The Challenge

There are an estimated 3.5 million people living under the national poverty line in Buenos Aires.  Only two percent of them have access to financial services. The economic crisis of the late 90’s left Argentina suffering the world’s largest debt default in history and massive currency devaluation. What had been a snowball of poverty and unemployment turned into an avalanche as more than half of Argentines fell below the official poverty line. The hardest struck were the middle class and urban poor, previously classified as middle-income.


The Entrepreneur and the Solution

One of the first of its kind in Argentina, FIS was established in 1999 to provide financial services to the working middle class and urban poor. Founded and led by Julian Costabile, FIS’s mission is to bring urgently needed microfinance to millions of Argentines lacking access to financial services. In contrast to Asian and African microfinance markets, there is still a significant need to educate Argentineans about the benefits of microfinance. The lack of a micro-entrepreneurial tradition in Argentina and widespread distrust in the financial system has been a barrier to its growth. However, it is FIS’s belief that through microfinance, business and the pursuit of social benefit can be combined.

Their goal, to empower poor micro-entrepreneurs to improve their own lives, has begun to gain traction.  Today, FIS operates three branches throughout greater Buenos Aires, serving approximately 5,000 clients to date. It is currently the largest microfinance institution in Argentina, and has plans to expand its operations beyond Buenos Aires to the rest of the country.

Beyond traditional microfinance, FIS also offers untraditional loan products that provide other means for financial security. For example, to relieve families from the monthly costs of lighting and electricity (i.e. in the rural region of Boquerón, monthly expenditures for candles, kerosene or gas is estimated at $20 USD a month), FIS provides clients loans to purchase solar panels. Once the loan has been repaid, families can then reallocate monthly expenditures for education, health, or other important services.

FIS is also the administrator of a Social Investment Fund through which channels private and institutional investment funds to finance its loan portfolio. This was the first fund in Argentina to offers its investors both financial returns and social impact.

“Our team in Argentina is focused on empowering thousands of poor micro-entrepreneurs to improve their own lives," said FIS co-founder Julian Costabile. "We're excited about the impact microfinance will make in poor areas of Buenos Aires."

Julian Costabile is one of three senior leaders at FIS and combines a social vision with more than eight years of finance expertise at PriceWaterhouseCoopers. A founding member of the Argentine Network of Microfinance Institutions, Julian is a leading stakeholder and advocate for microfinance in Latin American, participating in numerous forums and seminars on microfinance throughout the region. 


The X-Interview

Watch Julian Costabile as he shares with Global X why Unitus is a crucial element to the success of his microfinance institution, and listen to his advice to fellow social entrepreneurs: "Find a couple of mentors or advisors compatible with your mission who have 20 or 30 years more of experience and who can help you go through the entrepreneurial phase in a better way."