Bamboo Finance, DFIs back Philippines financial services start-up

Bridge expects to make its first investments by June and deploy the entire $24 million within two years. It will provide capital and services to banks focused on low income populations, micro and small businesses.

According to Paul Kocourek, who set up Bridge with Gus Poston, 82% of provincial Filipinos do not have bank accounts and only 6% of business growth in small provincial businesses is funded by bank loans. "Rural finance is the missing component of inclusive banking," he said in a statement. "This lack of access to finance means slower job creation, greater risk for the poor and increasing inequality. Bridge will help remove this barrier to development and accelerate growth."

The company will take advantage of newly passed legislation allowing foreign investment in rural banks.

Michael Schlein, president and CEO of Accion, noted that half of the Philippines' 95 million residents live on less than $2 a day, making job creation and financial inclusion a high priority. The investment group, which has helped build 63 microfinance institutions in 32 countries, expects Bridge to help local banks expand their reach.

Bamboo Finance has $250 million under management and its $195 million Financial Inclusion Fund is the largest microfinance private equity fund globally. It recently acquired a controlling interest in Accion Investments in Microfinance, a specialist for-profit vehicle targeting microfinance institutions.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Financials
• Early-stage
• Southeast Asia
• Bamboo Finance
• Philippines
• Southeast Asia
• Financial Services
• German Investment and Development (DEG)
• FMO