There are 3.5 million affiliates and retirees of the Ecuadorian Institute of Social Security (IESS), but only 150 000 people can access a mortgage. “That’s the niche the Biess (Bank of the IESS) is targeting,” said Alejandro Pazmiño, the bank’s manager.
“The first quarter has really been slow,” Pazmiño said. The Biess hoards the 65% of the home loan segment in the country.
The Biess offers an effective rate of 6.17% for public housing projects and from 8.19% to 9.4% for real estate over USD 70 000.
To avoid losing market share in front of competitive rates of private banks, the Biess analyzes and executes several strategies in this year. The first, which is under analysis, is the increase of USD 150 000 to 200 000 of the maximum amount of mortgage. With this, the public institution hopes to access clients with greater purchasing power. In January 2016, a ceiling of USD 150 000 was set, with the intention of redirecting those resources to public housing.