Financial Health and Inclusion
Sustainability and financial health are the strategic priorities of Garanti BBVA. We prioritize promoting inclusive growth and financial inclusion/health under these strategic priorities. This commitment statement shows the bank's vision and strategic goals and emphasizes its commitment to inclusive growth and financial inclusion/health. In this context, we take actions to facilitate access to the financial system for everyone and to ensure the financial empowerment of vulnerable groups. Garanti BBVA commits to offer useful and affordable financial products & services and non-financial supports to meet vulnerable groups’ needs.
As Garanti BBVA , we take into account “vulnerable customers” definition as follows: A vulnerable customer is someone who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care. The definition is also align with Guidance for firms on the fair treatment of vulnerable customers that published by Financial Conduct Authority. The main criteria taken into account in the definition of vulnerable groups are income, location and background characteristics of individuals and/or enterprises.
In this context, we have set specific thresholds for Turkey in the "Standard for Financing Sustainable Activities" document of BBVA, our main subsidiary, which covers the whole group including Garanti BBVA operations. These thresholds are categorized under 5 main headings: Income thresholds, Microbusiness threshold, SME's Women Owned Companies Thresholds, Collective Vulnerable Thresholds and Geographic thresholds. The bank has also defined threshold values for specific vulnerable target groups. These definitions are done for unbanked women, young people and Individuals with health conditions or impairments. All these definitions are integrated into the bank's sustainability governance structure.
By adhering to these thresholds;
- We develop special products and services to facilitate financial access for disadvantaged and vulnerable groups and aim to ensure equal participation of all in the economic development process.
- In particular, we contribute to the economic activities of small businesses operating in provinces with the lowest socio-economic development level, which we have identified in the geographical threshold.
- We develop programs and trainings to encourage vulnerable groups to enter business life.
We design and improve special products and programs to meet the needs of vulnerable groups identified at these thresholds. While identifying target groups, products and program, we listen to external parties, NGOs, market researches, clients feedbacks, the voice of the field and the guidance of business lines and develop solutions according to needs and expectations. One of the pillars of our sustainability strategy is make a positive impact. The bank develops collaborations with external parties on financial inclusion and financial literacy. Thus, the bank expands its sphere of influence and expands its products and non-financial support for targeted vulnerable groups.
Financial health refers to the ability of individuals and communities to make informed financial decisions and to be resilient to economic fluctuations. In this context, within the scope of non-financial support;
- We organize financial literacy trainings to ensure that individuals are informed about financial matters.
- We guide our customers on saving, budgeting and debt management.
- We help our customers look to the future with confidence by providing financial solutions and insurance services for emergencies.
- We provide training to our employees in the field of sustainability. Financial inclusion and financial health are also on the agenda of the trainings. In addition to the training given to all employees, employees, including business lines are responsible for sales, are trained on vulnerable groups, threshold values, and the bank's specific products in this field, through advanced level training.
The BBVA Group, the Bank’s principal shareholder, doubled its sustainable financing target from EUR 100 billion it declared in 2018 to EUR 200 billion in 2021 in parallel with its climate change and sustainable development strategy aligned with the Paris Agreement. Being already ahead of its goals in 2022, the BBVA Group revised the 2025 goal for a second time, tripling the original amount to EUR 300 billion. This pledge is intended to contribute to the joint global combat against climate change, encourage inclusive growth where all segments are involved in the process, and share the benefit derived in line with the goal of bringing the age of opportunity to everyone. Having stated that it would contribute increasing amounts of financing in parallel with the BBVA Group’s sustainable finance target initially and later pledged that it would allocate funds totaling TL 150 billion, Garanti BBVA updated its target to provide funding for financing sustainable activities between the years 2018 and 2025 for combating climate crisis and for sustainable development as TL 400 billion in 2023. In the 2018-2023 period, the total amount of resources allocated by the Bank to the financing of sustainable activities reached 120 billion TL. Finance to defined vulnerable customers is also reported under our sustainable finance target as social. Adhering to all these set thresholds, related teams in the bank report and track progress on Sustainability green and social KPIs and activities on a monthly basis. This report includes information on the inclusive growth mobilization and KPI development, as well as the quantitative figures of the products linked to the social thresholds created by the bank. This KPI reporting and monitoring is done taking into account the principles and steps set out in the document "Procedure for the definition, use and application of the Sustainable Activities Standard and consideration for the Sustainable Business Mobilization KPI".
We are aware that the complaint mechanism plays a critical role in Financial Inclusion. We are committed to continuously improving our services with client-centered products & services approach by listening to our customers' experiences, feedback and complaints. We are aware that establishing a grievance mechanism is crucial to ensure that our financial services are accessible, fair and reliable for everyone and to increase public confidence in the financial system. Please click here to Our customer care commitment. Our main objective is to ensure that our communication with customers is in line with their needs and expectations in terms of language, tone, content, frequency and time. With the Service Provision Procedure for Customers with Disabilities and Customers Over 70, we carry out efforts to facilitate access to financial solutions for our customers with disabilities and we gather these efforts under the umbrella of Disabled-Friendly Banking. Under this umbrella, we provide trainings to increase the knowledge and awareness of our employees. We develop the services offered at our branches, ATMs and web pages within the framework of legal regulations on disability and accessibility. Garanti BBVA conducts initiatives that contribute to physical and financial freedom of disabled customers and facilitate their access to service from branches and Paramatiks through Disabled- Friendly Banking. The accessibility of Paramatiks for visually impaired customers was enhanced, and credit card debt payments can now be done from the visually impaired menu.
The issues of inclusive growth and financial inclusion/health are discussed and decided by the Bank's Sustainability and Responsible Banking Committee in the presence of senior management. The Sustainability and Responsible Banking Committee Procedure clearly states our aim to ensure long-term prosperity both in the financial sector and in the wider global community. Garanti BBVA also declared that it supports vulnerable groups with its General Policy on Corporate Social Responsibility Policy. The bank aims to improve their living conditions and reduce economic and social inequality in the societies in which the has a presence. Please click here for our General Policy on Corporate Social Responsibility. Responsible party of the policy is Board of Directors and the policy was approved by Garanti BBVA’s Board of Directors.