COFIDES will support Banco Apoyo Integral of El Salvador to promote its digitization and deepening of its services

COFIDES and Banco Apoyo Integral have signed an agreement for the implementation of a technical assistance project that will support the bank in its digitalization process and in the deepening of its green financial services with a gender focus within the Triple Inclusive Finance (TIF) Program.

The TIF Program is the first blending project led by COFIDES in Latin America in collaboration with the European Union and the Spanish Agency for International Development Cooperation (AECID), through the Fund for the Promotion of Development (FONPRODE).

The agreement with Banco Apoyo Integral contemplates a non-refundable contribution for a maximum amount of €332,255, the total amount of the project being €456,850. This contribution complements the US$5M loan previously granted to this financial institution by Spanish Cooperation through FONPRODE to cover its financing needs and promote the supply of savings services and financing to the rural micro-enterprise sector. The European Union is also involved in this new alliance, as it is one of the partners contributing to the TIF Program through its Latin America and Caribbean Investment Facility (LACIF).

This initiative seeks to undertake the project to strengthen and deepen its financial services and to support the institution in the implementation of its strategic plan. Among its objectives is to position itself as one of the major references for micro and small enterprises (SMEs and MSEs) in El Salvador.

To this end, Banco Apoyo Integral aims to expand the range of digital products and services specifically targeted at these companies and build an organization focused on innovation and improving the customer experience. Support in the digitization process will be key to achieving these goals.

In addition, the entity will count on the resources of the Program for the promotion and development of green products, and support in the development of new strategies for the inclusion and empowerment of women, both internally and externally.

The project encompasses activities in the three intervention areas of the TIF Program:

Deepening inclusive financing

• Develop and implement a plan to enhance Apoyo Integral’s electronic banking and digital services.
• Development of a mapping application that allows for assisted client linking in the field.
• Cash withdrawal through service points by means of tokens.
• Improved electronic banking to enhance functionalities and user experience.
• Customer engagement through other channels (WhatsApp).
• Opening of fixed-time deposits.
• Improve the disbursement of international remittances through digital channels.
• Develop new specific credit products/programs for women entrepreneurs in order to increase access to new financial resources to boost growth and investment in their businesses.

Institutional strengthening

• Improved data governance and information security mechanisms.
• Establishment of a gender policy and an organizational culture that encourages participation and inclusion.

Green microfinance

• Promotion and development of green products.
• Design, construction and implementation of a socio-environmental risk management system.

ABOUT BANCO APOYO INTEGRAL

Banco Apoyo Integral's main activity is financial intermediation, especially for SMEs and MSEs, providing financial services to the lower-income segments, with authorization to capture deposits from the public in savings accounts and time deposits. It also offers life and health micro-insurance for clients, as well as financial advice. Its loan portfolio amounts to US$193.7M, with almost 25,500 clients, 62% of which are located in rural areas, and more than 41,400 depositors. 91% of its portfolio is used to finance productive activities. Its portfolio is geographically diversified throughout the country, with the largest exposure concentrated in San Salvador and La Libertad.

ABOUT COFIDES

COFIDES is a state-owned commercial company specialized in managing State funds that provides financing for private investments to achieve various public policy objectives. For over three decades, it has been managing resources aimed at supporting the internationalization of Spanish companies, and since 2021, the FONREC, a fund aimed at strengthening the solvency of Spanish companies severely affected by the COVID-19 pandemic. COFIDES has been assigned the direct management of two new financial instruments: the Co-investment Fund (FOCO), to attract foreign investment to Spain in activities mainly linked to green and digital transitions, and the Social Impact Fund, aimed at reinforcing the national ecosystem of impact investment. Additionally, COFIDES supports the Spanish Agency for International Development Cooperation (AECID) in managing financial cooperation resources. The Spanish state owns 53% of the capital, while the remaining 47% is held by Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell, and the Development Bank of Latin America and the Caribbean (CAF).

ABOUT THE EUROPEAN UNION

The European Union manages the Latin America and Caribbean Investment Facility (LACIF), a regional blending mechanism. LACIF promotes the mobilisation of funds from European and regional financial institutions, governments and the private sector to carry out sustainable development projects in Latin America and the Caribbean. LACIF's objective is to help these countries by way of the finance of projects in key sectors for the achievement of the Sustainable Development Goals, such as: renewable energy, environment, water and sanitation, urban and rural transport, and promotion of small and medium-sized enterprises.

ABOUT AECID - FONPRODE

The Spanish Agency for International Development Cooperation (AECID) is the principal management body for Spanish Cooperation. Attached to the Ministry of Foreign Affairs, European Union and Cooperation, it manages the Development Promotion Fund (FONPRODE) with the aims of eradicating poverty, reducing social inequality and inequity among people and communities, and promoting gender equality, defense of human rights and human and sustainable development of poor countries.