Open Letter to the Public
ueno bank responds to a sustained series of publications and states that allegations of non-compliance are unfounded and do not reflect the facts.
Over the past two years, ueno bank has been the subject of a series of recurring publications by Grupo ABC that have systematically questioned the bank’s actions and, more recently, scrutinized its investments in technology.
These publications have sought to create the impression of alleged irregularities based on comparisons, interpretations, and hypotheses that neither establish any breach or non-compliance nor reflect the facts.
ueno bank recognizes the essential role of a free and independent press and the public’s right to be informed. The bank believes in rigorous journalism that verifies its sources and clearly distinguishes between established facts, interpretations, and hypotheses. Scrutiny is an essential part of journalism; however, statements presented as fact must be properly substantiated—a standard these publications have failed to meet.
ueno bank operates under high standards of transparency and disclosure. It is the only financial institution in the country with securities listed on international markets, has secured funding from more than 15 multilateral and development finance institutions (DFIs), is externally audited by PwC, and holds BB/Stable international credit ratings from Standard & Poor’s and Fitch Ratings. In addition, its shareholders include OTP Bank Plc, a global financial institution.
Trust also builds a stronger country
In this context, information concerning the financial sector requires particular care, given the sensitivity of the industry and the fundamental role that trust plays in its proper functioning. It is therefore essential that information published about financial institutions be accurate, balanced, and presented with the necessary context. Inaccurate, imprecise, or biased information can affect not only confidence in an individual institution, but also perceptions of Paraguay’s financial system and of the investments that contribute to the country’s development within the region.
This is even more significant for a country that has achieved investment-grade status—a distinction attained by relatively few countries and a milestone for all Paraguayans. Preserving that trust is a shared responsibility, because perceptions of our financial system are also part of Paraguay’s image and its ability to attract opportunities on the global stage.
In response to this situation, ueno bank formally requested that Grupo ABC’s management rectify and clarify the inaccurate statements, exercising its right of reply as protected under Article 28 of the National Constitution. Although a subsequent publication referred to the communication submitted by the bank, it was not given the same prominence or treatment as the publications that prompted the request for rectification, nor was it accompanied by a clarification of the information provided by ueno bank so that the claims could be properly assessed against the facts. The bank therefore considers it necessary to bring the facts directly to the attention of the public.
The facts behind our technology investment
Grupo ABC has questioned the scale of ueno bank’s technology investment by comparing the G. 761.444 billion recorded under “Intangible Assets – Systems” with the balances reported by nine other banks. However, each institution operates at a different scale, with distinct business models and technology requirements. Comparing these balances in isolation therefore provides no basis for determining whether an investment is excessive or irregular.
The media outlet has also compared this figure with a G. 136 billion proposal to implement a core banking system at BNF. These investments differ substantially in scope. A core banking system is only one component of a bank’s technology infrastructure. For an institution whose operations are primarily digital, such as ours, that infrastructure also encompasses transaction processing, cloud services, cybersecurity, biometrics, digital onboarding, payments, and customer service channels.
In this regard, ueno bank is proud to be the bank that invests the most in technology for its customers. Over the past 18 months, the bank has invested US$120 million in technology, with significant investment concentrated during this period to build the capabilities required to support the bank’s long-term growth and evolution. This infrastructure supports more than 3 million customers and over 70 million transactions every month—the highest transaction volume of any bank in the financial system. Comparing the cost of a core banking system with technology infrastructure of this scale and scope therefore does not constitute evidence that the figures reported by ueno bank are “inflated” as the article suggests.
The media outlet has also suggested that ueno bank sought to circumvent the application of Resolution SB.SG. No. 00105/2024 by recording its systems under account 337004 rather than under subaccount 337005, “Major Investments.” However, the applicable accounting treatment is determined not solely by the amount invested, but also by the nature and useful life of each asset. Regulatory authorization is required when the amortization period exceeds five years, which is not the case for ueno bank’s investments.
The publications have further suggested that ueno bank may have improperly capitalized maintenance, support, upgrade, or remediation expenses. Yet they fail to identify a single specific item, category, or amount that would substantiate such a claim.
A similar situation arose in Grupo ABC’s reporting on funds belonging to the Instituto de Previsión Social (IPS). The outlet portrayed the matter as an alleged irregularity and preferential treatment benefiting ueno bank, even suggesting that the rules had been changed specifically to accommodate the institution. However, IPS subsequently stated that there was no resolution from the Superintendency of Pensions determining that the applicable regulations had been breached. It also clarified that alignment with the regulatory criteria applied to all 14 financial institutions with which it operates, under the same parameters.
For all of these reasons, ueno bank categorically rejects the use of comparisons between institutions with different business models, interpretations of accounting records, or unsupported hypotheses to create the impression that irregularities have occurred.
The bank also rejects any attempt by private interests to interfere with open and transparent competition within Paraguay’s financial system. All market participants must be able to compete on a level playing field, without any economic interest taking precedence over the right of Paraguayans to have greater choice, broader access, and better financial services.
Banking for more Paraguayans
For ueno bank, this discussion goes beyond a technology investment or the reputation of a single institution. It is also about what technology can make possible for Paraguayans. Today, millions of people can open an account from their mobile phones, verify their identity through biometrics, transfer money, make payments, save, apply for a loan, and access financial services more easily. This helps remove barriers and brings new financial tools within reach of broader segments of the population.
That is why this discussion extends beyond the bank itself. Calling into question, without evidence, the investment underpinning this transformation means casting doubt on a model that has enabled 1.2 million Paraguayans to access a bank account for the first time and that today provides financial services to more than 3 million people, including more than 31,000 individuals under the age of 18, more than 542,000 young people between the ages of 18 and 25, and more than 255,000 adults over the age of 60, as well as more than 300,000 micro, small, and medium-sized enterprises (MSMEs).
ueno bank is committed to helping Paraguay build a financial system that lives up to the country’s potential: modern, competitive, and inclusive, with the ability to turn innovation into greater access and opportunity for everyone.
Paraguay needs a financial system that expands access, promotes competition, and supports the growth of individuals, entrepreneurs, and businesses. ueno bank will continue investing in technology and innovation to advance that goal: building more modern and inclusive banking, creating more opportunities for Paraguayans, and contributing to the country’s continued development.
Sincerely,
Board of Directors of ueno bank
The paraguayan bank for everyone.
Over the past two years, ueno bank has been the subject of a series of recurring publications by Grupo ABC that have systematically questioned the bank’s actions and, more recently, scrutinized its investments in technology.
These publications have sought to create the impression of alleged irregularities based on comparisons, interpretations, and hypotheses that neither establish any breach or non-compliance nor reflect the facts.
ueno bank recognizes the essential role of a free and independent press and the public’s right to be informed. The bank believes in rigorous journalism that verifies its sources and clearly distinguishes between established facts, interpretations, and hypotheses. Scrutiny is an essential part of journalism; however, statements presented as fact must be properly substantiated—a standard these publications have failed to meet.
ueno bank operates under high standards of transparency and disclosure. It is the only financial institution in the country with securities listed on international markets, has secured funding from more than 15 multilateral and development finance institutions (DFIs), is externally audited by PwC, and holds BB/Stable international credit ratings from Standard & Poor’s and Fitch Ratings. In addition, its shareholders include OTP Bank Plc, a global financial institution.
Trust also builds a stronger country
In this context, information concerning the financial sector requires particular care, given the sensitivity of the industry and the fundamental role that trust plays in its proper functioning. It is therefore essential that information published about financial institutions be accurate, balanced, and presented with the necessary context. Inaccurate, imprecise, or biased information can affect not only confidence in an individual institution, but also perceptions of Paraguay’s financial system and of the investments that contribute to the country’s development within the region.
This is even more significant for a country that has achieved investment-grade status—a distinction attained by relatively few countries and a milestone for all Paraguayans. Preserving that trust is a shared responsibility, because perceptions of our financial system are also part of Paraguay’s image and its ability to attract opportunities on the global stage.
In response to this situation, ueno bank formally requested that Grupo ABC’s management rectify and clarify the inaccurate statements, exercising its right of reply as protected under Article 28 of the National Constitution. Although a subsequent publication referred to the communication submitted by the bank, it was not given the same prominence or treatment as the publications that prompted the request for rectification, nor was it accompanied by a clarification of the information provided by ueno bank so that the claims could be properly assessed against the facts. The bank therefore considers it necessary to bring the facts directly to the attention of the public.
The facts behind our technology investment
Grupo ABC has questioned the scale of ueno bank’s technology investment by comparing the G. 761.444 billion recorded under “Intangible Assets – Systems” with the balances reported by nine other banks. However, each institution operates at a different scale, with distinct business models and technology requirements. Comparing these balances in isolation therefore provides no basis for determining whether an investment is excessive or irregular.
The media outlet has also compared this figure with a G. 136 billion proposal to implement a core banking system at BNF. These investments differ substantially in scope. A core banking system is only one component of a bank’s technology infrastructure. For an institution whose operations are primarily digital, such as ours, that infrastructure also encompasses transaction processing, cloud services, cybersecurity, biometrics, digital onboarding, payments, and customer service channels.
In this regard, ueno bank is proud to be the bank that invests the most in technology for its customers. Over the past 18 months, the bank has invested US$120 million in technology, with significant investment concentrated during this period to build the capabilities required to support the bank’s long-term growth and evolution. This infrastructure supports more than 3 million customers and over 70 million transactions every month—the highest transaction volume of any bank in the financial system. Comparing the cost of a core banking system with technology infrastructure of this scale and scope therefore does not constitute evidence that the figures reported by ueno bank are “inflated” as the article suggests.
The media outlet has also suggested that ueno bank sought to circumvent the application of Resolution SB.SG. No. 00105/2024 by recording its systems under account 337004 rather than under subaccount 337005, “Major Investments.” However, the applicable accounting treatment is determined not solely by the amount invested, but also by the nature and useful life of each asset. Regulatory authorization is required when the amortization period exceeds five years, which is not the case for ueno bank’s investments.
The publications have further suggested that ueno bank may have improperly capitalized maintenance, support, upgrade, or remediation expenses. Yet they fail to identify a single specific item, category, or amount that would substantiate such a claim.
A similar situation arose in Grupo ABC’s reporting on funds belonging to the Instituto de Previsión Social (IPS). The outlet portrayed the matter as an alleged irregularity and preferential treatment benefiting ueno bank, even suggesting that the rules had been changed specifically to accommodate the institution. However, IPS subsequently stated that there was no resolution from the Superintendency of Pensions determining that the applicable regulations had been breached. It also clarified that alignment with the regulatory criteria applied to all 14 financial institutions with which it operates, under the same parameters.
For all of these reasons, ueno bank categorically rejects the use of comparisons between institutions with different business models, interpretations of accounting records, or unsupported hypotheses to create the impression that irregularities have occurred.
The bank also rejects any attempt by private interests to interfere with open and transparent competition within Paraguay’s financial system. All market participants must be able to compete on a level playing field, without any economic interest taking precedence over the right of Paraguayans to have greater choice, broader access, and better financial services.
Banking for more Paraguayans
For ueno bank, this discussion goes beyond a technology investment or the reputation of a single institution. It is also about what technology can make possible for Paraguayans. Today, millions of people can open an account from their mobile phones, verify their identity through biometrics, transfer money, make payments, save, apply for a loan, and access financial services more easily. This helps remove barriers and brings new financial tools within reach of broader segments of the population.
That is why this discussion extends beyond the bank itself. Calling into question, without evidence, the investment underpinning this transformation means casting doubt on a model that has enabled 1.2 million Paraguayans to access a bank account for the first time and that today provides financial services to more than 3 million people, including more than 31,000 individuals under the age of 18, more than 542,000 young people between the ages of 18 and 25, and more than 255,000 adults over the age of 60, as well as more than 300,000 micro, small, and medium-sized enterprises (MSMEs).
ueno bank is committed to helping Paraguay build a financial system that lives up to the country’s potential: modern, competitive, and inclusive, with the ability to turn innovation into greater access and opportunity for everyone.
Paraguay needs a financial system that expands access, promotes competition, and supports the growth of individuals, entrepreneurs, and businesses. ueno bank will continue investing in technology and innovation to advance that goal: building more modern and inclusive banking, creating more opportunities for Paraguayans, and contributing to the country’s continued development.
Sincerely,
Board of Directors of ueno bank
The paraguayan bank for everyone.