- The 2015 Social Performance Report contains a summary of the activities of the BBVA Microfinance Foundation (BBVAMF) in the seven Latin American countries, where it works with vulnerable people to help them rise out of poverty by supporting their small businesses.
- Tim Adams, President and CEO of the Institute of International Finance (IIF), opened the event, in which the social impact results achieved by the Microfinance Institutions of the BBVAMF were announced. This report has become a benchmark for good practices in the microfinance sector.
The 2015 Social Performance Report “Measuring what really matters” was presented at the Institute of International Finance (IIF), the global association of the financial industry, which is also involved in financial inclusion initiatives worldwide. The event was attended by representatives from organizations and institutions in the development sector.
The BBVAMF was represented by Claudio González Vega, chairman of the Board of Trustees, Javier M. Flores, the Foundation’s CEO, and the institution’s social impact measurement team. Flores highlighted that “we work to create value for our customers –low-income entrepreneurs who run small businesses. Our experience has shown us that Productive Finance is the best way to help these people rise out of poverty in a sustainable way”.
The Foundation offers entrepreneurs a model of personalized service. It makes visits to their businesses and homes and advises them throughout the whole process (administration, financial management, adaptation of their facilities, and costs of production and materials).
Key data from the 2015 Social Impact Report. Measuring what really matters
- 32,5% of the entrepreneurs supported by BBVAMF ceased to be poor after two years with the Foundation, and three years later, their sales increase by 57%. 83% of its customers are poor or vulnerable (they have an average income of 3.54 dollars a day, and their activity generates a net per capita income of less than three times the poverty threshold in their country). 61% are women.
- Since its creation in 2007, the BBVAMF has delivered loans for a total of 7.2 billion dollars to almost 5 million vulnerable entrepreneurs, thus improving the lives of almost 7 million people.
Of the 1.7 million people it currently serves, 917,186 have loans with one of the BBVAMF’s eight microfinance institutions. It is currently one of the leading philanthropic initiatives in terms of social impact in Latin America.
30% live in rural areas and 47% have primary education at best. 57% are engaged in the retail trade (crafts, mobile food stalls, dressmaking and others).
The progress of these small entrepreneurs is particularly significant. The sales of the customers that remain with the BBVAFM grow at an annual rate of 16%, and 30% for assets.
The Foundation has a unique and differential model with two strategic lines of activity: the creation of a group of sustainable microfinance institutions, and the development of initiatives that promote the transformation of the microfinance sector.
The United Nations has recognized its contribution to meeting the Sustainable Development Goals (ODS) aimed at eradicating poverty, gender inequality and decent work and economic growth.
Leading institutions in the sector attended the presentation of the report.
Present at the event were Brigit Helms, General Manager of the Multilateral Investment Fund (FOMIN); Alessandro Maffioli, Director of Impact Measurement at the Inter-American Investment Corporation; Francisco Olivares, Executive Director for the Promotion of SMEs and Micro-enterprises; Momina Aijazuddin, Head of Microfinance at IFC; Michael Schaeffer, Business Development Director at The Economist Intelligence Unit; Maria May, Senior Manager for the Microfinance and Social Innovation Laboratory at BRAC; Laura Foose, Executive Director, of the Social Performance Task Force; Susy Cheston, Senior Advisor at the Center for Financial Inclusion at Accion; Isabelle Barres, Director of Smart Campaign; and Josh Denney, Director of Public Affairs at BBVA Compass.
There was also a representation of the main institutions in the sector: IDB, MIF, IIC, World Bank, IFC, CAF, CGAP, Grameen, Microvest, United Nations Capital Development Fund, Omidyar, SPTF, SEEP, Microcredit Summit Campaign, State Bank of India and S&P or the Embassy of Spain among others.
About the Institute of International Finance
The Institute of International Finance is the global association of the financial industry, with close to 500 members from 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. IIF members include commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks.