2. Session Objectives
1. Trainees will learn why Kiva cares about Social
Performance
2. Trainees will learn how SP is defined and utilized within
the microfinance industry
3. Trainees will learn about Kiva’s strategy for Social
Performance
3. Mission of reaching the poor, but…
• No use of targeting
tools
• Inappropriate product
offerings
• No measurement of
progress out of poverty
• No focus on client
protection
5. Unaligned Incentives
• Sole focus on small
loans or client
retention
• Emphasis on
financial return /
social return
marginalized
• Aligning client needs
and funder interests
8. The effective translation
of an institution’s
mission into practice
in line with accepted social values
Social Performance - Definition
SOCIAL PERFORMANCE TASK FORCE
9. These values can relate to:
Reaching target market
Delivering high-quality and appropriate financial services
Responding to the needs of clients, their families, and communities
Ensuring responsibility toward its employees, its clients, the
community it serves, and the environment
What is Social Performance?
SOCIAL PERFORMANCE TASK FORCE
10. These values can relate to:
Reaching target market Targeting and Outreach
Delivering high-quality and appropriate financial services
Products and Services
Responding to the needs of clients, their families, and communities
Benefit to Clients
Ensuring responsibility toward its employees, its clients, the
community it serves, and the environment
Social Responsibility
What is Social Performance?
SOCIAL PERFORMANCE TASK FORCE
11. What is the state of the MF industry in regards to
social performance monitoring & auditing?
12. Social performance in Microfinance
• Social Audits: Quality Assessment tool, CERISE SPI tool
• Social Ratings: Planet Rating, MicroRate, M-Cril, Microfinanza
• Social Performance Management: Imp-Act Consortium
• Poverty Assessment Tools: Progress out of Poverty Index™
(PPI) , USAID Poverty Assessment Tool (PAT)
• Client protection: Center for Financial Inclusion SMART
Campaign
• Advocacy: Social Performance Taskforce, CGAP Social Impact
Center
13. • SMART Campaign Client Protection Principles
– Avoidance of Over-indebtedness
– Transparent and Responsible Pricing
– Client Rights and Appropriate Collection Practices
– Ethical Staff Behavior
– Mechanism for Redress of Grievances
– Privacy of Client Data
Do No Harm
14. What is Kiva’s strategy?
• Measuring
– CERISE Social Performance Indicators
• Verifying
– Borrower Verification
– Client Waiver
– Endorsement of Client Protection Principles
• Communicating
– Educating Kiva users
– Core Justifications for Partnership
– Journal updates on borrowers
15. Core Justifications for Partnership
• Fund unique offerings
• Reward unique
offerings
• Expand access to
microcredit
$25
$25
Where does my Kiva $ go?
Internal for now
Timeframe is pilot till dec end
Then if all goes well training to partners/internal and roll out
We will use ovreall rating internally at first
Plan to have external rating by the end of 2010
Borrowers
Who are the MFI borrowers?
Where do they live?
Are they moving out of poverty?
Products and services
Are clients happy with the MFI products?
Does the MFI provide non financial services?
Benefits to clients
Does the MFI empower its clients?
Does the MFI address its clients special needs?
Social Responsibility
Is the MFI adopting measures that support its staff, clients, community and the environment?
Internal for now
Timeframe is pilot till dec end
Then if all goes well training to partners/internal and roll out
We will use ovreall rating internally at first
Plan to have external rating by the end of 2010
Borrowers
Who are the MFI borrowers?
Where do they live?
Are they moving out of poverty?
Products and services
Are clients happy with the MFI products?
Does the MFI provide non financial services?
Benefits to clients
Does the MFI empower its clients?
Does the MFI address its clients special needs?
Social Responsibility
Is the MFI adopting measures that support its staff, clients, community and the environment?
Internal for now
Timeframe is pilot till dec end
Then if all goes well training to partners/internal and roll out
We will use ovreall rating internally at first
Plan to have external rating by the end of 2010
Borrowers
Who are the MFI borrowers?
Where do they live?
Are they moving out of poverty?
Products and services
Are clients happy with the MFI products?
Does the MFI provide non financial services?
Benefits to clients
Does the MFI empower its clients?
Does the MFI address its clients special needs?
Social Responsibility
Is the MFI adopting measures that support its staff, clients, community and the environment?