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Measuring what really matters

Posted By Nicolás Díaz Ferro, BBVA, Tuesday, June 26, 2018

Following up on prior work, the BBVA Microfinance Foundation has published its 2017 Social Performance Report.

The results continue to be encouraging: more than 80% of new clients served are in economic vulnerability,  which reflects BBVAMF Group’s permanent commitment to serve vulnerable entrepreneurs. 

In addition, clients’ businesses continue to grow consistently over time: their net incomes grow at an average yearly rate of 16% and their assets 24%.

However, for low-income entrepreneurs, income levels are as important as stability over time. Entrepreneurs served by the Group are frequently exposed to variations in their economic status which may result in their entering and coming out of poverty more than once. 50% remain in their economic vulnerability segment (they are stable), while 22% cross the poverty line at least twice (they are volatile) and 23% overcome poverty. Precarity and instability are intrinsic to their situation: they are more exposed to shocks and to the idiosyncrasies of the markets where they operate. 

BBVAMF supports and contributes to the development of these vulnerable entrepreneurs’ skillset, so that they can make good progress, improving their current and future standard of living through their productive work and effort. All the merit of any success the clients may have in their endeavors, however small, is entirely theirs.

However, there  is great potential to continue advancing in the understanding of the performance of the vulnerable entrepreneur to better address their needs. These factors are critical to keep up the success in fulfilling the Group's mission.

The ultimate goal is for these people’s progress to be sustainable and as broad and wide-ranging as possible, having an impact on the various dimensions of their economic and social development. The Microfinance Foundation recognizes the magnitude of the challenge that poverty alleviation and financial inclusion mean. In recognition of this challenge, numerous actors must be involved, and joint public and private efforts need to be made.

The BBVA Microfinance Foundation

The BBVA Microfinance Foundation was set up in 2007 by BBVA, as part of its corporate social responsibility to use its more than 150 years of experience to support vulnerable people with productive activities to improve their lives.

It has consolidated a Group of six microfinance institutions that serve over 1.9 million people in five different countries (Colombia, Peru, Dominican Republic, Chile and Panama).

The Group’s gross portfolio is USD 1.1 billion and it signed off more than USD 10 billion in loans to vulnerable entrepreneurs (2007-2017). With over 500 offices and 8,000 employees, it has become a philanthropic institution with one of the greatest social impacts in Latin America, the first operator with proprietary methodology in the region.

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