Banco de Chile operates as a full-service financial institution in Chile.
The company provides, directly and indirectly through its subsidiaries, a wide variety of lending and non-lending products and services to all segments of the Chilean financial market, providing the company’s customers with powerful, differentiated, and comprehensive value offerings. In addition to its traditional banking operations, the company’s subsidiaries and affiliates permits it to offer a variety of non-banking bu...
Banco de Chile operates as a full-service financial institution in Chile.
The company provides, directly and indirectly through its subsidiaries, a wide variety of lending and non-lending products and services to all segments of the Chilean financial market, providing the company’s customers with powerful, differentiated, and comprehensive value offerings. In addition to its traditional banking operations, the company’s subsidiaries and affiliates permits it to offer a variety of non-banking but specialized financial services including securities brokerage, mutual funds management, investment banking, insurance brokerage, collection services as well as acquiring and processing services for credit and debit cards.
Segments
The company organizes its operations and delivers its services to its customers through the following four principal business segments: Retail Banking; Wholesale Banking; Treasury and Money Markets; and Operations through Subsidiaries.
Through the company’s retail banking segment, it provides its individual customers with credit cards, installment loans and residential mortgage loans, as well as traditional deposit services, such as current accounts, demand deposits, demand accounts, savings accounts, and time deposits. The company and its subsidiaries also offer financial solutions, such as insurance brokerage, securities brokerage, mutual funds management, among others. In addition to personal banking, the company’s retail segment comprises micro, small and medium sized companies that it serves by providing them with short- and long-term financing, deposit and cash management solutions, in addition to an array of financial services, such as insurance brokerage. The company’s banking services for wholesale customers include commercial loans (including factoring and leasing), trade finance, capital markets services, cash management and non-lending services, such as payroll, payment and collection services, as well as a wide range of treasury, financial advisory and risk management products.
In 2008, the company enhanced its value offerings by entering a strategic partnership with Citigroup Inc., as a result of the company’s merger with Citibank Chile. The company also offers international banking services through its representative office in Beijing and a worldwide network of correspondent banks.
As of December 31, 2024, the company delivered financial products and services through a nationwide distribution network of branches and ATMs. The company's ATMs are part of a larger network of ATMs operating in Chile, of which some ATMs operate under a network managed by Redbanc S.A., a company the company partly owns along with eight other private sector banks.
Technological Projects
In 2022, the company continued to enhance its technological infrastructure, improve the stability of the company’s systems while supporting the deployment of its digital transformation strategy through the development of new products, services and applications. The company developed FAN Clan, a 100% digital demand account for teenagers, whose digital functionalities allow the users to customize the account by choosing different avatars to interact with. In addition, the company launched a renewed MiInversión application for smartphones, which allows investors to check their balances, amounts invested, and profitability earned during the period while taking new investment and savings products. Similarly, the company improved functionalities in both MiBanco and MiPago applications, including a QR code for cash withdrawals and taking products online, which coupled with the Paga2 application that permits its and Banco Scotiabank’s customers to perform money transfers with no charges by using their mobile phone numbers. Furthermore, the company enhanced the functionalities of the MiBanconexion application for companies including the electronic payment of bills, multiproduct remote authorization, online credit payment and a dashboard for the management of electronic money transfers. The company also introduced improvements to its customer websites for individuals and companies by allowing customers to perform a wider bundle of operations online. Given the company’s purpose of improving contact channels, during 2022 it also worked in conjunction with local communities to expand the company’s network of ATMs in non-covered sectors across the country. From the infrastructure and cybersecurity point of view, in 2022 the company renovated the whole telecommunication network to make it compatible with new technological requirements of other platforms, consolidated a 99.9% uptime in both web login and electronic money transfers, decreased the response time to address critical events by 50% while reinforcing the monitoring system of fraud and anti-money laundering. Also, the company implemented Data Decoupling architecture that provides real-time access to information through cloud data warehouse, which also challenged it to deploy new cybersecurity infrastructure oriented to the company’s multi-cloud strategy.
During 2023, the company maintained the focus on providing individuals and companies with excellent services and products as well as timely and effective solutions, through proactive and agile service to build relationships of trust with its customers. In this process, the company launched innovative products, as well as renewed and updated various services, functionalities and digital tools that seek to deliver a more flexible and accessible experience, with high security standards and availability to customers and users. In this context, the company became the first bank in Chile in the ‘Decentraland,’ a decentralized metaverse platform where it launched ‘Dimension B’, a new virtual space of Banco de Chile, which represents an open space where the user can roam freely and access information on financial products and services. Moreover, the company successfully released the Apple Pay digital wallet, which allows customers to pay in on-site stores without the need for a physical card. In the retail segment, different functionalities were incorporated into MiBanco, MiPago, MiSeguro y MiInversión mobile applications. In MiBanco, the renewal of the information on the home page and the creation of widgets or tools that allow viewing the benefits of the day, using the MiPago App to add funds to (and pay for purchases using) the bracelet used to attend the Lollapalooza music festival in Chile, among others, stand out. On the online banking website, the company was able to implement the digitization of the entire digital income situation statement and digital onboarding for current accounts in U.S. dollars. In the wholesale segment, improvements and new functionalities were added to the MiBanconexión application, such as enabling digital onboarding for current accounts in U.S. dollars, allowing online repayment and review of leasing products, permitting review of bank warranty bills, enabling digital ordering of mass payments, incorporating multi-company authorization for electronic funds transfer, applying for credits digitally, among others.
In 2024, the company made significant progress in its digital transformation strategy, which has allowed the company to launch innovative products and update its services, functionalities and digital tools, to deliver a simpler, more accessible and flexible experience to customers and users while ensuring high standards of cybersecurity and availability. These advances have resulted in a high degree of digital adoption by customers, such as the current account onboarding that has leveraged improvements in credit monitoring and electronic signature. In this regard, in 2024, the company consolidated a digital marketing strategy for digital products fully based on digital onboarding through personalized actions and active presence on the main digital platforms. In the Retail Segment, the company updated and incorporated several functionalities on the website and applications, including the integration of MiSeguro into the MiBanco application, allowing customers to take and manage their insurance policies in one place. Additionally, the company incorporated new functionalities in MiBanco to allow customers to open digital checking accounts, make payments through QR code and receive daily notifications with offers and promotions of its loyalty program. Also, at the beginning of 2024, the company launched ‘FAN Ahorro’, a savings account with no maintenance costs or minimum opening amount, which may be opened 100% digitally and only requires having a valid Fan Account and an identification card. This product earns monthly interest and allows the customer to make up to two withdrawals without losing the interest earned. Meanwhile, in the Wholesale Banking segment, the company updated the Banconexión 2.0 platform with a new design focused on simplicity and ease of use, seeking to increase customers’ productivity when managing their transactions. In addition, the company renovated investment tools by incorporating the possibility of investing in mutual funds while introducing an investment summary dashboard. Also, the company launched Pago Fácil, a payment solution that allows companies to pay it and other banks fully online at any time.
Likewise, in 2024, the company made significant IT developments intended to reinforce and increase productivity of its back and middle office operations, such as robotic process automation, development of AI use cases, and digitization of transactions, the company’s new ERP platform for the automation and centralization of purchasing and payment activities, along with new processes to optimize capital expenditures in infrastructure, the strengthening of the technological architecture and high service standards through the update of the company’s data center networks and the implementation of a multicloud strategy, and transformation and modernization of its mutual funds and stock brokerage subsidiaries. Also, during 2024, the company continued to incorporate Artificial Intelligence (‘AI’) tools as part of its digital transformation process through the exploration and integration of Generative AI in various areas of the company’s operations. In this regard, the company managed to provide more than 300 software developers with AI assistance, launch a customer service chat for FAN Clan account holders, and make an assistance chat available to its account officers. In addition, the company’s advanced analytics area developed models and systems that provide its customers with accurate recommendations by considering their areas of interest while maintaining strict information security standards. Furthermore, the company has integrated AI to streamline its processes, which has allowed the company to improve the efficiency of manual procedures with advanced data processing technologies, increasing verification and accuracy, and improving the company’s service quality.
To provide the company’s customers with specialized value offerings and a wider range of financial products and services, it has also developed the ‘anco Edwards-Citi’ and ‘Banchile’ brand names.
Broad and Diversified Customer Base
As of December 31, 2024, according to the company’s management information system, it had various core customers, which had at least a current account or a loan outstanding with the company. In addition, with respect to the company’s main banking products, as of December 31, 2024, it had 1,260,161 current accounts holders; 249,599-time deposit holders; and 181,403 saving account holders. Similarly, as of December 31, 2024, the company was the second largest privately-owned bank in terms of number of borrowers with a 16.9% market share associated with 1,196,169 debtors, according to data published by the CMF. As of the same date, according to the CMF, the company had 1,784,749 credit card account holders.
Multichannel Distribution Approach
To better serve the company’s customers, it offers a distribution approach composed of both physical and non-physical channels.
The company is present in all regions of Chile and strive to be accessible to every Chilean customer through its large branch network, as well as non-physical contact channels. The company has a nationwide branch network of branches under its 'Banco de Chile' and 'Banco Edwards Citi' brand names. The company's branch network enables it to develop close relationships with its customers and therefore the company is constantly assessing new branch locations throughout Chile.
The company has also complemented its branch network with non-physical remote channels, such as ATMs, internet-based online platforms and mobile banking applications. The company has various ATMs throughout Chile, and it provides its customers with specialized internet websites for each of the segments the company targets, coupled with diverse mobile banking applications, including MiBanco, MiBanconexion, MiBeneficio, MiCuenta, MiPago, MiPass, MiInversion and MiSeguro.
One of the key pillars of the company’s digital banking strategy has been the development of cutting-edge mobile applications and customized websites.
Strategic Priorities
The company’s long-term strategy is intended to maintain profitable growth by placing the customer at the center of all its decisions and to improve efficiency and productivity in all the company’s processes and procedures while maintaining a strong commitment to sustainability and the country. These are the company’s strategic priorities, and it aspires to attain them through collaboration and teamwork.
Loan Portfolio
The loan categories are as follows:
Commercial Loans are loans and accounts receivable from customers not included within the mortgage or consumer loans categories. Commercial loans are intended to meet financing needs of companies and entrepreneurs, including corporations, large companies, small and medium sized companies, microentrepreneurs and start-ups. Accordingly, commercial loans pursue to finance capital expenditures through commercial credits or leasing loans, trade finance operations, short-term financing through factoring loans and working capital needs by means of credit lines granted to the company’s customers.
Mortgage Loans include mortgage loans granted to individuals to acquire, expand, repair or build a home, issued as mortgage bonds, endorsable mortgage loans or by other methods. It also includes supplementary loans for the same purposes and bridge loans granted before the mortgage loan has been settled. This subcategory also includes residential real estate lease transactions and other accounts receivable.
Consumer Loans are all loans granted to individuals to be used for purchasing goods or services. These include different types of loans (either installments or revolving), as well as balances from credit card transactions or overdrafts on current accounts belonging to individuals. Consumer loans also include consumer lease transactions and other accounts receivable.
Principal Business Activities
Retail Banking Segment
The company's Retail Banking segment serves the financial needs of individuals and small and medium sized companies through its branch network. The company's Retail Banking segment manages various branches operating under its 'Banco de Chile' and 'Banco Edwards-Citi' brand names.
In terms of composition, as of December 31, 2024, the company's Retail segment's loan portfolio was principally focused on residential mortgage loans, which represented 52.0% of the segment's loan book. The remaining loans were distributed between commercial loans (26.2%) and consumer (21.8%).
The company serves the retail market through its Retail Banking Segment, which is responsible for offering financial services to individuals and microentrepreneurs, as well as small and medium-sized companies.
The strategy followed by the company’s Retail Banking Segment is mainly focused on sub-segmentation, multi-brand positioning, cross-selling of lending and non-lending products and service quality based on customized service models for specific customer needs. Also, loyalty programs has been increasingly incorporated into the company’s commercial targets for each sub-segment and they have enabled it to increase the use of the company’s credit cards and its fee-based income. In addition, the area’s operations count on the support of specialized call centers, mobile and internet banking services, along with a wide range of management tools that allows the company to measure returns, the performance of cross sold products and the effectiveness of marketing campaigns.
The company complements the services offered by its other business segments, especially the company’s wholesale market segment, by offering services to employers, such as direct deposit capabilities for payroll payment purposes, which in turn enable employees to use its deposit services.
In 2024, the Retail Banking Segment focused on targeted growth opportunities while developing new business solutions and benefits to improve the company’s customers’ experience. Based on these pillars, in 2024, this business segment recorded a 4.5% growth in personal banking customers (number of individuals), which was prompted by the upgrade in targeted value propositions that were split into two customer clusters composed of transactional (retail, young and traditional) and relational (preferential and private) customers. Likewise, the company introduced tailored value offerings for both digitally oriented customers and customers who prefer traditional channels. The company also launched the FAN Ahorro account, a digital saving account designed for both current and new customers that simplifies the saving process and earns monthly interest. As a result, this business segment recorded a 63.3% growth in saving accounts. Moreover, this business segment achieved a 5.0% increase in checking account customers in 2024, which was in part the consequence of revised current account plans that became simpler, more flexible and more connected to the benefits of the loyalty program.
The company offers a variety of financial services to individuals, SMEs and microbusinesses, directly through the Individuals and SME Area or indirectly through its subsidiaries, such as current accounts, automatic bill payment, debit cards, credit cards, revolving credit lines, residential mortgage loans, consumer loans, commercial loans, mortgage loans for general purposes, leasing agreements, factoring services, mutual funds management and stock brokerage, trade finance, payments and collections, insurance brokerage (which includes life and casualty insurance), savings instruments and foreign currency services.
Installment Loans
The company’s consumer installment loans are generally granted, up to a customer’s approved credit limit, to afford purchases of goods and/or services, such as cars, travels, household furnishings and education, among others. Consumer loans may be denominated in both pesos and UF, bear fixed or variable interest rates and are generally repayable in installments over a period of up to 46 months.
Residential Mortgage Loans
The company’s residential mortgage loans are generally denominated in UF and have maturities ranging from five to 30 years. As of December 31, 2024, the average residual maturity of the company’s residential mortgage loan portfolio was 16.5 years. The company’s residential mortgage loans through the issuance of mortgage finance bonds, which are recourse obligations only to it with payment terms that are matched to the residential loans.
The company has promoted the expansion of Mutuos Hipotecarios, a mortgage lending product, which is not financed by mortgage finance bonds, but instead through its general funds.
Credit Cards
As of December 31, 2024, the company issued both individual and corporate Visa and MasterCard credit cards. In addition to traditional credit cards, the company’s portfolio also includes co-branded cards. As of December 31, 2024, the company had two loyalty programs or cobranding agreements, namely ‘Travel Club’ and ‘Entel Visa.’ Credit cards issued under these cobranding agreements supplemented the credit cards that the company issued under the brand names Banco de Chile and Banco Edwards-Citi. In addition, as of December 31, 2024, the company offered 19 types of credit cards, targeting diverse types of segments and encompassing different benefits, including: Visa Corporate, Visa Corporate Signature, Visa Dorada, Visa Infinite, Visa Infinite Plus, Visa Internacional, Visa Platinum, Visa Platinum Pyme, Visa Pyme/Empresarial, Visa Signature, Visa Signature VIP, Visa Signature Entel, Visa FAN Internacional, MasterCard Black, MasterCard Dorada, MasterCard Internacional, MasterCard Platinum, MasterCard Corporate and MasterCard Corporate Executive.
The company’s affiliate, Transbank S.A., provides it with services related to payment transactions support. As of December 31, 2024, Transbank S.A. had 11 shareholders (including the company) and as of December 31, 2024, its equity ownership in Transbank S.A. was 26.16%.
As of December 31, 2024, the company’s credit card loans to individuals and small and medium sized companies amounted to Ch$2,008,297 million and represented 36.2% of its retail market business segment’s consumer loans.
Commercial Credits
Commercial credits granted by the company’s Retail Banking Segment mainly consist of project financing, long-term financing and working capital loans granted to small and medium sized companies.
Leasing Contracts
Leasing contracts are financial leases for capital equipment and property. Leasing contracts may bear fixed or variable interest rates, and they generally have terms that range from one to five years for equipment and from five to 20 years for properties.
Lines of Credit
As of December 31, 2024, the Retail Banking Segment had approximately 1,099,108 approved lines of credit to individual customers and small and medium sized companies. Also, the unit had outstanding advances to 544,010 individual customers and small and medium sized companies.
The company’s lines of credit for individual customers are generally available on a revolving basis, up to an approved credit limit, and may be used for any purpose. Advances under lines of credit are denominated in Chilean pesos and bear an interest rate that is set monthly.
Debit Cards
The company offers different types of debit cards to its customers. Depending on their specifications, these cards can be used for banking transactions at ATMs that operate on the local network provided by Redbanc and the local network of merchants participating in the local Redcompra debit program. Also, the company’s debit cards can be used internationally through the Visa International PLUS network or the international network of merchants associated with the Electron program. The company names these debit cards depending on the card’s specific features and the link between the brand and target market which they serve. During 2024, the company offered the following debit cards: Visa Infinite, Visa Estándar, Visa Estandar FAN, Visa Signature, Visa Platinum, Visa Debit Business and debit cards for companies. As of December 31, 2024, according to the CMF, the company held a 11.2% market share of debit card transactions, which corresponds to approximately 467 million transactions throughout the year.
Deposit Products
The company strategically offers deposit products to increase its deposit-taking activities as a means of diversifying the company’s sources of funding. The deposits of the company’s individual customers provide it with a relatively low-cost, stable source of funding, as well as an opportunity to cross-market the company’s other products and services. In this regard, the company offers current accounts, time deposits and savings accounts to its individual customers.
Wholesale Banking Segment
The company’s wholesale banking segment serves the needs of corporate customers.
As of December 31, 2024, it had 10,947 debtors out of a total of 28,477 core customers (those holding either a loan or a current account with the company). The company’s wholesale customers are engaged in a wide range of economic sectors.
As of December 31, 2024, loans granted by the company's Wholesale Banking segment were mainly related to financial services (approximately 18.7% of all loans granted by this business segment); manufacturing (approximately 9.2% of all loans granted by this business segment); commerce and trade (approximately 6.6% of all loans granted by this business segment); construction (approximately 6.7% of all loans granted by this business segment); agriculture, forestry and fishing (approximately 5.8% of all loans granted by this business segment); communication and transportation (approximately 4.2% of all loans granted by this business segment); community, social and personal services (approximately 2.3% of all loans granted by this business segment); mining (approximately4.9% of all loans granted by this business segment); and utilities (approximately 3.7% of all loans granted by this business segment).
In line with the company’s strategy of identifying and differentiating market segments in order to provide improved value propositions for a diversified customer base, three of its areas provide the company’s wholesale customer base with banking and financial products and services: (i) the Corporate Area, (ii) the Special Business Area and (iii) the Large Companies Area.
Corporate Area
The Corporate Area provides banking products and services to corporations. This area’s customers consist of a large proportion of Chile’s publicly traded and non-listed companies, subsidiaries of multinational companies and conglomerates operating in Chile (including those operating in the financial, commercial, manufacturing, industrial and infrastructure sectors), as well as projects and concessions. Thus, in addition to traditional lending products, this area offers a wide range of non-lending services related to project finance, deal structuring associated with business acquisitions, cash management, deposits and funds administration, financial advisory, among others. Also, this area is in charge of coordinating and overseeing both the company’s Leasing Business and its International Private Banking Unit.
As of December 31, 2024, the Corporate Area had approximately 505 debtors out of a total of approximately 2,226 core customers (those holding either a current account or a loan with the company).
The company offers a wide range of products to large corporations that include short- and long-term financing, working capital loans, mortgage loans, leasing, long-term syndicated loans and factoring, as well as investment banking services offered by its subsidiary Banchile Asesoría Financiera S.A. The company also offers cash management, including payment services (payrolls, suppliers, pensions, dividends, etc.), collection services and connections to international funds transfer networks, as well as traditional deposit products, in particular current accounts.
In cash management, as of December 31, 2024, the company was party to approximately 12,228 payment service contracts and approximately 874 collection service agreements with corporations. Under the company’s collection contracts, it acts as a collection agent for its corporate customers, providing centralized collection services for their accounts receivable and other similar payments.
To provide highly competitive and differentiated services, in conjunction with the company’s Treasury and Money Market Operations segment, its Corporate Area offers to its customer diverse solutions to over their liquidity, short-term loans and hedging needs.
In addition, the Corporate Area offers specialized services of assets custody and financial advisory in diverse matters, such as capital increases, purchase and sale of shares, private equity placements, public share offerings, mergers and acquisitions, capital markets, initial public offerings and bond placements.
Special Businesses Area
The Special Business Area provides tailored financial products and services to the real estate and construction industries, as well as family offices. Thus, in addition to traditional lending products, this area offers a wide range of non-lending services related to project finance, deal structuring associated with business acquisitions, cash management, custody services, deposits and funds administration, investment banking, derivative instruments, among others.
As of December 31, 2024, the company’s Special Businesses Area had approximately 727 borrowers out of a total of 5,250 core customers (those holding either a current account or a loan with the company).
In 2024, the Special Businesses Area continued to deploy a differentiation strategy focused on the family office sub-segment. In this group of customers, relationships are crucial and, therefore, this area has concentrated on reinforcing the team’s capabilities while establishing a collaborative work relationship with the company’s subsidiaries Banchile Administradora General de Fondos (mutual funds management) and Banchile Corredores de Bolsa (securities brokerage) in order to offer a wide array of wealth management services and products based on its knowledge of the company’s customers.
Large Companies Area
The company’s Large Companies Area provides companies, with a broad range of financial products and services. Customers served by this area are those related to the commercial, manufacturing, agricultural, forestry, fishing and infrastructure sectors, among others.
As of December 31, 2024, the company had 9,177 large company debtors out of a total of 19,404 core customers (those holding either a current account or a loan with the company).
Products and services offered by this area are mainly related to commercial loans, lines of credit, trade finance and foreign currency transactions, factoring services, leasing, non-residential mortgage loans, syndicated loans, investment banking and financial advisory services for mergers and acquisitions, debt restructuring assistance, payments and collections services, current accounts and related saving services, corporate credit cards, cash and investment management, derivative contracts to hedge against currency or interest rate fluctuations, insurance brokerage, among other traditional and tailored services.
Treasury and Money Market Operations
The company’s Treasury and Money Market Operations business segment provides a wide range of financial services to its customers, including currency intermediation, forward contracts, interest rate swaps, transactions under repurchase agreements and investment products based on bonds, mortgage finance bonds and deposits.
In addition, the company’s Treasury and Money Market Operations business segment is focused on managing its currency, interest rate and maturity gaps, ensuring adequate liquidity levels, managing the company’s investment portfolio and performing the intermediation of fixed-income instruments, currencies and derivatives. Interest rate gap management is aimed at generating an adequate funding structure, prioritizing the company’s capitalization and asset and liability cost structure and funding source diversification.
The Treasury and Money Market Operations business segment is also responsible for the issuance of short- and long-term senior bonds, as well as long-term subordinated bonds, in Chile or abroad, monitoring compliance with regulatory deposit limits, technical reserves and maturity and rate matches/mismatches, monitoring the company’s adherence to the security margins defined by regulatory limits, and risk limits for interest rate, currency and investment gaps. This segment continually monitors the bank’s cost of funding by benchmarking with the rest of the local financial system and financing alternatives in Chile or abroad.
As of December 31, 2024, the company has established a network of approximately 600 foreign banks, among which it maintained credit relationships with approximately 136 correspondent banks, from which the company maintained 15 account relationships.
Operations through Subsidiaries
The company has made several strategic long-term investments in financial services companies that are engaged in activities complementary to its commercial banking activities.
Securities Brokerage Services
The company provides securities brokerage services through Banchile Corredores de Bolsa S.A. is registered as a securities broker with the CMF, the regulator of Chilean publicly listed companies, and is a member of the Santiago Stock Exchange and the Chilean Electronic Stock Exchange.
Mutual and Investment Fund Management
Since 1980, the company has provided mutual fund management services through Banchile Administradora General de Fondos S.A. As of December 31, 2024, according to data published by the Chilean Association of Mutual Funds, Banchile Administradora General de Fondos S.A. was the largest mutual fund manager in Chile, managing approximately 23.6% of all Chilean mutual funds’ assets. Also, as of December 31, 2024, Banchile Administradora General de Fondos S.A. operated 41 mutual funds and had assets under management owned by 426,183 corporate and individual investors. As of the same date, Banchile Administradora General de Fondos S.A. operated 42 public investment funds. Banchile Administradora General de Fondos S.A. managed with the public investment funds on behalf of 2,037 participants. As of December 31, 2024, Banchile Administradora General de Fondos S.A. managed five private investment funds with the private investment funds on behalf of 53 participants. During 2024, Banchile Administradora General de Fondos S.A. created two new mutual funds and two new public investment funds.
Insurance Brokerage
The company provides insurance brokerage services to its customers through Banchile Corredores de Seguros Limitada (Banchile Corredores de Seguros LTDA.).
Since 2019 the company has partnered with Chubb Seguros Chile S.A. and Chubb Seguros de Vida Chile S.A., local subsidiaries of Chubb Limited, as its exclusive provider of life and non-life insurances to be distributed by the company’s insurance brokerage subsidiary.
Financial Advisory Services
The company provides financial advisory and other investment banking services to its customers through Banchile Asesoría Financiera S.A. The services offered by Banchile Asesoría Financiera S.A. are primarily targeted to the company’s corporate customers and include advisory services concerning mergers and acquisitions, restructuring, project finance and strategic alliances.
Collection Services
Socofin S.A. provides judicial and extra judicial loan collection services to the bank.
Distribution Channels and Electronic Banking
The company’s distribution network provides integrated financial services and products to its customers through a wide range of channels. The network includes ATMs, branches, internet-based banking platforms, mobile banking applications and call centers.
As of December 31, 2024, the company had a network of retail branches throughout Chile. The company’s branch system serves as a distribution network for all the products and services offered to its customers. The company’s full-service branches accept deposits, cash withdrawals, offer the full range of its retail banking products, such as consumer loans, credit cards, mortgage loans and current accounts, and provide financial and non-financial information to potential customers. As of December 31, 2024, the company had various ATMs that were part of a larger network of ATMs operating in Chile, of which various ATMs operate under a network managed by Redbanc S.A.
The company also offers electronic banking services to its customers 24 hours a day through the company’s website, www.bancochile.cl, which has tailored homepages for the different segments it serves. The company’s corporate homepage offers a broad range of services, including the payment of bills, electronic fund transfers, non-charge orders, as well as a wide variety of account inquiries. These services include the company’s office banking service, Banconexion Web for Enterprises, which enables its corporate customers to perform all their banking transactions from their offices. The company’s homepage also offers products with exclusive benefits provided by its customer loyalty marketing programs, which enhance the company’s relationships with customers. Through the jointly administered website of Banchile Administration General de Fondos and Banchile Corredores de Bolsa, the company’s mutual funds and securities brokerage subsidiaries, respectively, it also provides customers interested in investing and saving their funds with an internet-based platform on which they can trade stocks and currencies, make time deposits and take positions in mutual funds, foreign stock markets, investments funds and derivatives. The company’s foreign trade customers can rely on its international business homepage, www.bancochile.com, which enables them to inquire about the status of their foreign trade transactions and perform transactions, such as opening letters of credit, recording import collection and hedging on instructions and letters of credit.
Also, the company provides its customers with access to a 24-hour phone-bank through which they can access account information and execute certain transactions. This service, through which the company receives nearly 353,853 calls per month on average, has enabled it to develop customer loyalty campaigns, sell financial products and services, answer specialized inquiries and receive and resolve complaints by customers and non-customers.
Lastly, over the last years the company has devoted efforts to enhance its mobile banking platforms by developing and launching diverse applications, including the mobile applications MiBanco, MiBanconexion, MiPago, and MiBeneficio. Similarly, the company launched MiCuenta, MiPass, and MiSeguro. MiBanco is a mobile banking platform that enables its customers to perform most of the operations they can execute on the company’s website, such as accessing their account balances, making bill payments and electronic money transfers, carrying out cash advances from credit cards to checking accounts. MiBanconexion is an application designed for treasury managers of companies or entrepreneurs, which allows the company’s customers to make massive transfers, pay their use of credit lines and check movements in their demand account, among other functionalities. MiPago is a specialized mobile application that permits requests for reimbursements from other Banco de Chile’s customers and performs the transaction by generating and scanning a QR code, which reinforces the security standards for these types of operations. MiCuenta is a mobile application that enables users to make monthly payments associated with utility bills and other types of services. MiPass is a password-generating application that, among other features, allows users to set a list of money transfer recipients to make transfers without requiring another password-generating device. Also, the company continued to expand its digital banking offerings by launching the new mobile application called MiInversion. This application serves as a portfolio management mobile platform for retail customers by enabling them to manage their investments in equity, fixed-income and mutual funds. Furthermore, the company added new functionalities to these mobile applications by incorporating an on/off service for credit and debit cards in case of theft, misplacement or other security issues detected by the user, authorization of web transactions with MiPass, biometric access to MiBanco and MiBanconexion, through fingerprint, onsite payment in shops and commerce through MiPago, among other features. Likewise, the company also added new functionalities by expanding its RedGiro service to permit the company’s customers to perform transactions through their smartphones and added new functionalities to MiInversion, through which its customers are able to invest in time deposits while exchanging foreign currency. As of December 31, 2024, the company has continued enhancing its mobile applications by improving existing functionalities. Also, the company launched Pago Fácil, a payment solution that allows companies to pay it and other banks fully online at any time.
Competition
Within the local banking industry, the company’s primary competitors are the main private sector commercial banks in Chile, namely, Banco Santander – Chile, BCI, Scotiabank Chile, and Banco Itaú Chile. Nevertheless, it also faces competition from Banco del Estado.
The company also competes, mainly through its subsidiaries, with companies that offer non-banking specialized financial services in the high-income individual’s segment and the middle market and corporate segment, such as Larrain Vial, BTG Pactual, Moneda Patria Investments and Credicorp Capital.
History
Banco de Chile was founded in 1893.
