View
224
Download
0
Embed Size (px)
Citation preview
8/9/2019 SPM and MIS - Microfinanza
1/27
MIS in Social Performance
ManagementMarco Boa
Asia Regional Manager
Beyond MicrocreditA Wholistic Approach to Poverty Eradication
MCPI, 29th and 30 th July 2010
8/9/2019 SPM and MIS - Microfinanza
2/27
MicroFinanza Rating Brief Profile
8/9/2019 SPM and MIS - Microfinanza
3/27
Who we are
Private and independent rating agency specialized in microfinance and ruralfinanceRating agency registered in the IADB Rating and Assessment Fund and in theADA Microfinance Rating and Assessment InitiativeHeadquarters are in Milan (Italy) with 6 offices in 4 continents
Ecuador: covering Latin AmericaNicaragua : covering Central AmericaMexico: for Mexican MFIsKenya: covering AfricaKyrgyz Republic: covering NISand Central AsiaPhilippines : covering Asia
3
8/9/2019 SPM and MIS - Microfinanza
4/27
Market coverage
More than 550 evaluations in 60 countriesLARGEST MARKET SHARE in 2007 according to the last ADA-KPMG RatingMarket Outlook Report 2008MicroFinanza Rating has pioneered the social rating for microfinanceinstitutions, developing an innovative methodology which include the
direct collection of client-level data ( 55 SR conducted so far ).
16
1425
33
53
85
125
140
2001 2002 2003 2004 2005 2006 2007 2008 2009
4
8/9/2019 SPM and MIS - Microfinanza
5/27
Social Performance Management
How to measure?
8/9/2019 SPM and MIS - Microfinanza
6/27
Social Rating
6
It provides an opinion on the capacity of an MFI to put its socialmission into practice and to achieve its social goals.It is based on an in-depth analysis of an MFI social performance
management system and social responsibility and an evaluation of itsresults
External and independentQuantitative and qualitative
Objective
ComparableStand-alone or coupled with financial rating
8/9/2019 SPM and MIS - Microfinanza
7/27
Social Rating vs Impact Study
7
Social rating does not measure impact; rather, itanalyzes the objectives , systems and results of
the Rural Bank, before the impact that thesemay have on clients.
SOCIAL RATING and IMPACT STUDY are :complementary toolsdesigned to respond to different needs .
SOCIALRATING
An impact study measures the change in theliving conditions of one population due to the
action of Rural Bank.
IMPACTSTUDY
8/9/2019 SPM and MIS - Microfinanza
8/27
MicroFinanza Ratings Approach
8
COMPREHENSIVE SOCIAL RATING
Collection of clients level information:submission of a questionnaire
focus group discussion with clients
Deeper Analysis:Indicators about clients socio-economic profileFeedback from clients aboutsatisfaction/dissatisfaction
STANDARD SOCIAL RATING
Data available at institutionallevel
Proxies
Differences can be more or less relevant depending on theeffectiveness and reliability of the SP monitoring system of the MFI
8/9/2019 SPM and MIS - Microfinanza
9/27
MicroFinanza Rating Social Rating
9
DIMENSION SUB-DIMENSION
SOCIAL PERFORMANCEMANAGEMENT SYSTEM
Social Mission, Objectives and Strategy, Governance
MIS and Social performance tracking and monitoringsystem
Alignment of the operational systems to the mission (HR,Internal control, product design)
SOCIAL RESPONSIBILITYSR towards the clients (including consumer protection)
SR towards the staff
SR towards the community and the environment
OUTREACHOperational areas
Target reached
QUALITY OF THE SERVICE
Variety of the service
Appropriateness to clients needs and client satisfaction
Non-financial services
8/9/2019 SPM and MIS - Microfinanza
10/27
MIS and Social Performance
Feedback from Social Rating
experience
8/9/2019 SPM and MIS - Microfinanza
11/27
Trend in the sector
11
Potential g level of information for social performance tracking
MFIs collect information through ad hoc surveys/studies
MFIs often do not systematize and integrate the information through the
MIS
MFIs still focused on using social information for external use and less for
internal decision making
The MIS is not adequate to track and monitor the progress towards the
mission
8/9/2019 SPM and MIS - Microfinanza
12/27
MIS and Social Performance
Information generation
8/9/2019 SPM and MIS - Microfinanza
13/27
Social Goals vs. MIS
13
SG 1: Reaching targets clients SG 1: Poverty assessment whenrelevant in the mission
SG1: Client profile (socio-economicindicators relevant to the misision)
SG 2: Client satisfaction assessment
SG 2: Client retention
SG 3: Tracking of changes in clientstatus, depending on the mission
Social information system anddecision making
SG 3: Creating change
SG 2: Meetings clients needs
8/9/2019 SPM and MIS - Microfinanza
14/27
Process
14
Clients
LoanOfficer
MIS
Decisionmaking
8/9/2019 SPM and MIS - Microfinanza
15/27
MIS and Social Performance
Challenges and Benefits
8/9/2019 SPM and MIS - Microfinanza
16/27
Challenges
CostBusiness Model vs. MISSelection of indicators to be monitoredConsolidation of the information
16
8/9/2019 SPM and MIS - Microfinanza
17/27
Benefits
Systematization of social information not only contributes to measuresocial performance, but also has positive impacts on the financialperformance:
Client retention
Product design (new or already existing market niches)
Staff turnover
Risk management (control environment)
17
8/9/2019 SPM and MIS - Microfinanza
18/27
MIS and Social Performance
Examples
8/9/2019 SPM and MIS - Microfinanza
19/27
Case study: MFI A
19
System to classify clients according to their level of capitalisation:1. Type 1: fixed capitalUS$20,000the systematic collection and monitoring of this information is noteworthy and is justified by
the mission objective of increasing the clients level of capitalization.
BEST PRACTICES:Poverty level of clients is periodically assessed through poverty assessmenttools (PPI, etc.). Ideally, the tool should be applied to all entering clients and
also to the clients who exit.Other features of the socio-demographic and economic profile of clients are
monitored to specifically track the progress towards achieving the targetprofile identified in the mission.
BUT : targets in terms of number of clients per each category are not clearly fixed atbranch level, and it is said that capital is not a sufficient criteria to define the povertyprofile of clientspoverty profile of clients is not systematically assessed
Information integrated in the MIS: FDL
8/9/2019 SPM and MIS - Microfinanza
20/27
Case study: MFI B
20
PPI Pilot: June - October 2008 5.200 clients 7 branches Active clients (cycle 1 to 5)
Legal Form NGO
No. clients (mar09) 56,452
Outstanding portfolio (mar09) 8,716,689
No of branches 21
Area of intervention Urban, rural
Credit methodology Individual, solidarity group
Results of PPI pilot:
Recent clients below national poverty line
Possible reasons of discrepancy: PPI changed in 2009 (not fullycomparable); sample only covers region 3 (not region 1 and 2); risk inquality of output due to high LO work overload and PPI targets
Higher poverty among new clients (29%) than repeated clients (cycles 2-5: 25%-26%; >5: 22%)
Plan to extend to all branches (on a census or sampling basis) and
regularly included into the MIS.
The use of the PPI: ASKI
8/9/2019 SPM and MIS - Microfinanza
21/27
Case study: MFI C
21
No. loans by clients age
25-6589%
15-2410%
66+1%
47% 53%83%
17%1%
80%
19%1%
R
e f u g e e
R e s i d e n t
M a l e
F e m a l e
D i v o r c e d
M a r r i e d
S i n g l e
W i d o w
No. loans by gende r, re fugee and marital status
High quality of data in MIS: indicators updated at eachloan cycle; breakdowns available.
Challenges : externally oriented reporting, analysispotential for decision making not exploited.
No. and avg. amount of loans by cycle
0
100
200
300
1 2 3-4 5-6 7-8 9-10 11-16
17-22
-1,0002,0003,0004,000
no. avg. amount
No. and avg. amount of loans by sector
0
5001,000
1,500
2,000
A g r i c u l t u
r e
C o m m e r c
e
I n d u s
t r y
S e r v i c e
s
C o n s u m
p t i o n
H o u s i n g
0
20004000
6000
8000
no. avg. amount
Introducing the SPM in the MIS
8/9/2019 SPM and MIS - Microfinanza
22/27
MIS and Social Performance
How the Social Rating can contribute
8/9/2019 SPM and MIS - Microfinanza
23/27
Social Rating INPUT for the MIS
Especially through the Comprehensive Social Rating alist of indicators is disclosedThe use of the PPI can be a first PILOT tool tomeasure the clientele poverty profileFor those MFIs which have already integrated the PPIor other poverty measurement tools, the SR canplays an audit role
The process of clients interview and data collectioncan be a good example on how to replicate thisparticular phase of information generation
23
8/9/2019 SPM and MIS - Microfinanza
24/27
Example of Indicators (1)
24
Area: Social Responsability
From the MIS
Female Staff Female Staff in the Management Staff turnover ratio Portfolio yield Real Portfolio yield
From the Comprehensive SR
Financial Awareness (interest rate,service charges, etc Clients with additional credit Clients who paid debts with credit(past) .
8/9/2019 SPM and MIS - Microfinanza
25/27
8/9/2019 SPM and MIS - Microfinanza
26/27
How to define indicators from dataavailable at MIS level
26
Social goal
Reach poor
Reachvulnerable
Client loyalty
Improve living
conditions
Average per capita household expenditure (=HH expenditure / HH members);
% households with per capita expenditure below the national poverty line % illiterate clients Average dependency index (total number of dependents / total HH members)
Relevant indicator calculated with data in the MIS
% Households with Cement house walls by loan cycles
Average variation in the saving balance between loan cycles
% clients in loan cycle 3 and more
Data auditis a pre-
conditionto the use
of data
8/9/2019 SPM and MIS - Microfinanza
27/27
Contacts
Thank you!!!
Our MANILA office:
Unit 34 Cattleya Gardens, 111 C. Palanca St.,Legazpi Village, 1229 Makati City
Phone: +63 2 8173767
Mobile: +63 (0)9183500821Email: [email protected]
wwwmicrofinanzaratingcom info@microfinanzaratingcom 27
mailto:[email protected]://www.microfinanzarating.com/mailto:[email protected]:[email protected]://www.microfinanzarating.com/mailto:[email protected]