Disruptive Evolution of Microfinance in Peru

Abstract

The specialized entities in the granting of loans to micro and small businesses in Peru, are oriented to make disruptive and accelerated changes in their processes in order to generate financial efficiency in their indicators, they are aware that they face a real tsunami changes in this massive industry, where increasingly, technological development, digital transformation, the use of big data and analytical tools are driving a revolutionary change that these entities have to do to reinvent themselves and face the new challenges in a much more competitive environment, generated by the oversupply of microfinance institutions and the entry of new "players", which has led to reductions in interest rates, an increase in loan provisions and even, most of these traditional entities, they cannot control operating costs that are by nature high in this sector. Therefore, this work shows us that the continuity of the models that worked at the beginning can become in the short term, questioned or obsolete in their processes and applications, so that, based on this new context, they can change their approach of management and leadership.