Good morning, everybody. Welcome to our Credicorp 2023 Investor Day. I am Milagros Cigüeñas, IRO of Credicorp. Thank to all of you for being here. Thank you who are connected through the webcast. During the next few hours, you will hear about how we are powering growth through different economic cycles, our discipline approach to innovation, and the different milestones that we have achieved. Our management will also share about our future strategies, the opportunities we see in our markets, and how we are driving sustainable value creation as we look towards the future. You will also have the opportunity to ask questions. On this slide, you can see a detailed agenda for this morning, with the different topics that we will cover. The microfinance presentation will be made in Spanish.
If you need translation, please use the headphones that you have available on your tables. After management presentations, we will have a five-minute break, and after that, we will have the Q&A session. We will first cover the questions that we have here at the room, and later on, we will cover the questions that we will receive through the webcast. For those of you who are connected through the webcast, you will see at the lower right side of your screen that there is a QR code. Please scan the QR code to submit your questions, and you can submit them at any time during the presentations. Now, I will pause for a moment so you can read our safe harbor, and let me go just through a couple of considerations.
Today's management presentations include forward-looking statements reflecting our management's current beliefs and expectations about Credicorp's future plans, strategies, goals, and results. These forward-looking statements are based on current information. Actual results will depend upon a number of known and unknown risks and uncertainties that could cause actual performance to differ materially from what we currently expect. Therefore, you should not rely on these forward-looking statements as an assurance of the company's future performance. Please take a moment to read this slide. Finally, as you may have noticed, our Executive Chairman, Luis Romero, is not here with us in New York. As he will explain shortly, he was not able to travel, but we made some adjustments, so we can have him through a video. After Luis Romero's welcome remarks, we will have Gianfranco Ferrari, our CEO, here with us to start with the presentations.
Let's hear Luis Romero.
Good morning, everyone, welcome to Credicorp Investor Day. I'm so sorry I am unable to be there with you in New York as planned. I was very much looking forward to meeting with all of you in person, something I think we all come to appreciate after the pandemic. Unfortunately, I fractured a rib, and my doctors have advised against traveling in my condition, so I find myself presenting remotely once again and look forward to seeing many of you in future meetings. You are in very able hands of the management and IR team there. What we've come to present and discuss today gives me great pride as we report on the substantial progress made since my initial address as the chairman three years ago. After today's event, we hope you will share our enthusiasm for what's ahead at Credicorp. With that, let's get started.
The operating environment for Credicorp in Peru has significantly improved in recent months, instilling a renewed sense of optimism compared to just seven months ago. The current government comprises ministers whose collective experience. Good morning, everyone, and welcome to Credicorp Investor Day. I'm so sorry I am unable to be there with you in New York as planned. I was very much looking forward to meeting with all of you in person, something I think we all come to appreciate after the pandemic. Unfortunately, I fractured a rib, and my doctors have advised against traveling in my condition. I find myself presenting remotely once again and look forward to seeing many of you in future meetings. You are in very able hands of the management and IR team there.
What we've come to present and discuss today gives me great pride as we report on the substantial progress made since my initial address as the chairman three years ago. After today's event, we hope you will share our enthusiasm for what's ahead at Credicorp. With that, let's get started. The operating environment for Credicorp in Peru has significantly improved in recent months, instilling a renewed sense of optimism compared to just seven months ago. The current government comprises ministers whose collective experience and skills are superior to those of previous administrations, further bolstering private sector confidence. Peru encourages strength, including abundant natural resources. A diversified economy and a strong macroeconomic management contribute to overall resilience and growth potential.
With the world's energy transition now rapidly accelerating, a significant surge in global copper demand is anticipated in the coming decades, with Peru strategically positioned to play a crucial role as one of the main copper producers worldwide today. These favorable dynamics position the country for sustained economic expansion beyond potential short-term volatility, providing an opportunity for Credicorp to advance its leadership agenda of inclusion and financial education, both crucial to alleviating poverty. In 2020, we convened 30 members of our leadership team from across our organization to embark on an ambitious endeavor, integrating sustainability into our core business strategy to ensure long-term competitiveness. Over a six-month period, this team developed a comprehensive roadmap. With unwavering support from the board, we initiated a cultural transformation within Peru's foremost financial institution, empowering it to become a catalyst for significant change in the markets where we operate.
Reflecting on our progress today, I take great pride in having surpassed our expectations for realigning our entire organization, while further advancements are needed, particularly with respect to the environment. We recently commenced the implementation of our corporate environmental strategy. Credicorp aims to assume leadership in the realm of sustainability, encouraging and fostering the transition to our customers, while serving as a guiding force for other industries to embrace similar commitment and change. In November, I had the privilege of going on the road to meet a number of our investors. This occasion served as a crucial platform, not only to update you on Credicorp progress on many fronts, but more importantly, to actively listen to your perspectives. Your input and feedback have been very valuable throughout our sustainability journey.
An early suggestion I heard resonated deeply, the desire for closer alignment between management and the long-term sustainability and value creation that you, as investors in Credicorp, seek. I am pleased to report that we have taken action and are currently implementing a program that links executive compensation to the fulfillment of indicators which promote long-term value generation. Today's presentation will highlight Credicorp remarkable ability to achieve sustainable growth amid various market cycles. This reflects our dedication to a consistent long-term strategy, complemented by our capacity for self-disruption, adaptation, and transformation. We prioritize long-term objectives while effectively navigating short-term challenges. Our strong foundation for sustainable growth is built upon attracting and retaining top-tier talent, embracing cutting-edge digital capabilities, and maintaining prudent operating practices.
Three years ago, we implemented a new operating structure that actively manages our previously independent lines of business, enabling us to optimize performance, leverage best practices, foster synergies, and replicate successful models across our organization. During today's presentation, you will hear how this model generates sustainable value for our stakeholders. Finally, I would like to extend my sincere appreciation for the trust you have placed in our board and management team. We are committed to advancing our agenda of financial inclusion and financial education, executing strategies that enhance our competitiveness, deliver value creation, and strengthen our business resilience. Your continued support as we navigate the path ahead is highly appreciated. Thank you.
Good morning, everyone. Apologies for the initial glitch. When I started watching the video, I thought we were going through a lip-reading challenge. That was not the case. It's really a pleasure to be here to see a lot of familiar faces in person after a few complicated years that we all went through. I'm very excited to be here with all the Credicorp senior team, hosting our fifth Investor Day, to update you on our corporate strategy, the key milestones and views ahead. Before moving forward with my presentation, I would like to share a video with you, who really encapsulates who we are, our purpose, strategy, and main achievements as we continue to power sustainable growth. Can we go with the video?
Disciplined innovation, exceptional talent, sustainability focus. Three fundamental pillars that make Credicorp a leading financial group in the region. An organization with a purpose that is as far-reaching as our commitment to achieving it: contribute to improving lives by accelerating the changes that our countries need. Because our strategy is long-term, we are motivated to add new capacities, as we permanently transform to manage any context and become a disruptive force in the region. Our focus is on consistently generating positive results, and most importantly, doing so in sustainable ways.
For this reason, today, we look to the future with optimism, because we are convinced that our strategy, based on continuous innovation, will allow us to financially include and educate more people, provide our clients with the best experience, attract and develop the talent of the future, ensure that our business continues to grow in harmony with the environment, and support our countries in their quest to improve the quality of life of all citizens. Credicorp, powering sustainable growth.
With this, let's take a deeper dive on how we are powering sustainable growth through economic cycles. Credicorp has successfully navigated economic challenges and global crisis by implementing a robust long-term strategy, embracing short-term adaptability, and demonstrating a willingness to self-disrupt. Our capacity to manage through crisis is a key competitive advantage, particularly in Peru, where we've seen significantly volatility over the years, driven by political, macro, and climate-related events. Notwithstanding these challenges, we operate in markets with significant growth potential and seek to decouple from the macro by including more people in the financial system, increasing engagement, and capturing a higher share of wallet within an ever-growing customer base. Even in the most challenging environment, our core principles, our North Stars, remain unchanged.
We continue to strengthen our core while investing in transformation and disruption, all driven by our long-term vision. This fundamental approach has consistently generated sustainable value for our stakeholders. Our primary goal is to improve lives, increase financial inclusion, and strengthen businesses to maximize their full potential. We are confident that investing in disruptive initiatives will allow us to continue to anticipate our customer needs and evolving trends. While investments in disruption have temporarily impacted our efficiency ratio, we anticipate improving this ratio over time by continuing to strengthen our parenting advantage and capitalize on synergies among our businesses. Simultaneously, we will maintain a solid ROE as we continue implementing these strategies. On the next slide, you'll see how each of our businesses is leveraging investments in innovation to build on core capabilities and strengthen our position even further.
We proactively manage our business portfolio, leveraging our core strengths, our brand, scale, and our extensive network of long-term client relationships. We prioritize self-disruption to stay ahead of others, ensuring we are well-positioned for future growth and for continued delivery of sustainable value. Our agile and self-disruptive mindset is part of Credicorp's DNA. We encourage each business to constantly test and strengthen its leading position and competitive modes, and to capture new opportunities by leveraging innovation. Throughout the morning, you'll hear from our business leaders on how disciplined innovation has played a key role in driving disruption and growth opportunities across our organization. As Francesca Raimundo will show you, we are complementing our line of businesses with disciplined growth of digital disruptors, while multiple monetization opportunities.
As we continue to expand these initiatives, our robust set of governance practices has been put in place that we introduced to you at last year's Digital Day. Francesca will provide you an update today on how we are funneling, evaluating, and green- or red-lighting projects. All this innovation, disruption, and investment is aimed at unlocking the vast potential of the markets in which we operate. Let's have a look at how we view the opportunity in front of us. We operate in an unserved market with great potential. When compared to its neighbors, Peru's financial market continues to offer significant room for growth in terms of loan penetration and financial inclusion.... We maintain a long-term perspective on our market opportunity, supported by a well-defined strategy and strong core capabilities.
We're building ecosystems and further developing our digital payment solutions to expand the addressable market, while simultaneously incorporating new verticals that will drive increasing engagement. Increasing financial services penetration enable us to sustain our leadership, enlarge our market potential, and successfully navigate through business cycles, while our long-term strategy remains unchanged. Our core principles of North Stars serves as the foundation of our long-term strategy, which are outlined on the left side of the slide. These principles are the primary drivers behind our ability to achieve strong performance independent of GDP growth. In addition to our three main areas of focus, we adapt to the current operating context, in short, in the short term, by implementing prudent risk management practices at the low end of the cycle. Throughout this process, we relied on our client centricity to improve our product value proposition and prepare for future growth.
By combining risk management flexibility with our dedication to serving our clients, we aim to strengthen our position and drive sustainable growth. This approach is also aligned with achieving our targeted efficiency ratio and ROE to meet our financial objectives. One of our North Stars is enhancing customer experience. We recognize that financial services are becoming increasingly commoditized, and what will continue to truly set us apart is our commitment to delivering an exceptional customer experience. Our second star is efficiency. Through the development of digital distribution ecosystems and the implementation of cost-effective physical distribution across all of our businesses, we expect to boost income and realize unitary cost reductions. Finally, our third North Star is sustainable growth. As I mentioned before, we operate in high-potential, largely untapped markets and segments.
To achieve sustainable growth, we are expanding into new verticals within payments and actively bringing the previously unbanked into the financial system. We are also scaling business models in a more cost-effective way, such as the hybrid model at Mibanco, bancassurance at Pacífico Seguros, and digital platforms for the affluent at Credicorp Capital. A fundamental differentiator is our parenting advantage. We'll have a look on the next slide at how we leverage synergies among our businesses to create more value for our stakeholders. As mentioned by Mr. Romero in his opening remarks, three years ago, we implemented an operating structure that effectively manages our previously independent line of businesses. This structure allows us to optimize performance through all the cycles, leverage best practices, foster synergies, and replicate successful models throughout our organization. We refer to this approach as parenting advantage.
By standardizing and coordinating a number of our operations, we have achieved greater efficiency, knowledge synergies, and the ability to drive consistent success across our diverse business units. We have prioritized coordinating and standardizing activities in three key areas. First, attraction and retention of top-notch talent. We consider talent a critical aspect for successfully accelerating our innovation agenda. Therefore, we actively invest in building strong tech capabilities and cultivate digital talent from both within and outside our organization. Second, we have made significant progress in developing a very robust data lake that houses extensive data. This infrastructure empowers us to model client behavior in detail, enabling personalized offerings and pricing that align with their unique needs and preferences. Finally, the last element of the parenting advantage is the development of robust processes and controls throughout our organization.
By coordinating these efforts, we can establish standardized and effective practices that promote efficiency, risk management, and compliance across all areas of our organization. All these efforts have yielded swift and positive results. By leveraging these initiatives, we've achieved notable progress in delivering enhanced customer experience and driving overall organizational growth. These achievements, which will be explained in detail, are reflected on this slide, showcasing enhanced customer experience, improved operating efficiency, and strong customer growth across our lines of business. We believe a substantial part of this growth will be achieved, supported by our continuous focus on driving financial education and inclusion. As an agent of change, financial education is one of the primary ways in which we can foster sound decision-making, promote economic equality, and ultimately increase the positive impact of our initiatives in the communities in which we operate.
BCP's financial educational web series, Quinto Piso, reached a record of 110 million visits last year, proving how wide and impactful our actions can be. At the same time, 2.7 million people became part of the financial system through Yape, while 56% of individuals financially included by Mibanco were women. We believe that our role in financial inclusion and education is key to continue growing and further decouple from macro volatility, as we tap into new segments and markets in a way that is sustainable, profitable, and adequate to clients. In closing, I would like to share with you an additional step in our sustainability journey. We're happy to announce the completion of a comprehensive corporate environmental strategy, set to be implemented starting this quarter.
This strategy covers the development of capabilities, including environmental risk management, promotion of transition financing, and measurement of our portfolio's carbon footprint. As we move forward, our commitment to sustainable growth and responsible business practices will remain at the center of all we do. Now, I will leave the floor to Francesca Raffo, Chief Innovation Officer. Thank you.
Good morning to all here and connected through the web as well. At our Digital Day, we shared Credicorp's decision to create an innovation office. This in response to what we believe, which is disruption, is a key skill for Credicorp in the future. Since, we have been implementing our approach to our corporate innovation, and we've been clarifying strategy around domains, horizons, and also governance. In addition to that, we are building a portfolio view, which I will share in a few minutes. During the year, we have been sharing with you our ambition to contribute to Credicorp through disruptive innovation, 10% of revenues by 2025. This is our North Star ambition, and it's also governed by clear investment boundaries.
Boundaries, expressed in ROE, as you can see, between 120 and 150 basis points of ROE, and also 300 basis points of efficiency cost. We've been improving our discipline to gain efficiency, to gain speed and transparency. Today, I want to share the three ways we are working through innovation and in a disciplined way to enhance our disruptive entrepreneurial model, to provide an extra level of support to the entire corporation, and how we are building a ecosystem, a portfolio view around our ventures. Let me start with the entrepreneurial model. At the left, you see how we govern ourselves. At the top, you see the innovation committee, which is responsible for strategy, ambition, and also for making clear decisions on specific ventures.
The innovation office in the middle is in charge of orchestrating the entire innovation process throughout the different business lines, and also giving method and sharing knowledge of each individual lab throughout the innovation units. We also are very keen in lessons learned and consistency throughout the innovation process, and to be very fast to adapt to market conditions. The other issue here is the way we execute. This is the entrepreneurial model. We do it through a decentralized model using different innovation units, whether these are labs, accelerators, or speed boats. These units remain strategically located within the LOBs to foster disruption, alignment among them. This also leverages the parent's advantage, the capability of the innovation unit to use what the parent brings to the innovation.
The teams also meet monthly, in this way, we can share lessons, methods, and execution, and also challenge performance. Let me share a couple examples of what we've been doing this year. Since 2022, 10 independent board members, four of which are women, have joined Krealo's venture boards. We have also changed Krealo's compensation model, linking it to driving a more long-term value creation for Credicorp, thus attracting a more entrepreneurial and also disruptive talent. Using the speedboat model, we are soon to launch our 100% virtual credit card, iO, to the Peruvian market. This is also done with an independent team that uses the capabilities that BCP offers, like risk, licensing, accounting, and so forth.
Another more well-known example for you is Yape, which, through its independent model, has been able to use BCP's power to create a new way of serving customers, and therefore achieving what we call irrational goals made real. On the second front, on providing an extra layer of support for the corporation, our innovation system around strategy, governance, and enablers gives us a better view of the entire innovation process. For example, on strategy, we continue to double-click on our $20 billion TAM Horizon 1 opportunities by, for example, shedding light on initiatives that are performing below potential, like buy now, pay later, deprioritizing certain terms in Chile, for example, SME and corporate, and also identifying white spaces where we think we can contribute more and move faster, such as remittances.
On governments, we have created a special payment strategy team, which includes Yape, QR acquiring, BCP's innovation invoicing teams, and C2B payments, to bring a go-to-market strategy to capture 50% of the payment flow in Peru. We're also dedicating flexible teams to explore new venture paths, one in health tech and also in generative AI opportunities. On the enabling side, we have improved our valuation methods, these are very based on innovation stage. Led by the finance team, we have set clear methods and parameters to calculate value, whether it's cost, market, or an income approach. We're also enhancing design thinking, agile abilities to reduce product market fit by 5 months. On the third front, we are building the portfolio of disruption view.
Here, we are doing a lot of things to track coverage, performance at a portfolio, domain, and venture level, and we're also tracking accurately initiatives and how initiatives are targeting their terms or their serviceable markets, and how they are performing, and how confident we are, and that we're achieving the financial objectives. For example, on the payment, on the retail domain, our coverage is mostly on target. Clients in Peru and Chile, we're working to give them a more value-added proposition through wallet, micro-lending, buy now, pay later, virtual cards. Our performance is mixed. As I mentioned before, we are challenged on growth in buy now, pay later, and we're also working on alternatives to fund our neobank in Chile given the market size.
Another key factor to construct a healthy portfolio is the discipline to track initiatives and the key results required on each of the funnel stages. Today, all execution teams at Credicorp and labs and speed boats know what they need to achieve in order to receive more funds to go to the next stage. Additionally, this allows us to make better and more timely decisions, like taking maybe larger risks in more certain areas, like the one I mentioned, iO, or buying or building to leapfrog some strange stages like Monokera, which I will cover in 2 minutes. Now, briefly, let me share 4 examples to show you how disciplined and how this method is working throughout our ventures.
iO is a 100% virtual credit card, soon to be launched in the market, where we have found a considerable investment compared to other initiatives, because we are planning to gain 10% of the affluent credit card market in Peru. We are working with a new core system, better architecture, and improved UX tools. All of these much needed by BCP, will probably soon be used once iO is launched. Monokera illustrates how we pursue expanding terms. As mentioned before, we have an underserved market in terms of insurance in the region.
This Colombian Insurtech platform will help us achieve connectivity between the insurer, the creation of the product, and the distribution, where you see Mibanco, BCP and Yape, to be able to embed finance, embed insurance in different customer journeys, much faster. This is an opportunity for growth for us. Tempo is a push to a new market, where the opportunity to grow in the mass retails banking segment is very big. Over the past 12 months, Tempo has grown from a wallet to a more robust financial offer, offering, with much more products and also a much broader portfolio, with users reaching approximately 15% of the Chilean adult population. Thus, it's time to shift into lending and to a clearer path to monetization.
Early results are promising, and gross process volumes in the Q1 for 2023 are three times larger than the previous year, reflecting high-end engagement and a clear path to revenue. We are awaiting regulatory approval to launch a card and expected to be the first non-bank issuer for Chile. I will leave Raimundo to share Yape's strategy, impressive results, and the monetization path. Thank you.
Thank you, Francesca. Good morning to everyone. Really happy to be here again, to talk a little bit about Yape's results and our plans going forward. We truly believe that Yape is the best example of our disciplined approach to innovation, through constant decision-making and fast execution. We started Yape, and you can see this through the results of Yape. We started Yape facing a lot of challenges, you know, since the beginning. One, we messed up the initial target segment. University students were not interested in digital payments. We had discussions around why a new brand, this doesn't have a business case, and so forth. In spite of that, we followed our conviction that this was our best bet to win the War on Cash, and we went through.
After finding the right product market fit, we felt very comfortable and decided to scale it, right? We defined a maximum CAC. We leveraged our parenting advantage through BCP's network and set up our first irrational goal, which was 1 million Yaperos. In 2018, we achieved that goal and immediately figured out, hey, this is a network business. This is a winner-takes-all situation, and we really need to double down. We defined again the next irrational goal, 10 million Yaperos, and we put everything behind that. Management incentives, investments, BCP's parenting advantage, independence, whatever it takes to get to that 10 million Yaperos.
After a couple of years, 2, 3 years, in 2022, we reached that goal last July, and now we come to the next phase, where it's: Okay, what comes next? Monetization, launching new business lines, et cetera, and this is what I'm going to talk to you about in the next slides. As one of the top 3 digital banks in the country, we continue to focus on growth, usage, and customer experience. We're very happy that in the last year, our monthly active users have reached almost 9 million. Even more relevant is that each monthly active user is doing 10 more transactions a month in Yape, 10 more payments a month in Yape.
In parallel, we've worked a lot in terms of stability, in terms of user experience, and this has allowed us to increase our NPS to 33, which is significantly higher than any other financial institution or wallet in the country. Last year, we presented three business lines with very aggressive targets. On payments, we are executing very fast, and we feel very comfortable that we're reaching numbers that we're expected to reach in 2026. We have 9 million active users, over PEN 10 billion of transaction volume every month, and our first product, which is mobile top ups, already has around 35% of market share.
In our second business line around the marketplace, we launched Yape Promos, which is the first proof of concept that we can sell products and services in Yape. The most promising result is that we have over 7 million sessions in Yape Promos a month, which is around a third of the top e-commerce in Peru, despite being a very limited portfolio. On the third front, we have launched our initial loans product, which I will show in detail in a couple of slides. As I mentioned, we continue to be the top payment networks in Peru. Our activity and transaction levels are growing around more than 2x a year. That, together with what Gianfranco presented, means that there is still a huge potential to grow.
We have, relative to competition or to other alternatives, we're 9x the size of Plin. We are 2 times, in terms of volume, the size of the largest acquirer in the country. Going to detail the payments products, we have launched four relevant products in the last months. Here in the chart, you can see the number of payments based on the months since launch. Our first product, which is the top line, is the top, mobile top ups, which I mentioned. We're reaching almost 12 million top ups a month, which is around 35% of the top. The newest product we launched is utility payments. It launched early this year, and it's following a very similar trajectory than what we saw with top ups.
This is still probably closer to 2% of the TAM, where we are, the potential is very significant. This line in the bottom, which seems to be growing slower, it's still growing around 10% a month, is our payment in POS, our pure payments in POS, which generate a emissions fee for us. It has more challenges to scale because we need to train merchants, talk to them, and work a lot in the physical world, but it's still growing at a very relevant rate, and the potential is huge. We're also very close, only close to around 2% of the TAM, and this is the checkout. What we're doing is increasing our revenue-generating products payments volume.
It's growing 3 times our total payments volume, in terms of fee. This means that a year ago, it was almost non-existent. Today, it's around 3.5% of our total payments volume, and we aspire this to become above 20% of our total payments volume to have revenue generating vol, TPV. In our second line of business, like I mentioned, we launched Yape Promos with very promising initial results. In terms of sessions, we started last September, we have almost 7 million sessions a month. Like I mentioned, the top e-commerce in Peru has, like, 15-20 million sessions a month. This is becoming a great success.
I mean, we had the biggest doubt that Yape could sell products and services that are not financial, and this is showing that we can. We can take the traffic towards the promos. We are expecting in the next couple of months, we will launch a marketplace, and we will launch other verticals that we're working with partners, and we expect similar results for all of those business lines. Finally, in the third business line, we have a floating revenue, which is increasing basically with the activity, and it should continue going at the same line. What I would like to talk to you more about is the loans.
We launched our first product, which is, we call it the nano loan, up to 300 soles or $100, if you say, for 20 or 30 days, its duration. After 5 months after launch, we became the first, the number 1 channel in terms of number of loans disbursed at BCP. Very successful. We have a low provision of our balance, lower than 2%. Most importantly, 50% of the clients that have gotten this loan, never had a loan from BCP before, and 30% of them never had a loan from the financial system. We are starting the financial inclusion in the loan side, through Yape.
We should launch multi-installment loans, also in 2 or 3 months, and we work with Pacífico and Monokera to launch a series of insurance products through Yape. With all of this, we expect Yape to reach breakeven during 2024. Here we see 2 lines, basically the cost, the cash cost, as it is investment, and cost per monthly active user, and the revenue per active per monthly active user. We started focusing on revenue in 2022. Before, it was more about the 10 million clients. Payments and top ups started being our first line of revenue, and continues to drive through the lines that we share. It's today what is increasing the highest.
Financial revenue, we expect it to pick up later this year, and we're looking for all the marketplace revenue to become relevant in 2024. With this, which includes a lot of launching new functionalities in the next 12 months, we will expect to reach breakeven in 2024. In the cost side, this year, we've had a significant step-up in capabilities. We went from 6 squads to almost 25 squads. We built teams on digital marketing, data analytics, IT, et cetera. Total FTEs went from 350 to around 800, but we don't expect that growth to continue because it was a kind of a step change.
We expect in terms of cost per active user to stay more or less flat for the rest of the year, and then in the long term, revenue to increase twice as fast. In summary, Yape was the first of our innovation disruption initiatives, which allowed us to include 2.7 million people in the first 4 years. It started with a digital account, and we continuously added features that increased our revenue and user engagement. We've invested to create the main payments network in Peru, with 9 million active users, $10 billion in TPV per month, and it's one of the top 3 digital banks in the country. We expect revenues per user to grow twice as fast as cost, as we incorporate the new products and verticals around remitter, start to form loans, e-commerce, travel, gaming.
We're building all those capabilities. With that, I'll hand over to Dio, who will speak about Universal Bank.
Thanks, Raimundo. Good morning, everyone. I'm Diego Cavero, and I'm the head of the Universal Banking LOB at Credicorp. Today, we will cover BCP, which, as you all know, represents Credicorp's main subsidiary. It represents more than 80% of Credicorp net income on average, over the last 4 years. BCP has a 134-year history of leadership in Peru. As of today, BCP leads almost every single market in which it participates. In this slide, we are presenting our strong competitive position, not only in deposits, but also across different segments. It is worth to highlight that more than 45% of all monetary transactions in the Peruvian banking system reaches a BCP account, and this is in soles terms.
If we look at this metric, in number of transactions, more than 70% of all the monetary transactions in the Peruvian banking system reaches a BCP account. This fact has relevant consequences in terms of low-cost funding and fee income. We have delivered consistent profitability over the course of our history. In the last 15 years, and with the only exception of the COVID-19 period, we have delivered a return on average equity above 20%. This high profitability, and the solid franchise we have developed, reflected in the strong competitive position that we saw in the previous slide, is fruit of our long-term vision and our deep knowledge of our market. What are the opportunities to grow in the financial services in Peru?
Although the Peruvian financial services penetration has progressed in the last years, when compared to other countries in the region, it presents vast untapped opportunities yet. We believe Peru is a very attractive market to grow in financial products. For instance, BCP serves roughly 13 million customers, and only 1.5 million customers use a credit product. Our aim is to unlock this potential through technology and capabilities. We have been investing in developing these technologies and capabilities, and we believe we are well prepared to capitalize on these opportunities. What are the avenues for growth for BCP?
Although we can marginally grow in SMEs and individuals, in some segments, SMEs and individuals in particular, and while the country will continue to grow, these factors, especially the last one, will have less impact than in the past, at least in the short run. Where does additional non-conventional income will come from? We think there are two sources. Firstly, we aim to penetrate the market prudently and efficiently through financial inclusion. In the last 2 years, we have incorporated 2.7 million Peruvians into the financial system. Secondly, we intend to boost growth by developing new businesses, such as Yape, iO, buy now, pay later ecosystems, and so on. These innovative platforms are fruit of our digital transformation, and we believe they provide relevant growth opportunities.
Given our strong competitive position and the market opportunities we have discussed, what is the strategy and how does it fits in our purpose? Our inspiring purpose is to become an ally to our customers, employees, and community, helping transform their plans into reality. It's not an easy task. In a market that is characterized by some commoditization, reducing switching costs, and increasingly informed and digitally empowered customers, our strategy is geared towards providing them an extraordinary, efficient experience to remain competitive. We want to be the number one in customer experience, to provide our customers the best experience in the market, and we want to be the most efficient bank. By doing so, having a positive impact in society, fostering a sustainable business.
We are striving for a comprehensive experience, focusing heavily in digital coverage and high transactionality in order to serve all our customer needs, wherever and wherever they want. This high transactionality and our presence in our customers' day-to-day activities led to a very positive network effect. For example, low-cost fund, low-cost deposits, which are highly correlated to high transactionality, represent 60% of our funding structure. This is a huge competitive advantage. Fees, which are also correlated to high transactionality, represent roughly 30% of our income, which, in turn, enhances our resilience against interest rate and risk volatility. Finally, tons of transactional data is a valuable asset for future growth. This strategy is delivered to the market through the different business units.
As mentioned before, SMEs and individuals are the segments that provide the highest growth potential through financial inclusion and growth in market share. On the other hand, the wholesale banking segment, where we have a strong franchise with a market share of more than 38%, will face growth challenges due to macroeconomic outlook. In this context, we seek to continue to be a more retail-oriented bank, as you, as we have, as it has been in the past, and as you can see on the left-hand side of this slide. For us to succeed in this context, our digital and analytical capabilities are pivotal to the strategy.
Some, a decade ago, we launched our transformation in order to develop these and other capabilities. Today I would like to share with you some concrete progress in some of those capabilities, especially those related to technology and efficiency. Underpinning these technological capabilities of IT, cybersecurity, and data analytics, we rely on a highly skilled and talented team that operates on a, I would say, very consolidated, agile delivery model. Our tech strategy stems from our business strategy. If we wanted to excel in customer experience, we needed extraordinary uptime in our digital channels, and deliver to the market new functionalities in record time. To do this efficiently, we needed modern and cheaper technologies and reutilization of components.
As of today, 100% of our customer-facing webs and apps are cloud-based, and we have developed more than 500 reusable APIs. Results, as you can see, are very impressive. We are operating at a 99.7% uptime in all our channels. This metric is world-class. We have 90% less incidents. We deliver 6 times more features, and we have dramatically reduced our time to market and our unit transactional costs. In cybersecurity, we have developed a strong governance with a consistent framework. We have heavily invested in talent and top-notch technology to dramatically reduce and mitigate cybersecurity risk. In data analytics, we have coupled our unparalleled data pool with relevant investments in advanced analytics that are delivering huge benefits, such as personalization.
For example, 50% of our digital sales comes from leads to credit underwriting or to international recognition for our analytical capabilities, as such, received from FICO last year. We are proud of this progress. We believe our tech capabilities are being consolidated as a very strong competitive advantage. Efficiency is one of our North Stars. We want to be the most efficient bank in the region. In the last decade, we have made significant progress, reducing our cost-to-income ratio from 49% to roughly 41%, or 38%, if you take or not take into consideration disruptive initiatives. Our approach towards efficiency is not only focused on enhancing competitiveness, but also in creating the resources to continue investing in disruptive initiatives.
We are, on the one hand, very focused on growing and diversifying our sources of income, and on the other hand, in optimizing our costs and our operations through automation, digitalization, and capacity optimization. A clear example of this is that in the last two years, we have dramatically reduced our footprint, closing 125 branches. Clear examples of efficient growth is the evolution of in the number of digital channels and the relevant reduction in unit transactional costs. I would like to share with you some impressive progress of our transformation. Our organization is very different from five years ago. In any metric you choose, number, asset size, low-cost deposits, digital transactions, digitalization of process, digital capabilities, and so on.
We have made significant progress in experience, in customer experience, which is the other, our other North Star. In this slide, we're presenting the evolution of our NPS for the consumer segment only last year, with an increase from 37 to 45. Our transformation is leading us towards a more digital and loyal customer, with more products, more use of digital channels, and more income per customer. In the last five years, we have seen a multifold growth in most of our operational metrics. Here, just some examples: number of customers, number of active users in our digital platforms, number of transactions, a totally different bank. This leapfrog evolution is a clear evidence of our capacity to grow and to implement a successful transformation. Finally, I will touch on sustainability.
Sustainability, of course, is a key pillar of our strategic approach, focused on having a positive impact in society, well-aligned with our purpose and our business. We have implemented several initiatives related to financial inclusion, financial education, support or training to our business, microbusiness owners, and also helping our customers in order to reduce their carbon footprint. Results are very impressive. You can see those numbers in this slide. Over the course of over 134 years history, we have undergone several transformations. It's not just the last years. We have made considerable progress in a market that we deeply know and understand, and that we continue to believe that provides significant growth opportunities.
As we evolve, we stay committed to our purpose, transform plans into reality, and to a sound strategy focused on customer experience and efficiency. I would like to close my presentation with the idea that looking forward, we will continue growing by penetrating an unserved market through a more digital, transactional, data-driven, and client-focused bank. Thank you very much. I will pass to Javier Ichazo, Head of the Microfinance LOB at Credicorp. Thank you.
Just a quick reminder, this presentation will be made in Spanish, so if you, if you need translation, just use the headphones you have available.
Good morning. Thank you so much for joining us this morning. I will talk about Mibanco. This is the Credicorp Microfinance business, the company that I head since end of 2017. Mibanco has a double role, social and financial. It is the lead company in Peru, in this microfinance sector in Latin America. In this slide, we're trying to convey some qualitative and quantitative data of the segment that we deal with, which is the base of the pyramid. These are the most vulnerable customers. I would like to touch upon the value that our customers give, the relationship that they have with their advisors. Basically, because the level of education of our clients is low, which is why they need support and advice from someone, so that they can meet their business goals.
What is the impact of Mibanco in its clients? It's very big. The increase in income, for instance, is quite substantial. For us, it's important to also to generate employment in countries like mine. To create jobs is important. Through the support that we give these clients, we generate employment in the country. It is also relevant that we have the capacity to educate their children. This is important in countries like ours. It is also important for us to have a sustainable and profitable company, not only because of the contributions to Credicorp balance sheets, but because if we're profitable, we will reach more people. We will transform more lives in Peru and in Latin America. It is important that the company is sustainable and profitable.
We have a position in capital and liquidity that can allow us to face the current situation and any variability in the market in which we move. Our risk appetite is conservative for the segment. The corporate limits are quite more demanding than regulatory limitations, which allow us to navigate sort of calmly and freely. It's important to mention that we have repositioned the bank so that we add value for the segments of liabilities. The first results of the repositioning lead us to provide that over 50% of the bank funding would be from the retail funding by 2025. A few years ago, we decided to lead the evolution of the microfinance sector. We did this through the hybrid model, that I'm sure you've heard about before.
The model is somewhere in between the traditional model, which has a lot of offices and business advisors, and a purely digital model. The heart of the model is the capacity to evaluate central, in a centralized manner, which is centralized intelligent. That is the most important component. It is the heart of the system. It also has two other portions, to develop alternative channels and to have seamless execution, because we have over 5,000 advisors working in the field, who need to have a very sound business management model and use all the tools that we provide for them. This has allowed us to have a clear competitive message, advantage in the Peruvian market, the speed and convenience.
From what we've seen elsewhere, like Colombia, we see that we have a model that can be exported to any country in the region. This is the performance. You can see the performance here of the different components of the hybrid model, beyond the numbers that are quite good. Let me double-click so that I can show you more clearly what this means. Having 78% of our credits disbursed monthly, which have been approved behind in a centralized manner, allows us to control risk. If we see that there is some early crop that starts to deviate, then we could correct the model, and immediately, the entire network and alternative channels can correct the centralized commercial offer, so we can control the risk. Alternative channels. As you can see, we're disbursing 45%.
If that's a number of disbursement, which is 16% in volume, this is important because we were able to bring to these alternative channels, which are more cost efficient, the highest tickets of service in relative terms. Execution. We have excellent execution because our advisors were able to absorb the technology to facilitate their operation, which has made them much more productive, now we are disbursing 30% more than with 25% less advisors. Here, we can see concrete results in terms of the bank's performance. In terms of experience, improvements are substantial, and the NPS data that is shown in this slide at the local market are up on top of the 2/3. In terms of productivity and efficiency, let's talk about efficiency. We've, throughout these last years, have been investing in our evolution and transformation process.
We've done this by self-financing, and even so, we were able to improve our efficiency, which is quite relevant and important. We have a, once again, sustainable business with a good level of growth, which can control risk quite rigorously. What is our clear competitive advantage? Which it is convenience and speed. In the last few, next years, I think it would be much more profitable than it is today. In international and local forums, we're talking about the components of the hybrid model are, which are what we need to follow in order to evolve the business, and therefore, we need to continue to evolve so that we can keep this competitive advantage, which would allow us to sustain our market position.
This is why we say that separate from speed and convenience, we will add in more, we will go more into depth in the relationship with our clients, because our clients have a clear trust circle to take business decision. In other words, if they want to take a decision to buy, say, building a machine or whatever, they have a very clear circle of trust. First, family, then their commercial neighbors, and thirdly, the over 25,000 business advisors that we have in the Peruvian market. As you can see, they value business advisors, and we believe the way forward to sustain this competitive advantage, to maintain it, would be to give them more, to have a better relationship. How?
By investing in technology, improving our models, investing in improving the analytics and data world, at the same time, we're really working on bringing and reinforcing the internal talent, which will allow us to work on this evolved model. So far, I talked about how the hybrid model has evolved in our Mibanco, we have also created important partnerships that would allow us to go beyond our model. Let me give you a couple of examples of companies that we've been working with. When you look at it from the credit perspective, Yape will be an excellent distribution channel for credits and collections, and we've already launched Recaudos or collections. We've already collected 16,000 credit quotas for Mibanco.
In terms of deposits, we want to replicate what we are doing with Mibanco Colombia, which is a digital deposit, which we're working on right now. We also need to mention that because we are a company which is part of Credicorp, we have, therefore, the best technology and latest technologies, and we have the best talents to meet our goals. In the digital world, we've been working on ecosystems and a different model from the model that we have as a hybrid models. We have a digital model that has two clear goals.
An ecosystem that will allow us to know our clients better, and to get involved in their daily lives so that we can improve our value offers, and to have a complementary offer to our hybrid model, which would allow us to include some learnings from the digital models in order to strengthen our hybrid model. This is our digital platform. This is a community of communities. These are the first two we've worked on, women, and today we're working with convenience stores or neighborhood stores, grocery stores. We've learned from the interaction with them, which is enriching not just our models, but our understanding of the clients. Nimberait is our digital partner we're learning from. It's much more complex, but we are seeing elements that we're bringing to the hybrid model.
Finally, while our countries today face a lot of challenges, I think we have still much to do in the future to continue to grow in microfinance, in the microfinance business. We are focused on managing this situation at the moment, but we look forward to in growth goals. We're close, when the situation improves, we will go back to having an appetite for more growth. Thank you so much. Let me give the floor to Cesar Rivera, who is the leader of Insurance and Credicorp.
Thank you. Good morning to you all. The Peruvian insurance market has registered interesting levels of growth in the last few years. In many cases, outpacing the expansion rate of other markets in Latin America. Nevertheless, the low penetration of insurance as % of GDP clearly tell us that untapped potential still exists. We are at a very auspicious moment for our industry as people become increasingly aware of the need for protection against risk. What evidence do we have about this? In the last years, confidence in insurance have grown 40%, meaning that today, the typical Peruvian has more faith in the protection offered by insurance.
This is particularly true among the age between 25 to 39 years old, which grew up with more knowledge of what insurance is, how it works, or how insurance impacts people's life. One of the impacts on people that COVID-19 pandemic left on its wake, is the increased awareness of the need of protection against mortality. During the pandemic, 65% of deceased had no life insurance, whether public or private, leaving thousands of families unprotected. Over the past months, the strong rains has battered the country, raising Peruvian families consciousness of the need for personal and property protections. In summary, as an insurers, we know we need to leverage the momentum created by the current context, with an eye on protecting more Peruvians. At Pacífico, our leadership position and diversified portfolio has generated excellent results.
The non-life business represent 43% of our premiums, and the life business, where we are the leaders in market share, represent 57% of our business. Given the situation in Peru over the last years, having a diversified portfolio has consolidated our strength and help us manage volatility to ensure we continue meet our obligations now and in the future. Our resilient model and leading role in the Peruvian insurance market has positioned us to offer the best customer experience. We are also the most efficient insurance company with the lowest cost-to-income ratio, and it help us to be in the first position in the market in terms of market share of profits. A relevant question here would be: How have we achieved these results?
Our strategic priorities have been consistent over time, focusing on becoming a more retail-oriented insurance company and taking advantage of our bank insurance strengths. This vision is based on three fronts that responds to our objective to be number 1 in experience, in growth and in efficiency. We are convinced that this coherence will help us achieve our purpose, which is to protect more Peruvians' happiness. Let's look at each strategic front. The first one is delivering an extraordinary experience for our customers. Our tireless journey to generate an extraordinary experience for our customers has produced digital assets, as our chatbot, nicknamed Clara, which have seen a fourfold increase in use. We also developed an app called Mi Espacio Pacífico, where clients can check the status of their policies, follow up on their claims, or view their policy benefits, among other functionalities.
It has allowed us to increase the number of active users by 10. In addition to these in-house advances, we have strengthened our services through alliances with insurtech, where we now, for example, are using artificial intelligence to service claims. For example, 55% of our car claims are processed using AI, and we have used the power of this technology to reduce processing times in the home claims by 75%. These actions not only help us to provide a better service for our clients, but also position us to obtain world-class recommendation levels at some key points of contacts, such as our call center, our e-commerce sites, or our auto assistant service. Our second front. We know that talent is key for our strategy, and therefore, our talent mix is consistently evolving year after year.
Over the time, 25% of our staff people are tech talent, and they will be critical for key enablers like pricing, data analytics, IT, and architecture. Where do we want to take our tech talent? On our data capabilities, we want to become a truly data-driven company, where business will be powered by analytical models and architecture. On our technology stack, we are building a modular and digital architecture that will allow us to integrate into other ecosystems through APIs, with a built-in cybersecurity risk management. For our pricing enabler, we are moving towards more granular risk selection and personalized pricing models to achieve our profitable growth and customer retention objectives. Finally, our third front, our bancassurance strategy. Two words here: distribution and data.
We know that through this channel, we will achieve the capillarity we need to distribute insurance on a mass scale. As we pursue our sustainability objective, which is to increase the insurance inclusion in our country. In addition, we will leverage the use of data to create personalized products and to offer a completely client-centered value proposition. Today, at BCP, we are fully embedded in all the bank's digital sales channels. We are offering more than 10 products that meets our client needs. Through Monokera, we launch new inclusive insurance products. Finally, through Yape, we have embedded the options to buy SOAT, which is the small and mandatory car accident product, and our goal is to have at least 2, 3 new products in the next months.
All of these actions has allow us to multiply the number of insurance policies by eight and protect more than 2.6 million customers with inclusive insurance. Now, in closing, we are certain that our role to protect a larger share of the population is more relevant now than ever. Looking forward, we will sustain growth by offering new and inclusive products that meet our country's needs at different stages of people life, protecting more Peruvians' peace of mind and well-being. Thank you, and now let me give the floor to Eduardo Montero, CEO of Credicorp Capital.
Thank you, Cesar, and good morning to everyone. Thank you for coming here. In the next few minutes, I would like to share with you some of the adjustments we have recently made to our business strategy. First, I would like to share with you a brief story of our company, a 10-year company. We started by merging the investment banking operations at BCP with two market leaders in Colombia and Chile. We created the investment banking and wealth management business line by incorporating Atlantic Security Bank in Panama and the wealth management division at BCP, and with that, carried along a 40-year track record, proven track record in the business.
During the pandemic, we acquired two companies: Ultraserfinco in Colombia, which allowed us to double our assets under management in Colombia, and Ultraserfinco, a registered broker-dealer in the U.S., that allowed us to enhance the optionality for our clients. During these past years, we have focused on consolidating our regional vision, a shared culture across countries, and launching a technological and operational transformational project to support future growth. In these years, we have grown our AUMs, we have consolidated leadership positions in the capital markets, and developed a profound knowledge of our local markets, that along with a growing optionality for our clients. 2021, or during 2021 and 2022, our business model and capabilities were tested by political and social instability in the region, as well as global markets macro headwinds.
Our clients shifted a larger share of their portfolios overseas, the investment capacity of some of the institutional clients, especially pension funds, reduced dramatically due to withdrawals. In addition, inflation and higher interest rates impacted more volatile businesses, such as trading, and significantly lowered the activity in investment banking. Thanks to our comprehensive value proposition and flexible business model, we were able or managed to be net winners in the funds that migrated overseas, leveraged by our platforms in the United States and in Panama. By the end of 2021, the year of the highest outflows, we were able to grow our offshore assets under management by more than 30%. Our recently launched Credicorp Capital 2025 program will revise our strategy to achieve more stable, scalable revenue growth, as well as sustainable profitability levels.
Over the next 3 years, we will focus on the following: The first thing is we'll be restructuring our business portfolio, focusing on recurring and scalable businesses, such as wealth management, asset management, and transactional capabilities in the capital markets. With this, we will rationalize our exposure to more volatile and capital-consuming businesses, such as trading, and less scalable ones, such as investment banking. We will focus on those businesses that today represent more than 85% of the contribution margin of the company, but more importantly, that have shown consistent growth in the past years. We will continue to develop operational and technological capabilities as key enablers for efficient and scalable growth. We have already established a shared service center in Colombia, and a renewal and a standardization of our technological platforms.
As a third point, we will be implementing a new governance approach with a rigorous performance management plan, continuous monitoring, and proactive deviation management. We will maintain our North Stars, but be able to recalculate the route when necessary. The fourth item is that we will be leveraging our experience and learn lessons in three integration processes in the past to explore and capitalize on new and organic growth opportunities. Last but not least, we will continue to implement ESG practices as a cross-cutting access on all our strategic fronts. For the past years, we have developed a comprehensive value proposition for our wealth management clients, focused on the high net worth and the ultra-high net worth clients.
This advisory model provides a one-stop shop for our clients with, that includes specialized investment products, as well as access to local, regional, and international platforms. Our customers are at the core of this model, in which the private bankers act as a primary point of contact, understanding their needs and bringing to the table or the conversation, the appropriate or the correct specialist. Recently, we created Credicorp Capital USA, with that, enhanced our value proposition for wealth management clients. We successfully connected clients from Peru, Chile, Colombia, increased our assets under management by 3 times in the past 2 years. We're strengthening Credicorp Capital USA with our comprehensive value proposition and wealth management proposition, as well as connecting institutional clients to the region for capital markets capabilities.
Led by U.S. business head, we seek to generate further opportunities for our clients in this new platform. Recent weakening of the institutional segment in the region, and the growing prominence in the individual segments in the global industry, represent a significant opportunity for which we're working hand-in-hand with tyba, the wealth tech developed by Krealo. Together, we will create a joint venture with a value proposition focused on the affluent segment. This new unit will leverage, on the one hand, all the transformational and technological capabilities of tyba, with those commercial teams, advisory models, as well as products and services of Credicorp Capital. A challenging business environment requires us to adapt and generate profitable, sustainable, and focused growth.
Our medium-term strategy will focus on recurring and scalable businesses, operational and technological enhancements, seizing inorganic growth opportunities, and incorporating sustainable investment practices with a ESG focus. Let me now hand it to César Rîos , our CFO.
Thank you, Eduardo. Good morning, everyone. It is my pleasure to close the first section of Credicorp's Investor Day. I will review governance and financial perspectives, given the fact that my colleagues have discussed already our purpose, strategy, and recent execution. The question you usually pose focus on our ability to recover from the macro context, which, although challenging, has been proven doable. We are also frequently asked: Are your capital and your liquidity adequate to the current circumstances and the near-term environment? When are you going to spend so much in IT? Can you sustain your profitability when the interest rates come down? What is going to happen with the underperforming businesses? I hope to address some of the more pressing issues today. We operate in an environment subject to political, regulatory, and climate risk. Like the rest of the world, we are subject to market and business disruption.
This unpredictability and volatility offer a flip side of opportunities to our business, which, when coupled with low levels of market penetration, allow us to drive growth well above the GDP growth potential. If GDP growth will stand at 6% undoubtedly, the opportunities for expansion will be greater. Nonetheless, our growth will be substantial, even if the GDP grows to 5.5% in the following years. We will face challenge anchored in an strong foundation and prudent management. Discipline is at the core of our governance framework and grounds every strategy and planning decision that we make. The board and corporate risk committees oversees the system, establishing clear parameters of risk appetite, establishing clear boundaries, ensuring accountability, and rapidly responding to changes and variations in exposure. We actively manage risk on multiple fronts and can pivot quickly.
I would like to take a more in-depth look at some key dimensions: capital, liquidity, and accounting practices. Our capital requirements are aligned with local regulation, expectation of risk rating agencies, and a regional benchmark. We conduct very rigorous stress test analysis based on the scenarios, even more demanding than the recent pandemic crisis, to establish boundaries and appetite for our core equity Tier One in the banks. We monitor and manage liquidity based on a set of metrics, including regulatory and internal LCRs, a stable funding, and duration gaps. The objective is to remain liquid under stress without triggering systemic effects. At the accounting level, we are prudent. Costs and investments relating to new ventures are mainly expense instead of recording in the balance sheet, which occurs when the maturity of the initiative is more secure.
Additional, our implementation of newer standards of accounting, like IFRS 9 and IFRS 17, has generated no material impact on our balance sheet or P&L. Our perspective on creating value is long-term. We make sure that our business are well capitalized prior to paying dividends. At Credicorp, prudence and discipline run alongside in-depth transformation. We manage shifts in economic cycles to leverage our leadership in tough times and thrive in good times. Our business model was tested during the pandemic, but we pivoted, shoring up provisions and ensuring reserves in a complete unprecedented environment. Our profitability was challenged, but our solvency remained robust. Moreover, we emerged from the pandemic with stronger businesses. We anticipate and navigate the short term without compromising our long-term ambitions and strengthening our businesses. IT expense management during the pandemic is a case in point.
Once we secure our solvency and control risk, we doubled down on investments to capture opportunities and rebound with competitive advantages after that. We rein in unavoidable costs while focusing on building capabilities for the future. During this period, comparing 2022 with 2019, we increased expenses to transform the core of our business by 1.5 times, while spending in Yape, our key and more mature disruptive initiative, rose from PEN 25 million to PEN 211 million. As a result, we significantly expand our number of clients, increased transactions, and materially improved customer experience. If we had paused our transformation expenses, now we will be executing the 2021 agenda. We deploy our strategy and transformation process through a three-pronged approach: optimizing business and capital allocation, monetizing parenting advantage, and driving the full potential of each of our business lines.
At portfolio level, we define our appetite and execute our strategic capital allocation with a medium and long-term perspective. At this level, we continuously assess trends and potential market spaces to profitably compete or disrupt, identify cross-company sources of growth and profitability, and take action when some businesses are not performing as expected. Assuming that our cost of capital is now around 11%-13%, 90% of our capital is generating ROEs well above this threshold. Disruptive initiatives impact less than 150 basis points of ROE, and excluding withholding taxes, corporate expenses that generates synergies and parenting advantage represents 50 basis points of ROE. We also manage our corporate reserve fund to tap into internal resources when unforeseen events materialize.
We pace investments to balance short-term objectives of profitability with the need to build future capabilities and sources of long-term growth. We establish limits and return parameters. As Gianfranco has mentioned, another source of value creation is our parenting advantage. We have developed several sources of capabilities and talent pools to ensure that Credicorp is more than the sum of its parts and to shorten development cycles. We recently have evolved from reducing skill deficiencies to focusing on profitability. Example of this approach includes leveraging a corporate approach to pricing, data and analytics, ALM, and procurement, with very tangible and concrete result that I am sharing you in this page. We actively challenge our business unit strategic plans and current results to heighten performance.
For example, the insurance business was generating returns below expectation few years ago. Now is well above the cost of capital, as you have seen. The health business also was well underperforming. Now has almost doubled its profitability in the last four years. BCP is expanding its leadership in Peru. Microfinance will recover its position as a driver of profitable growth. Credicorp Capital is focusing on fewer initiatives as it aims to increase profitability. Prima is more efficient now and capable to withstand regulatory changes, while Bolivia, which represents around 3% of our consolidated equity, is defending its position and protecting its liquidity. Finally, as Francesca has explained, we have the systems in place to drive successful disruptive initiatives while weeding out the less promising ones. Our path moving forward is clear, as our business leader has clearly explained it today.
Our strategy is based on a vision where efficiency and customer experience and growth are interconnected and interdependent. Within this strategy, our approach to expense management entail prioritizing initiatives that optimize customer experience and maximize growth at the low feasible cost to boost, at the end, profitability and resilience. Our IT efforts have strengthened our competitive modes. We currently reach more client in more efficient ways, which translate in the capacity to grow faster. Consequently, we grow the pie while filling empty spaces and maximizing our competitive position to make the competition a little bit tougher. In some segments and markets, we have found that the best way is the self-disruption. Cocos y Lucas , an FX transaction platform, and iO, our new payment and digital lending solution, are good examples. This initiative will challenge our profitability in the short term, but hold immense potential to create value down the line.
This proactive approach is far better than being blindsided by a competitor. We have forecasted the outcomes of our strategy and have established checkpoints as well as contingency plans. From 2016 to 2019, we maintained cost-to-income while transforming the traditional business and funding the initial stages of the disruption. When the pandemic struck, our rock-solid foundation helped us navigate an environment of high risk, low risk, recessionary environment, and we emerged with a stronger business. In 2023, we continued to roll out the efforts began in 2022 to ramp up the transformation and disruption. BCP and Pacífico are leveraging high interest rates and have risk under control. IT-related expenses are expected to rise substantially this year within our benchmark and appetite, and return from early investments are already materializing.
Investments and disruption have accelerated, the benefits are expected to roll in at a faster pace in the coming years. We have the mechanisms to rapidly adjust the pace and investment when necessary. The guidance provided for 2023 could be affected by the new GDP growth estimation of 1.3%, that already contemplates a costless El Niño, as well as two more factors: high interest rate that can remain high for the longer term, and the potential occurrence of a global El Niño. We have taken anticipatory measures, are with monitoring the situation carefully. We expect 2024 to be a transition year, where we will shift from high interest rate, high claims-related pricing in Pacífico, and high inflation to more normal conditions and increasingly visible benefits from the transformation.
As a result, the top line is expected to grow at a slower pace during this adjustment year. From 2024 to 2026, we expect the following trends. At BCP, we expect to maintain a competitive and better than pre-pandemic level, low cost deposits base, and a relative stable NIM, where the impact of lower interest rate is offset by a shift in volume mix to favor retail businesses. We expect BCP to maintain an ROE in the low 20s through 2026. We expect Pacifico to expand its bancassurance base through digitalization. Accordingly, we expect the company to deliver an ROE in the low 20s over a larger capital base through 2026. Regarding Mibanco, we expect to increase NIM to customize prices and a lower cost of funding and more fee income streams.
At Mibanco Peru, we expect to operate with ROEs close to 20% by 2026, and achieve higher, more profitable scale in Colombia. Credicorp Capital is expected to achieve a strategic alignment with ROEs in the high teens by 2026. Profitability at Prima and Bolivia could be affected by regulation and macro variables, respectively, and we will monitor events to leverage opportunities. Finally, we expect Yape to be profitable by 2024. Other disruptive initiatives are expected to follow suit in sequence and become cash flow neutral. Incorporating the impact of withholding tax and corporate expenses, we expect to maintain an ROE of around 18% by 2026. We know how our investors measure our performance, value, and outlook. We provide real-term value to our clients and to the societies in which we operate. In this context, discounted cash flows have a reasonable perpetuity assumption.
Within a well-defined horizon, the return on our businesses is expected to be higher than its cost of capital. We believe that growth should be driven by multiple sources, which acts as a buffer if one source temporarily underperforms. Finally, the discount rate is expected to moderate from today's levels, because risk in this widest definition is understood and managed. Jumping from financial to a strategic term, this is exactly what we are doing, and we strive to continue doing. Thank you very much, and we can now move to the break.
Please, could you take your seats? We are going to start with the Q&A session. Si pueden tomar sus asientos, por favor. Vamos a iniciar la sesión de preguntas y respuestas. We are going to start the Q&A session. As I mentioned earlier, we will first cover the questions here at the room, and then we will answer the questions through the that we are receiving through the webcast. Please raise your hand, say your name and the company you are representing.
Hi, good morning. I'm Tito Labarta from Goldman Sachs. Thank you, everybody, for the presentation. Very helpful and informative. A couple questions, if I may. I guess first one, maybe for Cesar. You mentioned a little bit there could be some impact from, you know, El Niño, weaker GDP growth, lower interest rates for this year and perhaps next year. If you can just kind of quantify that in any way, that would be helpful to think about that. Then my second question, more, you know, given all the investments in digital initiatives, I mean, which I think, you know, definitely the right strategy that you need to do, and it's great that you're disrupting yourself before somebody else does.
You're already a market leader pretty much in every segment, so when we think about the potential benefits, do you think it'll be driven more by cost savings, or I know Yape is going to be profitable soon, but help us think about the monetization aspect of it, given your leadership positions.
Thank you. Thank you for the question. As I explained during the presentation, we have already changed our expectation of GDP growth, contemplated already a local El Niño that is going to move the GDP expectation from 1.8, let's say, to 1.3%. To adjust the perspective for 2023, we should take into consideration probably two more factors. This, that conceptually are going to impact provisions and loan growth, and in the positive side, higher interest rate for longer than we were expecting previously. With this concept, probably we wouldn't thinking in significant changes of our guidance, but now we are evaluating the potential occurrence of a global El Niño. It is too early to have an indication right now.
When we have more information, probably we are going to make some more concrete information in our next conference call. A global El Niño could impact performance results already, but it's too early to put a number on this perception.
On the more disruptive view, our view is more income generated, looking at underserved markets, so gaining new sources of income of something that we don't have, whether it's the same customer or a new customer, but it's marginal income. You saw in Diego's presentation, the level of engagement. Cost is managed. We look at cost, we look at it, but the type of relationship we're having is a much more intense relationship. We're looking more at the income side in the disruption, which doesn't mean that in the transformation we don't look at efficiency in terms of cost of transactions and the technological platform we need for that. It's both, but on the disruption, I would say more income.
Just a compliment on what Francesca just mentioned. Bear in mind that in Peru, still 85%, 90% of total transactions are done in cash. And as a matter of fact, if you go a couple of steps back, Yape's business case is switching from a cost-generating and zero data generating to a model when you generate income, plus you generate data. And this, I would like to tie it up to your previous question, which is, yes, GDP growth, if it's lower, obviously it's going to impact the traditional business. The overarching vision behind what we've been talking about this morning is how to, again, decouple our growth, therefore our profitability, from GDP, which is like the traditional leading indicator for our growth.
Okay, thank you. If I can maybe just one quick follow-up. On Yape, just thinking about the monetization, would it be primarily on payments? Can you will you be able to cross-sell other the products, like credit and things like that? Just help us think about that.
Raimundo?
Definitely payments will be our first, or is being our first monetization driver because of what we can,
the products we can scale faster right now, right? Because there's a lot of transaction volume, and we see payments becoming very relevant. We do expect, as we launch multi-installment loans, to 12 months, et cetera, for financial income to become relevant, probably starting in the final Q of this year, but the effects we'll see them next year. On our more, let's say, distant business, which is the marketplace, and the more retail business, which is a take rate business, we expect that to start gaining traction next year, or relevant traction next year, and we should see the relevant results more in towards 2025.
I would say those, the three business lines, should be relevant when we think of 2025, 2026, but it will start with payments first, then financial, and then retail.
Thank you.
Ernesto?
Thank you. Ernesto Gabilondo from Bank of America. Thank you very much for your presentation, very detailed. I also have a couple of questions. The first ones will be on competition. I believe you have been investing a lot in the digital transformation. Probably you are one of the leaders in the country and in the region. How do you see the competition? I'm talking about not only about the incumbent banks, but also fintech ones. What do you think will be the next rival for you? My second question is on profitability. You have been talking that because of all these digital initiatives, your long-term ROE could be around the 18%.
We used to thought in the past of Credicorp being a bank with ROEs of 19%, 20%. A gain, you're thinking on long term, how do you see that, do you think that you can return again to that 19%? I will say, how do you see that relative to the region?
Yeah, let me answer the last question, then I'll pass it to Diego and maybe Francesca. Diego regarding incumbents, Francesca regarding newcomers. As I always say, we rather underpromise and overachieve than the other way around. As I believe, I don't recall if it was Francesca or Cesar, we're willing, or the board has allowed us to invest or expend up to 300 basis points of cost-to-income and up to 150 points of ROE. Several times we've been asked: "Okay, when are you going to finish that process?" We don't know. I'm sure that if we had this meeting in October of last year, none of us would be talking about artificial intelligence or generative artificial intelligence. What is generative artificial intelligence? What impact it's going to generate, positive or negative, in terms of profitability?
Today, we don't know. We expect that to have a very positive impact, we don't have those figures yet. We're exploring on how to organize ourselves, how to prioritize, where to work on, so on. Going forward, we feel quite comfortable that the 18% ROE Cesar shared is sustainable in the long run, I would say with a positive up, with upside, potential upside. Diego, on competition.
Thank you for that question. I will separate the answer in two parts. I would say that fintech competition is going to be less relevant in the short term, because increasing the difficult to find some funding for those initiatives and all what we have seen in the market in terms of related to the fintechs. In terms of the traditional competition, of course, we are going to face competition, but as I mentioned, I think that we are well prepared to capitalize on all the capabilities that we have been developing in the last years.
Our strong competitive position in terms of transactional banking, providing our customers a very comprehensive platform that, where they can do almost every thing what they want, is a very strong competitive advantage. That is reflected in our funding structure, that when interest rates were close to zero, it was irrelevant, no? As of today, having 60% of our funding structure in low-cost deposits is a very strong competitive advantage. In terms of customer experience and in terms of digitalization, all the banks, all the incumbent banks are working and doing a good job.
I think that we have relevant competitive positions to be successful in that, in not only maintaining our market share in the most relevant segments where we have a strong franchise, but to grow through digitalization and through new models in individuals and SMEs.
Maybe just to add, competition is cash. Competition is underserved, no? The informality of our region, I think that's where the opportunity lies. Solving that friction, making, whether it's financial access to loans, payments, health, I think that's the competition, in addition to what Diego said. I think there's a clear opportunity in the current environment to embrace that because, no, of lack of others trying to come in, into those markets at the time.
Good morning. This is Andres Soto from Santander. Thank you very much for a very complete presentation. I have two questions. The first one is, as you guys are looking to decouple Credicorp growth from the growth, GDP growth of the country, what that implies in terms of your long growth expectations for the next few years, and how that changes the historical cost of risks of Credicorp? How do you see going to these new segments of the population changing the profile of the company? That's what I'm headed to.
Maybe just transfer, yes.
You wanna start?
Thank you for the question. I will answer probably in two parts. Part of the decoupling is not only going through the traditional risk-taking business. In these cases, we are thinking not only in penetrating, like we have been doing, lower segments of the population that has a connotation of cost of risk, that is naturally higher margin, highest risk, but we are talking about new sources. For example, when Yape goes into new markets, selling, distributing products, making a marketplace, we are starting to go into different markets that are decoupled...
from the GDP impacting our traditional business. It doesn't mean that this business doesn't have impact for GDP, but are new blue oceans for ourselves, and in many cases, doesn't have implied risk-taking in the traditional sense.
That's very clear, Cesar. My second question is regarding the opportunity that you guys have with Yape. You know, already 9 million users. I would like to understand a little bit more of the profile of that users in terms of, what is the % of those users that are already customers of Credicorp, who are which are not customers of Credicorp, but clients from, other financial institutions, which are of the rest, which is the really addressable market? I mean, I imagine some of them don't, are not going to qualify for a loan, so I would like to understand better how you can monetize Yape.
When we think about the 9 million users, we have, actually around 3 million, 3.5 million, that opened Yape, we call it, with their DNI, with their ID, that they didn't have an account before with BCP. Others operate on top of their BCP account, there's 5.5 million or 6 million. Definitely, even those with a bank account, some of them were new, that opened the bank account and Yape together, in the last couple of years. In terms of what the customer looks like, I mean, we have Peru as a customer, right? We have the person that sells ice cream in the street, and probably we have private banking clients that use that.
Not probably, we definitely have private banking clients that use Yape. It is a present page. It is a representation of all of Peru. Our aspiration is to reach 75% of the adult population, I mean, to continue growing at 300,000-400,000 a month. We continue to grow, and we believe that most Peruvians will be Yaperos. That is kind of the operation. In terms of monetization, we have different lines of monetization. For example, mobile top-ups, we have 6 million Yaperos or telephone numbers, have at least once done a mobile top-up in Yape. Every month, there's, like, 3.5 million-4 million now that are doing that. We have another 1.5 million that are paying in POSs, so we receive an issuance fee.
It becomes. Our aspiration is that, and there's another 1.5 million that have paid their utility services. We want to take those numbers as close as possible to the 9 million or whatever the total number of Yaperos is. We have an increasing payments or fee-based business. We go into the lending side, which we don't expect, of course, to have 9 million Yaperos with loans, but a few million we do, no? We want to expand the number of clients that we have at BCP, and similar with the market rest.
It's not a all or nothing, it's we're going to have some clients that will use us and will be profitable because they recharge, they buy top-ups, they use something, others, even in the affluent segments, that buy tickets for. We recently acquired as Credicorp, a ticketing for concerts, events. You have the whole spectrum of value proposition for the Peruvian population. That's kind of the vision. Yeah.
Super app.
Oh, yeah. It is a super app. I mean, our vision is to go from being the wallet of the Peruvians to solve every day-to-day needs of the Yapeo. That touches a lot of points, which we will start experimenting. We just did a huge technological change that just finished, so we can put things faster and try out and change. In the next six months, we will see a lot of experimentation and new product launches within Yape to test this. Obviously, not everything will be for everyone. We will have to segment and give different offerings, et cetera.
Maybe just to comment, to complement what Raimundo just mentioned, and going back to your first question regarding the number of BCP clients that are Yaperos and so on. For those of you who follow us for a few years, you may recall that maybe 10 years ago, we launched a strategy which we call War on Cash, and actually, Yape didn't exist at that time. So it was basically built on credit card usage and debit card usage. Yape was born under that strategy. So regarding BCP clients using Yape, on average, they use the mobile app, their average transaction is, like, 500 soles. In Yape, it's 60 soles. So again, it goes to the idea of what's the payment mechanism that generates less friction to the user.
That's the whole idea. Because something that we haven't talked about at all this morning is how credit card usage and debit card usage has been growing over the last 4 or 5 years. It's growing at anything between 15%-25% per year. Again, bearing much in mind, the main competitor is cash. We really don't care about self-cannibalization. There might be some, but it's nothing as compared to the blue ocean that's stays there regarding payments.
Understood. Thank you, guys, and congratulations again.
Hello, Carlos Gomez-Lopez, it's HSBC. Thank you for the presentation. Thank you for being here. Can you hear me?
No, audio.
No.
Can you hear me?
Yeah.
Okay. Again, thanks again for being here. Going back to the previous question, which is, essentially, what Peru do you expect for the next five or 10 years, and what type of asset growth, GDP growth, inflation do you expect, which, again, I don't think, I don't think that was answered, because part of the success of the company over the last 25 years has been the success of Peru, and we have had a lot of turmoil. Do you see a better path ahead for the next few years? Again, everything that you are doing on the corporate side is one thing, but you are, you are working in a certain environment. The second question refers to what you intend to invest. Again, you mentioned 150 basis points of ROE, 300 basis points of cost-to-income ratio.
Very clear, very well-defined. Is that a course that the board is willing to take for the next year, two years, three years? What is the parameters that of that approval? Thank you.
I don't know if your initial question was a question about 5-10 years, 5-10 months, or 5-10 weeks. Having said that, we believe that the current situation of Peru is a much better situation than the one we had actually six months, slightly over six months ago. The level of corruption, the level of the lack of capabilities to actually run a country, and you name it, over the previous government was really, really bad. Today's government, the executive branch has shown a much better management capabilities regarding how to run the country. Having said that, I would say that we are today running through a fragile equilibrium, political fragile equilibrium.
Our base case scenario, and we've been public about it, is that the current government will end its constitutional period, which is July of 2026. I'm not saying that there's zero probability that something crazy will show up in the next months, but we do believe that we're in a much better position today than a few months ago. Going into a more structural vision of the country, I'm not an expert whatsoever on metals and mining and so on, but from what I've read and talked to some experts, they're very bullish on what's going on, what's going to happen on copper and lithium. Peru is not a lithium. There's no major lithium mines in Peru, but there are in copper mines in Peru.
The, the energy transition that is going to happen in the next 10-15 years provide a superb opportunity for copper producers in the world. Peru is not only the second-largest copper producer, but most importantly, has the best cash cost in the world. We're positive on that. Obviously, we need political stability. We need much more institutionality and things like that, so that private investment picks up again. That's, that's more or less the vision we have for the next 5, 10 years, sorry to, for not being more specific, but that's as far as we feel comfortable. Regarding your question on the board, it's a long-term mandate.
Obviously, this discipline, the discipline we have today on what to invest, where to invest, how to invest, and more importantly, how to follow up those investments, is much better than the one we had when we started. Maybe I shouldn't tell you how we started, because it was. Actually, the board gave us a blank check, and we started this digital transformation, I don't know, eight, nine years ago. Whereas today, obviously, the check is much larger, but we have much more discipline in how we're running and pursuing our transformation initiatives or disruptive initiatives. Obviously, we shared with you some of the initiatives, let's say, the most mature or successful ones. We've killed a lot of initiatives along the way or pivoted initiatives along the way.
A follow-up? We will move to the questions that we have received from the webcast. The first question would be from Sergei Pliutsinski, from Harding Loevner. You mentioned investment in innovation costs you 300 basis points of cost-to-income and 150 basis points of ROE. How long until this investment yields tangible results, and what are the KPIs by which you measure success? When will digital start reducing costs and enhance ROE?
It's 300 basis points, not 200. I don't know if the question was wrong or.
No, no.
But-
It was PEN 300, yeah.
Yape is the most mature of the ventures in disruption, as you see, its path to monetization is clear. By 2024, it's exceeding performance in certain metrics, no, by moving forward in others. I think this is the way we are following suit on all ventures. Depending on the stage of innovation, the type of metrics, we measure, very initially, we look at customer growth, repeat customers, number of engaged customers, and so forth. As they move into a-.
second stage of investment, we begin to understand what the revenue paths are like. Can we charge? Is there a cost re-reduction? We start looking at metrics in terms of revenue. When they're in the scale stage, this is where we actually begin to unleash the parenting advantage, use the different channels to distribution, use the intelligence that we have in terms of data, and look at monetization, whether it's revenue, income generating, to see cash positive or not. Having said that, the normal path to monetize something that is very disruptive is between five and seven years. It's not faster than that. We've monetized, for example, a savings pocket, but this is not a huge venture.
This is something that initially, no, it's a feature that is not going to be a brand by itself, that is going to be a feature in, one of the segments for BCP. There's different paths to the innovation and the disruption that we are looking at. Add something?
Yes. Probably to add something very briefly, I will say, in the traditional business, the results are already visible, I think has bring us tremendous value, as we have seen today, in terms of capacity to distribution, efficiency, and so on. In terms of the disruption, only to add to what Francesca already said, these parameters are limit. There are not a set number for all the time. There are limits, let's say, like an appetite. Down the road, what we expect to have is a lower impact in ROE, and is still a significant impact in cost-to-income ratio, because the new disruptive initiatives are going to grow in relative size to the traditional ones.
Down the road, what they are going to do is accelerate income generation, increase the paths of growth, impact somehow in ROE, but it still continue to impacting in terms of cost-to-income ratio. Let's think in something like is growing, that is still profitable, but has a cost-to-income ratio, let's say in 70%, 80%. What is expected to happen down the road?
Okay, next question: With the strong focus on financial inclusion and disruptive technology, how do you balance aspirations for earnings growth with the risk associated with entering new markets and the different risk profile that is involved with the new markets or customer segments?
Yes, great question. Peru's employment, formal employment, is less than 25%. Actually, I believe it's, like, less than 20%. For many, many years, it's been a challenge how to get reasonable data in order to build risk models, and on top of that, to distribute through the traditional channels. What we've been doing, sorry, for the last, I don't know, 10 years, is by leveraging on the data we've been gathering through the digital channels, more recently, Yape, building new risk models, and on top of that, enhancing the genius of the models BCP has, so as to tap those new segments of the population. How we do it is we go little by little.
Basically, applying agile methodology, under which we assign a pocket of money for to test for whatever segment we wanna tackle, if that's successful, then we, let's say, launch, create for a new segment. That's, I would say, on BCP. At Mibanco, the story is somehow different. The model at Mibanco is very customer. It's a very customer-facing, oriented business model. Basically, we're not tackling any new segments. What we're doing is visiting the same or, yes, visiting the same segments, but as Javier mentioned earlier, is basically leveraging on risk models in order to provide better offers and better prices.
Just to complement on that, we are not only aimed to penetrate the market prudently, no, loan to grow in these segments, developing these more sophisticated credit models, but also through efficient channels. We have to reduce the distribution cost to reach the smaller customers in a profitable way. It's the combination of both.
Okay, next question: How does the insurance business deal with the challenge of increased risks around climate change?
Well, It's okay?
Yes.
Yeah.
Okay, yeah. Well, maybe a different perspective for the question. The first one is, well, remember that we manage the risk. We are insurers, part of our portfolio is exposed to climate change and to that kind of risk. The first thing that we need to do is to protect our balance, to protect our portfolio, and for that, you need adequate reinsurance contracts.
We believe that we have adequate reinsurance contracts. Only to give you an idea, in case of a risk related with climate change, which could be called a catastrophic event, like phenomenon El Niño, for example, we retain no more than 15% of the risk, so of the losses. Inclusive, we have a cap in these losses. The first perspective is we need to protect our portfolio, and we do this through reinsurance contracts. For that, we need the confidence of the reinsurance market, and we have that confidence. The other perspective, to maybe is related with the opportunities. Of course, our business is risk. Our business is to manage risk. Climate change will be one of the most important risk in the future.
Maybe the main risk in the PNC market, I'm referring to the PNC market. Maybe the main risk now is related with earthquakes or with property damage and things like that, and maybe in the future, one of the main risks will be the risk related with climate change. In that case, we have the opportunity to have new and specific products, of course, to protect part of the population, part of the personal properties and business properties, small business in most of cases, Maybe not. I am sure we have an opportunity to have a new market there.
Another perspective could be related with. Remember that as insurers, we are institutional investors, so we have an important part of our portfolio with different investments. Now we are working in identify and to manage and to control the type of risk or how our portfolio or our clients manage the climate risk. Of course, aligned with the Credicorp strategy, sustainability strategy, related with the environmental part. Finally, maybe the last part of the question, of the last perspective, is related with our role in the society. I said, our business is to manage risk. Yes, our business is to manage risk, of course, to protect people, to protect population.
Having said that, as part of our sustainability strategy, part of the sustainability strategy is focused in education, and part of these education programs are related to teach people, to teach community how to protect to this climate risk. We have a program called Comunidad Segura, and the main objective of this program is to teach the people how to protect about strong rains, landslides, and things like that. With all of these perspective, we can accomplish our purpose, which is, okay, manage risk, but protect the population.
Okay, next question: Congratulations for your new environmental strategy. Can you mention some of the most important initiatives?
Yes. As I've mentioned before, several times, I always say that we at Credicorp, we don't have an ESG program, but a GSE program. Because we started a few years ago by redefining and restating all of our governance structure and policies. A couple of reasons behind, one is a practical reason. We were talking about earlier in the morning that when we launched Credicorp 25 years ago, and actually, when we launched Credicorp 25 years ago, it was one bank, one insurance company, probably casualty, and one offshore bank. Whereas today, we're several banks and several microfinance institutions. We were only working in Peru, now we're in the Andean region and so on. Basically, we didn't change the governance structure.
On top of that, we strongly believe that in order to redefine or define and redefine our environmental strategy and redefine our social programs, we needed to first redefine our governance structure. That's the main reason why we started with governance. I would say, you never end up these programs, but we have a check in on that matter. Because of the countries where we operate, we focus on the social matters. Finally, we've a few months ago, we started with this environmental program with which I just mentioned in my presentation. We just ended the whole analysis. Basically, each of the subsidiaries has its own program. It's a three-year program. Each of them is focused on specific targets.
The common targets are obviously how to measure our carbon footprint and Scope 1, 2 and 3. More importantly is how to generate culture within the company, within the employees, as we strongly believe that the best way to manage environmental matters is to incorporate the environmental matters within our DNA and within our daily operations. That's a cultural change. That will take time.
Finally, we're setting some specific indicators in some of the subsidiaries, specifically in the corporate banking business at BCP, we're working with our clients in helping them understand what they need to do in order for their transition, and how can we help them.
Okay. What is the mix of different countries that we should expect in assets and in income by 2026? Yape, for example, will it compete with Nubank in Colombia?
No. By 2026, definitely no. What we're currently doing. Yape is a story of success in Peru today. What, obviously, we've had this discussion of should we export Yape somewhere else? We haven't figured out. What we're doing today is playing with the idea and doing some testing in Bolivia. You can share the initial results.
Yes. In Bolivia, we actually have BCP. Bolivia has a wallet called Soli. What we've done is bring a little bit the know-how from Yape to Soli, and within, I think nine months or so, we've significantly increased the usage. It went from 6% or 7% of active users, now we're close to 30%. We've increased total users, especially in the small businesses. Today, we're reaching, I think we have over 300,000 active users, and a year ago, we have, like, 30,000 active users. The recipe is working.
We're exploring how far we go. Working together with BCP's Bolivia team to kind of take right now the know-how, and then we need to figure out, hey, should we take the technology? Should we take the brand? Should we take the... Those are the discussions that we are currently having.
Maybe leveraging on the question, but going, it's a different answer. We still need to bear in mind that we need to prioritize, we need to focus, and we have this cap of 150 basis points of ROE and 300 basis points of cost-to-income. It's like, okay, it's not that we have an unlimited budget and go wherever we want. We still believe that we have a lot of opportunities in the Peruvian market. Obviously, the Bolivia experiment is not gonna cost a lot of money. The idea is we can test in another market, and if that test works out, we'll figure out if we go if we wanna go to larger markets.
Can we have a microphone here at the room, please?
Thank you for organizing a very wonderful Investor Day. I just want to build on that question because I thought it's an interesting one to compare Yape with Nubank, because actually, we look at the business models, they are completely different, right? Yape is a payment app that becomes a super app. Nubank is a credit, online credit card business that becomes, you know, universal bank, if you will. In your case, it seems to me that iO is probably closer to Nubank.
If you look at the traditionally, you have been very strong in wholesale, and you're trying to get into retail, and you're if you look at the market share and consumer and credit card, is still probably the lowest in your bank, even though you're the number one. Maybe if you can talk more about how you can use iO and, you know, more digital capability to improve your consumer and credit card business.
Yes.
Thank you.
Well, you're exactly right. We've been working for the past, I think, maybe 15 years, trying to increase our presence in the retail segment, in the lending segment. Now, with digital competitors such as Nubank and other fintechs, we decided that this was an offensive move to target that 10% that I mentioned in the presentation. There is a market there currently. We needed to do it with a different value proposition because the consumer business that we have is important. It's 20% or 21%, there's a lot of retention strategies and technological backlog there.
Building iO means using a different back end, which is very important for the credit card business, and completely redesigning the user experience, first, because it's completely digital, and second, it's much more modern. It's targeting a much younger segment, a much modern segment, no? This is the segment that is not currently being serviced by BCP. There's UX capabilities, there's technological capabilities, and there's also loyalty schemes that We are going to try different things in the iO. This is a, I think, a speedboat model, which is very important, no? Use BCP's capabilities in terms of risk modeling, licensing, accounting, know your customer compliance, and so forth, but bring out what we think we need to improve. This is the strategy. We'll be launching very soon.
We're in the friends and family stage, we're expecting to see a relevant growth in this year and also in 2024.
Okay. We have still some more questions, but due to timing, we will follow up by email for these questions. Thank you very much for being here. Now, we will have Gianfranco Ferrari to do the closing remarks.
In 134 years, our businesses have been through changing political and economic backdrops. We have consistently delivered profitable growth throughout the cycles. We will surely face more volatility, feel confident that our team, together with our ever-expanding skills and experience, will succeed and take advantage of the many opportunities inherent to an emerging market context. Let me leave you today with our views on how we continue to prepare for the future. First, we've talked a lot about it this morning, decoupling from the macro. Our goal is to continue reducing the correlation between our results and Peruvian GDP. We will do this by further expanding the share of retail business across our portfolio and leveraging low financial product penetrations in our markets.
We will increase focus on non-interest income expansion and on gaining share in transactions by incorporating adjacent businesses, which generate new avenues for payment growth, such as ticketing or marketplaces, among other initiatives. As a result, we expect to continue on our path of growth and profitability. Second, strengthening our competitive moats. By becoming increasingly digital and data-driven, building client engagement and stickiness through an exceptional UX based on a deep understanding of each client's behavior and preferences, we will optimize our efficiency as we continue to invest in digital capabilities. Experience and efficiency are fundamental pillars for all our lines of businesses. Also, by bolstering our parenting advantage, we are attracting and developing the best talent and becoming a tech and data-driven organization, while leveraging synergies to expand market access and distribution channels.
We will continue to disrupt ourselves to make sure we're not disrupted by others, innovating with discipline as we shape the financial product and customer experience of the future. Lastly, increasing focus on sustainability. You can expect us to continue strengthening governance and transparency while pursuing social impact initiatives, such as financial inclusion and financial education, building the workforce of the future as we further develop digital talent profiles, and helping businesses to grow. As of 2023, we will fully develop our environmental program and expect to have an increasing influence on our clients and communities to deepen their sustainability efforts. As the leading financial group in Peru, we intend to play a key role in financing the energy transition.
Together with our senior management team today and all of the team at Credicorp, who share the goals and commitments we have highlighted before you this morning, I would like to thank you all for joining us, and hope to see you soon again. Thank you so much. Listo.