LatinFinance - Special Edition - August 2013 - 88

2
THE
FUTURE
OF LATIN
FINANCE

International banks, globalization, and a growing middle class are forcing
Latin lenders to find new ways to expand their services, says Grupo Sura CEO
David Bojanini. By Katie Llanos-Small

David Bojanini
Rethinking finance

88 l atinfina nce.com - 25 Years - August 2013

©REUTERS

L

atin america’s rapidly growing middle
class offers a huge opportunity for the region’s strengthening
corporates, and particularly for its financial institutions. as ever
greater numbers of people join the formal workforce, they are
also signing up for bank accounts, pensions and insurance.
But the sharply accelerating demographic shift also throws up
new problems for latin banks, insurers and pension fund managers, says David Bojanini, chief executive of Grupo de inversiones
Suramericana. as financial institutions jostle for market share in
rolling out services to previously unbanked clients, they need to
work out new ways to do so.
“to advance financial services or insurance to the middle
class, and the lower-middle class, innovation is needed,” Bojanini
tells latinfinance. “We need to think about the avenues that are
not the traditional channels of a banking network, to form connections in ways that are much more economic.
“the costs of very small-sized transactions through a traditional banking network will generate losses. So it’s important to
innovate, to find a way to facilitate these transactions for middle
class clients so that the costs don’t shoot up.”
mobile banking, already expanding in Sura’s home market of
colombia, is a good example of that, he says. technological innovation is also critical to increase market share among small and medium-sized businesses, he
says. it is those enterprises where real progress can be made in expanding the client base.
“Where banks still need to penetrate is in the smallest businesses,” he says. “for microbusinesses, Smes, there are guarantee mechanisms that can allow them to access bank lending at a reasonable cost.”
the financial holding company known as Grupo Sura owns close to 27% of Bancolombia
as well as pension fund and insurance businesses in the region. it rose to prominence in 2011,
when it bought inG’s financial assets in chile, colombia, mexico, Uruguay and Peru for €2.68
billion ($3.9 billion). in early 2013, it continued its expansion, buying half of BBVa’s Peruvian
pension fund.
Despite a trend for international banks – particularly european ones – to retreat from latin
america as they focus on difficulties at home, the presence of global lenders in the region’s
markets keeps everyone alert, says Bojanini.
“it’s very important to have international actors in each of the countries. it’s what forces
us to be better. today in many of our countries, the financial sector is led by local companies,

NEW PROBLEMS: Grupo Sura CEO
David Bojanini seeks ‘non-traditional’ banking channels
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LatinFinance - Special Edition - August 2013

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