Letter from Inez: May 2013

3 Minutes Read

Our Alliance continues along its rapid growth path, adding new members at an average of two per month. In future editions of the newsletter, we will be profiling new members from markets as diverse as Saudi Arabia and Zimbabwe. But for now, I am delighted to share that the Alliance is poised for major expansion into the Latin America/Caribbean region thanks to a new partnership with the Multilateral Investment Fund of the InterAmerican Development Bank. Along with Banco Nacional de Costa Rica (see related story), we expect to add at least six additional member banks through the partnership with the MIF. These new banks will join existing Alliance member Scotiabank, headquartered in Canada but with a significant LAC presence. We hope that together, our rapidly growing LAC contingent will further unlock the immense potential of the women’s market in this region by learning and sharing with the global community of banks who comprise our Alliance.

While small and medium enterprise finance is well developed in the LAC region, there is a significant gender gap. Seventy percent of formal women-owned SMEs in the region report unmet or underserved needs for credit. As you will read in the Banco Nacional story, an intentional, systematic commitment to serving the women of this segment pays off. Banco Nacional has seen its loan portfolio lent to women grow 48% in the two and a half years since the bank has had a dedicated program for women — suggesting the potential payoff for banks willing to give the women’s market the focused attention it deserves — the kind of programming the Alliance exists to help banks pursue.

This year, new members attending the Annual Summit in Istanbul (see related story) are eligible to take part in a Study Tour hosted by Summit host Garanti Bank on June 18, the day before the Summit’s official opening session. Along with Garanti itself, Westpac Australia and BLC Bank Lebanon will share their experiences. These cover the spectrum from start-up (BLC, < 2 years), mid-development (Garanti, at 7 years), and mature (the veteran, Westpac, at 15 years). All three banks’ women’s programs are highly successful, and all have experienced their ups and downs along the way. We are extraordinarily fortunate that they are willing to share freely what they have learned with our newest members. I think this generosity speaks well of the culture the Alliance has always sought to foster.

In addition to encouraging like-minded banks from the region to join, the MIF support will enable the Alliance secretariat to offer robust learning opportunities to the banks in the region as well as codify best practices from the region. Towards that end, I am delighted to welcome Rebecca Ruf (see related story) to the Alliance secretariat team. A native of Ecuador, Rebecca is a widely published and recognized expert on gender issues in financial services, with a specific focus on the LAC region. I have worked closely with her for many years, and I am delighted she recognized the significant opportunity the Alliance represents and has chosen to help us grow it to a scale commensurate with its potential.

The MIF joins the International Finance Corporation, our long-time sponsor, in supporting the Alliance as a clearinghouse for best practice for bankers to the female economy. We are pleased that another major development finance institution has recognized the unique role that the Alliance plays, and we are grateful for its support.

See you in Istanbul.

Inez Murray, Chief Executive Officer

Global Banking Alliance for Women