Financial institutions

A focus on access to finance

Access to finance remains a major constraint for micro, small, and medium‑sized entrepreneurs and enterprises (MSMEs), especially in Latin America, Asia, and Africa. Despite recent growth, 1.3 billion people still lack a financial account, limiting both individuals and MSMEs in accessing formal financial services[1]. High costs, distance to financial institutions, and limited digital connectivity continue to impede financial inclusion, while a persistent gender gap remains: in low‑ and middle‑income countries, women are five percentage points less likely than men to hold an account, constraining the growth of many women‑led MSMEs[2].

To address these challenges, BIO invests in financial institutions that expand access to finance for MSMEs and individuals—particularly women—to strengthen the financial backbone of their economies. In line with its Theory of Change , investments of BIO in financial institutions particularly add – though not exclusively - to its impact targets on SME Finance (SIT‑2) and Microfinance (SIT‑3 ), recognizing responsible financial intermediation as essential for inclusive economic growth. Through patient, long‑term capital, BIO enables financial intermediaries to withstand economic and climate shocks while extending credit to underserved and often low‑income entrepreneurs. By supporting responsible MFIs, SME lending by commercial banks and promoting financial innovation, BIO advances its ToC‑aligned objective of enhancing financial inclusion and local economic resilience.

BIO invests in microfinance institutions to foster an inclusive, responsible, and sustainable financial system. Access to financial services reduces poverty and builds resilience by empowering entrepreneurs to protect their livelihoods, seize opportunities, and adapt to shocks.

Milena Loayza, Financial Institutions Manager

Approved and signed commitments in 2025

In 2025, BIO approved 11 investments in microfinance and commercial banking institutions in Nicaragua, Pakistan, Burkina Faso and Ecuador, among others. Most of them contributed to BIO’s objectives of decent jobs creation (10 projects aligned with SIT1), SME finance (4 projects aligned with SIT2) and/or Microfinance (6 projects aligned with SIT2). Financial institutions also substantially contributed to LDC/FCAS investments (4 projects aligned with SIT4) and the development of Inclusive Businesses (5 projects aligned with SIT5).

In terms of signed investments in financial institutions, BIO signed 8 such investments, totalling €69.25 M.

Example – Amartha

In 2025, BIO extended a $15M loan as part of an IFC‑led facility to support the expansion of Amartha, an Indonesian fintech‑enabled microfinance platform providing productive loans to unbanked women in rural areas. It connects 1.5 million female borrowers with institutional and retail lenders across 92,000 villages, supported by digital credit scoring and a hybrid microfinance–P2P model. The investment strengthens financial inclusion, boosts rural entrepreneurship, and supports the growth of women‑led micro‑businesses in Indonesia. Through its investment in Amartha, BIO expects to contribute to its SITs on Job creation (1), Microfinance (3), Inclusive Businesses (5) and Gender (6). More info on the investment here.

Technical assistance projects for financial institutions

In 2025, BIO approved 7 technical assistance projects for support through the BDSF for financial institutions in Africa, Asia and Latin America, focusing on improved risk management, support obtaining Client Protection Principles (CPP) Certification, developing a climate strategy, improved connectivity, etc. The total amount of these projects was €83,846.

Example - Banco Azul De El Salvador

In 2024, BIO provided a $15 M loan to Banco Azul de El Salvador to expand its lending to small and medium‑sized enterprises and to strengthen responsible banking practices. In 2025, BIO complemented this with targeted support through the BDSF, including $12,543 to help the bank prepare for certification in international client protection standards and $28,279 to develop a climate strategy. This support was designed to help Banco Azul understand its exposure to climate‑related risks, define priorities for climate‑aligned lending, and build the internal capacity needed to gradually expand green finance. Together, these interventions reinforce the bank’s ability to offer responsible, transparent, and climate‑aware financial services in El Salvador. BIO expects it to contribute to its SITs on SME Finance (2), Gender (6) and Climate Finance (7).