The Bolivian Experience of the Prodem Private Financial Fund S.A.
This paper presents the case of Prodem Private Financial Fund SA (Prodem) in Bolivia. Prodem commenced its operations in Bolivia in 1998 with the following objectives:
- Providing state of the art financial products and excellent services;
- Influencing positively Bolivia's development;
- Bringing quality, efficiency, and profitability in its operations.
The paper finds that, as of March 2003, Prodem had served over 63,000 clients. Its operations are characterized by:
- Use of technology to provide secure and accessible saving services;
- Emphasis on sustainability of the institution in the long run;
- Reduction in financial costs;
- Client loyalty;
- Positive social impact such as increased household incomes.
The paper also presents challenges that Prodem had to overcome:
- Appropriate choice of technology;
- Distribution for outreach;
- Staff training and management capacities.
The paper concludes with recommendations for policy makers as well as for donors.