1. Social Performance Standards
Micol Pistelli
MIX
2010 RBAP‐MABS Na.onal Roundtable Conference
Hya= Hotel and Casino, Manila
June 2‐3, 2010

2. Social Performance Standards
2010 RBAP-MABS NATIONAL ROUNDTABLE CONFERENCE, June 2, 2010
Micol Pistelli, Manager Social Performance Program, MIX

3. Overview
 How we can measure social performance?
 MIX’s experience with SP data collection
 Challenges faced by MFIs in reporting on SP
 MIX agenda on social performance in 2010

4. Performance is not incidental
Performance is not incidental
We can manage only what we explicitly
define and measure
Mission
 Need to define desired performance
 Need to measure results against
desired performance Social
Performance
Financial
Performance
Performance Management
4

5. The Social Performance Task Force (SPTF)
• In March 2005, CGAP, the Argidius Foundation, and the Ford Foundation
brought together leaders from various social performance initiatives in the
microfinance industry to come to agreement on a common social performance
framework and to develop an action plan to move social performance forward.
• he SP Task Force developed a common action plan that takes advantage of
T
the synergies between the different groups who are carrying out social
performance initiatives–primarily the Imp-Act Consortium, the CERISE group,
the Client Protection Principles work of the Center for Financial Inclusion and
CGAP, and the Social Performance Working Group of the SEEP Network.
Transparency
SPTF Improving Practice
Communication

6. How to measure social performance?
Internal
Mission systems and Outputs Outcomes
activities
- Relevant
The 22 indicators of MIX/SPTF:  - Useful
 - Possible to be validated
 - No confidential

7. Why should every MFI measure and report its social
performance?
- To best serve its clients needs
- To have a culture of social responsibility
- To improve both its financial and social
performance
- To have access to more resources from
donors and investors
- To improve industry’s transparency
- To compare its SP with its peers

8. Social Performance Indicators
Intent Internal systems/ Outputs Outcomes Impact
activities
[---------------------------- PROCESS---------------------------- - - -- ] [-------------------------------- RESULTS -----------------------------]
Q1–Mission & Q3–Range of Products and Q8– Social responsibility to Outreach
Social Goals Services clients Q11- Geographic outreach
Q2- Governance (financial & non-financial) Q9-Cost of services to clients Q12- Women outreach
Q4–Training of staff on Q10–Social responsibility to Q13- Clients outreach by
social performance staff lending methodology
Q5–Staff performance Q15 – Social responsibility to
Indicators
appraisal and incentives the community Outputs and outcomes
Q6–Market research on Q16–Social responsibility to Q17-Outreach by Products
clients the environment Q18–Employment creation
Q7–Measuring client Q19–Children in School
retention Q20–Poor clients at entry
Q14–Poverty assessment Q21–Clients in poverty
Q22–Clients out of poverty

9. MFIs that have reported on SPS to MIX in 2009
 Reporting
 The SPS report was sent on February 2009 to all MFIs registered on
MIX Market
 By the end of 2009, 208 MFIs had reported on SP indicators (41 from
Asia)
 5 MFIs from the Philippines reported (3 NGOs, 1 bank and 1
cooperative): ASKI, BANK OF CARAGA, CEVI, GATA DAKU, TSPI
 Results
 Individual MFI reports are available on MIX Market, along with social
ratings and related SP documents (example: Bank of Caraga)
 An aggregate excel database for analysis is available on MIX Market
 For early findings visit MIX SP Blog: www.spblog.org

10. Profileofof MFIs reporting
Profile the 208 MFIs reporting
Type of MFI
MFIs by Region
1
22 8 NGO
21 15 LAC
80 NBFI
106
41 ECA BANK
71
ASIA COOPERATIVE
51 MENA Other
Africa
Years of microfinance Number of Ac2ve Borrowers
opera2ons 54 52 ≤5000
≤3 years
16 5000‐25000
72 4‐8 years
48
35 25000‐50000
9‐13 years 67
50000+
72 14+ years

11. Overview of the 5 MFIs in the Philippines
 MISSION: All 5 MFIs reported having their mission focused on poverty
reduction, income growth, employment generation, growth of existing business
and women’s empowerment
 TARGET MARKET: All 5 MFIs have as target market women, urban and rural
clients
 GEOGRAPHIC OUTREACH: mainly rural (55%)
 WOMEN’S OUTREACH: above 77%, served by group-loan methodology
 DIVERSIFICATION OF FINANCIAL SERVICES: wide variety of credit services,
savings, insurance products and other services
 NON FINANCIAL SERVICES: all offer enterprise services, adult education and
women’s empowerment services

12. Staff incentives and policies on SR towards the clients,
community and environment
 STAFF INCENTIVES: All 5 MFIs have incentive schemes related to
areas such as attracting new clients from the institution’s target
market and maintaining portfolio quality .
 SR TO CLIENTS: several policies related to the 6 principles of the
SMART Campaign: 1) prevention of over-indebtedness,
2)Transparent and Responsible Pricing 3)Appropriate Collections
Practices 4)Ethical Staff Behavior 5)Mechanisms for Redress of
Grievances 6) Privacy of Client Data
 SR TO COMMUNITY/ENVIRONMENT: Most MFIs have informal
policies such as avoid credit for enterprises with negative social
value, promote transparency and anti-corruption, raise awareness of
client about environmental impacts

13. Global Challenges on reporting/data validation
 Poverty profile of clients (32% of MFIs could report this data. 20
MFIs used or are testing the PPI (3 from Philippines: ASKI, Gata Daku,
Bank of Caraga) and 8 PAT (1 from Philippines: CEVI)
 Progress out of poverty of clients (Philippines MFIs are starting
using PPI but data not reported yet)
 General lack of data worldwide on outreach about non financial
services, employment creation, but the MFIs in Philippines could
report these data. No data on children’s education in the Philippines,
despite one of main development goals
 External data validation: 31 MFIs sent a social rating (1 from
Philippines, ASKI), work in progress on social audit (investors need to
include SP in their due-diligence). Raising interest from MIVs in social
audit

14. MIX Agenda on SP Analysis
 Creation of peer groups to assess the alignment between
mission – internal activities - products and results
 Focus on social performance management and quality of
infomation reported (collaboration with IMP-ACT)
 Comparative analysis at regional level

15. MIX Research Agenda: Linkages between
Social Performance and Financial Performance
Analyzing the correlation between financial and social performance will help us to:
 Identify links to the MIX Global 100 and make recommendations for a set of new, more
comprehensive rankings; and
 Identify links between MFIs’ performance and product development.
Previous research carried out by MIX on financial performance helped us identify four
areas of financial performance and related indicators that are more likely to be affected
by SP outcomes. These areas include:
 Productivity: Borrowers per Staff and Savers per Staff
 Efficiency: Operating Efficiency (as % of Average Loan Portfolio) and Cost per Borrower
as % of GNIPC
 Portfolio Quality: PAR30 & Write-off Ratio
 Profitability: Return on Average Assets (ROA)

16. MIX agenda on social performance standards in 2010
• New data collection started: MIX will collect SPS reports until
September 2010
• ata analysis: First draft available at the SPTF meeting in Bern in
D
July
• trengthening data validation process
S
• nclusion of social performance data in MIX Market
I
• Change of the diamonds of transparency system
• log on social performance indicators in English, Spanish and
B
French: www.spblog.org

17. Thank you!
For more information about MIX Social Performance Program
please contact:
Ms. Micol Pistelli at mpistelli@themix.org
And visit our website: http://www.themix.org/standards/social-performance
For more information about the SPTF, visit:
http://www.sptf.info/
http://www.microfinancegateway.org/p/site/m/template.rc/1.11.48260/

18. MICROFINANCE INFORMATION EXCHANGE, INC.
The leading provider of business information and data services for the
microfinance industry.
Web: www.themix.org
Email: info@themix.org
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1901 Pennsylvania Ave., NW, Suite 307
Washington, D.C. 20006 USA
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