How Well is Your MFI Doing?

Social Performance Indicators Survey

The Microfinance Information Exchange (MIX) has recently sent a survey to over 1300 MFIs all over the globe. They are trying to develop a standardized measurement of social performance. The social performance is analyzed through 22 core indicators like client poverty level, progress out of poverty, product design, and institutional policies and procedures. MIX is working together with the Social Performance Task Force from CGAP in making the questionnaire that was sent out to the MFIs. Their purpose is to analyze the social performance of MFIs across the globe. The SPTF have about 200 partners to help do this. One of the main problems with measuring social performance is that different measurments look at different areas of MFIs and it is hard to tell which factors are affecting social performance more than others. They have already done an experimental run with their current questionnaire with a smaller base group of 100 last spring. They have found success. I believe that it is important to figure out which methods and organizations are helping the poor than others so that MFIs can learn how to do their jobs better. The whole point of a MFI is to improve people's lives and help them out of poverty. But we must find out which way is the best way to do that in different areas. If we do not have an effective way of measuring success in the field of microfinance than how can we expect microfinance to improve? I hope that the larger study will be a success so that we can see more successful MFIs everywhere in the world. Read this paper if you wish to get a better sense of how microfinance social performance is being measured and why it is important.