Ecuador | Popular Investment Systems (SPI)
The context: Ecuador has not succeeded in developing a micro-finance schemes meeting the needs and particularities of the most 
vulnerable rural areas: today at most 10% of demand is satisfied.
Financial institutions are scarce as this sector is risky due to the fact that farming does not guarantee stable income (erratic weather conditions and price fluctuations on the market) and the operating costs are high (long distances between clients, small loans, etc.)
A project to assist the local population: CEPESIU is an Ecuadorian microfinance NGO which provides development assistance. It is a partner of SOS Faim and co-founder of FOGAL (Credit guarantee fund in Latin America). Together they have launched a programme designed to develop local schemes of savings, credit and capitalization run by their members in five provinces (Guayas, Pichincha, Chimborazo, Bolivar and Napo) known as Popular Investment Schemes or SPI.
Financial services to help the local population: The SPI regroup members of local communities who invest small sums of money in the system. Members’ savings are added to this fund which is then used to grant loans: money obtained from the interest rates enables to cover both savings and investments. The scheme is managed by the members. This innovating system meets the demand for financial services in rural communities. The project aims at creating and consolidating consortia and second level organizations to build up the scheme. The number of members is estimated at 7.000, of which 65% are farmers and 55% women.
