Micro, small and medium enterprises (MSMEs) represent an important niche for Banco Atlántico de Ahorro y Crédito. According to its president, Oswaldo Armitano, the entity seeks to allocate 35% of its financing portfolio to this sector.
The executive highlighted the role played by MSMEs in the Dominican economy. However, he pointed out that they face the challenge of starting their businesses with informal loans or personal savings.
Hence, Banco Atlántico’s interest in encouraging bankarization in the sector. In this process, they advise MSMEs to organize their banking history. “Sometimes they are long periods, since most start with a personal account and then a business account.”
When questioned about the requirements for entrepreneurs, he pointed out that, in the savings and credit sector, when a client is in stage 1 of banking, “it is understood that not all of them are formalized.” “Many of these loans are granted to their owners, that is, it is considered a personal loan, but in the end it is MSMEs that are being financed.”
Currently, the bank has a portfolio of approximately 5,000 clients and assets that, according to the Superintendency of Banks, are around RD$1,097.36 million as of August 2022.
Feller Rate
In August, Banco Atlántico de Ahorro y Crédito received an upgrade to the BB+ category from Feller Rate, a pioneer company in financial risk rating in Latin America.
The entity highlighted that the rise is due to its solvency rating, after having made progress in its income level, especially supported by treasury activities and the solid and continuous progress of its loan portfolio.
The financial institution, which in the last five years has had an average growth of 15%, has focused on providing access to credit to the middle class. Currently, it has a consolidated team, which went from 10 collaborators to 60 in the last 10 years.
In addition, the rating has been the sample, according to the president of the bank, of the work and investments they have made to enhance their services. “The sum of all these components has given a stable growth process.”
He stressed that the rating is important because it provides corporate discipline. The bank entered the process three years ago. Its first rating was BB, with positive trends in 2021.
Armitano pointed out that the change in rating is the response to having “adequate risk management, solvency levels and liquidity.”
Used vehicles
One of the most important niches for the bank is captured through used vehicles, along with MSMEs and personal loans. Currently, it has a financing plan between five and six years.
“We focus a lot on second-hand and third-hand used vehicles. On average, our financing park is between five and six years of use”, explained the executive.
He indicated that the largest source of customer acquisition for this portfolio is working together with dealers, with the aim of giving the customer agility when they go to buy a vehicle, especially in Santo Domingo and Cibao (Santiago), where they have their offices.
bank fees
Regarding the current banking context, the executive pointed out that the increases in the monetary policy rate (MPR) are causing the reference rates to return to their standard levels.
“People are shocked because rates are rising, but rates are rising at their natural trend,” he said, explaining that the Dominican Republic is a “country with high rates and we have been for years.”
Savings and credits
Highlighting the economic stability of the Dominican Republic, the executive assured that the savings and loan sector will continue to grow in the coming years.
However, he argued that “it is very important to understand what the client’s real level of income is and what their debt capacity is” before providing financing solutions, since “it is quite common, especially in young people, that when they want something no matter what they have to say to get it.”
“If you don’t have a clear understanding of your client, you may be doing them great harm. We work very hand in hand with the client to give him the correct facilities”.
Oswaldo Armitano