Interview: Sergio Asbún, CEO of Banco Económico

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We are pleased to present this interview with Sergio Asbún, CEO of Banco Económico. This institution was established in 1989 when a group of Bolivian entrepreneurs involved in productive and service activities came together to create a long-term financial project. Currently, it has 1,300 employees and is leading the digital financial transformation in Bolivia. In our conversation with Sergio Asbún, we discussed the institution’s strategies, the use of AI to address complex issues like dollar demand, and financial education, among other topics.

Frecuencia Money: What is Banco Económico’s current growth strategy?
Sergio Asbún: Our growth strategy is based on digital transformation and technological innovation, driving new products that meet the evolving needs of our community. We also focus on attracting new customer segments through personalized products that enhance user experience, leveraging data analysis and AI implementation.

Frecuencia Money: Banks versus fintech: collaboration or competition?
Sergio Asbún: Collaboration is essential for driving the growth of the financial ecosystem in Bolivia. Fintech companies provide agility and flexibility, which are particularly attractive to younger audiences, while traditional banks offer trust and stability. The key is to combine these strengths to develop innovative financial products that address new market demands.

Technologies

Frecuencia Money: What technological innovations have you implemented?
Sergio Asbún: We are currently implementing new technologies such as Artificial Intelligence through virtual assistants (Bali, Retsu, Genri, Grysi) and blockchain solutions to optimize operations and ensure transaction security. These technological advances enable faster and more effective interactions with customers and reinforce our position as leaders in innovation within the Bolivian financial system.

Frecuencia Money: At the Fintech Summit Latam, you spoke about a disruptive implementation. Through AI, the bank developed a system to regulate consumer dollar demand. Could you explain how that works?
Sergio Asbún: Currently, using a credit or debit card abroad in Bolivia is equivalent to purchasing currency at the official market rate (even though the parallel market has depreciated it by 50%). Therefore, accessing dollars this way is very profitable. However, we are in a situation where foreign currency is scarce and there exists a parallel dollar market. We have designed models to identify transactions that deviate from the norm, which seek to speculate on currency rather than engage in rational consumption. Thanks to AI, we can identify spending patterns in betting rooms, e-wallets, gift cards, and even temporary rental reservation platforms.

Financial health and education

Frecuencia Money: The industry is currently discussing the concept of “financial health.” Is this a variable you consider?
Sergio Asbún: We contribute in this area by implementing educational tools and products like SmartPlay, which encourage savings and responsible personal finance management through engaging interactions.

Frecuencia Money: Have you implemented programs to promote financial education?
Sergio Asbún: Yes, we have launched various programs. Among them is the Red Mujer program, designed to provide women access to financial education and products that enhance their economic well-being. This program offers training and tools to facilitate decision-making, promoting economic inclusion and autonomy for women. We aim to contribute to the economic and social growth of vulnerable communities, aligned with our efforts to enhance financial inclusion in Bolivia.

Frecuencia Money: Do niche strategies benefit the most excluded segments of the financial system?
Sergio Asbún: The Red Mujer program includes specific training on entrepreneurship and business management, in addition to providing financial products tailored to this segment’s needs, such as accessible loans and special savings accounts. Niche strategies have proven highly effective for traditionally excluded segments, as they address the specific barriers these groups face. In the case of women, focusing on financial inclusion has a positive impact on their lives and the economic development of their communities.

Frecuencia Money: Financial inclusion in Bolivia is only at 43.7%. What more can banks do in this regard?
Sergio Asbún: They can work on digitizing products and services through digital platforms to reach rural areas, reducing transactional costs. Banks should offer simple, easy-to-understand financial products that can reach all segments. More accessible products are essential.

Regulations

Frecuencia Money: In your opinion, what is the state of financial or banking regulations in Bolivia? What topics remain pending?
Sergio Asbún: Regulations in Bolivia have advanced significantly, but there are still pending issues such as adapting to new technologies and improving financial inclusion. Implementing more flexible regulatory frameworks would allow banks and fintechs to innovate and collaborate more closely, providing more accessible and efficient services.

Frecuencia Money: Is there any country whose financial industry regulatory framework you find ideal?
Sergio Asbún: Several regions and jurisdictions have made significant strides in regulation; I don’t believe an ideal exists, as all have opportunities for improvement. However, in the Latin American context, I think Mexico, Colombia, and Brazil are leading the way in creating regulations that foster innovation.

Personal dimension

Frecuencia Money: How did you come to work in the financial industry?
Sergio Asbún: It was my first job. I started as a credit assistant right after finishing university at Citibank NA in Bolivia, and I enjoyed it. Today, I have nearly 30 years in this field, transitioning from corporate banking to microfinance, and now I am in multiple banking with Banco Económico, where I have been CEO for 12 years.

Frecuencia Money: What still excites you in the industry, and what disappoints you?
Sergio Asbún: I am disappointed by regulations that hinder innovation, which evolve too slowly and do not keep pace with the needs of the industry. This frustration delays many plans for advancement and financial inclusion. However, I find excitement in the dynamism of this work, the adrenaline felt each day, the constant changes, adaptation, and innovation—these are the aspects that I am passionate about. I can’t imagine doing anything else.