Personal microcredit
The French Savings Banks
experience
The French Savings Banks: general overview
17 Caisses d’Epargne
27 million customers
4.3 million cooperative shareholders
4,242 branches
Savings* : 335 Mds €
Outstanding credit* : 155 Mds €
* 31.12.2010
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Part of BPCE Group
FNBP
FNCE
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BPCE Group: a strong position in
commercial banking and insurance
No.1
PRIVATE BANK FOR SOCIAL
HOUSING, THE LOCAL PUBLIC
SECTOR AND THE PUBLIC
HEALTH SECTOR
No.2
BANK FOR INDIVIDUAL
CUSTOMERS
No.2
No.1
BANK FOR SMALL- TO
MEDIUM-SIZED
COMPANIES, CRAFTSMEN
AND FRANCHISEES
No.2
BANK FOR SELF-EMPLOYED
PROFESSIONALS AND
ENTREPRENEURS
BANK FOR REAL
ESTATE FINANCING
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Financial inclusion: part of the identity of
the savings banks
1818
First
savings
banks
1834
First
School
Savings
Bank
1953
Creation of
Finances &
Pédagogie
1989
Supporting
the devt of
Adie
2005
Parcours
Confiance
2008
ECI
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The commitment of French Savings Banks
in microfinance nowadays (2010 figures)
Microcredit and
related products
and services
Business
microcredit
~35,000 (EU def)
~700 (France Active)
Financial literacy
Finances &
Pédagogie
11,000 hours of
training (2009)
55,000 beneficiaries
(2009)
International
Cooperation
Ecureuil
Coopération
Internationale
~ 30 missions per
year
Personal
microcredit
(Parcours
Confiance)
~3000 microcredit
37% marketshare
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What is personal microcredit?
 Definition: small loan to people who cannot get it from the
banking system and who will be helped to gain or regain
control of their personal finances.
 Target groups:
•
•
•
•
•
•
low-income people (people on welfare, working poors)
people without credit history (immigrants, young people...)
social difficulties (divorce, illness, isolated people, roms...)
professional difficulties (unemployment, precariourness...)
difficulty to use financial services (illiterate...)
people in suburban areas
 Context:
• a growing presence of credit in the people's daily life
• development of credit-scoring models, with discriminative
impacts
 Comparison with business microcredit
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Our approach
 A financial inclusion approach, beyond microcredit:
• Wide range of products and services
• Emphasis on follow-up, both on financial and social aspects

How?
•
Creation of non-profit institutions called Parcours Confiance
(path towards trust)
Dedicated experienced loan officers
Partnership with non-profit institutions specialized in social
mentoring (job search, psychological help…)
Possibility of financial literacy trainings by Finances &
Pédagogie
•
•
•

Characteristics of the credit
•
•
•
€ 300 to 12 000 – 12 to 60 months
2 to 3% interest rate
50% public guarantee (Fonds de Cohésion Sociale)
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Client’s profile
Average age: 40
A slight majority of women
Marital status: 74% single persons
Professional situation: 54% out of work
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60% of the financed projects have a
professional purpose
Microcredit purpose
Q1. What did you finance with this microcredit?
L'achat d'un véhicule
48%
Le permis de conduire
La réparation d'un véhicule
Un équipement électroménager
11%
6%
8%
Un équipement informatique ou audiovisuel
3%
De l'outillage ou autre matériel professionnel
1%
Une formation professionnelle
Vos études
Un bilan de compétences
Des frais liés à l'accès au logement
Des dépenses de santé
Un dispositif de chauffage
Autre type de projet
Voiture
(65%)
4%
3%
Equipement
(12%)
Formation,
orientation
(7%)
0%
7%
2%
0%
11%
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Impact and outcomes
 A the end, 76% of clients assert having improved their personal
situation in at least one aspect (financial situation, housing,
professional situation…).
Situation familiale
22%
Logement
21%
Situation professionnelle
34%
Amélioration budgétaire
57%
Au moins 1 amélioration
76%
0%
20%
40%
60%
80%
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Focus on professional projects
80% of the beneficiaries with a professional project are or have been
employed since the microcredit. Among borrowers who were initially
unemployed, half had found work.
Situation d'emploi
à la souscription
Situation d'emploi suite au micro-crédit
N=517 projets
professionnels
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High level of satisfaction
Au final, le microcrédit est plébiscité avec
98% de bénéficiaires satisfaits
(70% de très satisfaits)
Q39. Globalement, êtes-vous satisfait d’avoir eu recours au microcrédit ?
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Main conclusions of our experience
 Personal microcredit has a proven social utility, not only for
access to employment but also for improving financial and social
background (with indirect effect on employment).
 Customized financial and social follow-up is a key of
success, which supposes strong local partnerships with non-profit
institutions and local authorities. It represents a cost that should
not be under-estimated: cost of the follow-up, but also cost for
making partnerships as efficient as possible at a local level.
 Public support has been decisive (guarantee fund,
communication to the general public, coordination for mutual
learning and best practices exchange, regulation, grants…).
 Banking models have tangible advantages (pooling of the
resources, scale-up...).
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Challenges
 Scale-up, by improving the sustainability of the
model
 Analyze long-term returns for the society and for
the banks
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