September 28, 2022
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The lesson learned from BuenaVentura

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One of the things we are learning about the current financial crisis is that banks operate best when they really operate as banks.

When it was launched a year ago, Banco Buenaventura looked like a great idea for serving the Hispanic community. And we gave the brains behind the institution the benefit of the doubt for building their business plan around services and money transfers — two non-traditional paths to profit for a financial institution.

But the world now wants a bank that makes money the old-fashioned way — lending it out to business borrowers at a premium and taking in deposits that are cheap and insured. Banco BuenaVentura never quite fit that mold.

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