The owners of Banco Caja Social will retain 51% of Banco W, as indicated by information released by the Financial Superintendency. It was reported that three entities affiliated with the Grupo Social Foundation signed a purchase and sale agreement to maintain that percentage in the bank originating from Cali.
In detail, the Investor Fundación Grupo Social will retain 48%; the Foundation for Local Comprehensive Development will have 2%, and the Emprender Region Foundation will hold 1%.
The WWB Colombia Foundation will retain 49% of the shares it owns in Banco W. “The issuer has not been informed of the transaction’s price. The deal will be finalized once approval is obtained from the Financial Superintendence of Colombia.” stated the entity.
“The arrival of Fundación Grupo Social will introduce an extraordinary partner who, with their experience and knowledge, will add value to the strengthening of Banco W’s management, benefiting its growth and profitability prospects,” stated Daniela Konietzko, president of the WWB Colombia Foundation.
She added that Bank W “will continue to uphold its mission values to contribute to improving the quality of life in local and national communities.”
Juan Carlos Gómez, president of Fundación Grupo Social, asserted that this financial move will enable them to support entrepreneurs and small to medium-sized businesses with financial products and services tailored to their needs. “At the Grupo Social Foundation, we are very excited about this partnership, which shares the goal of making a societal impact by generating opportunities for those who have had the least,” he remarked.
Both foundations clarified that Banco W and Banco Caja Social will continue to operate independently. “The WWB Colombia Foundation reinforces its commitment of over 40 years to closing inequality gaps for women and promoting their participation in inclusive economic development and growth, fostering capabilities and opportunities,” the entity added in a press release.
This comes amid unfavorable results for Banco W in the last semester, where it reported losses of 19,032 million, a figure lower than the profits of 474 million achieved in the same period of 2023.
In the last quarter, they reported losses of $8,167 million, which increased compared to the losses of $2,917 million reported in the first quarter of the year.
According to last year’s management report, Banco Caja Social is undergoing a digitalization process that has enabled over 869,000 clients to utilize its digital channels. Additionally, it recorded the opening of more than 687,000 new Cuentamiga savings accounts, reflecting a growth of 20% compared to 2022, with nearly 200,000 being digital accounts, which saw a 7% increase compared to the previous year.
The bank highlighted in that report that it has a presence in more than 730 municipalities. Furthermore, it has a robust presence among pensioners, having placed nearly 7,000 cards within the Friends of Experience portfolio, an increase of 31% compared to placements in 2022.
In total, it has 239,000 pensioners among its clients, marking a 31% increase compared to the end of 2022.
In the case of Bank W, it concluded the previous year with initiatives such as a digital wallet, digital CDT, and W credit card for local productive property, as well as the implementation of 13 high-level banking correspondents.
Moreover, it achieved a portfolio volume of $1.7 billion, with 201,343 clients in the microcredit portfolio as of December 2023. The total placements amounted to 184,664 microcredits.
Banco W Ownership Changes and Future Prospects
The owners of Banco Caja Social will maintain a 51% stake in Banco W, as indicated by recent announcements from the Financial Superintendency of Colombia. Three entities affiliated with the Grupo Social Foundation have signed a purchase agreement to secure this ownership percentage, further solidifying their commitment to enhancing financial services in the region.
Ownership Breakdown
Following the transaction:
- Investor Fundación Grupo Social: 48%
- Foundation for Local Comprehensive Development: 2%
- Emprender Region Foundation: 1%
The WWB Colombia Foundation will continue to own 49% of the shares in Banco W. The price of the operation has not been disclosed, and the transaction is set to close pending approval from the Financial Superintendency of Colombia.
Strategic Impact on Banco W
Daniela Konietzko, president of the WWB Colombia Foundation, emphasized that the involvement of Fundación Grupo Social represents a significant addition to Banco W’s management. She stated, “The arrival of Fundación Grupo Social will add an extraordinary partner who, with his experience and knowledge, will add value to the strengthening of Banco W’s management, for the benefit of its growth and profitability projections.”
Banco W aims to uphold its core values and continue making a positive impact on the quality of life in local communities, aligning with their mission of inclusive economic development.
Comments from Key Stakeholders
Juan Carlos Gómez, president of Fundación Grupo Social, highlighted the alliance’s potential to benefit small and medium-sized enterprises. He remarked, “We are very excited about this alliance that shares the purpose of having an impact on society through the generation of opportunities for those who have had them least.”
Continued Independence of Operations
Both foundations have clarified that Banco W and Banco Caja Social will continue to operate independently. The WWB Colombia Foundation reinforces its longstanding commitment to bridging inequality gaps, particularly for women, while promoting their sustainable participation in economic development.
Recent Financial Performance of Banco W
In the face of recent financial challenges, Banco W reported losses of 19,032 million pesos in the last semester, marking a stark contrast to its minimal profits of 474 million pesos during the same period in 2023. Over the last quarter, losses accumulated to $8,167 million, increasing from a -$2,917 million loss in the first quarter.
| Period | Financial Results |
|---|---|
| Last Semester 2023 | -19,032 million pesos |
| Same Period 2022 | +474 million pesos |
| Last Quarter 2023 | -8,167 million pesos |
| First Quarter 2023 | -2,917 million pesos |
Digital Transformation Initiatives
Banco Caja Social has been undergoing a robust digital transformation, which has enabled more than 869,000 clients to access digital channels. Its latest management report indicates:
- 687,000 new Cuentamiga savings accounts; a growth of 20% compared to 2022.
- Nearly 200,000 of these accounts were opened digitally; a 7% increase from the previous year.
Banco Caja Social’s extensive network spans over 730 municipalities, significantly serving pensioners and promoting financial inclusion.
Pensioner Services Growth
Among its various services, the bank reported an impressive placement of nearly 7,000 cards within its Friends of Experience portfolio, a 31% increase over the previous year. Currently, Banco Caja Social has approximately 239,000 pensioners among its clientele, also reflecting a growth of 31% compared to December 2022.
Innovative Offerings by Banco W
Banco W is focusing on innovative financial solutions that appeal to underbanked populations, including:
- Digital wallet services.
- Digital CDT offerings.
- W credit card for local businesses.
- Implementation of 13 high-level banking correspondents.
As of December 2023, Banco W’s portfolio volume reached an impressive $1.7 billion, with 201,343 clients engaged in its microcredit portfolio, emphasizing its commitment to supporting local entrepreneurship.
Microcredit Growth Statistics
| Type | Clients | Microcredits Placed |
|---|---|---|
| Microcredit Portfolio | 201,343 | 184,664 |
Final Thoughts on the Future of Banco W
With these strategic partnerships and digital initiatives, Banco W is poised for a transformative journey in the Colombian banking sector. The synergy with Grupo Social Foundation signifies a step toward fostering shared economic growth, enhancing financial accessibility, and ultimately uplifting communities.
