Report on BBVA Microfinance Foundation’s Contribution to Sustainable Development Goals at FFD4 Conference

Since its inception in 2007, the BBVA Microfinance Foundation (FMBBVA) has supported over 6 million low-income entrepreneurs across five Latin American countries by disbursing more than $21 billion in loans. These entrepreneurs, often facing socioeconomic vulnerability, require targeted financing and support to overcome poverty, directly contributing to the achievement of the Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth).

FFD4 Conference: Accelerating SDG Implementation through Global Financing

The Fourth International Conference on Financing for Development (FFD4), organized by the United Nations, convened governments, multilateral organizations, financial institutions, the private sector, and civil society. The conference’s primary objective was to establish a new global financing framework aimed at accelerating the implementation of the SDGs. In a global context marked by stagnation in poverty and hunger reduction, the conference emphasized the need for concrete solutions to mobilize more and better resources for sustainable development, aligning with SDG 1 (No Poverty) and SDG 2 (Zero Hunger).

Innovative Models for Greater Impact on Vulnerable Entrepreneurs

Stephanie García Van Gool, Director of Impact Measurement and Strategic Development at the BBVA Foundation, highlighted the critical role of innovation in delivering comprehensive solutions beyond traditional financing. During the session titled ‘Philanthropic Financing as a Catalyst for Development,’ she emphasized the Foundation’s commitment to addressing the multidimensional needs of the most vulnerable populations, supporting SDG 1 (No Poverty), SDG 3 (Good Health and Well-being), and SDG 4 (Quality Education).

• The FMBBVA is the first private entity to adopt Oxford University’s multidimensional poverty measurement methodology, utilized by over 100 countries, to design tailored financial products and services.
• This approach addresses not only income deficiencies but also gaps in training, security, and basic sanitation, contributing to SDG 6 (Clean Water and Sanitation) and SDG 11 (Sustainable Cities and Communities).
• Innovative products include affordable health insurance and specific loans for home improvements such as toilet installation and replacing earthen floors with healthier materials.

Technology as a Driver for Financial Inclusion

Gabriela Eguidazu, Director of Innovation and Inclusive Growth at the BBVA Foundation, presented at the session ‘The Role of Banking in Financing Inclusive Economies,’ organized by the United Nations. She detailed the Foundation’s innovative use of technology and data to ensure vulnerable entrepreneurs are included in the digital transformation of business management, supporting SDG 9 (Industry, Innovation, and Infrastructure) and SDG 10 (Reduced Inequalities).

1. Implementation of mobile banking with advanced features such as biometric authentication and instant transfers.
2. Utilization of generative artificial intelligence to enhance personalized support and advisory services for entrepreneurs.
3. Application of advanced data models to develop highly personalized value propositions tailored to individual entrepreneur needs.
4. Provision of open and free online educational platforms to improve digital literacy and entrepreneurial skills, advancing SDG 4 (Quality Education).

Gender Inclusion and Feminist Financing Approaches

Within the FFD4 framework, the BBVA Microfinance Foundation co-organized an event with the United Nations Development Programme (UNDP) and the Government of Colombia. The Foundation also participated in the seminar “Financing Development with a Feminist Approach: Counting on Women.” Laura Fernández Lord, Head of Sustainability, Equity, and Inclusion at BBVAMF, underscored the importance of integrating a gender perspective in financing strategies, noting that 63% of entrepreneurs holding loans with the Foundation are women. This commitment aligns with SDG 5 (Gender Equality) and promotes inclusive economic growth.

1. Sustainable Development Goals (SDGs) Addressed

1. SDG 1: No Poverty – The article discusses financing low-income entrepreneurs in vulnerable socioeconomic situations to overcome poverty.
2. SDG 5: Gender Equality – Emphasis on women entrepreneurs, with 63% of loan recipients being women, highlights gender inclusion.
3. SDG 8: Decent Work and Economic Growth – Supporting entrepreneurs to grow their businesses and improve livelihoods relates to promoting sustained economic growth and productive employment.
4. SDG 9: Industry, Innovation and Infrastructure – Use of technology, mobile banking, AI, and data models for financial inclusion reflects innovation and infrastructure development.
5. SDG 10: Reduced Inequalities – Targeting vulnerable populations and addressing multidimensional poverty contributes to reducing inequalities.
6. SDG 3: Good Health and Well-being – Introduction of affordable health insurance and sanitation improvements addresses health and well-being.
7. SDG 4: Quality Education – Online educational platforms to strengthen digital literacy and entrepreneurial skills relate to quality education.

2. Specific Targets Under Those SDGs

1. SDG 1 – Target 1.2: Reduce at least by half the proportion of men, women and children living in poverty in all its dimensions.
2. SDG 5 – Target 5.a: Enhance the use of enabling technology, in particular information and communications technology, to promote the empowerment of women.
3. SDG 8 – Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation.
4. SDG 9 – Target 9.c: Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet.
5. SDG 10 – Target 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
6. SDG 3 – Target 3.8: Achieve universal health coverage, including financial risk protection and access to quality essential health-care services.
7. SDG 4 – Target 4.4: Increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.

3. Indicators Mentioned or Implied in the Article

• Number of low-income entrepreneurs served: Over 6 million entrepreneurs have been supported, indicating outreach and inclusion.
• Total loans disbursed: More than $21 billion in loans, reflecting financial support volume.
• Percentage of women entrepreneurs receiving loans: 63% of loan recipients are women, measuring gender inclusion.
• Use of multidimensional poverty measurement: Application of Oxford University’s methodology implies measurement of poverty beyond income, including access to training, security, and sanitation.
• Access to innovative financial products: Availability of affordable health insurance, sanitation loans, and mobile banking services with biometric authentication.
• Utilization of technology and digital literacy platforms: Deployment of AI, mobile banking, and online education platforms to enhance skills and inclusion.

4. Table of SDGs, Targets, and Indicators

Source: bbva.com