The bank's commitment was announced together with five other financial institutions from the Northern Triangle, as well as other members of the Partnership for Central America (PCA), who together seek to increase financial inclusion in the region in line with the "Central America Forward" initiative of the Vice President of the United States, Kamala Harris.
During the launch of FICCAR, it was reported that as a result of the efforts of all the members of the consortium, it is expected to digitize close to $14 billion in remittance transactions in the region over the next five years, since one of the main objectives is that the funds are deposited in the recipient's account instead of being paid immediately in cash, providing safer and more profitable alternatives for both sending and receiving remittances.
Banco CUSCATLAN, as a member of FICCAR, will execute various strategies together with PCA to educate and raise awareness among the population about savings habits and plans, promote productive remittances to promote the growth of small and medium-sized enterprises, and strengthen the strategic use of person-to-person transfers in its operations.
In addition to Banco CUSCATLAN, BAM Guatemala (Grupo Bancolombia), Banco Agrícola - ES (Grupo Bancolombia), Banco Ficohsa, Banco Davivienda, Banco Lafise, Millicom (Tigo Money) y Viamericas, are founding members. As observers are: Accion, Better Than Cash Alliance (BtC), Development Bank of Latin America and the Caribbean (CAF), Inter-American Development Bank (IDB), JA Americas, Mastercard, Meta, Money Services Business Association (MSBA), Visa, World Bank.
FICCAR's efforts are aimed at promoting changes in the remittance ecosystem that will allow its stakeholders to create a savings account to deposit remittances and use them for more than just consumption. It is currently estimated that 80% of remittances are disbursed in cash.
According to PCA data, remittances sent to El Salvador, Guatemala and Honduras amount to $37 billion annually.
"Remittances to this region have been and will continue to be a significant source of income for many families. I am pleased to see this creative collaboration between public and private parties to improve financial inclusion, ensure greater remittance security and bring more people into the formal banking system”, Dr. Phil Gordon, Assistant to the President and National Security Advisor to the Vice President of the United States.
Translated by: A.M