Why The Mexican Lender Needed A New Approach To Technology In Order To Evolve Its Business
The Nacional Monte de Piedad (NMP) is a not-for-profit institution in Mexico that lends money to needy and often low-income individuals upon short notice, loans that are secured by their personal assets. The institution was established in 1775 and uses broadly the same model as it has for the past 237 years -- it asks the borrower to pawn something of value, which is taken as a pledge or guarantee for a loan, which is often short term. Today, the NMP has more than 200 branches across Mexico that provide access to funding to those who cannot meet normal bank requirements for credit. It has announced plans to open a branch in every major Mexican city.
Achieving this objective requires a fundamental rethinking of its business, business processes and supporting information technology. In the past two years, NMP has changed its approach. The lending institution chose Dell to be its strategic delivery partner, providing both technology equipment and services, The NMP embarked on a long- term program of business and technology optimization that is aimed at continuing past successes. As Dr. Raúl Medina Mora, chairman of the Information and Communications Technology (ICT) committee of NMP, summarized: “When we chose Dell to be our strategic technology partner, this was a decision that went far beyond traditional outsourcing responsibility for information technology (IT). We saw and see technology and its optimization as an enabler which will assist our institution to adjust its business to a changing commercial environment where, if it does not adapt, the Nacional Monte de Piedad could see itself become irrelevant.”
This case study is the first in a series in which different user organizations will talk about their objectives and experiences when looking for Technology Optimization. Through these studies, Constellation Research clients discover what others had to find out for themselves.