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Microfinance to reduce gaps for the migrant population in Chile
03/13/2024 Since 1 month

According to data from the United Nations Department of Economic and Social Affairs (UNDESA), the number of immigrants in Latin America and the Caribbean has doubled in the last 30 years, reaching 15 million people in 2020. In a post on IDB Invest’s blog, the authors affirm that the financial inclusion of immigrants can be an opportunity for innovation, social cohesion and economic growth in the region, as long as the collaboration of the public and private sectors, financial institutions and civil society is achieved.

From a comprehensive and gender perspective, financial services contribute to breaking dependence and promoting the economic empowerment of migrants. They also facilitate social cohesion by fostering connections in the host community, enhancing resilience, and closing gaps.

The Esperanza Fund, a pioneer in Chile with its comprehensive microfinance service, supports 130 thousand businesses, 80% of them led by women, and almost 5 thousand belonging to migrants. With the support of IDB Invest and the consulting firm Fundación Capital, the Esperanza Fund strengthens its value proposition by identifying the migrant profile (recent migrant, millennial, traditional migrant), designing a tailored offering, setting goals, and proposing non-financial services.