Alliance between Backbase and Banco de la Nación seeks to minimize the digital divide in Peru

The National bank recently opted to adopt Backbase’s first digital banking technology to support the launch of the DNI Account, 100% digital. The Bank opened more than 2.1 million DNI Accounts in just one month, becoming one of the most successful financial inclusion products in Latin America.

50% of Peruvian citizens are not part of the financial system, which caused problems when paying subsidies to the Government during the pandemic. As a result, many citizens required unsafe savings methods, including resorting to informal sources of credit.

financial inclusion

Due to the pandemic, the government approved the payment of an individual subsidy, with the Yanapay initiative (Help in the Quechua language), to support the vulnerable population. To help the unbanked sector, Banco de la Nación created more than 2.1 million ID Accounts, of which more than 1.86 million digital accounts were activated, allowing the immediate collection of the economic subsidy. In this way, the possibility of contagion among clients could be avoided, by eliminating the circumstances that led to going to the bank for each payment. On the very first day of operations, the platform registered 8,825 activations and the collection of 3,362 bonuses.

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100% digital account

The new platform, based on Backbase’s omnichannel software in the cloud, allowed DNI Account users to withdraw from ATMs, pay and transfer funds to a digital wallet, and make purchases with stores affiliated with Niubiz’s Vendemás app. The only requirements to activate the account were: a cell phone with a line owned by the beneficiary, a personal email and their ID.

“Cuenta DNI’s vision is to be the Peruvian citizen’s gateway to the financial system and the means to receive funds and pay for services. Being a 100% digital bank account, it allows it to be activated and used without the presence of the citizen in a Banco de la Nación agency, breaking the barrier of distance and presence. Thus, all Peruvians of legal age will be able to use their DNI Account as long as they have a cell phone in their name. For this, the Banco de la Nación will create 10 million DNI Accounts during 2022 and 12 million Accounts at the end of 2023, with this, added to the more than 2.1 million accounts created in 2021, it will reach 100% of Peruvians of legal age with a bank account at the end of 2023. In terms of usability, at the end of 2023, a holder with a DNI Account will be able to make bank transfers to and from their DNI Account, benefit from the services of the main wallets in the country and make purchases in establishments only with your cell phone. Likewise, during 2023, a citizen will be able to use his DNI Account from correspondent agents, make payments from his DNI Account, among other services.” commented Luis Matías Sternberg Peruggia, general manager of Banco de la Nación.

The DNI Account helps above all the unbanked sector. Many former citizens are interacting with digital money for the first time. This breaks the dependence on cash and see the digital possibilities.

“We are extremely proud of our work with Banco de la Nación and how we helped accelerate the launch of this program”confessed Ethan Clark, regional vice president of Backbase for Latin America. “This case demonstrates the importance of speed to market with a product that can truly impact financial inclusion and why finding the right partners to implement such projects can make a difference in executing and sustaining programs. crucial. At Backbase we are honored to be part of these efforts and look forward to continuing to support the plans to expand the services offered through Cuenta DNI.”

Backbase’s digital banking platform has supported the evolution of more than 120 financial institutions around the world.

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