Promoting Financial Inclusion and Sustainable Development in Bolivia: Banco FIE and Rabo Partnerships Strategic Alliance

In 2017, we signed an agreement focused on strengthening the work that Banco Fie was already doing, with a prudent approach and a focus on inclusion, particularly in the food and agribusiness sector in Bolivia. These shared aspects define the vision of both entities. It’s important to note that both Rabo Partnerships and Banco Fie are committed to rural development and financial inclusion in Bolivia. Since the beginning of this partnership, Banco Fie has made significant strides in the agricultural sector, particularly in microcredit portfolios. As a result, Banco Fie is now the second-largest agricultural lender in Bolivia, positively impacting the lives of thousands of people in rural areas.

The strategic alliance will give continuity to the Technical Assistance that Rabo Partnerships provides to Banco Fie. This aims to strengthen Banco Fie’s work for financial inclusion and rural development in Bolivia, promote the development of micro, small and medium-sized enterprises, and increase financing for the value chains of the agricultural sector; leveraging on Rabobank’s top-notch position in serving and financing the sector.

Rabo Partnerships will continue to support Banco FIE, providing it with access to knowledge, experiences and networks over the next three years. Through this alliance, Rabo Partnerships and Banco FIE exemplify how inclusive and sustainable banking can transform lives and empower communities, which is a consequence of the intention of both institutions to promote rural development.

There are many similarities that allowed us to come together and consolidate this alliance, which are reflected in the mission and vision of both entities. These similarities primarily relate to legitimate work for financial and social inclusion, support for the productive and agricultural sectors, aiming to strengthen food security with a strong commitment to sustainability. Additionally, there is a focus on gender equality, aspects that are prioritized across various spheres in Banco FIE.

Partnership's Key Aspectcs

1. Financial Inclusion

Banco FIE, a leading financial institution in Bolivia, has long championed financial inclusion. By providing accessible banking services to underserved populations, it has empowered individuals and businesses alike. With Rabo Partnerships technical expertise, Banco FIE is prepared to enhance its efforts further. Together, they are breaking down barriers and ensuring that no one is left behind in the financial ecosystem. For instance, there has been 58% growth in the number of savings accounts, of which 71% correspond to women's savings accounts and 67% of savings accounts correspond to rural areas.

2. Strengthening Rural Development

Bolivia’s agricultural sector plays a crucial role in its economy. However, smallholder farmers often face challenges related to access to credit, technology, and market linkages. Through this partnership, Banco FIE and Rabo Partnerships are actively promoting the development of the sector. By extending financial support to farmers, encouraging sustainable practices, and fostering innovation, they are driving positive change at the grassroots level. For example, the has been a 62% in the agricultural portfolio and 49% in the clientele of this sector.

3. Micro, Small, and Medium-Sized Enterprises (MSMEs)

MSMEs are the backbone of any economy. Banco FIE recognizes their significance and aims to fuel their growth. With Rabo Partnerships’ guidance, it is creating tailored financial solutions for these enterprises. Whether it’s a local artisan, a family-owned shop, or an agribusiness venture, Banco FIE is there to provide the necessary support. For instance, the loan portfolio has grown by 45%, of which, 89% corresponds to the portfolio granted to the Micro, Small and Medium Enterprise segments.