1. This year MicroBank celebrates its 15th anniversary: congratulations! What has been the impact of these 15 years?
Thank you very much for your congratulations! We celebrate 15 years of MicroBank with a very positive balance, which translates into more than 8 billion euros allocated to launch over 1.2 million social impact projects in Spain. In addition, this volume of financing has contributed to the creation of nearly 300,000 direct jobs through support for entrepreneurs, and more than 96,000 new businesses have been launched.
2. How has the microfinance sector evolved in Spain during this period?
The microfinance sector continues to be an excellent instrument for stimulating the economy, generating employment, and settling populations in the territory, in addition to improving the standard of living for entrepreneurs and their families. In MicroBank’s case, over these 15 years, we have become the largest microfinance institution in Europe. One of MicroBank’s main characteristics is its ability to adapt to the reality and needs of the moment. The entity was created to promote financial inclusion, and this remains our objective. However, for example, in 2020, during the pandemic, it was necessary to focus efforts on microcredits to support the continuity of many businesses. In 2022, on the other hand, we have emphasized financing aimed at covering the specific needs of low-income families due to rising energy prices and inflation in general. Therefore, as I mentioned, MicroBank evolves according to the needs of the context. In this regard, although our core business is microcredits, in recent years we have sought to promote other lines of financing with social impact to support social economy and education initiatives, among others.
3. What products do you currently offer to entrepreneurs? What are the access requirements and financial conditions?
At MicroBank, we offer Business Microcredits, aimed at entrepreneurs and micro-enterprises that need financing to start, consolidate, or expand their business, or to address working capital needs. MicroBank’s interest rates, like those applied to a conventional loan, vary depending on the specific characteristics of each operation. The conditions offered are fully competitive and allow access to credit for families, entrepreneurs, and micro-enterprises who may find it difficult to access financing through traditional channels, with the added advantage that they do not need to provide real guarantees. The maximum repayment period for Business Microcredits is six years, with an optional grace period of six months. The access requirements are: being self-employed or a micro-enterprise with fewer than 10 employees and less than 2 million euros in turnover, and presenting a financially viable business project.
4. What role do collaborating entities play in MicroBank’s business model?
At MicroBank, we have collaboration agreements with more than 290 entities throughout Spain, such as Autoocupació, with whom we have had a collaboration agreement since 2019, under the Incorpora umbrella, which provides non-financial services to new entrepreneurs. Collaborating entities foster entrepreneurship through support and mentoring actions and act as a link between potential clients and MicroBank. These are mainly city councils, non-profit organizations, other public administrations, universities, business schools, and chambers of commerce that provide knowledge about the beneficiaries of the loans, in addition to advising and monitoring projects. For business microcredits, a business plan and a favorable viability report for the project, prepared by these entities, are essential for the loan application to be considered, but MicroBank assumes the risk of the operation. We are very satisfied with the collaboration model with these entities, which play an essential role in boosting self-employment and micro-enterprise projects for the most vulnerable groups. We are confident in continuing to add collaborating entities.
5. What are your future challenges?
MicroBank’s 2022-2024 Strategic Plan focuses on boosting social financing to support the country’s economic and social growth. Our forecast is to grant up to 3.5 billion euros in social impact financing over three years, for both families and entrepreneurs, a figure representing a 36% increase compared to the 2019-2021 period. We also expect to reach more than 400,000 beneficiaries. Ultimately, our challenges involve continuing to increase our contribution to the creation of wealth and well-being.
6. It has been three years since you took over as head of MicroBank. How do you assess this period?
On a personal and professional level, these have been three very rewarding years. I joined MicroBank in the midst of the pandemic, and it was a great learning experience. I have been fortunate to find an exceptional team at MicroBank, and together we were able to overcome all the obstacles inherent to the situation, while continuing to work to help our clients. It is a great responsibility to be the General Director of MicroBank, but, at the same time, it is a privilege to see how our work helps improve people’s lives, especially when it comes to the most vulnerable groups. At MicroBank, we are privileged witnesses to how thousands of people improve their quality of life and drive great small stories of personal triumph. There is no better reward for our work and effort.
7. Autoocupació’s motto is “I am what I want to be.” Are you?
I like the motto “I am what I want to be” and I feel reflected in it. In each of the professional projects I have undertaken in my career, I have put all my enthusiasm and my essence into them, always being consistent with my values. It is a privilege to work in the CaixaBank group and especially at MicroBank, a bank with a great purpose.
