IDB Invest and Banco Unión Expand Access to Financial Services for Older Adults in Colombia

BOGOTÁ - IDB Invest will provide Banco Unión with a subordinated loan of up to 40 billion Colombian pesos (approximately $13 million) to expand access to credit for retired older adults in Colombia and promote their inclusion in the financial system.

The operation seeks to increase access to financial services for a relatively underserved segment of the population in the country. In 2024, only 30.6% of people over the age of 65 had access to credit, compared to 41.8% of adults between the ages of 41 and 65.

The project will also strengthen Banco Unión's capital base and support the growth of its loan portfolio focused on Colombia's silver economy.

The financing consists of a committed tranche of up to 20 billion Colombian pesos and an uncommitted tranche of up to 20 billion Colombian pesos.

"This operation reflects our commitment to advancing financial health in Colombia. By strengthening Banco Unión's capacity to expand its credit offering for retired older adults, we are helping increase access to formal financing," said Marisela Alvarenga, Chief of the Financial Institutions Division at IDB Invest. "At the same time, we are supporting the development of a more resilient financial system that can respond to the needs of a population that continues to grow and plays an important role in the Colombian economy."

"This financing represents a vote of confidence in Banco Unión's capabilities and in our commitment to the silver economy. We are grateful to IDB Invest for trusting our ability to expand access to credit through opportunities that are more equitable and better aligned with the realities of this segment. Today, we serve nearly 19,000 older adult clients, and we want to continue expanding this base, growing our portfolio, and generating greater value for them and their families," said Juan Pablo Cruz, President of Banco Unión.

In addition to the financing, IDB Invest will support Banco Unión through technical advisory services aimed at strengthening its value proposition for the silver economy. This support will help identify differentiated needs within the older adult segment and develop a roadmap with recommendations to gradually enhance the bank's value offering. The operation also includes actions to support the adoption and consolidation of best practices in corporate governance and responsible management.

About IDB Invest

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: https://www.idbinvest.org/en.

About Banco Unión

Banco Unión S.A. is a Colombian financial institution with more than 30 years of experience and four years of operating as a bank. It works to provide people with reliable, simple, and accessible financial solutions while contributing to the development of the communities it serves. Banco Unión continues to strengthen its digital, technological, and analytical capabilities to support its customers at different stages of their lives. Guided by trust, proximity, and commitment as the pillars of its purpose, the bank continues to evolve to create value and expand its impact across Colombia.