Measuring Social Performance An Introduction to MIX’s SP Program May 3, 2013

1. Measuring Social PerformanceAn Introduction to MIX’s SP Program May 3, 2013

2. Contents of the Presentation

3. MFI Regulators Raters What is MIX? MIX Basics MFI Networks Donors and Investors 3

4. What Makes a Good SP Indicator? MFI MFI Regulators Raters • Relevant • Easy to collect • Verifiable by third parties • Publicly available MFI Networks MFI Networks Donors and Investors

5. MIX’s SP Indicator Categories • Mission and social goals • Governance • Range of products and services • Client outreach by lending methodology • Borrower retention • Social responsibility to clients • Transparency of costs of services to clients • Human resources and staff incentives • Employment creation and enterprises financed • Social responsibility to the environment • Poverty outreach

6. MIX Indicators Align with SPTF Standards 5 MIX indicators UNDER CONSTRUCTION ! 5 MIX indicators 9 MIX indicators 2 MIX indicators 4 MIX indicators

7. Market Coverage* of SP Reporters (FY11) *Market coverage = % of all FY11 active borrowers on MIX Market served by MFIs that have reported SP profile data (total FY11 active borrowers on MM = 94M)

8. Do MFIs View MF in Terms of Poverty Reduction?

9. Do MFIs Track Outcomes Related to their Goals? *Proxy outcome indicator (women’s empowerment services outreach)

10. Focus on Poverty Data FY11 PPI Data (restricted to countries with more than one MFI reporting) *Source: World Bank (most recent year available) • 161 MFIs have reported at least one year of client poverty data and 78 have reported FY11 poverty data • The most common measurement methods used for reporting are the PPI, PCH income, and custom poverty scorecards • Only 6 MFIs were able to report how many of their clients moved out of poverty in FY11

11. Concluding Remarks • Social performance reporting to MIX is becoming the norm and a set of industry standards for SPM do exist • Poverty reduction remains one of the most popular social goals of MFIs; however, MFIs cite financial inclusion even more frequently (except in S. Asia and SSA) • Systematic tracking and reporting of social outcomes leaves much to be desired, meaning that claims about microfinance’s impact and potential remain largely anecdotal

12. MIX Global and Project Partners MIX partners with a dedicated group of industry leaders:

13. Microfinance Information Exchange Headquarters: 1901 Pennsylvania Ave., NW, Suite 307 Washington, D.C. 20006 USA Visit us on the Web: www.themix.orgwww.mixmarket.org Contact us: info@themix.org Interested in learning more about MIX? Sign upto receive our free e-mail newsletters! Find us on Facebook Follow us on Twitter:@mix_market Regional Offices: Baku, Azerbaijan 44 J. Jabbarli st. Caspian Plaza I, 5th Floor, Baku, Azerbaijan Lima, Peru Jirón León Velarde 333 Lince, Lima 14, Perú Rabat, Morocco Immeuble CDG Place Moulay Hassan BP 408 Rabat Morocco Hyderabad, India Road #12, Landmark Building, 5th Floor, Banjara Hills, Hyderabad 500034, India