Case Study

The Bolivian Experience of the Prodem Private Financial Fund S.A.

Technology facilitates the delivery of microfinance
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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.

About this Publication

By Bazoberry, E.