For Sofia Garcia of Puebla, Mexico, financial tools and banking services were never available to her until she came into contact with Banco Compartamos. Sofia was born into poverty, never allowed to attend school, and at the age of 7 years old was forced to clean houses to provide for her family. Her life did not improve when she married an alcoholic at the age of 17 years old and soon had 8 children she could not provide for. She found herself desperate with no financial help or income. Around 2001 Sofia came into contact with Banco Compartamos where she took out her first loan of 1,000 pesos (a little under $100) to start a stone cutting business. After 6 years of taking out loans her loan size had increased to 20,000 pesos and was just starting to save for the first time in her life. Since becoming a Compartamos customer, Sofia Garcia has been able to grow her business, provide for her 8 children, and add to her house, something she never dreamed of doing.Compartamos meaning “Let’s share” in Spanish is a banking institution in Mexico that serves over 1.7 million mostly low income borrowers. In 1990 Compartamos was co-founded by Carlos Danel and Carlos Labarthe as an NGO providing micro loans to the rural Mexican poor. In the past 25 years Compartamos has transitioned from a small non-profit backed by ACCION International running solely on grants and donations into a publicly traded company valued at more than $1 billion. While Compartamos lends to men and women, 98% of their clients are women. They offer a variety of products including four different types of loans, life insurance, and savings products or their clients.
– answer the following questions exactly that. Please dont divert from the subject at all. dont expand on anything. be straight to the point
How would you define “pro-poor” microfinance? 2. Is the microfinance work of Banco Compartamos pro-poor? 3. How does Compartamos’ IPO define their business model and strategy for lending to the poor? 4. What would you have done differently, if anything, if you were the CEO of Banco Compartamos?