Related Resources

Understanding the Demand for Financial Products among the Female Youth of Central Java
MicroSave has conducted an exploratory market research to understand the needs of the youth (age group 15 to 30) for financial products (and some non financial services) required to increase employability (including people who wish to start their own enterprises). This report contains...
16.62 MB
Download
Social Performance Management in India: Seeking a Market-led Approach
Social Performance Management (SPM) - putting mission into practice - is increasingly relevant to the Indian microfinance sector, which may be on the brink of a 'perfect storm': a push for high growth and expansion coupled with growing over-indebtedness of clients, increasing...
131.12 KB
Download

Integrating Social Performance Management into Governance of MFIs

Author: Matt Leonard, Veena Yamini A.
Published: August 22, 2010

Abstract:

MicroSave has worked with Imp-Act to integrate a social lens into its Governance training. MicroSave SPM diagnostics have increasingly been focussing on the role of governance structures in managing the growing financial and social risks since in view of the global financial crises and the oft repeated criticism of MFIs being primarily commerce-driven ventures. Structural/functional features which skew the balance in favour of commerce have emerged from such studies: - Board composition of an MFI, particularly of an MFI transforming from a non-profit to a for-profit endeavour may be focused on having experience and expertise in financial rather in social aspects - MIS not incorporating social performance assessment indicators - Lack of periodic reviews of 'achievement of mission' which clearly states organisational purposes - Lack of involvement and motivation of staff, including appropriate performance reviews and incentives towards social performance MicroSave's SPM recommends stakeholder involvement - especially clients' or representatives of clients' in strategic decisions, through periodic client consultative group meetings; informal feedback from field staff or other forums and regular client and employee feedback (grievance systems, market research, client committees and customer satisfaction surveys, etc.). It also recommends effective designing of motivation packages for staff as well as putting in place client protection measures for preventing over-indebtedness, fraud, abusive collections, client privacy along with other aspects.

Tags: Loan collection practices , Customer satisfaction surveys , MicroSave , BN90 , BN 90 , Social objectives , Mission drift , UNDP , Social performance indicators , Client protection , Overindebtedness , SPM diagnostics , Microfinance institution

0 Comment
0 Likes Like
223.16 KB
Download

Leave a Comment