10 July 2012 – Mexico City Empowerment & Aspirations 1

FINCA defines social performance as: 1. Expanded access to financial services, primarily among underserved, low-income people and communities; 2. Increased employment and incomes; 3. Improved living standards; 4. Empowerment and the achievement of personal aspirations among our clients and in their families; 5. Acting responsibly and equitably towards all stakeholders, and the communities of which we are a part

Conceptual Framework 3 Community Family Personal Business Financial Decision-making Relationships With Others Choices/Control of Destiny Perception of Self Empowerment Achievement of Aspirations EMPOWERMENT AND ASPIRATIONS

Areas of Empowerment Choices/control of Destiny Self-determination Social self-reliance Economic self-reliance Dependence on others with more power Aspirations Expectations of improvement in status Expectations of future income Achievement of Aspirations Achievement of business- related goals Achievement of personal goals Decision-making Ability to make decisions Dependence others with more power Social self-reliance Economic self-reliance Relationship with others Use of networks and social support systems Status within family Status within community Family conflict/domestic violence Perception of self Feeling of dependence Anxiety and vulnerability Self-esteem/self-confidence Sense of entitlement/self worth 4

Nicaragua Proof of Concept

Observations: Client Voices Focus group with young women: who makes us feel big, the same, or small? Who or what makes you feel more or less empowered? EMPOWERMENT AND ASPIRATIONS

Life Event Questionnaire What changes have you made in the last loan cycle? EMPOWERMENT AND ASPIRATIONS

Nicaragua Pilots Test

One Framework: Three Tools Empowerment & Aspirations Two simple questions Coded response options Used in all loan applications Goals & Aspirations Twelve questions on economic change Applied at conclusion of loan cycle Collected by Cashier or SPO Economic Change Life-cycle Calendar Interviews Analyze connections & drivers Understand FINCA’s role Empowerment

Loan Application Questions 1.¿Do you have a special goal you want to achieve this year? Mark the option square.  Examples ☐ 1.Diversify my business "Put a new stall in the market" "Sell a new product" ☐ 1.Save for emergencies “To protect myself from unforeseen medical expenses” ☐ 1.Stabilize my income “Be able to cover my household expenses” ☐ 1.Grow my business "Sell more tortillas" “Get more regular clients" ☐ 1.Have a house of my own “Become independent” “Get married, leave my parents’ house” ☐ 1.Improve my home "Fix the roof" "Buy a bigger house" ☐ 1.Go work in another country "Migrate to the United States” "Get a job in Costa Rica" ☐ 1.Buy something for my family "Change the furniture” "Buy clothes for my kids" ☐ 1.Pay my kids’ education "Send my daughter to school" "Buy books for my grandchildren" ☐ 1.Pay my family’s medical bills "Pay a surgery, buy glasses" "Buy medicine" ☐ 1.Be a leader in my community "Participate in church" "Join the neighborhood commitee" ☐ 1.Train or study “Get training in my profession” “Finish high school” ☐ 1.Improve health, lose weight “Eat healthier” “Exercise, lose weight” ☐ 1.Stop working, retire “Close my business to spend more time with my family” ☐ 1.Other

End-of-Loan Questions 1.¿Buy additional inventory for your business? Yes No 1.¿Buy new equipment for your business? Yes No 1.¿Have more or less sales than before? ¿Or the same as usual? More + Less – Same = 1.¿Make improvements to your home? Yes No 1.¿Buy something special for your family or home? Yes No 1.¿Spend more or less money on food than before? More + Less – Same = 1.¿Spend more or less on education costs for your children? More + Less – Same = 1.Pay any medical expense for yourself? Yes No

Final Question

14 Stage 1 Research, Proof of Concepts and Initial Tool Pilots Stage 2 Large Scale Pilots, Tool Refinement, Documentation Stage 3 Network Implementation and Analytics PlanningCompleted Stage II & III Empowerment & Aspirations

Significant Conclusions Adding essential questions to existing processes eased data collection Research builds image of FINCA as a supportive figure, interested in clients, and not just an intermediary for financing Clients may take advantage of such questions as a moment of reflection and increase the satisfaction from their efforts and success The information to be collected should be useful to expand or improve FINCA services with a greater focus on needs. Empowerment & Aspirations