Financiera Independencia to Submit a Request for a Banking License
MEXICO CITY, Feb. 25 /PRNewswire-FirstCall/ -- Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (BMV: FINDEP) ("Independencia" or the "Company"), a Mexican microfinance lender of personal loans to lower income segment individuals, announced today that on February 24, 2010 its Board of Directors authorized the Company to submit a request for a Banking License in Mexico. 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.
The transformation into a bank is a strategic decision that will contribute in achieving two fundamental goals:
- Broaden the scope of products and services offered to our customers by accepting deposits;
- Develop a more stable and permanent funding source through retail deposits.
By becoming a bank the Company considers that its clients will become more loyal and it will bring additional opportunities to do business with them. Independencia's customers are already used to visiting our branches given that we receive 1.7 million monthly payments in average at our 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."
About Financiera Independencia:
Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (Independencia), is a Mexican microfinance lender of personal loans to individuals. Independencia provides microcredit loans on an unsecured basis to individuals in the low-income segments in Mexico in urban areas of both the formal and informal economy. 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". More information can be found at www.independencia.com.mx
Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in Financiera Independencia's filings with the Mexican Stock Exchange. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.
SOURCE Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R.
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