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WWB and Inter-American Development Bank Co-Host Conference in Argentina for Banks Entering the Microfinance Market

On April 22, in Buenos Aires, Argentina, Women's World Banking and the Inter-American Development Bank's Multilateral Investment Fund co-hosted a conference on private bank entry into microfinance, to promote the expansion of financial services for the region's poor and low-income entrepreneurs.

The conference, which focused on presenting microfinance as a profitable business opportunity for commercial banks in Argentina, brought together 130 microfinance and banking experts from private, non-profit and government entities, to share strategies for entering the microfinance sector and meeting the needs of micro-entrepreneur clients. More than 50 members of the press were in attendance to cover the event.

Her Royal Highness Princess Maxima of the Netherlands, a member of the United Nations Advisors Group on Inclusive Financial Sectors, stressed the role of microfinance in sustainable development.

The conference was opened by Luis Alberto Moreno, President of the Inter-American Development Bank, Her Royal Highness Princess Maxima of the Netherlands, and Martin Lousteau, Minister of Economy of Argentina.

Mr. Moreno set the tone for the conference by focusing attention on the extremely small number of bank clients in Latin America. "Only 30 percent of homes in the region have a bank account and less than 20 percent have a credit account," said Mr. Moreno, pointing out the multitude of microfinance opportunities that exist in the region.

Her Royal Highness Princess Maxima, a member of the United Nations Advisors Group on Inclusive Financial Sectors, stressed the role of microfinance in sustainable development. "Strategic partnerships in the financial sector can help expand access to financial products and services to those not yet served by commercial banks," said Her Royal Highness. "Agreements between banks, telephone companies, cooperatives, postal services, retailers and non-governmental organizations are just some concrete examples we have seen around the world that are already producing positive results. Walk another mile and you will find an unexpected partner that will join you on the road to sustainability."

The first panel of the day examined the state of microfinance in Argentina, and was moderated by Dr. Ana Maria Marcet of the Macro Bank. Panel presenters included Gregorio Goity of the Bank of Colombia; Richard Gluzman, President of Cordial Microfinance; Evangelina Petrizza of RADIM (Argentine Network of Microfinance Institutions); and Alexandra de Royere of Fundacion Andares.

The second panel focused on strategies for entering the microfinance sector in Latin America. The panel was moderated by Hans Dellien of Women's World Banking, and featured presentations by Manuel Mendez del Río, President of BBVA Foundation; Rafael Llosa Barrios, General Manager of MiBanco; and Guido Cordero, Vice President of Risk for Pichincha Bank.

Lunchtime remarks were delivered by Mary Ellen Iskenderian, President of Women's World Banking, and Martin Redrado, President of the Central Bank of Argentina. Mr. Redrado emphasized the re-emergence of economic stability in Argentina following the crisis of 2001, acknowledging that although much progress has been made, there is still much work to be done. He made a verbal commitment to promote the efforts of microfinance in Argentina.

The afternoon session opened with a panel on public policies for the expansion of financial services. Susana García-Robles from the Inter-American Development Bank moderated the panel. Presenters gave country-specific views of the policy environments in Mexico (Fernando Fernandez of DAI), Colombia (Beatriz Marulanda), Chile (Pablo Coloma Correa of FOSIS), and Brazil (Alessandro Chaves from SEBRAE).

The fourth panel of the day focused on the regulation and supervision of the expansion of financial services, giving special attention to the lessons learned throughout Latin America. Gustavo Gonzalez, from the Central Bank of Argentina moderated the panel, which included presentations by Jorge Mogrovejo of the Bank of Peru; Pablo Curat, partner at Martinez Larrea and Associates; Roberto Crouzel, partner at Estudio Beccar Varela; and Ernesto Aguirre of the World Bank.

The final panel returned to the case of Argentina with a focus on both the challenges and opportunities facing the expansion of microfinance services in the country. Speakers included Dr. Jorge Lupano from the Catholic University of Argentina and Sandra Darville from the Multilateral Investment Fund based in Washington, D.C.

The conference closed with forward-looking remarks by Mary-Ellen Iskenderian, President of Women's World Banking. Ms. Iskenderian focused on the progress and promise of bank entry into microfinance, and on the momentum built throughout the day. "The trend of commercial banks entering the microfinance sector is generating great hope in Latin America, in terms of opportunities for growth in the sector, and the type and scope of services that could eventually be offered to low-income entrepreneurs."