Banco da Amazônia leverages tech push to expand offerings – Valor International

Banco da Amazônia Strategic Transformation Report: Aligning with Sustainable Development Goals

On its 83rd anniversary, Banco da Amazônia (Basa) is accelerating a comprehensive transformation program initiated in 2023. The program is designed to modernize operations, expand service offerings, and strategically align the bank’s mission with the United Nations Sustainable Development Goals (SDGs), particularly focusing on the economic and social advancement of the Amazon region.

Strategic Realignment and Financial Diversification

A central objective of the transformation, guided by a strategic plan developed with McKinsey, is to enhance the bank’s financial sustainability and reduce its dependency on development funds. This directly supports SDG 8 (Decent Work and Economic Growth) by creating a more resilient and diversified financial institution capable of driving long-term regional development.

• Current State: 90% of the bank’s credit income is derived from the Northern Constitutional Fund (FNO).
• Strategic Goal: Reduce FNO’s share of the credit portfolio to 60% by expanding the commercial credit portfolio.
• Revenue Diversification: Decrease the overall contribution of credit to 60% of total results by developing new revenue streams from services and financial products.

Key Initiatives and Contributions to Sustainable Development

The transformation program is structured around several key initiatives, each contributing to specific SDGs.

1. Financial Inclusion and Poverty Alleviation (SDG 1, SDG 10)

Basa is significantly expanding its Productive Oriented Microcredit (MPO) program to combat poverty and reduce inequalities by providing financial access to entrepreneurs.

• Portfolio Expansion: Tripling the microcredit portfolio from R$345 million to a target of R$1 billion by December.
• Operational Enhancements:
  • Upgrading systems to support growth.
  • Hiring additional operators to manage the expanded portfolio.
  • Deploying a new mobile office van to extend service reach into remote communities.

2. Industry, Innovation, and Infrastructure (SDG 9)

A core pillar of the strategy is a major investment in digital transformation to build modern, accessible financial infrastructure.

1. Core Banking System Upgrade: A contract has been signed with Swiss provider Temenos to modernize the bank’s foundational technology.
2. Digital Bank Launch: Development of a “super app” is underway, with an expected launch within seven months. This will enable fully digital account opening and nationwide client acquisition.
3. New Investment Platform: A partnership with Genial will launch a new platform in the second half of the year, offering products such as CDBs, LCAs, and investment funds.

3. Economic Growth and Support for Enterprises (SDG 8)

Basa is introducing new products and services to foster economic growth by supporting micro and small enterprises (MSEs).

• Acquiring Services: Official launch of card payment terminals in partnership with EntrePay, targeting market leadership among MSEs in the North region.
• Buyer’s Club: Launch of the bank’s first buyer’s club to facilitate commercial transactions.

4. Climate Action and Sustainable Partnerships (SDG 13, SDG 17)

The bank is embedding sustainability into its new product lines and leveraging partnerships to achieve its goals.

• Sustainable Finance Products: A new line of credit cards, developed in partnership with Visa and Mastercard, will be launched by September. The cards will feature a disruptive sustainability theme directly linked to the upcoming COP-30 climate conference in Belém.
• Partnerships for the Goals: The transformation relies on strategic collaborations with leading firms, including:
  • McKinsey (Strategic Planning)
  • Temenos (Core Banking Technology)
  • Genial (Investment Platform)
  • EntrePay (Acquiring Services)
  • Visa & Mastercard (Card Issuing)

Organizational Renewal and Future Outlook

To support this new phase, Basa is undertaking an organizational renewal process, including a voluntary redundancy program and plans for a public hiring competition to attract new talent. A comprehensive rebranding campaign has been launched to reflect the bank’s evolution towards addressing the technological and social challenges of the region while honoring its legacy of sustainable development.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Banco da Amazônia’s (Basa) transformation program highlights initiatives that connect to several Sustainable Development Goals (SDGs). The bank’s focus on expanding financial services, supporting small businesses, embracing digital technology, and incorporating sustainability themes into its products directly addresses the following goals:

• SDG 1: No Poverty – The bank’s plan to significantly expand its microcredit portfolio is a direct effort to provide financial resources to low-income individuals and entrepreneurs, helping to alleviate poverty.
• SDG 8: Decent Work and Economic Growth – By providing credit and financial tools (like card terminals) to micro and small enterprises (MSEs), Basa supports entrepreneurship, job creation, and overall economic growth in the Amazon region. The plan to diversify its income sources also contributes to a more resilient and sustainable economic model for the bank itself.
• SDG 9: Industry, Innovation, and Infrastructure – The heavy investment in technological upgrades, including a new digital super app and partnership with a core banking provider, represents a significant modernization of financial infrastructure. This enhances access to financial services and promotes innovation within the banking sector.
• SDG 13: Climate Action – The planned launch of a credit card with a sustainability theme tied to the COP-30 climate conference is a clear initiative to raise awareness about climate issues and align the bank’s products with global climate action efforts.
• SDG 17: Partnerships for the Goals – The article explicitly mentions numerous partnerships Basa has formed to achieve its transformation goals, including with McKinsey, Temenos, EntrePay, Genial, Visa, and Mastercard. These collaborations are essential for mobilizing the technology, expertise, and resources needed for sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the initiatives described, several specific SDG targets can be identified:

1. Target 1.4: “By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to… financial services, including microfinance.”
   • This is directly addressed by Basa’s plan to “triple its microcredit portfolio to R$1 billion by December.” This initiative aims to expand access to productive oriented microcredit for both rural and urban clients.
2. Target 8.3: “Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.”
   • Basa’s strategy to “lead the market in the North region among micro and small enterprises (MSEs)” by offering acquiring services and terminals, along with its microcredit expansion, directly supports this target.
3. Target 8.10: “Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.”
   • The launch of a digital super app, credit cards, card payment terminals, and a new investment platform are all measures to expand the range and accessibility of financial services for a broader client base, including those outside of major urban centers.
4. Target 9.3: “Increase the access of small-scale industrial and other enterprises… to financial services, including affordable credit, and their integration into value chains and markets.”
   • The provision of acquiring services (card terminals) through a partnership with EntrePay helps integrate MSEs into the formal digital economy and eases their “receivables anticipation operations,” directly aligning with this target.
5. Target 13.3: “Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.”
   • The plan to launch a card that will be “disruptive in terms of sustainability, with a theme tied to COP-30” serves as an awareness-raising tool, using a mainstream financial product to draw attention to climate action.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article contains several specific, measurable indicators that can be used to track progress:

• Value of the microcredit portfolio: The article provides a clear baseline and target. The current portfolio is “about R$345 million,” and the goal is to reach “R$1 billion by December.” This is a direct indicator for Target 1.4.
• Market share among MSEs: The goal to “lead the market in the North region among micro and small enterprises (MSEs)” implies that market share is a key performance indicator for measuring success under Targets 8.3 and 9.3.
• Diversification of income sources: The plan to “lower FNO’s share to 60% of credit” and “reduce the overall weight of credit to 60% of the bank’s total results” provides quantifiable indicators for the bank’s financial sustainability and economic strategy (related to SDG 8).
• Number of new products and services launched: Progress towards Target 8.10 can be measured by the successful launch of the planned products: the digital super app, credit cards, card payment terminals, and the investment platform. The article gives timelines, such as the app launching “within seven months.”
• Client base for new services: The mention that “3,400 companies already use Basa as their banking domicile” provides a baseline indicator for the adoption of new acquiring services.
• Launch of sustainability-themed products: The successful launch of the “card… tied to COP-30” by September serves as a concrete indicator for the bank’s commitment to Target 13.3.

4. Table of SDGs, Targets, and Indicators

Source: valorinternational.globo.com