Productive Responsible Finance
Foundation’s metholodogy: Productive Responsible Finance
In the BBVA Microfinance Foundation, we work to promote sustainable and inclusive economic and social development of the most disadvantaged people, through what we call “Responsible Finance for productive activities”, our speciality and methodology, where financial products and services are provided to support our clients´ productive activities.
An activity that we carryout through our eight microfinance institutions in seven countries in Latin America.
Responsible Finance for productive activities is a concept that we have developed and modelled in the Foundation, considering it the most effective and sustainable path in the fight against poverty.
This is shown by the data of the World Bank, according to which 77% of people who break through the poverty line did so thanks to individual initiative, financial exclusion being the main brake.
But not all finances produce development. The financial access intended for non-productive activities does not directly generate development.
The finances that really produce development are the ones that support entrepreneurs’ productive activities, and allow returns to be made, all costs to be covered and generate a profit.
This accumulation of surpluses is what allows people to escape poverty and is the leitmotiv of the Foundation.