BBVA has launched its Global Financial Education Plan through 2025 with the aim of training one million people and reaching 50 million people who access BBVA content on this subject. The plan, which will be implemented in all countries where BBVA is present, has three lines of action in financial education: society, business support and collaboration.
BBVA is launching this plan as part of European Money Week and Global Money Week, which are being held this week. BBVA's Global Financial Literacy Plan follows the recently published European Commission and OECD financial literacy framework for adults in the European Union and adds to the bank's adherence to the global commitment promoted by the United Nations to promote financial inclusion and financial health.
Financial education: a key tool for BBVA's strategic priorities
BBVA believes in the potential of financial education as a key element for improving people's financial health and contributing to the transition towards a more sustainable economy, both of which are strategic priorities for the bank.
Therefore, it has launched this plan that reflects the importance of financial education for the bank, an education that BBVA Chair Carlos Torres Vila considers “essential to promote sustainable and inclusive growth”.
The plan reflects the integration of financial literacy within BBVA's Community Commitment 2021 -2025 and has three focus of action.
- Financial education for society
The idea is to drive the development of financial education programs in all countries where BBVA is present. The objective is to provide its beneficiaries with financial skills to foster financial inclusion and health, generate resilience and promote sustainable development and investment. It also seeks to provide digital financial skills with a special focus on specific groups, SMEs, entrepreneurs and financially empower society in general.
- Financial education to support business
This involves the development of specific training activities for customers to promote responsible financial inclusion, avoid financial exclusion, help improve financial health, promote sustainable behavior and favor transition.
Among the training actions aimed at customers to help them align their financial decisions with environmental and social preferences include practical tools for calculating their carbon footprint, which in turn teaches them how to reduce this footprint and their own energy costs.
- Financial education to foster collaboration
The cooperation of all stakeholders is essential to achieve a more sustainable and inclusive society. BBVA seeks to promote the importance of financial education and cooperation between organizations and within the sector through collaboration with external stakeholders, the development of cross-cutting projects with other areas of BBVA and the dissemination of financial education.
Some examples of activities within this line of action are BBVA's Center for Financial Education and Capability and local alliances such as UNAM and BBVA in Mexico.
BBVA's commitment to financial education
BBVA's commitment to financial education isn’t anything new. In 2008, the bank launched its first Global Financial Education Plan; from then on until 2021, it has offered financial knowledge and skills training programs in all the countries where it is present.
To date, 16.5 million people have participated in BBVA workshops and more than 32 million have accessed financial education content available via digital platforms. During this period, BBVA has invested more than 94 million euros in financial education programs around the world and more than 5,000 BBVA employees have volunteered in financial education programs.
A girl participates in the program Leer es estar adelante of BBVA in Peru.
Over the course of these days, aimed at promoting financial education around the world, BBVA's Director of Social Programs and Head of the Global Financial Education Program, Lidia del Pozo, will take part in a talk organized by Junior Achievement in Argentina as part of GMW, on the importance of financial education, which will take place on March 21. More information and registration can be found via this link.
Lidia del Pozo will also take part in an online event organized by the European Banking Federation on March 24, in which she will talk about the role of banks in the development of financial skills in capital markets. Those interested in following the event can register via this link.
Helping to improve financial health
The latest OECD survey reveals that the overall level of financial literacy is low. 40% of people are concerned about their financial situation, but only one third of the population understands basic concepts such as simple and compound interest. 28% of people say that their financial cushion would allow them to cover expenses for a week if they lost their main source of income.
Knowing how to manage finances and developing skills in this area is important for people to be able to manage their day-to-day lives, control their financial situation and meet their short-term needs hassle-free through financial services and products. Moreover, financial education builds resilience, as it increases the capacity to face financial crises, helps to meet objectives and generates confidence.
An example of the bank's commitment to help improve financial health is the new section on its corporate website, which now includes more than a hundred sections with information and advice on how to better manage personal and family finances.
Promoting the transition to a sustainable future
Financial literacy raises people's awareness of the problem of climate change in society, integrates sustainability into their financial decisions and democratizes access to sustainable finance. It also contributes to greater consumer safety and protection and enables everyone to be part of the shift towards sustainability by mobilizing capital from small savers to environmental and social solutions.
Encouraging inclusive growth
World Bank figures reveal that 31% of the adult population, some 1.7 billion people, do not have a basic bank account as they live in a vulnerable and impoverished environment that hinders their financial inclusion.
Financial education is a powerful tool that promotes inclusive growth and facilitates responsible financial inclusion. This knowledge is vital to make the world more socially sustainable because vulnerable people, when they receive basic financial literacy, can more easily access the financial system and opt for better opportunities.