Chile's BankBoston, a wholly owned branch of US-based financial group FleetBoston, will turn its focus to the small- and medium-sized enterprise (SME) segment this year to broaden its client base, according to the bank's general manager Boris Buvi
According to Jose Schachner, chairman of Chile's factoring association, non-bank factoring companies in Chile are betting on credit insurance to increase their prestige and boost sales.
Four new banks are considering opening niche operations in Chile in 2004. This will increase the degree of banking services available in the Chilean market.
Credit insurance premiums in Chile are set to grow 30% this year, reaching US$15.6 million compared with last year, according to Cono Sur's financial insurance manager, Rodrigo Ferrando.
Chilean bank Banco del Desarrollo is considering the acquisition of a factoring agency aimed at complementing its services to the small enterprise segment, according to Desarrollo chairman Vicente Caruz.
Banco del Desarrollo is considering buying a factoring company. The decision follows the bank's recent acquisition of Banco Sudameris from the Italian group Intesa for about US$30 million.
Chile's state-sponsored loan guarantee fund Fogape has auctioned a total of US$77m in loan guarantees for small company lending to local banks, Fogape administrator BancoEstado said in a statement.
Intesa sold its Sudameris banking franchise in Chile to Desarrollo last month in return for US$30m in newly issued Desarrollo shares.
Chile's free trade agreement (FTA) with the European Union (EU) and the imminent agreement with the US could lure international banks to the local market to tap specific niches, according to Scotiabank Sudamericano's deputy CEO Joaquin Lagos.
Progresso, the Chilean financial services company, is waiting for the go-ahead from local authorities to open its bank in January 2004. The new bank, Banco Progresso, will focus on leasing and factoring operations.
