COFIDES will support the financial inclusion of Ecuadorian microenterprises through an agreement with VisionFund Bank

COFIDES and Banco VisionFund Ecuador (BVF) have entered into an agreement for the implementation of a technical assistance project that will provide support to Ecuadorian micro and small enterprises, especially in rural areas, and which is part of the Triple Inclusive Finance (TIF) Programme.

The TIF Programme 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 VisionFund envisages a non-refundable contribution for a maximum amount of EUR 118,156, complementing the EUR 5.2 million loan granted to BVF by the Spanish Cooperation through FONPRODE to increase and deepen the financial offer aimed at the micro and small enterprise sector located in the Ecuadorian rural sector, in addition to contributing to the promotion of savings. Also, the European Union is involved in this new partnership, as it is one of the partners contributing to the TIF Programme through its Latin America and Caribbean Investment Facility (LACIF).

This technical assistance project aims to implement a data governance strategy in order to manage, improve and take advantage of the information generated from the different areas of the bank, to use this information to make reliable strategic decisions for BVF and to analyse data with the use of advanced tools.

Data Governance with Data Analytics will establish a structure and framework that makes it possible to manage and use data effectively and strategically. This involves implementing the organisational structure, policies, processes and procedures, and technological infrastructure necessary to ensure the quality, integrity, security and privacy of data, as well as to promote its availability and accessibility for informed decision-making.

To foster a culture of data-driven decision-making in the bank, BVF employees will be trained and raised awareness on the importance of using data at the decision-making level, providing them with the necessary tools and promoting the skills required to analyse and visualise data effectively.

The establishment of Data Governance as a centralised and specialised point for the management of data collection, processing, analysis and visualisation will provide strategic and valuable information to support organisational decision making. This ultimately results in a service offer that is better adapted to the needs of Ecuadorian micro-entrepreneurs.
 

ABOUT BANCO VISIONFUND ECUADOR

Banco VisionFund Ecuador (BVF) is a member of the Vision Fund International (VFI) network, with presence of microfinance institutions in 29 countries. Its origins date back to 1995, with the creation of the microfinance foundation FODEMI, transformed in 2005 into a financial company and, in 2016, into a Bank, controlled by the Superintendency of Banks of Ecuador. BVF's mission is to improve the quality of life of clients (especially women from marginalised sectors) and their families through adapted financial products. It operates in 10 of Ecuador's 24 provinces, mainly in the north and centre, through 17 agencies that serve mainly rural microenterprises with credit (individual, group and community banking) and savings products.
 

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.
 

ABOUT COFIDES

COFIDES is a state-owned enterprise specialized in the management of State funds that provide medium- and long-term financing for private investments linked to different public policy purposes. COFIDES directly manages funds aimed at supporting the internationalization of Spanish firms, strengthening the solvency of companies severely affected by the COVID-19 pandemic, to attract foreign direct investment into Spain through co-investment deals and to contribute to the growth of the impact investment ecosystem in Spain. In addition, COFIDES supports the management of the financial cooperation portfolio of the Spanish Agency for International Development Cooperation, promoting sustainable development in emerging economies and developing countries. In the ownership structure of the Company, the Spanish State holds 53% of the equity. The remaining 47% is held by Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).