BIM | New project to strengthen financial inclusion and digital transformation
BIM, through the TSF (Technical Support Facility) of Locfund Next, is proud to announce the signing of a technical cooperation agreement with IDB Lab for USD 500,000, to execute the project “Locfund Next: Financial Inclusion and Digital Transformation in Microfinance Institutions of America Latin America and the Caribbean”.
The current situation due to COVID-19 has shown the importance and urgency of digital transformation in different areas, and both the banking and financial sector, specifically microfinance, is not the exception. Digitization has become essential to continue operating, and that is the area in which we seek to provide efficient support to obtain tangible results.
The project will last 36 months and reach at least 17 countries in the region, with the objective of assisting microfinance institutions that are clients of Locfund Next to offer essential services and products to vulnerable populations through digital solutions.
The project focuses on key aspects of digital transformation such as: transactions between institutions and their clients, automation of internal processes and human resources, client engagement through alternative channels, use of data analytics tools for decision making, etc.
During these three years, it is expected to co-finance digital transformation projects for microfinance institutions clients of Locfund Next, aiming to incorporate at least 150,000 new clients through digital channels and develop digital solutions focused on operability and interaction with end clients.
Other objectives that the project focuses on are: increase the number of women who adopt digital transformation processes from their microfinance institutions, train employees in digital transformation topics, and automate internal processes.
The TSF has more than 13 years of experience in managing many similar technical assistance components, having raised USD 7.2 million to date, and benefiting 190 microfinance institutions. It has a pool of 40 consultants, in addition to having accredited 75 training consultants with GIF. Since the TSF started, 100% of the funds received have been executed. In addition, Jorge Eguino has recently joined the team as Digital Transformation Specialist to work together with microfinance institutions in their respective digitization processes.
With this financial inclusion and digital transformation project, both the IDB Lab and BIM, through the TSF of Locfund Next, reaffirm their commitment to support microfinance institutions in the region.