Mexican Microfinance Financiera Independencia looks for a Banking License

Microfinance Focus, Feb 26, 2010: Financiera Independencia, a Mexican microfinance lender of personal loans to lower income segment individuals, announced that on February 24, 2010 its Board of Directors authorized the Company to submit a request for a Banking License in Mexico, according to a press release.

The Company expects that the process of having a banking license and operating as such will take approximately 18 months. It is important to note that the Mexican Banking and Securities and Exchange Commission (CNBV) has discretionary authority to grant banking licenses in Mexico and the fact that Independencia requests a banking license does not imply that such license will be granted.  In addition to receiving authorization from the CNBV, to begin operating as a bank the Company has to implement material changes to its existing operational systems and branch network.

Mr. Noel Gonzalez, Independencia’s Chief Executive Officer, commented: “We believe there is considerable growth potential in Mexico to provide financial services to low-income individuals and we’ve made excellent progress in our goal of becoming the leading player in this segment. A banking license will allow us to be in a better position to maximize the growth opportunities available in our market. It will also bring us closer to becoming a one-stop-shop offering a broader array of products and services that meet our customers’ financial needs.”

According to the official statistics ,  as of December 31, 2009, Independencia had a total outstanding loan balance of Ps.4,812.3 million, operated 199 offices in 143 cities throughout 31 of Mexico’s 32 federal entities and had a total labor force of 9,643 people. The Company listed on the Mexican Stock Exchange on November 1, 2007, where it trades under the symbol “FINDEP”.

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