1. Making Finance Responsible: Assessing Social Performance of Microfinance Institutions The role of the Microfinance Associations Network Meeting – SPTF – Jordan 2012

2. CERISE www.cerise-microfinance.org
Microfinance knowledge exchange network focused on Ethical and Responsible Finance
Core members: five French organizations specialized in microfinance
Partners: MFIs, networks, donors, researchers, and investors in Africa, Latin America and Asia
Themes: impact and social performance, rural and agricultural finance, governance.
Additional talking points:
CERISE groups together microfinance actors from around the world. CERISE developed the SPI tool, but SP is not CERISE’s only area of expertise. For more information, visit the website: cerise-microfinance.org
Handouts: presentation CERISE 2

3. ProsperA network Introductions & Expectations
PROmotion of Social PERformance – an Alliance initiated by CERISE and its partners
Over 70 members (Dec. 2011)
Networks from Africa, Asia and Latin America
MFIs
TA providers from Europe
Social investors
Additional talking points:
CERISE spearheaded the ProsperA network. PropersA’s fifty members account for over 5 million clients.
For more information on ProsperA, please visit CERISE’s website
Handouts: presentation ProsperA (newsletter)

4. SPI, a social audit tool for MFIs
Developed since 2000 with MFIs & partners
Full assessment of social performance
Identify strengths & weaknesses
Communicate
Compare to peers (CERISE database)
Fully aligned with Mix Market (automatic)
Integrates standards of the sector (CPP,USSP, Seal…)
Free access to SPI and guide (with info to Cerise)
Widely used in the MF sector by Networks, TA providers, Investors

5. Who uses SPI? Background to SPI MFIs
Social Investors
way to dialogue with partners, raise awareness of SP
MFI Networks
Benchmarking SP, standardized reporting, MIS
Oikocredit, Kiva, Grameen-Crédit Agricole, AFD/Proparco, GoodReturn, etc
LAC: Foro Lac Fr & its members (RFR, Finrural,…)
Africa: AFMIN mb, CIF
Asia: SPTF WG, MCPI
MFIs
Over 500 SPI audits in CERISE/ProsperA database
(about 400 MFIs)
Additional talking points
SPI is used by MFIs as a self-assessment tool.
Social investors use the SPI to check on the investee performance, to make investment decisions and to promote social performance among investees. Some of them use it as a basis for defining support on capacity building to improve SPM.
MFI Networks also use SPI to create benchmarks for their network affiliates, to help standardize their reporting and to help develop MIS that include social indicators.
As of September 2011, CERISE/ProsperA have a database with the results of about 450 SPI audits representing 350 MFIs

6. Transparency, capacity-building and advocacy on Social Performance
Main challenge for credibility and sustainable growth of the sector
Key role of the networks
See the Decision Tree for networks / SEEP support to MFA
Social assessment as an entry point for SP Strategy
Rich experience of the networks so far
Foro Lac Fr in Latin America (started SPI audits in 2007)
CIF in West Africa + AFMIN in Africa
Asian networks launching SPI audits

7. Content of Questionnaire
The SPI tool
Content of Questionnaire
Part One: Basic details on the MFI, Profile, Social Strategy, Financial performance, Governance
Part Two: 70 Social Performance Indicators
Dimension 1: Targeting and Outreach
Dimension 2: Products and Services
Dimension 3: Benefits to Clients
Dimension 4: Social Responsibility
Additional talking points:
+ Not an impact analysis
+ content= questionnaire + guide (Wiki page)
The questionnaire has two parts.
Part One gathers descriptive information on the MFI, its context and its social strategy. Basic financial information is also collected here. They are key to balance SP and FP information, to make sure that FP are not forgotten, to be included in CERISE’s database to conduct statistical analysis on the links between SP and FP.
Part Two gathers data on the Social Performance Indicators themselves. The indicators are broken down into four dimensions (read slide). Each of these four dimensions is broken down into three criteria of about 15 indicators each.
Handouts: SPI Questionnaire
Each dimension is broken into
3 criteria and has questions for a total of 25 points

8. Standards of use of SPI Principles: the SPI charter
The SPI tool: always use the latest version
Process: the SPI Operational guidelines
The steps for internal/external – Centralised/participatory
The process for verification and quality control
The staff: knowledge about SPI/ Links with Cerise – ProsperA (updated on training, tools, experiences, etc.)/ Certification
Reporting: Individual report/ national analysis + report data to Cerise/ProsperA database (peer group)
The version of SPI has come with Standards of Use.
These Standards of Use formalize the application of SPI audits.
They are designed to orient users, strengthen quality control and enhance the clarity and credibility of the results disseminated.
Any SPI user must agree with this standards before implementing it and sign the charter which gathers the terms and conditions of SPI.
Among the requirements :
Before implementing the SPI, make sure to use the latest version available on CERISE website and wiki page
The implementation must follow the SPI Standards of Use – available on CERISE wiki page
The user should have sufficient knowledge of the tool – the wiki page is a reliable and update source of information. The user should also keep in touch with CERISE to receive feedbacks, and useful material
When finalized, the user should make sure the MFI has the filled and complete questionnaire. Data are to be reported to Cerise, who will process them on a confidential basis, and be able to provide outputs (benchmark/peer group analysis) to the MFI.

9. Methodological options
The SPI tool
Methodological options
Internal self-assessment (+/- 3hours) or external audit
Centralized (top management) or participatory approach (different stakeholders and levels of the MFI)
1-3 day process (centralized) / 4-6 day (participatory)
Additional talking points:
There are two choices to make in terms of methodology.
The institution may opt to apply the questionnaire internally, effectively conducting a self-assessment, OR call on an external auditor to administer the questionnaire.
Next, the institution must decide whether to take a centralized approach, in which only top management would be consulted to fill in the questionnaire, or a participatory approach, which involves various stakeholders from all different levels of the MFI.
The centralized process is shorter, only 1-3 days needed. The participatory is longer—you need 4-6 days—and naturally more in depth.
Note to trainer:
Trainer may want to add a point under the first bullet that refers specifically to the audience. For example, “in the case of XYZ Institution, assessment could be carried out by ABC, under supervision of EFG.”

10. Example of results: A participatory MFI
The SPI tool
Example of results: A participatory MFI
Context and strategies
Rural, women business sector
Mature MFI
Previous crises in MF sector (i.e: over-indebtedness, mission drift) has pushed social agenda forward
SPI results
Strong and balanced performance
Range of services and Benefits to clients can be improved
This is an example of the results of an SPI audit, carried out by an MFI whose members participate in the governance structure. (cooperative model)
This institution is a mature MFI, operating in rural areas, and servicing women clients.
The MFI had to face previous crises which occured in the Microfinance sector, what has led it to work further to promote social performance.
The top graph shows results in the four dimensions.
The bottom gives a more detailed look of results for each criteria.
The SPI results give an overview of the strength and potential areas of improvement that have been identified by the actors conducting the audit:
A strong and balanced sociale performance
Weaknesses in diversification of services and Benefits to clients. 10

11. Cerise Data base: Comparing MFI
Criteria 2:
Choose the MFI
(Ex: Crecer)
Criteria 1:
Choose the country
(Ex: Bolivia)
The criteria chosen allow to compare the results of 1 MFI and those of all MFIs in the country 11

12. Examples of the role of the Networks

13. CIF in West Africa: Assessment & Management
SPI Training
2008, training on SPI + Set up a
Reference Group (12 managers, 2 by members)
2009: Peer reviews using the SPI tool.
2010, Define an Action plan:
reach more family agriculture => overview of practices
increase outreach to women & vulnerable gp
improve savings services
better use of surpluses => work in progress
set up a social performance M&E and impact assessment system => see reports + dashboards
Peer Review
SPI Social report
Ag practices
Social report
Workshops
Field work

14. CIF - Continued 2011, focus on two areas:
financial services for rural development and family farms
Consumer protection.
Early 2012, the six cooperatives applied the Smart Campaign’s self-assessment tool,
A full-blown assessment of members’ practices is expected to take place later in 2012 through peer reviews coordinated by CERISE.
Agriculture
Smart self assessment
Social Report
CPP Peer Review
CPP
Workshops
Field work

15. Social Reports
When the SPI tool is applied to a network of MFIs, the findings revealed for each member can be consolidated to build a social report.
This is a way to promote social performance and share good practices.

16. From SPI to Social Dashboards
This is an example of dashboard realized by a regional network of African cooperatives (fictive data, for illustrative purpose only). It is used for general assemblies of members and Boards of directors. It offers a common language for the whole network and gives the opportunity to follow key indicators of social performance.

17. Value-added of the Networks
Knowledge of the members (accurate assessment, also linked to peer control)
Economies of scale (improving capacities to conduct audits, capacities to work over time on action plans)
Member-focused agenda: advocacy (e.g. RFR), capacity-building / strategic decisions (e.g. CIF), transparency (e.g. Finrural, Amucss)
Services for the members

18. Contact CERISE: cerise@cerise-microfinance.org
More informations…
CERISE website:
Contact CERISE:
SPI Wiki Page