Global nonprofit Accion today announced the Accion Digital Transformation Fund will invest $10 million in Peruvian rural microfinance company Los Andes. The investment aims to help deliver Los Andes’ ambition of connecting micro and small entrepreneurs to the formal economy by increasing access to digital tools.
Los Andes focuses on providing lending, savings, and insurance to clients in rural areas in Peru. It currently serves 85,000 borrowers and over 227,000 savers, with plans to significantly expand its customer base among Peru’s 2.1 million micro, small, and medium enterprises. The company has a customer-centric approach, offering a diversified portfolio of tailor-made products, including a loan for facilitating access to drinkable water, sanitation, and improved living conditions. It also offers a series of tailored products for underserved women, who represent 47% of its clients.
In addition to investment capital, Accion Digital Transformation Fund aims to provide strategic support for Los Andes’ digital transformation, drawing on lessons learned in emerging markets around the world and Accion’s expertise in this space to support the delivery of new digital products and the increased use of digital processes within the institution.
Adelina Dasso, Partner Latin America, Accion Transformation Capital, said: “Los Andes is an agile and innovative company with a strong focus on reaching underserved women clients in rural areas of Peru, who are already experiencing the worse impacts of climate change. We are partnering with Los Andes to help move forward its ambitious digitization agenda, bringing learnings from across Accion’s global microfinance portfolio to improve its service offerings for rural women across the country.”
Managed by Accion Impact Management, the Accion Digital Transformation Fund builds on Accion’s experience supporting banks and finance companies around the world to connect millions of people and small businesses to the digital economy. Investments from the $152.5 million fund focus on companies serving micro, small, and medium enterprises (MSMEs) across South and Southeast Asia, Latin America, and Africa, providing growth capital and strategic support for digital transformation.
Rosanna Ramos-Velita, Board Chair, Los Andes, said: “As a women-led board and organization, with a goal of providing a wide range of responsible financial services to women in rural areas of Peru, our mission is closely aligned with the goals of the Accion Digital Transformation Fund. We look forward to working with the Accion team to increase the use of digital tools by our clients by offering a broader range of products, tailored to their specific needs.”
About Accion
Accion is a global nonprofit on a mission to create a fair and inclusive economy for the nearly two billion people who are failed by the global financial system. We develop and scale responsible digital financial solutions for small business owners, smallholder farmers, and women, so they can make informed decisions and improve their lives. Through targeted investment strategies, advisory, and expert thought leadership, we work with local partners to develop and scale cheaper, more accessible, and customer-friendly financial solutions. Since 1961, Accion has helped build more than 230 financial service providers serving low-income clients in 75 countries, reaching more than 350 million people. More at www.accion.org.
About Accion Impact Management
Accion Impact Management is Accion’s platform for impact investments in financial inclusion leveraging third-party capital. It is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Please note that registration with the SEC does not imply a certain level of skill or training. Accion Impact Management is staffed by a team of expert investment professionals, working to harness the capital markets to provide high-quality and affordable financial services to people who are currently excluded from the financial system. More at https://accion.org/accionimpactmanagement.
About Los Andes
Los Andes is a microfinance entity with over 26 years of experience, which aims to support and serve Peru’s most vulnerable population through financial inclusion. It is profitable and has achieved substantial growth over its history. Currently, it has 101 branches for its 85,000 borrowers, 40% of which are rural and 47% of which are women. Los Andes aspires to become Peru’s leading rural bank. Additionally, Rosanna Ramos-Velita, the Board Chair of Los Andes, is the first woman to head a Peruvian financial institution and is among Forbes’ 50 most empowered women in Peru. More at www.losandes.pe.
Media contact
Thessa Mooij
Director, Public Relations, Accion
media@accion.org