The Social Performance Report, presented today at a press conference in Bogotá, details the results of the progress made by its vulnerable entrepreneurs through financial services and training
Fundación Microfinanzas BBVA
Bancamía’s work goes beyond granting loans and opening savings accounts or selling insurance. The bank supports the progress of vulnerable entrepreneurs in a sustainable way, creating inclusive development opportunities so they can escape poverty through Productive Finance.
Through its Impact and Strategic Development Measurement department (MIDE), the BBVA Microfinance Foundation has created its own methodology for measuring the social well-being and development of its customers. The Foundation currently supports 1.8 million people with small businesses, improving their lives and those of their families.
The report presented today reflects the impact and the social performance of Bancamía, which like the other Microfinance Institutions of the BBVA Microfinance Foundation is included in the Foundation’s annual report. It measures the social performance of its activity, how its vulnerable entrepreneurs get ahead, their needs, their economic and social development, as well as the progress of their productive activity.
The Foundation’s CEO has recalled the words pronounced at Bancamía’s presentation ceremony in 2008 by its chairwoman María Mercedes Gómez Restrepo: Bancamía will focus its attention on great customers with small businesses. “And indeed, Bancamía customers have proved over time to be really great”, said Javier M. Flores.
Astrid Orjuela is a Colombian entrepreneur who managed to get ahead thanks to a small goat farming business. Today she attended the report’s presentation to talk about her experience with the bank and said that “Bancamía is concerned about people’s ideas for running their business and how we can grow. They back you, they support you: they give you peace of mind”. She is yet another example of how the bank contributes to the progress of entrepreneurs.
At the end of June 2016 Bancamía served 813,037 people, granting 980 loans a day, 122 an hour, for an average amount of USD 1,285. 72% of its customers are vulnerable, i.e. with profit from their micro-enterprises less than three times the poverty line, and 44% come from rural areas. Two years after joining the bank, 28% of customers manage to escape poverty.
“With a clear understanding of the economic and social reality of the region, in 2007 we wanted to go further and this is why BBVA Group decided to set up the BBVA Microfinance Foundation, a non-profit organization that seeks to support development from banking itself, providing resources for very small businesses, those we cannot serve through traditional banking, in other words, productive credit that creates wealth and employment in all the countries”, said Óscar Cabrera, chairman of BBVA Colombia, at the presentation of the social performance report at BBVA Colombia’s headquarters.
Bancamía helps its customers with financial literacy and training and has trained 164,334 customers and 8,207 non-customers during 2015. It offers a customized service model and provides advice to its customers during the different stages of their productive activities (administration, financial management of their businesses, adaptation of facilities or costs of materials).
“All our loans are responsible because we never give our customers more than they can pay back. We want credit to generate development and this is why it is granted responsibly. The term credit comes from trust, credibility”, said María Mercedes Gómez, executive president of Bancamía.