Making Finance Responsible:
Assessing Social Performance of
Microfinance Institutions
The role of the Microfinance Associations
Network Meeting – SPTF – Jordan 2012
Microfinance knowledge exchange network focused on Ethical and Responsible Finance
Core members: five French organizations specialized in microfinance
Partners: MFIs, networks, donors, researchers, and investors in Africa, Latin America and Asia
Themes: impact and social performance, rural and agricultural finance, governance.
www.cerise-microfinance.org
CERISE
ProsperA network
PROmotion of Social PERformance – an Alliance initiated by CERISE and its partners
Over 70 members (Dec. 2011) Networks from Africa, Asia and Latin America MFIs TA providers from Europe Social investors
www.cerise-microfinance.org
Introductions & Expectations
SPI, a social audit tool for MFIs Developed since 2000 with MFIs & partners
Full assessment of social performance Identify strengths & weaknesses Communicate Compare to peers (CERISE database)
Fully aligned with Mix Market (automatic) Integrates standards of the sector (CPP,USSP, Seal…) Free access to SPI and guide (with info to Cerise) Widely used in the MF sector by Networks, TA
providers, Investors
Who uses SPI?Background to SPI
MFIsOver 500 SPI audits in CERISE/ProsperA database
(about 400 MFIs)
MFI NetworksBenchmarking SP, standardized
reporting, MIS
Social Investorsway to dialogue with partners,
raise awareness of SP
LAC: Foro Lac Fr & its members (RFR,
Finrural,…) Africa: AFMIN mb, CIF Asia: SPTF WG, MCPI
Oikocredit, Kiva, Grameen-Crédit
Agricole, AFD/Proparco,
GoodReturn, etc
Transparency, capacity-building and advocacy on Social Performance Main challenge for credibility and sustainable growth of the sector
Key role of the networks See the Decision Tree for networks / SEEP support to MFA
Social assessment as an entry point for SP Strategy
Rich experience of the networks so far Foro Lac Fr in Latin America (started SPI audits in 2007) CIF in West Africa + AFMIN in Africa Asian networks launching SPI audits
Part One: Basic details on the MFI, Profile, Social Strategy, Financial performance, Governance
Part Two: 70 Social Performance Indicators Dimension 1: Targeting and Outreach Dimension 2: Products and Services Dimension 3: Benefits to Clients Dimension 4: Social Responsibility
Content of QuestionnaireThe SPI tool
Each dimension is broken into 3 criteria and has 16-19 questions for a
total of 25 points
Standards of use of SPI Principles: the SPI charter The SPI tool: always use the latest version Process: the SPI Operational guidelines
The steps for internal/external – Centralised/participatory The process for verification and quality control
The staff: knowledge about SPI/ Links with Cerise – ProsperA (updated on training, tools, experiences, etc.)/ Certification
Reporting: Individual report/ national analysis + report data to Cerise/ProsperA database (peer group)
Internal self-assessment (+/- 3hours) or external audit
Centralized (top management) or participatory approach (different stakeholders and levels of the MFI)
1-3 day process (centralized) / 4-6 day (participatory)
The SPI tool
Methodological options
Context and strategies
• Rural, women business sector• Mature MFI• Previous crises in MF sector
(i.e: over-indebtedness, mission drift) has pushed social agenda forward
SPI results• Strong and balanced performance
• Range of services and Benefits to clients can be improved
The SPI tool
Example of results: A participatory MFI
0%
20%
40%
60%
80%
100%
Targeting the poor and excluded
Adaptation of services
Benefits to clients
Social responsibility
0%
20%
40%
60%
80%
100%Geographic Targeting
Individual targeting
Pro-poor methodology
Range of traditional services
Quality of servicesInnovative and non
financial servicesEconomic benefits
Client participation
Empowerment
SR towards staff
SR towards clients
SR towards community and environment
Cerise Data base: Comparing MFI
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%Geographic targeting
Individual targetingMethodological
targeting
Range of financial services
Quality of servicesInnovative&non-financial services
Economic benefits for clients
Clients’ participation
Empowerment
SR towards staff
SR towards clients
SR towards community
Average of + Yes + SPI3 + Bolivia (12 MFIs)
Average of + CRECER 2008 SAEA (1 MFIs)
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
Targeting / Outreach
Adaptation of services
Benefits for clients
Social responsibility
Average of + Yes + SPI3 + Bolivia (12 MFIs)
Average of + CRECER 2008 SAEA (1 MFIs)
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%Geographic targeting
Individual targetingMethodological
targeting
Range of financial services
Quality of servicesInnovative&non-financial services
Economic benefits for clients
Clients’ participation
Empowerment
SR towards staff
SR towards clients
SR towards community
Average of + Yes + SPI3 + Bolivia (12 MFIs)
Average of + CRECER 2008 SAEA (1 MFIs)
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
Targeting / Outreach
Adaptation of services
Benefits for clients
Social responsibility
Average of + Yes + SPI3 + Bolivia (12 MFIs)
Average of + CRECER 2008 SAEA (1 MFIs)
No_Redit Yes No_Redit (Tous)SpiGene SPI3 SpiGene (Tous)EvalType (Tous) EvalType (Tous)SPI Evaluation (Tous) SPI Evaluation CRECER 2008 SAEACountry Bolivia Country (Tous)Region (Tous) Region (Tous)ForPro-NonForPro (Tous) ForPro-NonForPro (Tous)GouvType (Tous) GouvType (Tous)ZoneInterv (Tous) ZoneInterv (Tous)Target Market (Tous) Target Market (Tous)Outreach (Tous) Outreach (Tous)Scale (Tous) Scale (Tous)Age (Tous) Age (Tous)FinancialIntermediation (Tous) FinancialIntermediation (Tous)TypeInterv (Tous) TypeInterv (Tous)
Select results from an evaluation or a group of evaluations from your
database
Select other results from an evaluation or a group of evaluations
from your database
Criteria 1: Choose the country(Ex: Bolivia)
Criteria 2: Choose the MFI(Ex: Crecer)
Examples of the role of the Networks
CIF in West Africa: Assessment & Management
2008, training on SPI + Set up a Reference Group (12 managers, 2 by members) 2009: Peer reviews using the SPI tool. 2010, Define an Action plan:
reach more family agriculture => overview of practices increase outreach to women & vulnerable gp improve savings services better use of surpluses => work in progress set up a social performance M&E and impact
assessment system => see reports + dashboards
SPI Training
Ag practices
Social report
SPI Social report
Peer Review
Workshops Field work
CIF - Continued 2011, focus on two areas:
financial services for rural development and family farms
Consumer protection. Early 2012, the six cooperatives applied the
Smart Campaign’s self-assessment tool, A full-blown assessment of members’
practices is expected to take place later in 2012 through peer reviews coordinated by CERISE.
Workshops Field work
Social Report
Smart self assessment
CPP Peer Review
CPP
Agriculture
Social Reports
From SPI to Social Dashboards
Value-added of the Networks Knowledge of the members (accurate
assessment, also linked to peer control) Economies of scale (improving capacities to
conduct audits, capacities to work over time on action plans)
Member-focused agenda: advocacy (e.g. RFR), capacity-building / strategic decisions (e.g. CIF), transparency (e.g. Finrural, Amucss)
Services for the members
More informations…
CERISE website: www.cerise-microfinance.org
Contact CERISE:[email protected]
SPI Wiki Pagehttp://spiwikiv3point3.pbworks.com
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