Banco FIE: a benchmark for inclusive and sustainable banking

The improvement of these conditions requires a solid financial sector and a good agribusiness infrastructure. Rabo Partnerships aims to contribute to such a sound and sustainable infrastructure by working together with local partners. Banco FIE, a Bolivian financial institution, has a philosophy based on social and financial inclusion and value creation. Banco FIE’s actions and business approach are strongly linked to social and financial inclusion as well as rural development, making them a well-positioned partner.

In 2018 we started working with Banco FIE, resulting in an agreement which was also supported by the Ministry of Foreign Affairs of the Netherlands. The program gave us the opportunity to support Banco FIE with Technical Assistance on several aspects. For instance, we supported Banco FIE with the development of customer value propositions to enhance the bank's agricultural banking expertise; and a distribution channel strategy towards increasingly usage of digital channels. Other topics that we assisted on included improving the IT infrastructure and risk management framework. Together, we formulated the goals of working towards increasing financial inclusion and rural development in Bolivia, promoting private sector development especially focusing on micro, small and medium enterprises, and increasing the finance and professionalism of agricultural value chains in the country; all in order to contribute to a fair, sustainable, inclusive and equitable society.

In order for the agricultural sector to be viable in the long run, producers need to generate value through agricultural activity while preserving resources. “Small and medium-scale agriculture and resilient and inclusive food systems must be placed at the center of our priorities to achieve the sustainability of the sector in Bolivia. Banco FIE's extensive presence in rural areas and the attention we pay to the micro-agricultural sector allows us to actively contribute”, said Claudia San Martín, National Manager of Performance and Social Responsibility of Banco FIE. Small producers are responsible for a large part of the food needs of the Bolivian population, therefore, catering to their needs is essential. Banco FIE, with the support of Rabo Partnerships, has innovated its credit technology and invested in infrastructure, creating one of the largest rural care networks in Bolivia and becoming a leading food & agri bank in the country in the process.

The bank also works towards green financing, integrating climate and environmental criteria into its agricultural portfolio and promoting more resilient and sustainable practices from its clients. At the same time, Banco FIE also supports its agri customers in the transition to a low-carbon economy, for instance through the installation of agrometeorological stations and the promotion of Climate Smart Technologies to increase productivity, reduce water consumption and pollution due to the use of agrochemicals.

Women’s participation in the private sector is essential to building better economies and, in turn, improving the lives of women, men, families and communities. Only with a view of equality, diversity and inclusion can we move towards a society where human rights are fulfilled and respected.

“Banco FIE's commitment to gender equality is based on the belief that all people should have access to opportunities for growth on a personal and professional level”, explains Ximena Behoteguy, Chairwoman of the Board of Banco FIE. This is the philosophy behind the bank’s management model, Marca Magenta. Within this framework, Banco FIE's work has achieved important results, supporting nearly 600.000 Bolivian women and their families.

Marca Magenta was born from the ambition to generate a positive impact by promoting gender equality, financial and social inclusion. “We want to grant women opportunities, from financing to financial and digital literacy education. So far, more than 100.000 women have been trained and more than 900 women receive technical assistance to strengthen their sustainable agribusiness ventures, contributing to the country’s food security”, says Fernando López Arana, General Manager of Banco FIE. In addition, Rabo Partnerships has supported Banco Fie in the development of a digital platform for female micro-entrepreneurs on which they can offer their products and services, receive technical assistance and apply for credit. The platform is set to go live in the first half of 2023.

Banco FIE’s efforts were also recognized internationally: in 2022, the bank was awarded a number of prestigious awards. At the beginning of the year, Banco FIE received the Inter-American Award for Good Practices in the category Private initiatives for the leadership of women in the business field, granted by the Organization of America States (OAS). In November 2022, the European Microfinance Award on Financial Inclusion in the Service of Women followed, an award that was created by the Ministry of Foreign and European Affairs of Luxembourg and the Directorate for Development Cooperation and Humanitarian Affairs. This prestigious award received 88 applications, and Banco FIE managed to convince the jury. The bank was recognized for its varied offering of financial products and services to meet the needs of women, including a financial education program led by women, and for its innovative Marca Magenta management model, which aims to promote inclusive leadership, women’s empowerment, the prevention of violence, and equal opportunities both within and outside of the bank.

“Tangible results such as this award recognize all the work we’ve done over the years, from the bank’s philosophy to our management model Marca Magenta, contributing to an increasingly fair, egalitarian and inclusive society,” said Ximena Behoteguy at the award ceremony.

Since the start of the collaboration with Rabo Partnerships, Banco FIE has achieved great strides: the number of F&A customers with an account increased by 75%, and the loan portfolio grew with 12.000 new F&A loan customers. More than half of the bank’s total clientele are women, and 41% of them live in peri-urban and rural areas throughout the country. In most cases, these women are responsible for the livelihoods of their families. The total loan portfolio of the bank grew to USD 2,1 billion, and over 50% of the loans are disbursed to female clients – across different sectors, including primary production – with the firm intention of supporting the entrepreneurial spirit of Bolivian women.

Traditionally, Banco FIE has focused on reaching the smallest entities of the food and agricultural value chain, offering them access to finance. Over the past years, however, the bank has developed into an all-round food and agricultural bank, servicing both smallholders and commercial farmers throughout all sectors and regions of the country. Nowadays, Banco FIE is the largest financier of the F&A sector in Bolivia, with a USD 500 million F&A loan portfolio and some 44.000 F&A customers. The achievements and recognitions obtained by Banco FIE solidify the bank’s commitment to social inclusion and gender equality, contributing to development and growth with an innovative financial inclusion model which has been integral to the bank’s philosophy since its origins over 37 years ago.