GENTERA: Facing the Digital Age
After long dominating Mexican microfinance, Compartamos Banco faces the emergence of fintech, just as for the first time its loan portfolio and clients have declined. Enrique Majós, CEO of GENTERA, the bank´s parent company, is keenly aware of the profound changes since the Compartamos IPO in April 2007, when it was valued at $1.5 billion and became the first bank wholly dedicated to microfinance to be quoted in a major stock exchange. Since then, the market has become intensely competitive, with both large established institutions and new entrants vying for the same customers. Simultaneously, the digital era has spawned fintech, threatening to disrupt Compartamos’ highly successful model but also providing opportunities for the bank to reshape it. While challenged to manage key innovation within a leading incumbent, Majós must consider whether to commit his team to a major cost reduction in the next few years to his board of directors at their next meeting at the end of the month.
Keywords: Micro Finance; base of the pyramid; fintech; Microfinance; Disruption; Innovation and Management; Competitive Strategy; North America; Mexico;
Citation:
Chu, Michael, and Carla Larangeira. "GENTERA: Facing the Digital Age." Harvard Business School Case 319-092, March 2019. (Revised May 2019.) View Details