According to the Head of State, Bancamia is an example of how new paths of social action are being paved, fostering a reduction in exclusion and raising confidence in Colombia.
Fundación Microfinanzas BBVA
- Bancamia is the outcome of an alliance between the BBVA Microfinance Foundation and the NGOs Corporación Mundial de la Mujer- Bogotá and Corporación Mundial de la Mujer- Medellín.
- The new entity comes into being with a customer base comprising over 170 thousand low-income entrepreneurs, 195 thousand current loans and a portfolio of 336 thousand million pesos.
Bancamia, the new Microfinance Bank, inaugurated this Wednesday in the city of Bogotá, Colombia was presented by the President of the Republic of Colombia, Álvaro Uribe Vélez, as an example of the new social paths to reducing exclusion and raising confidence in Colombia. “Lack of access to credit is a factor contributing to exclusion. Overcoming this is highly advantageous for social cohesion in Colombia. Each microloan is a source of social tranquillity, each microloan is a source of social harmony,” he said.
The President of the Republic thanked BBVA for its contribution to growth and social development in Colombian society and he underlined the Corporate Social Responsibility policy that the Group is applying in Colombia, highlighting the role that the BBVA Microfinance Foundation is performing in setting up Bancamia.
Uribe added that, “Colombia is fortunate to have this trust; that a popular bank, like Bancamia, is opened here, exclusively for microfinance operations, in these times of world crisis.”
During the inaugural event, the Head of State underlined that it is in matters of social cohesion and microloans where supply and demand come together most rapidly.
“I do not believe that banks like Bancamia are being opened in Latin America today. For us, the topic of economic prosperity, social cohesion and microlending is of the utmost importance. Everything done to stimulate supply, through microenterprises, immediately triggers off a greater and faster increase in demand,” the President declared.
Manuel Méndez del Río, Chairman of the BBVA Microfinance Foundation highlighted that, “Bancamia is a bank that is contributing to improving the standard of living among the lower-income population with limited access to financial services. We will be acknowledged in Colombia as the most important bank as far as social commitment is concerned, leader in access to specialised financial products and services for entrepreneurs. We will promote social and economic development in Colombia, democratising banking services.”
The entity in figures
Bancamia is the outcome of an alliance between the BBVA Microfinance Foundation and the NGOs Corporación Mundial de la Mujer Bogotá and Corporación Mundial de la Mujer Medellín.
The new microfinance bank, Bancamia, will be an entity controlled by the Financial Regulator of Colombia, devoted to exclusively attending entrepreneurs with small businesses, applying a specialised microfinance methodology, facilitating access to financial products and services that have been especially designed for these population segments.
Bancamia came into being with a customer base comprising over 170 thousand entrepreneurs and a current portfolio of 336 thousand million pesos (figures at 30 September 2008). This new microfinance bank has a credit portfolio in which commerce accounts for 52%, services 30%, followed by the manufacturing sector at 16% and the rural sector with 2%. “Our portfolio mirrors the composition of Colombia’s small entrepreneurs and the commitment of hundreds of men and women who are working day-by-day to grow and make this a better country. Entrepreneurs contribute over 30% of this country’s domestic GDP and they produce over 60% of its employment,” stated Manuel Méndez del Río.
On assessment of its portfolio quality index, Bancamia reports a default indicator of under 2%, which is a figure considerably below that of the Colombian financial sector.
Its retail network is made up of 71 branches in 31 cities, attending over 212 municipalities all over the country.
Assessing the Bancamia customer profile, 70% of its customers are women entrepreneurs. In general, they are customers who do not keep accounting records and require fast, easy, short-term loans. They appreciate personalised attention and they have acquired an important pay back culture.