The financial systems in Latin America and the Caribbean (LAC) must strengthen their contribution to sustainable economic growth.
Accessing financial services in LAC is difficult, especially for women, rural populations, low-income groups, small businesses, and new industries.
Challenges and Opportunities
Although capital markets are growing in Latin America and the Caribbean, they remain small and underdeveloped. Interest rates are high and financing is scarce.
This not only hinders economic growth, but it also has a negative impact on micro, small, and medium enterprises; trade; environmental initiatives; affordable housing; and services. All of these are key factors for the region's economic development.
The technological gap further prevents increased penetration of financial services. However, many financial institutions are adapting to new digital technologies. IDB Invest invests with them, helping them use technology to reduce costs, generate efficiencies, offer new services, and reach unattended segments.
Our Commitment
We work with financial institutions that share our commitment to sustainable development and financial inclusion. We support the development of green portfolios, financing to Micro, Small and Medium Enterprises (MSME) portfolios (with special attention to those led by women), financial inclusion, social housing, investment in health and education infrastructure, and trade expansion.
We have a local presence and rely on more than 60 years' experience working in Latin America and the Caribbean. We offer a full range of financial products and advisory services designed to help solve our client's specific problems. In addition to contributing our own funds, we rely on the support of donors that help us increase investment in areas that we consider a priority.
We not only ensure the financial viability of each project but also the long-term social and economic impact. We consider environmental and social aspects, gender equality, climate change, and corporate governance.
Our Work
- Boosts the loan portfolio to address the MSME and gender and diversity gap.
- Finances the development or expansion of the green loan portfolio.
- Supports the growth of new sectors or priority sectors with an impact on development.
- Increases geographic coverage of underserved populations.
- Invests in digital transformation and innovation to achieve greater operational efficiencies.
Latest projects
Chile
Colombia
Costa Rica
Colombia
Trinidad and Tobago
Paraguay
Ecuador
Chile
Ecuador
Paraguay
Publications
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September 2022Reverse Factoring for MSMEs: A Financial Tool for Supply Chain Development?
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March 2021Digital readiness in financial cooperatives in Latin America & the Caribbean
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August 2020Retail Stores and Financial Inclusion: Quantifying the Benefits of Being a Non-bank Correspondent
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November 2019Report: Does Formal Credit Lead to More Financial Inclusion or Distress?