Hello. My name is Alex Coad,
and today we will be looking at the case on "Banco de la Gente"
and how to withstand competition and not perish trying.
Banco de la Gente, by the way,
is a fictitious name although the case is
a realistic representation of the challenges faced in the Peruvian banking sector.
It all started on a Monday morning in February 2016 when Renato Uribe,
CEO of Banco de la Gente,
got news of a strategic shift by
BCP and Scotiabank regarding their segmentation strategy.
These heavy weight banks were no longer focusing on large corporate companies,
but were also also making plans to include
small and medium-sized enterprises as part of their core segments.
This was troubling news for Banco de la Gente.
It meant a direct competitive threat.
Banco de la Gente would have to draw on its experience in
the small and medium-sized firms segment if it wanted to
compete with these new viables and their impressive financial strength.
Experience in the sector is an advantage,
of course, but how much do customers appreciate it?
Renato Uribe, the CEO,
called for an urgent meeting to discuss the available strategic options.