by providing access to very specific financial services to the low income
sector, such as Caixa Aqui account and Caixa Aqui 3.
One concrete example of this overall strategy is a project where Caixa partnered with a women
association in Sao Paulo. Caixa financed 1300 sewing machines and supported the whole process of
production of a fashionable women’s clothes collection. Caixa negotiated preferential prices for the
machines. It signed an exclusive contract with one of Sao Paulo’s best known fashion designers who
designed the collection. Finally it agreed with retailers to place the collection in their stores.
Banco BCSC, Colombia – Large impact with the unbanked
In 2006, BCSC had 3,6 million clients, 61% of whom have a monthly income of less than US$ 611. The
following table shows BCSC’s impact by client segments in credit business and the number of people
that entered the formal financial sector through BCSC services for the first time.
BCSC’s IMPACT 2006
PRODUCT
No. of
Operations
No. of
1st time
Banked
Costumers
Microcredit
83.039
127.620.597
1.537
14.358
SME Credit
44.718
378.877.090
8.473
1.426
292
16.295.955
55.808
Total Mortgage
5.563
71.763.917
12.900
1.025
Non Social Housing
1.691
41.301.554
24.424
69
Social Housing
3.872
30.462.363
7.867
956
Total Consumer Credit
356.218
523.527.599
2.368
42.132
Consumer credit
265.615
468.957.875
1.765
22.356
90.603
54.569.723
602
19.776
489.830
1.118.085.157
2.282
58.941
Corporate
Credit card
Total
3 For more information see Part II , Section 5.2., page 38
16
Disbursed Value Average Balances
(US$)*4
(US$)*
Banco de Ahorro Nacional y Servicios Financieros (BANSEFI), Mexico
– A Technological Platform for the Popular Savings and Credit Sector
BANSEFI, as a Second Tier Bank, has developed a technological infrastructure and banking applications
according to the needs of the Popular Savings and Credit Institutions and BANSEFI’s branches, in order
to be able to offer a wide variety of financial products and services in an efficient way. The design of
the technological platform, which relays in an Application Service Provider (ASP) technology, allows the
Popular Savings and Credit Sector to operate in network, minimize costs of operation and supervision,
as well as improve the decision making processes. These advantages are translated into better
consumer service and lower cost products to their main clientele which is mainly low-income people.
The solutions take into consideration the different levels of technological development of each Savings
and Credit Institution (SCI) and support the use of individual components on a modular basis.
The platform is integrated by:



Shared Application Systems with all front and back office functions required to manage an array of
financial products in compliance with the regulation.
Communications Network to interconnect all the SCI’s with their branches and applicable external
institutions for business or regulatory purposes.
Shared Data Processing and Storage Center to accommodate the systems and data belonging to
each SCI in a secure and independent way.
As of September, 2007, the technological platform was used in 20 Entities, and has processed a total
of 22 million transactions, 31% more with respect to the same period of the last year.
4 Average exchange rate for 2006: 2.357,98 COP = 1USD
17
2. SAVINGS BANKS, SUPPORTERS OF SOCIAL INCLUSION
2.1. Development and Solidarity initiatives
Banco BCSC, Colombia - Peace and development projects in conflict
areas
The main mission of Fundación Social -the foundation that owns the Banco BCSC- is to contribute to
overcome the structural causes of poverty in Colombia. It therefore invests in social programs in poor
communities. One example of this is the participation of Banco Caja Social BCSC in the “Development
and Peace Program for the Magdalena Medio”.
This program began operations in 1997 and aimed at rebuilding one of Colombia´s most affected
regions by the conflict, the “Magdalena Medio”. As a civil society initiative, the objective has been
to support local economic development and social cohesion through the substitution of illegal crops
to African Palm plantations. The intention is to provide alternative ways of making a living for many
peasants who had been involved in coca plantations. The programme aims to supporting the farmers
in the production and distribution of the African Palm.
Banco BCSC has participated in financing two farmers´ associations with 500 hectares each. The
bank allocates US$ 1,455,217 in two collective credits that are given to 50 families of the regions of
Cantagallo and Puerto Wilches. So far 80% of the expected palm production has been achieved and
credits are being reimbursed.
Zimbabwe People’s Own Savings Bank - Solidarity programmes
Accompanying the People’s Own Savings Bank’s (POSB) involvement in developing micro lending
through its wholesale lending product, the bank has contributed approximately US$ 4,467 to the
International Year of Microcredit in addition to cosponsoring advertising for this purpose. Contributions
amounting to US$7,147 have also been released to the National Army Charity Institutions in support
of the work the army is doing in raising money for disadvantaged members of society.
Government Savings Bank, Thailand - Reintegration into Society
Project
In collaboration with the Thailand Department of Corrections, the project offers vocational loans to
prisoners who are about to complete their sentences or to drug addicts who are in a rehabilitation
program. Combined with skills training, the offenders or addicts are better prepared to earn a living
and be welcomed back into society as law-abiding citizens. This innovative project received the
President’s Award from the International Prisons and Corrections Association.
18
2.2. Supporting disabled groups
National Savings Bank, Sri Lanka - Helping people with visual
impairment
National Savings Bank (NSB) contributed considerably to the development of a website for international
assistance for the blind in Sri Lanka. According to statistics there are about 20,000 to 30,000 totally
blind and around 10,000 people with impaired vision in the country who are in need of better
facilities and assistance. The Bank also sponsored the sport day activities of the Deaf & Blind School in
Ratmalana (US$ 980).
National Savings Bank, Sri Lanka – Ranaviru Seva Fund
Ranaviru Seva Fund is set up by the National Savings Bank to provide relief service to soldiers or the
police personnel who are disabled or to the dependants of those who have sacrificed their lives due
to the on-going conflicts in the country. By the end of 2006, the balance of the contribution stood at
US$ 302,160.
2.3. Providing support for education
Caixa Economica Federal, Brazil - The Adolescent Apprentice Program
In partnership with social and educational support specialized entities for children and teenagers,
the Adolescent Apprentice Program is an educational program where Caixa trains adolescents in
banking and administrative work. The program encourages young people to make a traineeship for a
minimum period of 18 months and a maximum of 24 months within the bank. The adolescents spend
4 hours per day learning basic skills and training at the bank. They should be attending the seventhgrade of basic education or courses in the Education Program for Young People and Adults and be
15 or 16 years old. The teenagers who participate in this program come from families in which the
per capita income is 50% or less of the current minimum wage.. The content of the syllabus taught
to the adolescents is decided jointly with the specialized youth entity in terms of basic and financial
mathematics, communication, Portuguese language, computer skills, citizenship and cultural and
sporting activities. Caixa staff monitors the adolescents’ progress. At the end of 2006 the program
created 3,600 jobs. It also began including young “quilombolas” girls, who are descendants of slaves
that lived in Quilombos -Brazilian hinterland settlements-.
Banco Estado, Chile – 170 Scholarships for children of its clients
In order to support its clients’ access to education, Banco Estado Filial Microempresas (Banco Estado’s
microfinance subsidiary) is granting 170 scholarships for children of its clients. The campaign has started
at the beginning of 2007 aiming to target those students with the highest scores in primary, middle,
high school and university. The bank is investing approx. US$ 27,000, with an average individual
scholarship amounting to US$ 90 to US$ 180 per student. Clients can register their daughters and
sons, by filling out an application form at the branches, to which they also need to attach a certificate
of their school scores. By this means, Banco Estado wishes to support the integral development of the
families it serves.
19
Tanzania Postal Bank – Supporting basic education infrastructure
Tanzania Postal Bank is committed to support various fields such as basic education infrastructure,
orphanage centres, protection of the environment and supporting people with disabilities. Between
January 2006 and May 2007, it has mostly engaged itself in investing in education, by providing
support to the purchase of books, the construction and renovation of schools and specific support has
been provided to orphan students and pupils with visual impairment. In total, more than US$ 71,500
haven been provided to schools in different regions.
Hatton National Bank, Sri Lanka – HNB School Library Project
Since 2005, HNB has launched a project to build 100 school libraries in support of children education.
With this project, HNB identified schools from all part of the country, particularly in the rural areas,
where there are no facilities to maintain a library within the school premises.
HNB provided these schools with a library in a new renovated building as well as furniture and books.
The bank also assisted the schools with further maintenance of the libraries. By April 2007, HNB
contributed US$ 130,000 for 100 libraries. As an effective support for the children education in remote
areas, HNB plans to extend to 50 more schools in 2007.
National Savings Bank, Sri Lanka – Support to Younger Generation
National Savings Bank (NSB) started a number of programs to support the education of the youth.
In the leadership program, NSB financed seminars / lectures to invite selective speakers to address
subjects which are important to the youth. In the year 2006, such seminars were organized for the
General Certificate of Education Examination (Ordinary Level), an island-wide examination for selected
schools.
Since 2005, NSB has also launched a scholarship scheme for students who have obtained the highest
marks in the examination for entrance to the best schools in the island. By 2006, the bank allocated
a total of US$ 0.5 million for the scholarship on a yearly basis, and another US$ 3,995 for seminars
held for this examination.
Kenya Post Office Savings Bank - Donating textbooks, supporting
students
Kenya Postbank donated 21,200 textbooks to 212 primary schools in the North Eastern province of
Kenya. This is a very dry part of the country where families and communities live in a very difficult
physical environment. The province is a home for the pastoralist communalities that perennially face
gruelling famine and cattle rustling making human survival very challenging. Because of economic
hardships and marginalisation of the province in terms of educational infrastructures, the enrolment of
children in primary school is one of the lowest in Kenya.
The objective of this helping hand project was to supplement the government resources in the provision
of free primary education. Approximately US$ 52,632 was spent in this project. The communities and
other stakeholders including the ministry of education were involved in distribution of books as a
strategy to ensure the project ownership. This contributed significantly in improving the enrolment of
children in primary schools in the province.
Kenya Postbank has also been sponsoring University students under the Support of Students in Free
Enterprise scheme (SIFE). SIFE is a global non-profit organization active in 45 countries. Working
in partnership with business and higher education, SIFE establishes student’s teams on university
campuses and led by faculty advisors. Team members leverage their personal education experiences,
the expertise of their faculty advisors, the support of their local business advisory boards and the
20
resources of their institutions to create economic opportunities for members of their communities while
discovering their own potential.
Each year each national SIFE organization conducts a national competition, which is judged by leaders
from business community. At the competition, SIFE teams present the results of their educational
outreach projects and compete to determine which team was most successful at creating economic
opportunity for others. SIFE National Champion Teams advances to the top level of competition, the
SIFE world Cup. Postbank Managing Director A. Nyambura Koigi has been a Judge at both national and
international competition for the last two years. This sponsorship worth US$ 10,000 has assisted SIFE
Kenya pursue, with remarkable success, issues of entrepreneurship, market economics and business
ethics in both industrial sector and among local groups, communities and societies.
In 2005, Kenya Postbank supported SIFE Kenya to participate in the SIFE world Cup in Spain and in
September this year at Canada. SIFE Moi University, a state university and the National SIFE champion
Team represented the national teams at Canada. The team has helped create business opportunities to
over ten thousand families around the university thereby improving their livelihood. PostBank renewed
its support to the 2006 event.
Bank Simpanan Nasional, Malaysia – Outreach Programme
Bank Simpanan Nasional (BSN) has participated in an Outreach Program which took place in various
rural areas in Malaysia. In 2006, this program took a form of a partnership between BSN, the Ministry
of Education and the Department of Social Welfare. The purpose of this Program was to offer
educational opportunities to potential underprivileged students. Among the activities undertaken were
the provision of medical benefits to students (for example, medical check ups by appointed doctors),
opening of savings accounts with BSN as a channel for monthly financial assistance from BSN as well
as registration for underprivileged students with the Department of Social Welfare.
2.4 Support for women
Caixa Economica Federal, Brazil – Facilitating national registration to
women
In 2006, CAIXA promoted for the third year in a row free issuance of the Individual Taxpayer
Registration (CPF) card for 300,000 women through out Brazil, in the context of the International
Women’s Week (6-13 May). This registration enables women to access federal government social
programs such as Zero Hunger Program, Bolsa Família (Family Assistance Program) and the National
Program for the Strengthening of Family Agriculture (PRONAF). It also helps them open bank accounts
and apply for microcredits.
21
3. SAVINGS BANKS, ACTIVE CONTRIBUTORS FOR THE
IMPROVEMENT OF COMMUNITY LIFE
3.1. Assisting for the most urgent and basic needs
Kenya Post Office Savings Bank - Support for the Orphans and
Vulnerable Children
Kenya Post Office Savings Bank (Kenya Postbank) has been supporting orphans and vulnerable children
particularly those infected and affected by HIV/AIDS scourge. Most of these are destitute children
rehabilitated from the slums and streets in various cities and other urban settlements in the country.
The assistance is provided in form of foodstuffs and clothing.
In 2006, Kenya Postbank gave such assistance to over 15 children homes, housing over 3000 children
in the country’s eight provinces. Each children home received US$ 430 worth of foodstuff. The total
contributions worth US$ 21,052, that also included some support to AIDS programmes run by women,
have given hope to some of the most distressed people in society.
In addition, Postbank staff forfeited their end of Year Family Fun Day Celebration to donate foodstuff
for an amount of US$ 7,170 to famine stricken families in the country. The impact of these initiatives
has been reported by communities and beneficiaries.
Caixa Economica Federal, Brazil - Contributing to eradicate extreme
poverty and hunger
The Zero Hunger Program was conceived by Brazil’s current government, to fight the structural causes
of poverty and hunger in Brazil. It places primary importance on the reduction of hunger, malnutrition
and extreme poverty. Such an approach is inspired by the World Food Summit and Millennium
Development Goals, which call for cutting hunger and extreme poverty by half by 2015.
Caixa is a partner company in the Zero Hunger Program. It has made available its branches to accept
food donations from the public and coordinated its distribution in accordance with the priorities set
by the Municipal Hunger Program Councils. In 2004 4.2 tons of foods were received as donations in
Caixa’s branches. Caixa has also contributed by donating in 2004, US$ 1.64 million to the Fund to
Combat and Eradicate Poverty.
Zimbabwe People’s Own Savings Bank - HIV and AIDS Policy:
awareness and programs
The bank has drafted an HIV and AIDS policy, which focuses on disseminating information at the
workplace and providing lessons on the need of responsible behaviour. This policy also addresses the
support to employees suffering from HIV and AIDS. The bank participates in advocacy programmes in
the community and research into the cure of HIV and AIDS.
22
Banco Popular de Ahorro, Cuba –Equipping homes with electrical
appliances
During 2005, 2006 and 2007 (up to the 31st August) Banco Popular de Ahorro has granted preferential
credits to the Cuban population for the purchase of more than 4 million electrical appliances. This special
line of credit has become very significant in the bank portfolio. It is at the same time an important
support for the “Energetic Revolution”, a government project created to make a better and rationale
use of energy. The modern appliances replace old ones with a higher rate of energy consumption.
The project has also had a positive effect for the environment reducing air contamination. Credits are
offered with special conditions to people with very low income. The rate applied is only of 2% with a
10 year term to reimburse the loan.
3.2. Supporting disaster recovery
National Savings Bank, Sri Lanka- Supporting disaster recovery
When Sri Lanka faced the worst ever natural disaster in May 2003, National Savings Bank (NSB)
contributed immediately to the Special Relief Fund. Initiated by the Government to support victims of
the severe land slides and relentless floods that affected millions of people in the country, it provided
support in the form of dry rations, clothing etc. NSB contributed US$ 49,034 in total towards this
disaster recovery fund.
When the country experienced a severe drought in 2004, NSB initiated action to distribute dry rations
and relief supplies throughout the drought riddled areas in association with Associated Newspapers
of Ceylon Ltd. (ANCL) spending a sum of US$ 4,903. NSB has also set up funds and contributed US$
245,170 towards the 2004 Tsunami Relief Fund with a view to assisting the community to rebuild the
homes affected by the disaster and uplifting their livelihoods.
3.3. Strengthening community development
Caja Municipal Cusco, Peru – Credit for Housing Associations
In the recent years, Cusco has attracted thousands of people from the surrounding rural areas that
come to the city searching for new opportunities and sometimes to escape from rural violence. Caja
Municipal Cusco (CMAC Cusco) has developed a specialized credit scheme to support those families to
have decent housing when they move to metropolitan Cusco. The program gives economic assistance
and advice to “Housing Associations”, a group of people with the same interest in settling in Cusco
that unites its efforts and buys a piece of land where they build their habitations-.
CMAC Cusco encourages people to form these associations so that they find an affordable piece of
land and share costs of basic services installations (such as water and electricity). Such Associations can
be formed by migrants from a specific province, for instance, the Association of Chumbilvicas region,
or from people with similar professions like the Association of Commercial Vendors. CMAC Cusco
takes actively part in the negotiations with the land owner and in the preparation of all the legal issues
of the purchase. However, CMAC Cusco gives the credit to the members of the association on an
individual basis, generating a sense of individual responsibility for the reimbursement. The Associations
normally have 30 -50 or 100 members and credits are on average of US$ 1500. Once the Associations
buy the land, they also seek further financing and advice from CMAC Cusco to pay for the basic
services installations and to buy construction materials.
23
Banco Estado, Chile - Rehabilitation of a coal mine into a high-tech
centre
The Lota mine, one of the biggest coal mines in the history of Chile, was finally closed in 1997
generating economic and social depression in the region. Unemployment rose to 19% and confidence
of the population was very low. Banco Estado Chile participated in a project to rehabilitate the
community of coal miners setting up a high-tech call centre where it now bases its telephone client
services.
Despite the difficult task, Banco Estado launched the project considering that the opportunities to
reconvert the region where high due to the existing abundant labour supply. Banco Estado invested
in the miner’s training, built the facilities and brought the technology. Moreover it set up a specialized
training centre that will remain in Lota, aiming to develop the “call centre” business further in this
region.
The benefits for the community, the bank and the clients are significant: increased employment in
the region, specialized client service centre and centralized operations for the whole country. It is also
important to note that in the last years the project has considerable contributed to employment of
young people in Lota. 63% of the call centre’s staff is less than 30 years old and 50% is less than 25
years old.
Bank Simpanan Nasional, Malaysia -Relationship with the local
community
Bank Simpanan Nasional (BSN) has conceived a community project called ‘BSN Prihatin’ or ‘BSN Cares’
carried out through 2002 to 2004. It aims at enhancing BSN’s social engagement through interactive
community activities by giving donations and providing assistance to different groups of people such
as the young generation, people living in poverty and senior citizens. A total of US$ 87,521.27 was
allocated to make the project a success nationwide.
America’s Community Bankers and Habitat for Humanity Partnership
– Building homes with their own hands
America’s Community Bankers (ACB) and Habitat for Humanity –a non-profit housing organizationhave a history of partnership. For the past five years, ACB members and staff have personally built
a Habitat home in the cities that host its annual convention. The ACB Housing Partners Foundation
–founded by ACB members- makes a monetary contribution to completely fund the home and
community banker volunteers arrive before the convention begins to work on the ACB-sponsored
Habitat home.
This partnership has been strengthened trough the latest collaborations after the Hurricane Katrina
that affected the city of New Orleans in 2005. In the aftermath of the hurricane, community bankers
from across the country wanted to reach out and express their support to those in the hurricaneaffected areas. ACB, in consultation with Habitat for Humanity International, decided that the best way
to help the citizens of New Orleans was to support the New Orleans Habitat affiliate and to sponsor
its efforts to build Habitat homes. The New Orleans Habitat affiliate lost all of its trucks and all of its
equipment in the hurricane. ACB is helping to put the affiliate back on its feet so that it can help
rebuild New Orleans.
ACB has also set up a fund designed to assist bank employees affected by the hurricane. The BankersHelping-Bankers program has directly given more than US$ 90,000 to over 250 bank employees in
hurricane-affected areas. These funds will be used for rebuilding homes and for clothing, food and
other basic necessities.
24
Kenya Post Office Savings Bank – Profits invested in community
projects
Kenya Postbank believes that community investments are an important component of its corporate
citizenship, its core business activity and value. It recognises that communities in which it operates have
a wide range of unsatisfied needs and are challenged by lack of capabilities in terms of resources and
knowledge.
During 2005, an average of US$ 14,350 was given to communities and institutions either as helping
hand initiative or business relationship building strategy. The most significant achievement by Postbank
in CSR is the commitment to set aside 1% of its net profits to support community projects, amongst
which:

Shining Communities: As a contribution to the Government Plan to upgrade and improve housing
and security in poor communities, Postbank sponsored a light mast to shine in Mathare Slums and
street light in Sub-urban areas in Nairobi-City.

Beautifying the city: Postbank contributed with over US$ 2,580 towards repainting the City Market
and beautifying Market Street as part of the “City Lane Safe Clean Project”.
Government Savings Bank, Thailand – Volunteers for Social
Development Project
GSB in collaboration with the Commission on Higher Education, supports selected volunteer projects
at academic institutions nationwide. The Bank provides funds for community development activities to
realize socially beneficial innovations by Thai students. In 2006, GSB supported 20 volunteer projects
with a total value of US$ 68,571. For example, Sakol Nakhon Rajabhat University initiated the project
on construction of building and promotion of health knowledge at Ban Thep Nimit School in Nakhon
Phanom province under a budget of about US$ 2,800.
The objectives of the GSB Volunteers for Social Development project are:
 To support and promote volunteer or socially beneficial activities,
 To encourage Thai students to apply their knowledge to society and the public,
 To broaden knowledge and develop better understanding of prevention of social problems, such as
drug, literacy, health, etc.
 To promote beneficial activities and create learning process and improvement of quality of life,
 To develop and promote awareness of arts and culture, custom and environment
The target group includes:
 Students or scholars of the participating academic institutions,
 Public, community and society of the selected projects.
 On August 29, 2007, Government Savings Bank received the State-owned Enterprise Award of
Thailand in the Best Social and Environmental Responsibility category among 59 state enterprises
nationwide.
25
3.4. Developing financial education projects to improve living
conditions
Postefinances, Senegal - Savings Accounts for the “tout petits”
Postefinances Senegal has made an agreement with the National Agency “La Case des Tout Petits” for
opening free of charge savings accounts for children from 0 to 6 years where money can be saved for
their primary education. Benefactors (parrains) of these underprivileged children commit themselves
to deposit at least US$ 5 monthly on each of these frozen savings accounts. Once the children are 6
years old, the money can be withdrawn only once a year at the beginning of the school year to cover
education expenses. Postefinances want to support the community in taking care of the future of its
children through education and to inculcate savings values to these children at pre-enrolment age.
Government Savings Bank, Thailand - School Based Banking Scheme
The school-based banking scheme, which capital was granted by the Government Savings Bank (GSB),
has been undertaken since 1998 to promote savings habits among children. The school-based bank is
a model bank operated by students with their teachers and GSB staff playing an advisory role. Selected
students act as the manager, finance officer, counter service officer, and teller. Deposit and withdrawal
services are provided before the morning class or during the lunch hour. The GSB branch that plays
an advisory role performs auditing and collects savings after the banking hours of the school-based
bank.
GSB’s support for the school-based bank includes training on banking operations and the provision of
equipment. Passbooks and printed forms are specially designed for the purpose. GSB also provides the
students who participate in the scheme with scholarships, educational material, and organises study
tours for them.
The number of the school-based banks, the number of deposit accounts and their volume has been
increasing. As of August 2007, the number of school-based banks reached 190 and 512,706 accounts
were opened. The total deposits were US$ 6.25 million.
Bank Simpanan Nasional, Malaysia - Programme for habit of savings
As a development bank, Bank Simpanan Nasional (BSN) has a set of roles of encouraging thrift and
prudent financial management targeted to the young generation, namely school children. The ‘School
Adoption Program’ under the Central Bank of Malaysia is one of the primary programs through which
BSN inculcates and educates the young generation on savings.
Adoptive banks undertake the following activities:
- hold regular visits to schools and give talks to children on savings and good financial ethics;
- explain the different ways to save money and how it can grow. Every year, banks will distribute
Pocket Money Books (‘Buku Wang Saku’) printed by BNM to children and explain how it can be used
to manage their spending. The Book is designed with attractive cartoon characters for greater appeal
and there is also a similar one for the parents. Parents are encouraged to use them together with their
children for total family involvement;
- provide financial advice on money matters. Schools are encouraged to form a Students Finance Club
with the objective to teach members on matters relating to money management;
- explain the Government’s economic planning at their level of understanding.
BSN is also actively promoting its Young Savers Club, a specific program on promoting savings activities
designed for children from the age of 6 to 20 years old. In order to attract young savers to participate
in this savings scheme, BSN has collaborated with more than 10 local companies to provide the club
members with various perks or benefits such as discounted rates on book purchases, entrance fees
in participating theme parks, museums, restaurants and many more. BSN has 60,000 school children
throughout Malaysia as members, with total mobilisation of savings of US$ 13.9 million.
26
BSN also honours students and schools with outstanding performance in savings via its Students and
Schools Incentive Scheme. This is another approach for motivating students and schools in developing
savings.
Kenya Post Office Savings Bank - Investment Symposium for athletes
The Investment Symposium for athletes in 2006 brought together over 100 international athletes in
Kenya that included the five times world cross-country champion and more recently, the New York
Marathon champion, Paul Tergat, and former two times Marathon champion Tegla Loroupe.
The objective of the seminar was to inculcate savings culture among the athletes who are customers
and introduce to them the existing investment options and opportunities in Kenya. The bank engaged
consultants for one day from both public and private sectors that took the athletes through the
processes and options for investing proceeds from athletics so as to benefit both the country and the
athletes themselves.
The athletes were amazed by the various existing opportunities for investment. Indeed 40% of the
participants opened fixed and premium savings accounts while others opted to invest in share and
stocks. Subsequent follow up by Postbank marketing and sales teams indicates over 80% have made
solid investment decisions.
WSBI collaborates with Aflatoun programme
Aflatoun, founded in 2005, is a financial education initiative, which seeks to inculcate the habit of
savings to school children. It focuses on empowering children by equipping them with two key sets of
skills and knowledge. First, children are taught about their rights and responsibilities and how to act
upon them (social empowerment). Once this foundation has been created, the children are familiarized
with the management of money (financial empowerment). To enable children to truly understand the
importance and tools of financial management, they are supported in operating their own savings
schemes in their schools.
WSBI has been supporting the Aflatoun programme throughout 2006 and 2007 by promoting this
initiative within its membership. WSBI and Aflatoun have worked on identifying opportunities of
partnership at national level with savings and retail banks from WSBI network. The programme works
with local NGOs specialized in children’s attention and with retail financial institutions which provide
savings accounts and give some basic training on savings management.
Aflatoun was presented during the WSBI regional group meetings held in 2006 in Africa, Asia and Latin
America. Several contacts with WSBI members were made at those opportunities. One of these has led
to a concrete partnership with WSBI member Postbank Uganda Limited. The experience is described
in the next case study.
PostBank Uganda Limited – Successful alliance to promote
schoolchildren savings
The Aflatoun programme (described above) was successfully deployed in Uganda, where WSBI member
Postbank Uganda Limited partnered with the local NGO Private Education Development Network
(PEDN). The programme started initially with schoolchildren from the Kampala District and as to date,
with just one year of operations, Postbank Uganda serves 25 schools through 5 of its branches. With
a strong commitment towards this initiative, Postbank Uganda redesigned one of its savings products
to be able to accommodate the small children’s balances in their accounts, starting with 100 Shillings
or 0.06 US$. PEDN and Postbank Uganda have plans to expand into the north of the country by the
end of this year. The medium-term objective is to deliver the Aflatoun programme to schoolchildren
on a national scale.
27
3.5. Promoting national heritage and culture for all
Caixa Economica Federal, Brazil -Encouraging Brazilian artistic
production
In the context of the Federal Government’s policy of decentralization of investments in culture, Caixa
promotes free access for the population of all the Brazilian regions to cultural events and projects of
national importance, encouraging rebirth, publication and support for Brazilian artistic production,
contributing to social inclusion. In 2006, approximately US$ 16 million was allocated to cultural events
and projects of nationwide importance. Events range from theatre, dance and musical festivals, art
exhibitions, “festivais de inverno” (traditional city fairs) and art and music workshops and lectures.
Other programs aim to preserve Brazilian national heritage, such as the “Programa de Revitalização
do Patrimônio Histórico e Cultural Brasileiro” which started in 2006 and in its first stage works on the
restoration and preservation of 4 national museums. The second phase will cover 11 more museums
nationwide.
National Savings Bank, Sri Lanka – Contribution to the Religious
Activities
2006 was the year for the 2550th anniversary of the passing away of Lord Buddha, namely “Buddha
Jayanthi”. On this occasion, the bank contributed with US$14,787 in celebration of Buddha Jaynthi.
An exposition of the tooth relic of Lord Buddha was sponsored by the bank with a contribution of US$
7,870. The bank also supported Kelaniya Perahera and other religious activities.
3.6. Supporting national sport
Zimbabwe People’s Own Savings Bank - Sport Development
In recognition of the need for police officers to interact with other officers through sport and share
ideas on combating cross broader crime, a contribution was made to the Police to facilitate their
participation to the 4th games of the Southern Africa Regional Police Chiefs Corporation Organization
(SARPCCO) that were held in Cape Town, South Africa.
Caixa Economica Federal, Brazil - Sponsoring national athletes
As an Official Sponsor of Brazilian Athletics, Caixa discovers talents, trains athletes and helps to launch
new champions in Brazil and all around the world. From Caixa contribution, in 2006, the Brazilian
Athletics Confederation - CBAT received US$ 4.5 million in investments, 40% more than in 2005. This
will ensure the participation of Brazilian Athletics Teams in more than 30 national and international
competitions and in 15 other Caixa events that are part of the National Calendar of Sports. Caixa also
contributes to the development of support programs directed to athletes, managers and coaches as,
for example, Caixa National Young Talent Program, Caixa High Level Athlete Support Program and
Caixa Program for Olympic Coaches.
National Savings Bank, Sri Lanka –Supporting Taekwondo
The National Savings Bank of Sri Lanka supports the National Taekwondo Association and assists
the national team with contribution of US$ 6,200. In addition, the bank was a main sponsor for the
Taekwondo event at the South Asia Association for Regional Cooperation (SAARC) Games.
28
SAVINGS BANKS’ INCLUSIVE AND
INNOVATIVE APPROACH TO CSR
1. SAVINGS BANKS, EXPERIENCING SUSTAINABILITY
MANAGEMENT AND REPORTING PRACTICES
Fundación Social and Banco BCSC, Colombia - Pioneers in
sustainability management and reporting practices (SMR)
Fundación Social is the owner of a financial group, including Banco BCSC, which together rank as the
5th biggest financial group with a share of about 6% of the banking market in Colombia. Fundación
Social defines social responsibility as core business of the corporate group. The strong societal mission
of the organization has been driven by strong commitment in the board and senior management
following the institutions founders’ inspiration. In this context, it has developed great expertise in
sustainability management and reporting practices. It is part of the pilot project of the United Nations
Environment Programme Finance Initiative/Global Reporting Initiative (UNEP FI/GRI) on environmental
and social reporting for financial institutions and the International Organisation for Standardisation
(ISO) initiative to develop an international social responsibility guidance standard.
Sustainability Management5: the sustainability management system is incorporated into the regular
business structure of the organization and its companies. All policies relating to social or environmental
issues are developed centrally by the Fundacion Social and apply to the entire corporate group. The
Corporate Vice President holds responsibility for sustainability matters and reports on these issues
to the President and the Board. The planning director, and a social responsibility analyst support
specific CSR projects and accountability. The sustainability management is generally focused on social
issues, although environmental principles are also included in accordance with the guidelines of the
International Finance Corporation, one of BCSC shareholders.
Sustainability Reporting: Fundacion Social’s performance with regard to its social and sustainability
policies is appraised and disclosed yearly through the publication of a Social Balance. The report
contains three chapters:
1. Internal social achievements covering employee related matters like demographic change, salaries,
benefits and other human resources indicators and programs.
2. External social achievements, looking at clients, wealth generation and distribution causes and
society at large.
3. “Size of the effort”, including measurement of all resources and costs incurred in the operation; and
productivity measurements. In addition, Fundación Social holds meetings with the board and other
interested parties once a year, to share and discuss the results of the Social Balance.
In terms of time and resources required for the roll over of the SMR (Sustainability management and
reporting) system, it took Fundacion Social two years to complete the reporting system from the first
board approval. Since then, a Social Balance has been issued every year. Fundacion Social spends
an average of 100 man hours per month on the regular maintenance, reporting and continues
improvement of their SMR system. On the board and senior management level, 16 individuals have
been involved throughout the implementation.
5 Extract from Colin McKee and Mareike Hussels, Study Case for the UNEP FI Sustainability Management and Reporting Guidelines
Project
29
2. SAVINGS BANKS, ADVANCING THE CSR PRINCIPLES
Caisse de Dépôt et de Gestion, Morocco Improving awareness of CSR
Together with SIFE Morocco, a global non-profit organization that establishes student teams on
university campuses with the aim to develop community outreach projects, the “Caisse de Dépôt
et de Gestion” has launched, a special competition called “CDG – Social Responsibility”, with the
participation of students from 11 graduate schools. This competition aims at rewarding the best
awareness raising actions towards corporate social responsibility carried on by SIFE teams.
A jury made of CDG members assessed the various CSR focussed actions carried on by the teams. To
be able to decide between the candidates, some criteria for assessment are established, such as the
impact of the actions on targeted populations in terms of awareness towards social responsibility, the
populations’ commitment to CSR, the level of creativity and innovation of the actions as well as the
number of beneficiaries impacted.
The Special Trophy “CDG – Social Responsibility 2006” was awarded to a project which developed
various awareness raising actions for the protection of the environment, benefiting almost 190 people.
Furthermore, this team developed a proposal aiming at the inclusion of former prisoners through the
provision of management training sessions to help them find a job. The second price was awarded
to a project, which helped to increase people awareness about issues such as child labour and the
importance of their education, together with gender equality, the respect of the forests and the
need to protect natural resources. The third price was awarded to actions in favour of environment
protection.
WSBI/ESBG CSR Committee – Sharing CSR initiatives worldwide
The WSBI/ESBG CSR Committee was set up in 2005, taking over from the former Commitment to
Society Committee which existed more than a decade ago. The new scope of the Committee reflected
the comprehensive approach to CSR progressively adopted by savings banks all over the world, which
have enlarged their “traditional” social involvement to cover all CSR fields (stakeholder relations,
environment issues etc).
Among other advocacy activities, the Committee has promoted international exchanges of experience
during the last years. Namely, there have been CSR workshops and meetings in Peru in 2005 and in
Mexico, Tunisia, Sri Lanka and Malaysia in 2006. It has also contributed to the work of the United Nations
Environment Programme Finance Initiative/Global Reporting Initiative (UNEP FI/GRI) on environmental
and social reporting for financial institutions and to the International Organisation for Standardisation
(ISO) to develop an international social responsibility guidance standard. WSBI has coordinated the
participation to the United Nations Global Compact (UN GC) on behalf of its members.
Networking between CSR experts from member banks and organisations has proven a useful tool
to share and enrich national CSR solutions and initiatives taken at national level. It has also allowed
assessing the evolution of the companies and stakeholders' CSR involvement.
30
3. SAVINGS BANKS, CONDUCTING DIALOGUE WITH
STAKEHOLDERS
3.1. Accompanying customers
Caixa Economica Federal, Brazil - The client service centre
Aiming to constantly improve its client service, Caixa maintains its Ombudsman, an exclusive channel
of communication for submission of complaints, suggestions and demands. These communications
are used to optimize processes, products and services, or to change the direction of the company’s
activities to meet the demands of the market.
In 2004, the Ombudsman received 106,600 reactions by clients to the products and services offered
and the services provided by branches. This was 16.6% less than in 2003. Suggestions were 3.9% of
the total comments, and comments praising aspects of Caixa were 5.9% of the total.
In 2004, the company’s concern to meet the needs of its clients, and the efficiency of this type of
service, resulted in Caixa not being included in the list of financial institutions with the largest number
of complaints received by the Brazilian Central bank. Aiming to set a standard of service able to provide
faster and more effective solutions for the demands of its clients, Caixa established standardization of
the institutional relationship with the Consumer Defence and Protection Service (Procon).
Banco BCSC, Colombia - Market segmentation creating added value
for microentrepreneurs
Microentrepreneurs who own corner shops –“tiendas”- have been one of BCSC most traditional
customers. The personal banking department of BCSC has therefore started to develop tailored
products specially targeted to this clientele.
The “tenderos” usually run very small convenient shops located in every neighbourhood. They are not
only an essential actor in the community life but microentrepreneurs, who with some incentives, could
further expand their businesses and contribute to the local development. “Tienda Empresario” is a
programme which provides special financial services to this segment: preferential prizes, a more flexible
risk policy (giving access to unbanked people) and financial advice on business projections.
The bank has developed a communication strategy towards this segment stressing that they will
support the “tenderos” as far as they want their businesses to grow. In 2003, 12,000 tenderos clients
were identified, since then more than US$ 30,340,434 have been allocated in credits (February 2005)
and savings and current accounts totalling US$ 1,732,173 have been opened. The clients have also
shown good reimbursement behaviour, a 4.47% higher than the average of the bank.
31
3.2. Encouraging workforce quality development
Zimbabwe People’s Own Savings Bank - Career and Entrepreneurial
Development
The bank recognized the need to nurture talent and expertise in the areas of business that affect its
operations. So far, 21 students have benefited from the industrial attachment programme. The bank
has also embarked on a graduate trainee program, which was set to commence in 2006. The essence
of this move is to provide an avenue for career enhancement in the graduates’ respective area of
intended specialty. This program will have 10 beneficiaries.
Banco Estado, Chile - “The change is with the people” programme
Banco Estado attaches high importance to the training of employees to adapt them to the changing
working environment. It entered into a partnership with its workers’ unions to introduce corporate
changes and achieved major results for the improvement of the well being and working conditions
of the employees. The lemma of the project was “The change is with people”. By this way, the net
productivity per person almost doubled between 2000 and 2004. The main benefits of this process
were costs reduction for the bank, better quality in the offered services, new market opportunities and,
especially, better employability for the workers.
Caixa Economica Federal, Brazil - Profit Sharing and
training programs
Caixa employee’s profit share scheme is recognition of his/her contribution, and does not substitute or
complement the employee’s remuneration. Its basis is agreed in collective negotiations between Caixa
and the entities that represent the employees, and put into effect through signature of the Collective
Labour Agreement .
Caixa also invests in the education and training of its staff, aiming to develop relationship skills and
competencies, including techniques of participative management and feedback. In 2006, Caixa
delivered 233,371 course in its Corporate University and 31,373 workshops and seminars for its
employees.
Bank Simpanan Nasional, Malaysia - Performance-based culture
Bank Simpanan Nasional (BSN) has embarked on changing the work culture amongst the employees
towards a more performance-based culture by designing, organising and promoting programmes such
as performance-based assessment, performance improvement plans and performance-based rewards.
These programmes address the need to cascade the Bank’s vision, mission and objectives to each
employee via agreed Key Performance Indicators (KPIs). The KPIs assist in contributing a clear
understanding of deliverables and references and instil a sense of urgency amongst employees. With
precise and measurable targets, employees share the bank’s objectives and are able to discharge their
duties with higher motivation and higher job satisfaction when meeting or exceeding the targets.
BSN is also continuously promoting life-long learning via its staff training programmes internally and
externally. For the year 2007 (up to the month of August), a total of 2,035 staff have been trained in
various areas such as sales, credit and customer service with the ratio of 4% training budget / total
staff expenditure invested. Performance-based reward is also one of the strong factors to fast track the
change in culture via salary increment, while performance improvement plan for non-performers play
the role in promoting the understanding of excellence in performance.
32
Bank Simpanan Nasional, Malaysia – Financing package for civil
servants and employees
As a statutory body under the Ministry of Finance, Bank Simpanan Nasional (BSN) plays an important
role in assisting government servants in planning and organizing their financials. Special financing
packages have also been made available to government civil servants as a means of promoting sound
financial management. BSN recently launched a special Islamic Credit Card package for civil servants
at one of the lowest interest rate in Malaysia of 12% per annum. Apart from the Islamic Credit Card
facility, civil servants are also offered Personal Loan facilities at a low interest rate of 5.35% for loan
eligibility of up to US$ 28,985.
The Government of Malaysia is the largest employer and it has a substantial number of personnel
under its pension scheme. Most of the pensioners will receive their pensions at BSN branches through
their savings account or via encashment of pension warrants. Nationwide the Bank manages more
than 195,000 pension accounts that would otherwise not be considered commercially viable by other
financial institutions.
Banco Popular de Ahorro, Cuba –Training for employees
Banco Popular de Ahorro provides significant training to its employees. At the beginning of the year
each unit sends its training demands to the Human Resources area, which designs the training calendar
for the year. During 2006, 9031 employees received courses to develop specific skills for the areas
where they work and 25358 man/on-site-trainings were developed in bank branches.
3.3. Implementing transparency and corporate governance principles
Zimbabwe People’s Own Savings Bank - Guidelines on corporate
governance
The bank is committed to high standards of corporate governance, and has applied the principles in
the recommended “Guidelines in Corporate Governance for Boards Of Directors and Chief Executive
Officers in Zimbabwe”. The People’s Own Savings Bank (POSB) board is aware of the need for good
corporate governance and by way of example there is a requirement for every member to declare their
business interests. In addition, various subcommittees have been put in place to examine reports by
various divisions and to lay down policies.
Government Savings Bank, Thailand – Implementation of Good
Governance practices
GSB is a state bank committed to serving Thai people and continuously evolving to become both
a stable national financial institution and to be “more than a bank” in the Thai society. The Bank
conducts business on the basis of a commitment to good corporate governance, executed through a
modern management platform to address the following principles:
1.
2.
3.
Integrity and transparency;
Quality and efficiency; and
Participation and joint action;
In 2006, GSB carried out various activities to improve its good corporate governance. These included
adoption of internal monitoring standards of the Office of the Auditor-General of Thailand; employment
of the Balanced Scorecard methodology (BSC) to evaluate the performance; using the economic value
added system (EVA) to measure organizational efficiency in creating value; and transforming the bank
33
into a learning organization by supporting and enhancing employees’ abilities to perform their duties
efficiently and effectively.
A manual of good conduct and ethical practices has been updated for GSB employees at all levels,
from operational staff to executives and directors. It has also disseminated best practices for staff
reference as guidelines in operations to ensure the highest satisfaction of customers, both internally
and externally, so that the Bank will continue to earn customers’ trust.
Caixa Economica Federal, Brazil - Participative management
Caixa invests in the democratization of management. As well as the councils and committees that
participate in the company’s decisions, it is important to highlight the participation of employees in
the following areas:
- Strategic planning: Caixa develops its strategic planning in a participative manner. In 2004 the
decisions on Vision of the Future and Strategic Challenges had the benefit of numerous workshops in
which people from many levels of the organizational structure, jobs and functions, were present. It also
sought a balance between participation of men and women, and regional representation.
- The Council of Users of Caixa’s Health Plan: this autonomous body was created in 2004 and is made
up of 10 sitting members and 10 substitute members – 10 members are elected democratically by
the users of the health plan and the others are appointed by Caixa. The purpose of the Council is to
monitor the quality of the program and offer support to Caixa for increasing its quality.
3.4 Participating in national and international fora
Banco BCSC, Colombia – Active participation in national and
international debates
During 2006 Banco BCSC actively participated in the elaboration of the country’s microfinance
policy. Aiming at encouraging the development of microfinance in the country, the “Banca de la
Oportunidades” policy, calls for the action of the public and the private sector to further include
the unbanked in the formal financial system. Banco BCSC also participated in the elaboration of the
government’s Social Housing project (Vivienda de Interés Social). Furthermore, in this policy framework
it designed a housing product directed to low-income families, benefiting 12,700 individuals in 2006.
Banco BCSC is also active in international CSR fora. It is an active member of the United National
Environment Program Finance Initiative (UNEP-FI) and served as a pilot institution for the Financial
Supplement of the Global Reporting Initiative (GRI). It also participates in the International Organisation
for Standardisation (ISO) initiative to develop an international social responsibility guidance standard
34
4. SAVINGS BANKS, ENTERING THE FIELD OF
ENVIRONMENT
Caixa Economica Federal, Brazil - Selected environmental actions
(garbage collection, recycling of paper and cartridges, water etc)
Caixa contributed to train local agents in implementing garbage collection programs with an investment
of US$ 23,400, an initiative of the Global Education Associates Ethics and Environmental Institute. The
project generates employment and income and is based on technical skill addition for local agents,
enabling community groups to implement selective garbage collection programs, and recycle and
minimize garbage in residential buildings and condominiums, districts, shantytowns and schools.
In 2006, 11,700 printer cartridges, collected by Caixa, were donated to the NGO Moradia e Cidadania
by Caixa employees, generating US$ 87,000 revenue that has been invested in the NGO’s social
programs.
The campaign “Rational Consumption of Water” was launched on December 2006, setting as objective
the average consumption of 45 litres of water per employee/day. It aims to stimulate the habits of
rational use and communicate consumption data. It also disseminates concepts and information
covering the sustainable development and social environmental responsibility to employees. Besides
this campaign, Caixa installed a first pilot branch with a water reuse system - rationalization of hydric
resources, an initiative that will generate monthly water saving between 15 to 20m3, in the branch
which has an approximate area of 750 sq mts.
Regarding environmental education and awareness, the PROGED – Programa de Racionalização de
Gastos e Desperdícios (Waste and Expense Rationalization Program), was created to monitor CAIXA’s
headcount waste production and rationalize the expenses related to waste management. Its initial
objective was to achieve US$ 100 million savings in waste management and actually obtained savings
of approximately US$ 256 million during 2006.
Government Savings Bank, Thailand – Clean Energy Project for
public vehicles
To support the national energy policy, GSB works with the Small and Medium Enterprise Development
Bank of Thailand, the PTT Public Company Ltd. and the Bangkok Mass Transit Authority (BMTA) to
provide loans to private bus operators to modify their engines to be natural-gas compatible. The Bank
also provides loans for the hire purchase of Thai-style tricycles. It supports the use of Natural Gas for
Vehicles (NGV) technology in tricycles together with PTT Public Company Ltd., Department of Land
Transport and B-Grim Multi-products, Ltd..
35
5. SAVINGS BANKS, DEVELOPING SOCIALLY RESPONSIBLE
SERVICES AND PRODUCTS
5.1. Going to the people to widen the outreach
Zimbabwe People’s Own Savings Bank - Outreach programmes
through mobile banking
The bank has recognized the need to take banking to the people through the provision of banking
services to the marginalized communities especially in rural areas. A mobile banking concept was
introduced and the vans are servicing outlying areas in which the bank has no branch representation.
Government Savings Bank, Thailand - Poverty Eradication Caravans
Government Savings Bank’s (GSB) branches participate with government agencies concerned in the
mobile units known as “Poverty Eradication Caravans” by examining the need for loans and finding
a way to refinance.
Caja Municipal Cusco, Peru – Bank on wheels (Cajabus)
Due to the difficulty of rural population to get access to financial services, not only because of the
distance but also because of the money they spent in travelling. Caja Municipal (CMAC) Cusco decided
to reach to its clients with a “Cajabus”. The bus follows a regular path and services the clients on a
regular basis, for example once a week, always on the same day (at the occasion of small markets and
trade fairs).
The project is also an effort of financial literacy. The Cajabus staff raise the awareness of the people to
the safety ness and convenience of having a bank account and to the importance of savings and credit
allocation. In addition, the staff on board can check the client’s expectations and questions regarding
banking operations.
Banco Estado, Chile –Reaching fishermen in remote Chilean islands
In 2006, Banco Estado Filial Microempresa (Banco Estado’s microfinance subsidiary) achieved a
milestone: for the first time, after sailing for more than 3 hours, the staff from the Cabulco branch
was able to reach one of most southern areas in Chile in the Queullin Island. It was then able to offer
financial services such as microcredits, savings and insurances to unbanked fishermen. Since then,
Banco Estado is also providing microcredits to the fishermen union in order to support the production
of “choritos”, a native kind of fish.
For Banco Estado, this is a great achievement of its strategy to provide equal access to finance to all
Chilean population, even in such remote areas. It is the role of the microfinance subsidiary to promote
entrepreneurship, and it hopes the production of “choritos” will generate employment and more
income for the island.
36
Bank Simpanan Nasional, Malaysia – Social branches in rural area
To support its commitment to the community, Bank Simpanan Nasional (BSN) has a wide number of
social branches in identified rural areas. Currently, BSN has more than 350 branches in which around
20% are social branches. Having one of the largest branch network is also an advantage for BSN’s rural
customers as it operates and offers banking and financial facilities in areas where most commercial
banks do not have a presence. This has given BSN its special role of extending financial assistance to
the community in need as well as the ability to enlarge its customer base.
5.2. Developing innovating solutions to respond to people’s needs
Caja Municipal Sullana, Peru - Maximizing remittances impact
Caja Municipal (CMAC) Sullana is a municipal savings bank specialized in microfinance. Its mission is
to promote economic development in its region, make access to formal financial markets easier and
provide integrated and competitive financial services to its clients.
CMAC Sullana provides remittance disbursement services to its clients and sees remittances as a door
to banking the population and to leverage its impact on local development. In cooperation with money
transfer agencies located in sending countries, it offers innovative ways in which remittances can be
fully exploited for the clients benefit.
After agreement with the client, a planned quantity of the received remittances is automatically
deposited in the client’s bank account, which allows the client to save money in its country of origin for
future expenses. The interest rate on the bank account is interesting, as well as the incentive to keep
the bank account open on the long run.
The bank has also planned an initiative to help people to buy a house. The regular amount sent, not
only constitutes a guarantee for the mortgage loan but a part of it can be automatically transferred
to pay the mortgage.
Remittances can also be used as a form of guarantee for a microenterprise credit if the recipient family
would like to develop a small business.
National Savings Bank, Sri Lanka - Gaurawa deposit scheme
The Bank came forward to meet the requirements of the senior citizens through the “Gaurawa”
Deposit Scheme. Through this Scheme, NSB pays a tribute to senior citizens by offering an additional
1.5 per cent per annum more than the normal rate applicable to fixed deposits. With the present
balance outstanding the additional annual cost for the bank is around US$ 2.5 million.
Caixa Economica Federal, Brazil - Turning income into savings and
credit opportunities
CAIXA AQUI account was created specifically with the purpose of catering to the low-income
population in Brazil and is part of a broad strategy on “building an inclusive financial sector”. Caixa
Aqui translates as “Caixa is present”. This card-based account is built around simplified application
procedures and access through point-of-sale terminals at correspondents such as the State Lottery. This
extends Caixa’s outreach adding 15917 access points to the banks main network of 2400 offices (data
as of June 2006). Over 4.4 million CAIXA AQUI accounts have been opened.
The accounts take regular payments of social benefits such as pensions but also have scope to take
cash deposits. The account opening includes a pre-agreement to provide credit and after 90 days of
37
account use, provided all is in order the bank automatically sends the customer a contract to sign if
they want to take an initial credit of up to just under US$ 70 for a period of four months at an interest
cost of 2% per month. After this period, scoring of a client’s actual credit performance and ongoing
account use allows access to larger amounts for longer periods (potentially up to a year).
In parallel with this, Caixa launched E-ACCOUNT CAIXA for Brazilians working abroad who want to
send remittances home from a host-country credit card. The account is available in 50 countries and
the cost of a typical transfer is just 2,5% compared to 8~15% typical of more traditional channels.
These remittances can feed AQUI accounts of relatives. Furthermore, Brazilian migrant workers in the
United States can access their own AQUI accounts directly through Caixa AQUI terminals in branches
of the Portuguese BCP bank present there.
Banco de Ahorro Nacional y Servicios Financieros (BANSEFI), Mexico
– L@Red de la Gente programme
There have been many factors along the history of Mexico that have resulted in the lack of deepening
of the financial system. In order to cover the demand for financial services of the unbanked population,
multiple organizations grew in an organic way out of their own communities since the 1950’s, most
of them with the form of cooperatives.
By the year 2000 there were more than 600 of these organizations, many of them known as ‘Cajas’.
Most of them were not licensed by the financial authorities and thus were not regulated or supervised.
A latent risk was at steak. In the year 2001, the Mexican Authorities and Congress decided to take
action to transform this risk into an opportunity to deepen the financial system; this task involved the
implementation of two parallel action lines for building a strong and successful Popular Banking by:
a) Creating a new legal framework as a first step to give certainty to depositors.
b) Temporary governmental investment in the creation of central entities that provide services to the
Sector:
 Creation of a Development Bank (BANSEFI) as the state instrument to promote and coordinate
the transformation of the semi-formal Sector.
 Governmental temporary investment through fiscal transferences in order to strengthen and upscale the institutional capacity of the Sector: Technical Assistance, Training, Technological Platform,
and Network Creation (L@Red de la Gente, Communications Campaign, Second Tier Bank).
BANSEFI is working towards the consolidation of the Popular Savings and Credit Sector in Mexico,
focusing in the attainment of three goals: 1- Enhancement of a savings culture within the lowest
levels of income of society. 2- To act as a second tier “development bank” for the Savings and Credit
Institutions, seeking to improve their profitability in order to be able to comply with the new regulatory
framework. 3. To implement government temporary investment through fiscal transferences in order
to strengthen and upscale the institutional capacity of the Sector: Technical Assistance, Training, and
Technological Platform.
As local ‘Cajas’ come into compliance with the new regulatory regime, they can voluntarily join the
common brand L@Red de la Gente, which, nowadays integrates 133 Entities with 1,460 branches.
Throughout L@Red de la Gente they can expand the variety of financial products and services offered,
such as international and national remittances and delivery of payments from the Federal Government
programs (“Oportunidades”, “Jóvenes con Oportunidades”, “Becas SEP”). BANSEFI research shows
that within three to four cycles of a client receiving such inflows, their account typically starts to be
used for voluntary deposits of cash. L@Red de la Gente also manages pre-borrowing savings accounts
for a number of low cost loan schemes, in order to offer migrant workers the ability to qualify abroad
for low-cost housing finance for either themselves or their relatives.
38
Banco Estado, Chile – “Cajas Vecinas” Project
The “Cajas Vecinas” or Neighbourhood Teller project was designed to make the most of the current
Banco Estado’s banking distribution network, by offering a low-cost, operating alternative, using a
Point of Sale (POS) device. This expanded, low-cost coverage makes possible to offer financial services
to low-income individuals in rural and urban areas that currently have no banking services. It includes a
teller’s window, where people can make deposits, withdrawals and payment services, through a POS.
The pilot project started in remote regions in Chile (Quilleco and El Carmen), in 2005 with considerable
success. By the end of 2007, the Bank plans to install 2,500 service points in 130 municipal areas
lacking bank services, to benefit 1.2 million people, as well as in 141 municipal areas where the Bank
is the only service provider, offering this alternative to another 3.5 million people. It will also target
densely populated urban neighbourhoods, where there are no banks nearby.
Banco de Desarrollo Rural (BANRURAL), Guatemala – Providing
health insurance and facilitating consular assistance
As its name suggests, Banrural is a universal bank focused on the development of the rural and remote
areas in Guatemala. Since it was established nine years ago, Banrural has risen from the 32nd place to
the 3rd place out of all Guatemalan banks. Banrural is nevertheless quite different from other banks
because its main mission has been to deepen the financial market, with the aim of including the
unbanked. Although it concentrates on the low income sector, which at first glance could seem more
costly and difficult to serve, Banrural has the largest relative growth of any bank in Central America.
With 400 outlets, Banrural has also a very substantial coverage throughout the country.
Banrural’s corporate social responsibility activities range from providing equipment to schools to
the payment at zero cost of state retirement pensions to circa 160,000 elderly people per month.
Moreover, Banrural offers two successful services which not only respond to its customer’s basic needs
but also allow the bank to maintain high levels of customer loyalty.
One of them, the health insurance, has been functioning now for two years and consists of a medical
consultation service that its microcredit clients enjoy under the condition of reimbursing timely their
credits. Banrural considers this as the programme with the highest social impact, since the Guatemalan
health service is very limited and most of the microentrepreneurs do not have any health coverage. The
programme covers 150,000 families throughout the country. Banrural has also been able to negotiate
wholesale prices for medicines and examinations that its customers can then access at lower prices. The
next step will be to offer this service to Guatemalan migrants in the United States. With a cost of only
3 US$ per month, migrants can offer this health coverage to their families in Guatemala.
Another project, carried out in cooperation with the Guatemalan Ministry of Foreign Affairs is called
“mobile consulates”. Migration to the United States (US) is a big phenomenon in Guatemala and
Banrural channels 50% of all remittances from migrants in that country. As there are only nine
Guatemalan consulates in the US and one and a half million Guatemalans immigrants, the idea of
“mobile consulates” was created to bring the consular services directly to fellow countrymen and assist
them with their legal procedures. Banrural has been undertaking this project for three years now and
in 2007 it plans to get to 132 US towns where migrants live.
National Savings Bank, Sri Lanka – Mihindu Sevana Scheme
Housing finance is one of the focused areas of NSB. Its goal is to help and empower every Sri Lankan
to build and own a house. In 2006, NSB provided US$21 million housing loans at concessionary terms
to the state sector employees to facilitate their housing need.
“Mihindu Sevana”, a special housing scheme was re-launched to offer the most attractive and
favourable terms and rates for low income earners. By this scheme, only the interest is payable for the
fist five years and the principal and interest ought to repaid thereafter.
39
WSBI
THE GLOBAL VOICE OF SAVINGS AND RETAIL BANKING
WSBI (World Savings Banks Institute) is one of the largest international banking associations and the
only global representative of savings and retail banking. Founded in 1924, it represents savings and
retail banks and associations thereof in 89 countries of the world (Asia-Pacific, the Americas, Africa
and Europe – via ESBG, the European Savings Banks Group). WSBI works closely with international
financial institutions and donor agencies and promotes access to financial services worldwide – be it
in developing or developed regions. At the start of 2006, assets of member banks amounted to more
than € 8,081 billion, with operations through more than 191,000 branches and outlets.
WSBI members are typically savings and retail banks or associations thereof. They are often organised
in decentralised networks and offer their services throughout their region. WSBI member banks have
reinvested responsibly in their region for many decades and are one distinct benchmark for corporate
social responsibility activities throughout the world.
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Published by WSBI. Copyright September 2007
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