Banco Contactar Boosts Digital Transformation with Accion's $15 Million Investment
Deal News | Nov 21, 2024 | Frontier Investments Group
Accion's Digital Transformation Fund has announced a $15 million investment in Colombian microfinance bank Banco Contactar as part of its commitment to support financial inclusion in rural areas. This investment aims to enhance Banco Contactar's digital infrastructure, providing better financial services to Colombia's underserved rural population, which constitutes 20% of the country's 52 million inhabitants. The bank's clientele primarily includes agricultural workers and entrepreneurs, with a significant portion being women, who are often excluded from formal financial systems. Technologies introduced will assist in accessing financial services, securing business resilience against climate challenges, and improving economic well-being. Accion is dedicated to fostering efficient digital solutions for businesses under transformation, enabling them to cater to neglected communities. The legal advisors involved in facilitating this transaction include Gómez-Pinzón and PPU, supported by investment bank Solidus Capital.
Sectors
- Microfinance
- Financial Technology
- Rural Development
Geography
- Colombia – The primary focus of the investment and digital transformation efforts is on Colombia's rural areas, where Banco Contactar operates.
- United States – Accion, the investing entity, is based in Washington, D.C., in the United States, reflecting a cross-border investment strategy.
Industry
- Microfinance – The article discusses a significant investment into Banco Contactar, which is a Colombian rural microfinance bank focusing on providing financial services to underserved communities.
- Financial Technology – Accion's investment is aimed at enhancing Banco Contactar's digital capabilities, representing a clear intersection with the financial technology sector.
- Rural Development – The primary objective of the investment is to support economic development in rural areas of Colombia, highlighting the relevance to the rural development industry.
Financials
- 15,000,000 – The investment amount contributed by Accion's Digital Transformation Fund into Banco Contactar.
- 152,500,000 – The total size of the Accion Digital Transformation Fund.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Accion | Investor | Charity | A nonprofit organization committed to financial inclusion by investing in digital transformation of financial services. |
| Banco Contactar | Target | Company | A Colombian rural microfinance bank that provides financial services primarily to underserved rural communities. |
| Gómez-Pinzón | Legal Advisor | Company | A law firm involved in providing legal advisory services for the investment transaction. |
| Philippi Prietocarrizosa Ferrero Du & Uría (PPU) | Legal Advisor | Company | A multinational law firm that also provided legal support for the investment deal in Colombia. |
| Solidus Capital | Investment Bank | Company | Served as an investment banking advisor in the transaction to facilitate the financial arrangements. |