With a focus on improving the lives of women entrepreneurs and their families, Contigo offers financial products to communities that lack access to formal banks. Photograph: Contigo

Contigo, a major financial services provider in Mexico, joined the Business Call to Action (BCtA) with a commitment to launch a home improvement loan product aimed at reaching 25,000 under-served families by 2019.

With a special focus on improving the lives of women entrepreneurs and their families, Contigo offers an array of financial products to communities that lack access to formal banks. With its complete range of lending products, the company estimates it will assist a total of 644,000 customers by 2019 – 90 percent of them women. As its product line and customer base continue to grow, the company plans to create a professional career track for 4,500 trained employees in Mexico by 2019.

BCtA is a global initiative that aims to support the private sector’s efforts to fight poverty through its core business; it is supported by several international organizations and hosted by the United Nations Development Programme (UNDP).

Contigo is dedicated to changing lives by offering financial services that improve clients’ lives and livelihoods while generating positive employee, shareholder and supplier relationships. Unlike many lending providers, Contigo’s mission is focused on customers: its services are specifically aimed at women entrepreneurs who provide support for their families. The average household income of this customer base is below $650 per month, which amounts to an average of $5.40 per family member per day.

In Mexico, where there is a severe shortage of housing, many bottom-of-the-pyramid families’ homes are built illegally and are structurally unsound. Overcrowding results in unhealthy living conditions, heightens the risk of domestic violence and contributes to a range of health problems.

Recognizing that women at the bottom of the pyramid are underserved by the financial sector, Contigo provides affordable financial services in 22 states across Mexico, with plans to reach 30 of the country’s 32 states in the next five years. 

According to BCtA Programme Manager Suba Sivakumaran, “Despite the enormous demand and growth potential of the bottom-of-the-pyramid market in Latin America, there is still limited access to affordable housing solutions. We applaud Contigo’s vision for improving women’s lives in Mexico and are excited to support its continued growth.”

Because of the shortage of quality housing in Mexico and the average number of household members residing in each dwelling, the potential impacts of Contigo’s products are enormous: the company’s goal is to improve the lives of 2.5 million people within five years. Increasing the availability of sound and stable housing is essential to ensuring Mexican families’ prosperity, enhancing health, supporting livelihoods and strengthening the fabric of communities. All this contributes to more robust economic development.

When Contigo enters a community, its financial advisors conduct outreach to inform potential customers about its products and help customers in financial management to mitigate the risk of over-indebtedness. Upon approval, branch managers visit customers on site and disburse loans through debit cards or money orders. Financial advisors then meet with customers each week to provide support with loan management and repayment. 

“With an underserved market of approximately 23.7 million people in Mexico alone, there is plenty of room for Contigo’s growth,” stated Allan Cherem, CEO of Contigo. “The experiences of financial service providers in other countries have shown that there is robust demand for affordable financial services at the bottom of the pyramid. The key for Contigo to meet this demand is a committed and well-trained workforce that adheres to sound practices and technological systems – Contigo’s biggest asset is its team.”

Contigo expects the revenue from its new home improvement loan to reach 12 percent of its total portfolio within five years. To manage this growth, the company is committed to attracting new talent and developing human resource potential through training – expanding career-track job opportunities. Experience has shown that growth depends on hiring people from the communities Contigo serves; this not only ensures high impact but develops a cadre of committed local professionals.

For more information:
BCtA/UNDP: Tatiana Bessarabova, tatiana.bessarabova@undp.org
Contigo: Juan Ahedo, jahedo@fcontigo.com

Contigo:

Contigo is committed to changing lives by offering development-impact financial services to families the bottom of the pyramid by driven employees. Contigo believes that the only way to grow in the communities where it operates is to hire and train people from these same communities. Currently Contigo has 110 branches in 22 states in Mexico. By 2019, the company has plans to expand into 30 out of the 32 States in Mexico, with 219 branches and 4,320 employees –3,475 of them financial advisors. Throughout its growth, the company intends to maintain its focus on serving women, who are key for sustainable development. For more information, please visit www.fcontigo.com.

Business Call to Action (BCtA):

The Business Call to Action (BCtA) is a unique multilateral alliance between key donor governments including the Dutch Ministry of Foreign Affairs, Swedish International Development Cooperation Agency (Sida), UK Department for International Development (DFID), US Agency for International Development (USAID), and the Ministry of Foreign Affairs of the Government of Finland, and the United Nations Development Programme — which hosts the secretariat — in collaboration with leading global institutions, such as the United Nations Global Compact, Inter-American Development Bank’s Opportunities for the Majority Initiative, and the World Bank Group’s  International Finance Corporation.  For more information, please visit www.businesscalltoaction.org or on Twitter at @BCtAInitiative.

Business Call to Action (BCtA)

Business Call to Action (BCtA)

Business Call to Action is a global joint advocacy platform that works to accelerate progress towards the Sustainable Development Goals (SDGs) by challenging and supporting companies to develop inclusive business models that offer the potential for both commercial success and development impact. It is hosted by the United Nations Development Programme and funded by Dutch Ministry of Foreign Affairs, Swedish International Development Cooperation Agency (Sida), Swiss Agency for Development and Cooperation, UK Department for International Development (DFID). To date, 230 companies from around the world have signed on to commit to contribute to the SDGs, from large multinational companies to national and small- and medium-enterprises in 70 countries.

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