In an effort to strengthen the financial inclusion and insurance of small merchants in Colombia, the “Finantienda Segura” Innovation Challenge was recently awarded. Organized by the United Nations Development Program (UNDP), Fasecolda and Banca de las Oportunidades, this event recognized the most innovative initiatives to support shopkeepers and improve their access to credit and financial protection.
In this context, Bemovil, a Risralda company that has stood out for its commitment to inclusive technological solutions, emerged as one of the winners of the challenge. Together with Colmena Seguros and the Entre Amigos organization, Bemovil presented the “Sencillo” proposal, a comprehensive solution that offers shopkeepers a revolving credit of up to five million pesos, with payments adapted to the needs of each business, and insurance that covers risks of damage and theft. In addition, it includes a financial education component, promoted by Fasecolda’s “Viva Seguro” program, which provides tools to improve the financial management of small merchants.
“Thank you to Fasecolda – Federation of Colombian Insurers, UNDP Colombia and Banca de las Oportunidades for supporting initiatives that eliminate barriers and create more opportunities. Each step forward is a reflection of what we achieved together, with a shared purpose and the firmness of knowing that we are evolving to serve better and build a future with more possibilities for everyone,” Bemovil indicated through his LinkedIN account.
The “Sencillo” proposal also incorporates savings and sustainable development mechanisms, supported by Bemovil’s experience in technological services, which seeks to expand the capacity of shopkeepers to manage their finances and protect their businesses. This initiative, which puts Risaralda on the map of financial innovation, is an example of Bemovil’s commitment to contributing to the economic well-being of local communities.
Second place in the award went to the “Veci Ágil” solution, developed by Seguros Bolívar, Daviplata and Fenalco. This proposal seeks to strengthen the sustainability of small businesses through a direct revolving loan to suppliers and SME parametric insurance, which provides protection against climate risks. With a phased implementation, “Veci Ágil” will allow shopkeepers to access digital credit, flexible payments and personalized assistance.
Both winning initiatives will participate in the UNDP Insurance Innovation Laboratory, a space where they will be able to receive up to USD 25,000 (first place) and USD 15,000 (second place) in technical assistance for the development of their prototypes. These funds seek to ensure the implementation of solutions that, in addition to covering financing and insurance needs, promote the formalization and sustainability of small businesses.
The “Finantienda Segura” challenge had the participation of 42 organizations from various sectors, including insurance companies, fintechs, cooperatives and banks. Each presented innovative proposals that integrated financing and insurance in a personalized way, with a special focus on improving access to working capital and protection of shopkeepers.
Interview Between Time.news Editor and Financial Inclusion Expert
Time.news Editor (TNE): Welcome, everyone, to this edition of “In Focus”. Today, we’re diving into an important development in financial inclusion in Colombia, particularly in relation to small merchants. With us is Dr. Laura Medina, an expert in financial technology and inclusion. Dr. Medina, thank you for joining us.
Dr. Laura Medina (DLM): Thank you for having me! I’m excited to discuss the innovative steps being taken in Colombia to enhance financial access for small merchants.
TNE: Recently, the ”Finantienda Segura” Innovation Challenge was awarded, recognizing initiatives to support shopkeepers. Could you tell us more about the significance of this event?
DLM: Absolutely. The challenge, organized by notable institutions like the UNDP and Fasecolda, highlights the urgent need to improve financial safety nets for small merchants in Colombia. Shopkeepers often face barriers to credit and insurance, leading to vulnerability. This initiative aims to bridge that gap with innovative solutions.
TNE: One of the standout winners was Bemovil with their “Sencillo” proposal. Can you explain what this initiative entails and why it’s important for small business owners?
DLM: The “Sencillo” proposal is particularly compelling because it goes beyond conventional solutions. It offers a revolving credit of up to five million pesos, tailored payment plans, and comprehensive insurance against risks like theft and damage. This multifaceted approach is crucial for shopkeepers, as it not only boosts their immediate financial capabilities but also protects their assets.
TNE: That’s impressive! Additionally, the proposal incorporates a financial education component through the “Viva Seguro” program. How vital is this aspect in promoting sustainable financial practices?
DLM: It’s incredibly vital. Financial literacy empowers merchants to make informed decisions, manage their finances prudently, and leverage the tools available to them. When business owners understand financial concepts, they are more likely to invest wisely in their business and utilize resources effectively. Education is a foundational pillar for sustainable development in any community.
TNE: Besides credit and education, the “Sencillo” proposal also includes savings and sustainable development mechanisms. How do these components contribute to long-term economic resilience for merchants?
DLM: By integrating savings mechanisms and promoting sustainable development, “Sencillo” encourages a culture of savings among merchants that can safeguard their businesses against future uncertainties. This holistic strategy not only enhances financial stability but also encourages merchants to adopt sustainable practices, thereby contributing to a healthier economy and environment.
TNE: Bemovil’s commitment to technology in this initiative is noteworthy. How does technology play a role in enhancing financial inclusion among small merchants?
DLM: Technology is a game-changer in this context. It simplifies processes, making access to credit and insurance more efficient and user-friendly. By leveraging technology, companies like Bemovil can analyze data, tailor products to meet specific needs, and even provide platforms for merchants to manage their financial activities—all of which can transform the way small businesses operate.
TNE: It sounds like collaboration among various sectors is crucial for initiatives like these to succeed. What role do partnerships play in driving forward financial inclusion?
DLM: Partnerships are essential. When organizations like UNDP, Fasecolda, and Banca de las Oportunidades come together, they pool resources, expertise, and support systems. This collaborative effort is more effective than any single entity working in isolation, leading to more comprehensive and impactful solutions for merchants.
TNE: what does the success of initiatives like “Sencillo” mean for the future of financial inclusion in Colombia and possibly beyond?
DLM: The success of programs like “Sencillo” signals a shift toward a more inclusive financial landscape. It sets a precedent that innovative, inclusive solutions can improve access for marginalized groups. If replicated more widely, it could set the stage for enhanced economic resilience and empowerment across Latin America and beyond.
TNE: Thank you, Dr. Medina, for providing such insightful perspectives on this crucial topic. It’s encouraging to see such initiatives making a real difference for small merchants in Colombia.
DLM: Thank you for having me! It’s a pleasure to discuss these important developments.
TNE: And thank you to our viewers for tuning in. Stay informed and engaged with us at Time.news as we continue to explore impactful stories from around the world.