In 2012, the Social Performance Task Force published the Universal Standards of Social Performance Management. Created both by, and for, practitioners in the sector, these Universal Standards gather together a collection of good management practices which should enable financial service providers to accomplish their social mission. Since then, how have microfinance institutions appropriated these standards? In 2014, the social audit tool, SPI4, developed by Cerise, was fully aligned with these standards so as to allow financial service providers to assess their social performance management practices, to identify their strengths and weaknesses and to target possible avenues for improvement. Accordingly, since 2014, Cerise has collected in a centralised database all of the SPI4 audits which have been performed and submitted. In 2018, ADA and Cerise joined forces to analyse this database and to carry out a study to review the current practices related to the assessment and management of social performance.
When we at WSBI set out its Scale2Save Programme in 2016, we anticipated that customer centricity was a challenge for savings and retail banks in Africa. The programme’s first-ever study, "State of savings and retail banking Africa", released earlier this year, has proven that to be true. Based on responses to a survey of 34 WSBI Africa member institutions, the study shows that making small-scale savings work requires both more thought on the supply side, and a better acknowledgement of the needs of people – the demand side – too. The 50-page report is part of the research component of Scale2Save – a partnership between WSBI and Mastercard Foundation – and reveals that member banks offer an array of transaction and savings accounts as part of their drive to attract and satisfy customers.
2019 marks ten editions of the European Microfinance Award and to celebrate, e-MFP has decided to reach out to the previous winners, for a ‘where are they now?’ blog series, published throughout 2019, to look at what they have been doing with their initiative since they won, and how the winning of the Award has helped, and what plans they have in store. In 2016, the theme of the Award was "Microfinance & Access to Education". Kashf Foundation of Pakistan won for Kashf School Sarmaya, or Kashf Education Financial Program (KEFP), a holistically designed credit facility providing access to finance to Low Cost Private Schools as well as a capacity building and training for teachers and school owners, and a training of trainers on Financial Education for Youth. We’re delighted to catch up with them in the second of our interviews.
2019 marks ten editions of the European Microfinance Award and to celebrate, e-MFP has decided to reach out to the previous winners, for a ‘where are they now?’ blog series, published throughout 2019, to look at what they have been doing with their initiative since they won, and how the winning of the Award has helped, and what plans they have in store. In 2012, the theme of the Award was "Microfinance for Food Security", focusing on microfinance initiatives that contribute to improving food production and distribution conditions in developing countries. Alalay Sa Kaunlaran Inc. (ASKI) of The Philippines won for serving smallholder farmers and fostering effective market linkages and here we catch up with them in the first of our interviews.
It hardly needs saying that Climate Change represents the greatest issue we face today. Slowly – excruciatingly so – action is being taken at the macro level, reining in carbon emissions to attempt to keep global temperature increases within manageable levels. However, tacking Climate Change requires battles on many fronts, and not just on the mitigation side (minimising the actual Climate Change that takes place) but on the adaptation side too: how can we live in a world with a climate different to that we’ve had before? This is the challenge selected as the theme of the €100,000 European Microfinance Award 2019, which launches mid-March. Entitled “Strengthening Resilience to Climate Change”, it highlights the important role of the financial inclusion sector in increasing the resilience of low-income and financially excluded populations vulnerable to the effects of Climate Change.
The Luxembourg microfinance community has just added a new member – the Social Performance Task Force (SPTF) launched its European presence, headed by Jurgen Hammer in the House of Microfinance, Luxembourg. For us at e-MFP, this is a very welcome step! The Social Performance Task Force is a major force in the financial inclusion sector, having spent the past decade developing a range of standards and tools to measure the too-often overlooked second part of the double bottom line – standards and tools based on long-running consultations and input from practitioners, investors, and assessors.
There were two topics that dominated debate at the recent European Microfinance Week (EMW) conference: the threats and opportunities brought about by the fintech revolution in inclusive finance, and the issue of financial inclusion for refugees and internally displaced persons. The event, organized by the European Microfinance Platform (e-MFP), provided the venue for a discussion of these issues that ranged from hopeful to surprisingly cautionary. EMW 2018 focused heavily on the spectre – or, depending on your perspective, the promise – of technology. The theme was approached from many angles, as panelists explored the opportunities and risks of digital financial services, Big Data and new fintech entrants into the sector. It was even the focus of the 2018 European Microfinance Award, Financial Inclusion through Technology. The opening plenary captured both sides of the issue, with a keynote speech from Graham Wright of MicroSave – who played the Cassandra role that suits him so well to implore the inclusive finance sector to pay attention to the risks that technology can pose to clients and institutions.
e-MFP today launches the Financial Inclusion Compass 2018 – its new publication on emerging short, medium and long-term trends in the financial inclusion sector, based on a mixed-methodology survey of e-MFP members and key industry stakeholders, to see where the sector has come from, as well as where it is going. The Compass was conceived to be a way to leverage e-MFP’s multi-stakeholder membership and position in the inclusive finance community, while capturing too some of the dynamic debate from the workshops at the annual European Microfinance Week, giving a wide array of practitioners, investors, donors, academics and support service providers the opportunity to assess and describe the importance of various Trends, select and give opinions on New Areas of Focus, and provide open-comment qualitative input on the expected (and hoped-for) direction of financial inclusion progress
This is the final in a publication series of three interview pieces with the three finalists for the European Microfinance Award on "Financial Inclusion through Technology". KMF is an NBFI in Kazakhstan that operates in one of the most sparsely population regions of the world, beset by unstable telecommunications networks in the remote areas where almost half the population lives. To reach clients and improve efficiencies in this challenging context, KMF uses in-house developed tablet software – called Mobile Expert – that communicates remotely with its core banking system to ensure that loan officers, management, loan recovery and internal control teams can schedule loan officers’ work, capture loan applications, make loan approval decisions, monitor and recover late loans, and conduct internal control visits in the field. Crucially in this context, this software can be used both on- and offline, allowing management to monitor field activities in close to real time even over long distances. KMF was noted for its development of its software in-house, and its response to the exceptional challenges of serving remote clients over such distances.
This is the second in a publication series of three interview pieces with the three finalists for the European Microfinance Award on "Financial Inclusion through Technology". ESAF Small Finance Bank (ESAF SFB) is an Indian MFI that is leveraging the rapid expansion of mobile phone and smartphone penetration in India to digitise a wide range of its lending processes, in particular customer onboarding, electronic applications, customer financial training, credit appraisal, in-field verification, mandatory customer identity and address verification using eKYC, as well as opening of accounts, cashless disbursement and paperless collections of loan repayments. ESAF’s field officers use Internet-connected tablets with biometric identity verification and its clients have QR-enabled Aadhaar Cards – with Government-issued 12-digit unique identify numbers based on biometric and demographic data. Their details are automatically transmitted for credit bureau verification, and clients are given ATM cards to withdraw money in convenient tranches from any ATM.