Asunción, Paraguay – The Paraguayan private banking sector is actively investing in the development of micro, small, and medium-sized enterprises (hereinafter, Mipymes), thereby driving national economic growth. Especially on June 27, ‘World Mipymes Day,’ the Paraguayan Banking Association (Asoban) announced the current status of Mipymes loans, emphasizing the rapid growth in this sector. Positive changes are prominent, with the number of microenterprises receiving financial support increasing by 41% over the past two years.
Mipymes Loans Show Remarkable Growth
According to data from the Superintendency of Banks of Paraguay, a total of 176,522 microenterprises across Paraguay received financial support as of the end of 2024. This represents a 41.2% increase compared to 125,049 in 2022. For small enterprises, the number increased by 8% over the same period, with 22,476 receiving financial support. These figures clearly demonstrate a closer relationship between the Mipymes sector and the banking system.
Key Role of Private Banks and Technological Innovation
Recent financial inclusion data from the Central Bank of Paraguay (BCP) shows significant progress in credit accessibility and bank utilization for the Mipymes sector. This progress is due to the pivotal role of private banks. As Mipymes undergo formalization, the banking system is strengthening its support for this crucial sector by developing technological and innovative tools.
For example, digital banking platforms, online loan application systems, and customized financial products contribute to Mipymes having easier access to financial services and obtaining formal funding to promote growth and professionalization. Furthermore, the introduction of big data analysis and artificial intelligence (AI)-based credit scoring systems allows for more accurate assessment of Mipymes' creditworthiness and faster loan decisions, increasing the efficiency of funding. Some banks have even launched mobile apps exclusively for Mipymes, allowing them to manage funds, check loan statuses, and consult with experts all in one place.
Liz Cramer, president of Asoban, emphasized, "This progress would not have been possible without the banking sector's investment in productive inclusion, the development of customized products, and a strategic vision. This actively contributes to job creation and strengthens the national economic structure." Private banks also actively support financial education programs for Mipymes, helping entrepreneurs cultivate sound financial management skills and achieve sustainable growth.
Promoting Electronic Transactions and Contributing to Economic Digitalization
Recently, the Central Bank of Paraguay recognized several financial institutions for their contributions to promoting electronic transactions within the Mipymes sector, as part of its 'Digital Economy Program.' Seven of the nine financial institutions participating in this initiative are Asoban member banks, suggesting that private banks also play a significant role in Paraguay's economic digitalization.
This program encourages Mipymes to actively utilize online payment systems, mobile payments, and electronic invoicing, thereby improving traditional business practices that relied on cash transactions and increasing transparency and efficiency. These efforts form the foundation for Mipymes to enhance their competitiveness in domestic and international markets and access a broader customer base.
Continuous Growth and Future Outlook
Paraguay's Mipymes are a key driver of the national economy, accounting for over 90% of all businesses and a significant portion of employment. The continuous support from the private banking sector and the provision of innovative financial solutions are expected to further accelerate the growth of Mipymes.
Through cooperation between the government and financial institutions, it is anticipated that funding difficulties faced by Mipymes will be resolved, and more businesses will be incorporated into the formal economic system, further solidifying the foundation for robust growth in Paraguay's economy. In the future, private banks are expected to strengthen their role as partners for the sustainable development of Mipymes by developing customized financial products for each stage of Mipymes' growth and providing non-financial services.
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