Banco de la Nacion, the Peruvian state-owned bank, has adopted Backbase’s digital-first banking technology to support the launch of its Cuenta DNI, an ambitious project that will integrate virtual payments, digital wallets and more in order to support its vision of greater bankarization and financial inclusion in Peru.
The new platform, built from Backbase’s industry leading cloud-enabled omnichannel software, will allow users to withdraw, pay and transfer funds, as well as pay for services in affiliated businesses through agile methodologies that significantly shorten the time to market. All that is needed is a smartphone, email address and Documento Nacional de Identificación. Furthermore, in the short term, users will be able to receive funds as government subsidies in the short term and access them immediately.
The global pandemic showed that Peru is severely lacking in financial inclusion. 60% of its citizens are not part of the financial system, which has presented issues when implementing the payment of state subsidies in the midst of the state health emergency. For this reason, financial inclusion, in addition to the digitization of banking by the state, has become imperative.
Designed in May 2020, the circumstances presented by COVID-19 demanded its execution in record time. The automatic creation of a DNI Account for all citizens was published as a law on February 7, 2021, with the aim of boosting bankarization indicators and facilitating the support of the State to vulnerable populations. To carry out this implementation, Banco de la Nación sought the support of Backbase’s digital banking platform, which has supported the evolution of more than 120 financial institutions around the world, providing a cutting-edge financial microservices architecture that drives capabilities for digital banks.
Considering the growing penetration of smartphones nationwide, the DNI Account is a powerful tool to enhance the strategic pillars of Banco de la Nación and Backbase to promote education and financial inclusion with tools and content that allow a cutting-edge experience for the user.
Alfredo Calle, Product Owner de Cuenta DNI at Banco de la Nación, affirms,
“Cuenta DNI is an innovative project focused on the bankarization and financial inclusion of the peruvian population, design to significantly reduce the friction related to traditional bank accounts. The Cuenta DNI user will only need to use their ID, e-mail address and mobile number. To make it possible, Cuenta DNI is being developed through best-of-breed, cloud-based, technology platforms”
Ethan Clark, Backbase’s Regional Vice President for LATAM, said,
“With the rise in smartphone adoption in Peru, this is the perfect time for Banco de la Nacion, which serves more than 5 million customers throughout the country, to roll out the new Cuenta DNI. With financial inclusion being one of our main pillars at Backbase, we are pleased to be able to provide our digital banking platform for this important project.”
About Banco de la Nacion
Banco de la Nación, founded in 1905, with primary headquarters in Lima, is a bank at the service of the Citizens of Peru, a member entity of the Ministry of Economy and Finance of Peru that represents the State in commercial transactions in both the public and private sectors, at the national and international level. The services that the bank provides include the payment of salaries and pensions of the public sector, as well as the payments of the social programs of the state since2011. During 2020 and the beginning of 2021, the bank has been a fundamental actor in the payment of bonds granted by the Government of Peru in the framework of the health emergency caused by COVID-19, helping to mitigate the adverse economic effects of the pandemic, especially among the most vulnerable in the country. The bank also plays an important role as a collection entity for taxes and fees for administrative services of most public bodies and fines for various types of infractions. Additionally, the Bank facilitates the collection for public services and the delivery and collection of money orders nationwide. Finally, the bank provides financing to local and regional governments, financial entities, public sector companies, as well as official workers and pensioners, focusing its efforts on sectors with less access to financing such as health and education.