Shared Branching Grows In Bolivia

LA PAZ, BOLIVIA - The Bolivian credit union sector boasts eight new rural credit union branches, a shared branching network with 64 points of service, remittance distribution and several new savings and credit products thanks to the success of World Council of Credit Unions' Rural Credit Union Growth Program, which was funded by the United States Agency for International Development (USAID).

"We looked at the system and saw that credit union executives and directors were deciding the direction of their credit unions without considering their members' needs," explained Julio Fernández, former WOCCU-Bolivia project director. "While working to solidify the sector's financial viability, we also helped credit unions develop a new way of packaging, promoting and selling financial services."

Through an innovative shared branching and remittances network called "ServiRed," members in rural areas can now conveniently access IRnet services, savings accounts and loans in their own communities.

The network unites 19 credit unions supervised by the financial sector regulator in Bolivia through 64 points of service across the country. Corporate One Credit Union in Ohio lent its IT expertise to help establish the network, which operates on broadband and dial-up Internet connection.

The branches currently serve more than 6,000 members in remote areas with a savings volume of $3.1 million and a loan volume in excess of $4.5 million.

Credit unions now form one of the largest financial networks in the country. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com