Banco Hipotecario: Best SME Bank Central America 2019


Banco Hipotecario was founded in El Salvador in 1935, when agricultural business was the primary contributor to Gross Domestic Product (GDP). The National Coffee Association was the main shareholder with 70 percent, the Livestock Association at 20 percent, and private shareholders accounted for the balance. Today the bank’s scope has widened to include all sectors that have the potential to boost national production and employment. Banco Hipotecario bases its business model on the conviction that small and medium-sized enterprises (SMEs) will bring about the economic future that the country deserves. The bank has developed a dozen SME-focused products and services, starting with working capital and debt consolidation solutions as well as sector-specific credit line offers. It offers credit lines for businesses or individuals undertaking energy efficiency, clean production, and renewable energy projects. Banco Hipotecario launched an entrepreneurship programme that provides new and prospective business owners with financial and tech training. The programme also features a digital platform for accessing special credit promotions as well as networking with potential business partners. The bank is dedicated to increasing financial inclusion and has made great strides to encourage female Salvadorians to pursue their entrepreneurial ambitions. The judging panel declares Banco Hipotecario as winner of the 2019 Best SME Bank (Central America) award.

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