Nacional Monte de Piedad Today and Its Growth Story

Nacional Monte de Piedad has come a long way since its inception. It was founded in 1774 by Charles III of Spain as a pawnshop to help the poor and needy.

Today, Nacional Monte de Piedad is a thriving institution with a strong presence in Mexico. It has grown significantly over the years, with a large network of branches across the country.

Nacional Monte de Piedad offers a range of services, including pawnshops, loans, and financial assistance. Its main goal is to provide financial support to those in need.

With its rich history and commitment to helping others, Nacional Monte de Piedad continues to be a vital part of Mexican society.

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The main office of Nacional Monte de Piedad is located on the northwest corner of the Zocalo on the corner of Monte de Piedad and 5 de Mayo Streets. The building has undergone significant modifications over the years, but it was once part of the estate owned by Hernán Cortés.

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The original structure of the building was massive, extending as far as modern-day Avenida Madero, Isabel la Católica, Calle Tacuba, and Monte de Piedad streets, earning it a description as a city itself by chronicler Francisco Cervantes de Salazar. The original structure had two floors and a series of smaller buildings that Cortés rented to traders.

The tezontle stone façade of the current building dates back to 1775, and above the main door is the coat of arms of the Count of Regla. The inside of the building has been completely modified except for a few details.

The institution has become so widespread in the country that it's popularly referred to as "Tia (Aunt) Piedad". From 1988 to 2000, Monte de Piedad had between 33 and 35 branches in the entire Mexican republic.

The main office in the Zócalo in Mexico City is where every two weeks, furniture, antiques, jewelry, cars, clothing, domestic appliances, and other goods which have not been reclaimed by their owners are sold off at public auction.

Nacional Monte de Piedad has two fundamental objectives that have remained unchanged since its foundation.

The first objective is to provide loans to families with emergency needs, offering the most favorable conditions possible without considering financial gain.

The institution's primary lending strategy is microloans secured through pawned objects, such as jewelry, watches, and even cars.

Most pawned items are valued at around 30 pesos, but the average loan is about 500 pesos.

Nacional Monte de Piedad has expanded its services to include banking services, which began in 1878, and home equity loans, which started in 1997.

The institution has donated over 1,500 charities in the past decade, with an average yearly donation of between 400 and 450 million Mexican pesos.

Nacional Monte de Piedad supports education through scholarships, including the "Beca Cholula" fund, which has donated a total of 900,000 pesos so far.

The foundation has been a primary sponsor of the "Beca Cholula" fund, initially funding one 100% scholarship and now sponsoring ten students each year.

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Nacional Monte de Piedad has developed products and services that promote financial inclusion, adapting to the needs of the market.

The institution's "Unidos con Empeño" financing modality offers a highly competitive interest rate and up to three refinancing options of five months each, totaling 20 months of financing.

This modality uses pawned items as collateral, including computers, cell phones, and household appliances.

Nacional Monte de Piedad has its own Institute of Valuators, which has trained over 490 certified appraisers to ensure the value of the pawned items.

The institution's commitment to its clients is evident in its high recovery rate, with eight out of ten clients able to recover their pawned items.

Monte de Piedad has a reputation for being a reliable and trustworthy institution in Mexico, with a high approval rating from Standard & Poor's. The institution submits its financial records to outside scrutiny to maintain its reputation.

The foundation has been certified by AENOR, a reputable certification body, and works with legal authorities to prevent the pawning of stolen items. However, Monte de Piedad has faced labor issues in the past, including a dispute with retirees and active employees who claimed they were misled about their health insurance benefits.

Despite these challenges, the institution has made significant strides in recent years, with a new contract colectivo being signed in 2019, marking a new era for Monte de Piedad. The agreement aims to modernize the institution's operations and improve labor relations.

The Monte de Piedad has experienced tremendous growth since the year 2000, with its popularity leading to it being referred to as "Tia (Aunt) Piedad".

From 1988 to 2000, the institution had between 33 and 35 branches across the entire Mexican republic, with 13 of those in Mexico City. By January 2008, the number of branches had grown to 152, with plans to open a branch in every Mexican city.

The largest regional offices are now located in Mexico City, Monterrey, Guadalajara, and Mérida. The foundation expects to extend pawn loans to 750,000 families in 2008, representing a 58% increase nationwide from 2007.

This growth has led to an increase in the number of pawned items, with 33 million items being stored in warehouses every year. The institution also expects to reach the 22 million-loan mark in 2008.

Loans can be taken out for any purpose, but many are used for expenses related to back-to-school, vacations, and other major holiday periods.

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Monte de Piedad has a strong reputation financially, with Standard & Poor's regularly giving them a high approval rating.

The institution has also been certified by AENOR, a testament to their commitment to quality and transparency.

However, Monte de Piedad has faced labor issues, with retirees and active employees protesting in 2007 over being lied to about their enrollment in IMSS.

This labor dispute was eventually ruled against the institution by the Junta Federal de Conciliación y Arbitraje, a federal commission that resolves conflicts and disputes.