The World Council of Credit Unions (WOCCU) undertook the initiative of the Rural Credit Union Program (RCUP) and put in an amount of 2.2 million US dollars for the program. Important initiatives by the RCUP include creation of network of credit unions, new branches, strong administration and mobilizing savings.
Flexibility, training, targets and partnerships characterize the RCUP. The program achieves substantial success.The Rural Credit Union Program (RCUP) of Bolivia is an initiative undertaken by the World Council of Credit Unions (WOCCU) to cater to the credit needs of rural Bolivia.
Access to credit in the rural areas of Bolivia had remained limited in spite of the expansion of the microfinance sector. Other partners who worked with WOCCU in the Rural Credit Union Program of Bolivia are –
Ohio Credit Union League
Corporate One Federal Credit Union
Supervision of the different credit unions was done by the Bolivian Superintendency of Banks.
Initiatives of Rural Credit Union Program of Bolivia:
The important initiatives undertaken by the RCUP include-
Creation of a network of credit unions spread across Bolivia.
Setting up new branches in remote regions of rural Bolivia.
Building up a strong administration.
In addition to these initiatives were taken to link all credit unions to a central facility that would enable better management of liquidity and an efficient system of meeting credit demands across different branches. An important operational initiative of RCUP is the innovation of new products that would help to expand credit services.
Characteristic Features of Rural Credit Union Program of Bolivia:
Some of the major characteristic features that led to the success of the Rural Credit Union Program of Bolivia are-
Flexibility: A wide range of services are provided to cater to specific needs. Flexibility has also been adopted in making the best use of unique skills of the volunteers who worked with the credit unions.
Training: High end training was provided by specialists to enable the efficient handling of highly specialized financial services.
Targets: Well defined objective targets and unambiguous goals have ensured the success of the Rural Credit Union Program of Bolivia
Partnerships: Effective private-public partnerships were undertaken with major US and some non-US banks.
Success of Rural Credit Union Program of Bolivia:
The highlights of the success achieved by the Rural Credit Union Program of Bolivia are-
Increase in credit unions from 14 to 17 by the third quarter of 2005. (The project was initiated in December 2002).
Increase in service centers from 29 to 40 during the same period.
Member-clients increased from 90,035 in December 2002 to 227, 805 by the third quarter of 2005.
Membership of women grew from 49.5% to 54.8%.
98% growth in micro-savings from inception to the third quarter of 2005.
Last Updated on : 30th July 2013