Founded in 2007 to help people in poverty and vulnerable situations, the BBVA Microfinance Foundation has disbursed more than US$20 billion in financing. It operates in five countries and in Peru it does so through Financiera Confianza. Javier Flores, CEO of the BBVA Microfinance Foundation, provides details of the work they do.
How has the well-being of the target population evolved?
The last few years have been very difficult in the region. We have lived through a period of multiple crises. There have been health crises, climate crises that are recurring more and more frequently, and social crises arising from social tensions and political instability.
What has been the impact of these crises?
All of this has caused the region to regress in terms of poverty and inequality. The latter is the cause of many of the social tensions. This is reflected in the data we have on our entrepreneurs.
Over the past 12 years, you have been producing impact reports based on your clients’ data. How has this helped you?
This information has helped us a lot to build a value proposition to address those deprivations or shortcomings that we see at home. We have developed products to prevent and cover climate risks, as well as home improvements. This is because, if we finance home improvements, the quality of life of entrepreneurs will improve and we are making progress in that direction.
What products have they financed, for example?
We have financed the construction of bathrooms in homes. If we talk about human development indices, dignity and the fact that every human being has the right to a minimum standard of living, this type of financing is important. And we do it without losing focus on our core, which is financing businesses. We try to see what happens in homes and develop products and services to address the deprivations of our entrepreneurs.
Are people with access to the financial system better off than those outside it?
Yes, for several reasons. When you formalize an entrepreneur, you are putting him on the path to becoming a visible citizen from all points of view. That person is building a positive credit history that will allow him to enter the financial system of large banks.
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