World Council of Credit Unions' (WOCCU) Economic Inclusion Project (EIP), a USAID-funded activity, and the National Federation of Credit Unions of Peru (FENACREP) recently launched a new initiative called “The Strengthening Route.” This new project will strengthen financial inclusion efforts in Peru’s cooperative sector.

On April 8, eight partner institutions and allies of the EIP discussed the challenges, opportunities, and needs facing the Peruvian cooperative sector. The parties agreed the sector must be more competitive and adaptable when it comes to offering cutting-edge financial services, such as digital products and the expansion of digital service channels. There was recognition that the financial inclusion of marginalized populations, such as young people, rural populations, women and migrants, face limited access to the formal financial sector.

"The Strengthening Route," implemented through EIP partner and allied credit unions, hopes to:

• successfully offer more agile, digital services to members.
• expand business strategies into markets with adequate price conditions and opportunity costs.
• hire more skilled employees to boost institutional growth.

"Currently, the needs for reorganizing and transforming credit unions are becoming more evident to adapt to the new conditions of the financial environment and economic competition,” said Manuel Rabines, General Manager of FENACREP.

EIP leaders also made a call to strengthen the cooperative sector in Peru by promoting more financial inclusion.

“In our project, we are clear that financial services are the basis for the sustainability of entrepreneurship and employability programs aimed at migrant and local populations. For this reason, we have already linked more than 70,000 beneficiaries with relevant services in just a year-and-a-half of activity,” said Oscar Guzman, EIP Chief of Party.

The “Strengthening Route” aims to contribute to the enhancement of the Peruvian credit union system, so it can become a benchmark for financial inclusion across the country.