We will continue innovating and working for the comprehensive well-being of the Guatemalan people: Bantrab

“Our journey since 1966 has been marked by a dedication to financial innovation, corporate governance strength, transparency, and a firm focus on customer and employee satisfaction.”

Bantrab is a financial institution based in Guatemala, established in 1966 with an initial contribution from the State. Subsequently, Guatemalan workers augmented the authorized capital through share purchases. In 1992, Bantrab received approval to transition into a private bank with a social purpose.

In 2010, Bantrab became a financial group, Grupo Financiero Bantrab. Currently, it stands as the first bank in consumer credits and the sixth-largest in asset volume, positions that reflect its strength and stability. With an employee count of nearly 5,000, Bantrab remains a significant player in the financial sector.

The Silicon Review reached out to Herbert Hernández, CEO of Bantrab, and here’s what he had to say.

Interview Highlights

Q. Can you provide an overview of the range of banking products and services that Bantrab offers to its customers?

We focus on providing wellness to our customers and employees. Therefore, we align our actions to innovation, social inclusion, development, and marketing of solutions that fit their needs and aspirations but, above all, that contribute to their financial health and inclusion. Our most successful projects include debt consolidation, a special card, a well-being program, and soft-term loans for acquiring social housing.

Debt consolidation: We work so that over-indebted people can resolve their situation, have sufficient liquidity to ensure their quality of life, and rewrite their credit history.

Tarjeta Siempre Sí: It is a tool to rebuild the credit record. It provides USD60 in financing and the option of depositing up to USD1500 to be used as a debit card. If clients show good behavior, they may opt for a classic card. As of December 31, 2023, Q3.3 million had been placed in over 6,000 cards.

Programa Bienestar: It allows clients to unify their debts, improve their liquidity, and save. The loan rate decreases if the client commits to start saving. Additionally, clients receive advice on how to organize their finances and rewrite their credit score history. As of December 31, 2023, the program granted more than 223,000 loans that allowed beneficiaries to balance their income and expenses. Of these, nearly 39,000 began saving.

Housing: We finance low-income housing on soft terms. We participate in fairs that promote housing projects with the endorsement of the Instituto de Fomento de Hipotecas Aseguradas of Guatemala (Institute for the Promotion of Insured Mortgages).

Q. How has Bantrab strengthened its corporate governance, and what steps were taken in the modernization of its technological platforms?

Over the last six years, we have strengthened our corporate governance based on the best international practices. As a result, Fitch Ratings and Moody’s have steadily upgraded our credit risk ratings.

We created the Compliance and Corporate Governance Division to design, implement, and coordinate strategies to mitigate the risks of money and other assets laundering, financing terrorism, corruption, conflict of interest, financial consumer protection, FATCA, and ethics.

Technological Modernization: Bantrab has defined a technological roadmap to promote financial inclusion and integrate the best of traditional and digital banking. That is why, in 2023, the bank continued to invest in technology. The bank focused on strengthening information protection and responding to cyber incidents, as well as accelerating response times. Among the key actions are:

• Creation of two new areas in the Information Security Department.
• Simulation of cyber incidents to assess the organization’s efficiency in detecting and responding to cyber threats.
• Effective collaboration among the Technology, Cybersecurity, Risk, and Audit departments to maintain the cyber risk rating at an advanced level.
• Participation in BanCert, a cybersecurity community, to promote inter-institutional initiatives that contribute to increasing the cyber resilience of the Guatemalan financial sector.
• Update mobile applications to provide more stability and speed in operations.

Q. Transparency is a core value at Bantrab. How does the company ensure 360° communication, provide recognition, and address aspects for performance improvement across all interest groups?

We maintain constant processes and control documentation to add value to day-to-day management and ensure compliance with the following principles: transparency, equity, fairness, social and corporate responsibility, personal responsibility, and fair competition.

Since 2015, we have had a channel for employees, suppliers, and strategic allies to report behaviors that violate the Code of Ethics and Conduct. Additionally, according to international best practices, in 2021, we hired Ethic Global to manage an ethics hotline. This international firm has more than 20 years of experience in integrity programs to develop and strengthen corporate governance.

Q. How does Bantrab foster a culture of synergy, encouraging clients to collaborate among different areas for common goals that provide personal and group satisfaction?

Wellness is our main purpose. We contribute to improving the quality of life of our employees and support them in achieving their short- and medium-term goals. We do this by providing comprehensive solutions to apply in any area of their lives, and we have built a wellness ecosystem based on three pillars: financial, social and development, and digital.

Q. How has Bantrab contributed to the development of companies and job creation through Financiera de los Trabajadores (Fintrab)?

Bantrab has made significant contributions to the development of companies and job creation through its financial arm, Financiera de los Trabajadores (Fintrab). Bantrab has played a pivotal role in fostering their growth and sustainability by providing tailored financial solutions and support to businesses. Through Fintrab, the bank has facilitated access to capital for companies, enabling them to expand operations, invest in innovation, and generate employment opportunities. The strategic financial initiatives and services offered by Bantrab, particularly through Fintrab, have positively impacted the economic landscape by empowering businesses to thrive, contributing to job creation, and fostering overall economic development.

Q. Looking ahead, what are Bantrab’s future plans and strategies to continue fostering financial well-being and development for the people of Guatemala?

Well-being is a word with a powerful meaning for us. It guides our course and implies commitment. It is the essence of the strategy we have been moving forward with since 2022. It is the driving force behind the 5,000 people working at the institution.

Therefore, we are confident that 2024 will be better than 2023. The synergy of our teams grows stronger year after year. We will continue innovating and working for the comprehensive well-being of the Guatemalan people.

Q. Is there anything you would like to add before we wrap up?

Before we wrap up, I would like to emphasize our unwavering commitment at Bantrab to the well-being and development of the people of Guatemala. Our journey since 1966 has been marked by a dedication to financial innovation, corporate governance strength, transparency, and a firm focus on customer and employee satisfaction. Looking ahead, we remain devoted to fostering financial inclusion, supporting businesses, and contributing to job creation. Our continuous investment in technology reflects our commitment to staying at the forefront of the banking industry. We appreciate the collaboration and trust of our stakeholders, and we are excited about the opportunities that the future holds for Bantrab and the communities we serve.

Herbert Hernández | CEO

With over 26 years of banking experience in Guatemala and the United States, Hernández is a business administrator with master’s degrees in business, marketing, and digital transformation. As an expert in designing and implementing business strategies and channels, he possesses superior abilities in innovation and change management. He has experience expanding into new markets, implementing corporate projects, and leading and developing commercial teams. Hernández joined Bantrab in October 2017 as the Director of the Commercial Division and was promoted to CEO in January 2022.

“Well-being is a word with a powerful meaning for us. It guides our course and implies commitment. It is the essence of the strategy we have been moving forward with since 2022. It is the driving force behind the 5,000 people working in the institution.”