Peru to Broaden Financial Inclusion by Strengthening Bank of the Nation

The Inter-American Development Bank (IDB) has approved a $40 million loan to support the digital transformation of Peru’s Bank of the Nation so it can expand financial and social inclusion in the country.

The Banco de la Nación Digital Transformation Project, which has been approved by the IDB Board of Executive Directors, aims to harness digital technologies to provide efficient, safe, and sustainable financial services to Peru’s people and government agencies.

The Bank of the Nation is a mainstay of Peru’s financial system, and all state transactions flow through it. It administers the Public Treasury’s subaccounts and provides banking services to the central government to manage public funds. It is also responsible for tax collection and handling payments.

“The Bank of the Nation is also central to promoting inclusive development in Peru. It designs financial products, performs transactions and provides financial inclusion services to foster social inclusion in line with Peru’s National Financial Inclusion Policy,” explained Francisco Demichelis, an IDB financial markets specialist. “It is present almost everywhere in the country, so it can offer banking services in places where there are no private banks.”

The project has three objectives: to increase institutional capacities for designing and implementing digital products; to enhance the digital capacity and interoperability of Bank of the Nation’s services; and to improve the bank’s cybersecurity maturity.

In pursuit of these objectives, the bank with strengthen both the bank’s digital infrastructure and the management and operational capacities of its employees. It will also develop and implement institutional strategies to guide a medium-term digital transformation process.

The Bank of the Nation will contribute an additional $25.7 million in funding to the project. The $40 million IDB loan has an 8.5-year repayment term, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).

About the IDB

The Inter-American Development Bank (IDB) is devoted to improving lives in Latin America and the Caribbean. Established in 1959, the IDB partners with the public sector in the region to design and provide innovative, high-impact solutions for sustainable and inclusive development. Through financing, technical experience, and knowledge, it drives growth and well-being in 26 countries. Visit our website at https://www.iadb.org/en.