USAID, WOCCU and FENACREP begin ‘The Strengthening Route’ to boost financial inclusion
Initiative to help Peruvian cooperative sector’s outreach to marginalized populations
MADISON, WI (April 14, 2022) — World Council of Credit Unions’ (WOCCU) Economic Inclusion Project (EIP), a USAID-funded activity, and the National Federation of Credit Unions of Peru (FENACREP) recently launched a new initiative called “The Strengthening Route” to bolster financial inclusion efforts throughout the Peruvian cooperative sector.
An April 8 meeting brought together eight partner institutions and allies of the Economic Inclusion Project to discuss the challenges, opportunities and needs facing the Peruvian cooperative sector. The parties agreed the sector must be more competitive and adaptable when it comes to offering cutting-edge financial services, such as digital products and the expansion of digital service channels. But there was recognition that the financial inclusion of populations most in need of these services, such as young people, rural populations, women and migrants, face restricted access to the formal financial sector.
In this challenging scenario, “The Strengthening Route” is being implemented through EIP partner and allied credit unions that are working with FENACREP, WOCCU’s direct member organization in Peru, to:
- successfully offer more agile, digital services to members.
- expand business strategies into markets with adequate price conditions and opportunity costs.
- hire more skilled employees to boost institutional growth.
“Currently, the needs for reorganizing and transforming credit unions are becoming more evident to adapt to the new conditions of the financial environment and economic competition,” said Manuel Rabines, General Manager of FENACREP.
EIP leaders also made a call to strengthen the cooperative sector in Peru by promoting more financial inclusion.
“In our project, we are clear that financial services are the basis for the sustainability of entrepreneurship and employability programs aimed at migrant and local populations. For this reason, we have already linked more than 70,000 beneficiaries with relevant services in just a year-and-a-half of activity,” said Oscar Guzman, EIP Chief of Party.
The “Strengthening Route” aims to contribute to the enhancement of the Peruvian credit union system, so it can become a benchmark for financial inclusion across the country.
About World Council of Credit Unions
World Council of Credit Unions is the global trade association and development platform for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.
World Council has implemented 300+ technical assistance programs in 90 countries. Worldwide, 87,914 credit unions in 118 countries serve 393 million people. Learn more about World Council's impact around the world at www.woccu.org.