Banco Caja Social announced that it would acquire 51% of Banco W. This is a historic move in the financial industry of Colombia.
Three organizations associated with Fundacion Grupo Social are involved in this significant transaction that has been reported by the Superintendencia Financiera de Colombia. This is expected to improve the offering of both banks – particularly on the microcredit market, which is growing rapidly.
Transaction details
Superintendencia Financiera has confirmed that Fundacion WWB Colombia retains a 49 percent stake in Banco W.
The transaction price is not disclosed.
This deal will not be completed until the Colombian financial regulator has approved it. It is standard for large transactions.
Juan Carlos Gomez expressed his excitement about the purchase, highlighting its potential for supporting mission-driven industries, such as Small and Medium-Sized Enterprises (SMEs).
This opportunity allows us to provide financial products and service that meet the needs of business owners,” said he, reflecting on the commitment the organization has to create a positive impact in the community.
Banco Caja Social & Banco W play a crucial role in lending to SMEs
Data from Superintendencia Financiera shows that Banco Caja Social, Banco W, and Banco Y all play a key role in supplying loans to SMEs. Together, they account for almost 15% of the credit market productive in Colombia.
By September 30th 2024, these two institutions will have facilitated 1,06 million payments totaling COP 9,22 trillion ($2,19 billion).
They issued 174 287 loans totaling COP 1.4 billion (USD 333.33 millions), which represents 16.3% and 15% of the total disbursements respectively.
The importance of banks in encouraging entrepreneurship, economic stability and job creation throughout the nation is highlighted by these figures.
Banco W reported assets totaling COP 2.3 trillion ($ 547.62m) in July. Liabilities were COP 1.8 trillion ($ 428.57m), and a Net Worth of COP 506.3billion (USD 120.31m).
Its 613 credit and 3.4 millions debit cards highlight the bank’s presence in microcredit.
Banco Caja Social, on the other hand, reported strong financial metrics that reaffirmed its position as an important player in Colombia’s banking industry.
The latest report shows a profit of COP 68.75 (USD 16.36) million for the first six months of this year. This is a solid performance.
What is at stake?
Banco Caja Social’s acquisition of Banco W, a majority-owned bank in Colombia, marks a major shift for the banking industry.
This strategic partnership will redefine microcredit with its commitment to better services for SMEs, and a focus on social responsibilities.
Stakeholders and clients are encouraged to closely follow the progress of this collaboration, since it could set important benchmarks for other financial partnerships that will be formed in Colombia.
This acquisition is a testament to the importance that microfinance plays in Colombia’s economic and social growth. It positions Banco Caja Social, Banco W, and other financial institutions as the leaders of the new financial system.
As new information becomes available, this post Banco Caja Social acquires 51% of Banco W to strengthen microfinance.
This site is for entertainment only. Click here to read more
