Accion’s new fund to digitize financial institutions in emerging markets

Photo: Kleber Cordeiro/Shutterstock

U.S.-based global non-profit Accion will announce today the launch of a USD 152.5 million fund dedicated to providing growth capital to financial institutions in emerging markets so that they can digitize and meet the specific needs of small entrepreneurs and rural producers, especially those who are underbanked.

Contrary to what many might expect, the Accion Digital Transformation Fund (ADTx) is not targeting fintechs, but rather established banking and microfinance institutions that serve micro, small, and medium-sized businesses across multiple sectors in Latin America, Africa, and South and Southeast Asia.

In Brazil, in addition to banks and credit unions, the Central Bank regulates a series of microcredit institutions — many of them non-profit organizations that often work in partnership with big retail and development banks.

The fund is the first of its kind.

“We have not seen any other initiative like it. One reason for this is that it takes a lot of hard work. We have to align management teams, boards,...

Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.