2017 Inclusive finance
What challenge was the source of inspiration for your project?
The taxi financing market is quite untouched by formal financial institutions. The Peruvian vehicle loan market is concentrated among a few players and focused on financing the purchase of new cars by wealthier clients. Additionally, the majority of the current taxi fleet consists of older, polluting cars. 30% of the taxis in Lima are over 15 years old, and need to be replaced according to municipal regulations that have been in place since 2016.
A fledgling formal vehicle loan market focusing on drivers living on low incomes and environmentally-friendly taxis in Peru is only served by Acceso Crediticio.
What innovation did you use to address this problem?
Acceso Crediticio, a Peruvian-based financial services firm established in 2011, with extensive experience in vehicle lending, plays a strong role in financial inclusion. 70% of its clients do not having accounts at other financial institutions. One in five are opening an account for the first time when they become customers.
The majority of the institution’s clients are independent, low-income taxi drivers that otherwise would have limited options to own their vehicles. Acceso has a strong focus on providing CNG-based (compressed natural gas) taxi car loans. CNG-based vehicles are a cleaner and more efficient alternative to fossil fuel-powered taxis. As such, Acceso directly contributes to fighting climate change by reducing the number of polluting cars in Peru.
What impact did Triodos Bank have on your company?
The loans provided by Triodos Fair Share Fund and Triodos Microfinance Fund have helped Acceso to increase its outreach. Loans are in local currency which means it doesn’t need to carry currency risk. This is also true for Acceso Crediticio’s clients as its loans are denominated in local currency. Thanks to this borrowing Acceso has been able to expand its outreach to 14,850 clients, without having to create a large and potentially expensive branch network to operate.
What impact has your company had on your business sector?
Acceso Crediticio focuses on financing micro and SME (MSME) clients in the automotive sector, with a clear emphasis on financial inclusion. As a pioneer of this kind of finance in Peru, it is innovating in the market providing an example for its peers to follow.
What has been the local impact of your company on the community?
Acceso Crediticio is the leading provider of CNG-based (compressed natural gas) taxi car loans in Peru. It is this emphasis on compressed natural gas-based (CNG) vehicles that makes the company so unique. Almost 70% of its loan portfolio is allocated to MSMEs looking to purchase CNG-based vehicles or to convert their vehicles from regular gasoline-based to CNG-based. Overall, the Company generates a high social and environmental impact as a result. It both helps to provide a livelihood for drivers and contributes to a healthier, cleaner environment for the communities where it operates.
How does Triodos Bank share your vision?
Acceso Crediticio has a unique business model. This provides a high impact opportunity for Triodos Investment Management’s funds, in terms of financial inclusion and environmental impact, in a segment that is currently under served by local and international investors.