24 Nov

Webinar on Good Practice on Social Performance Management from Mi-Bospo

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As per EMN Study “European microfinance and social performance: where do we stand?” (2014): The European microfinance sector is still young and consolidating; social performance is considered as an increasing concern. Generally, microfinance providers express interest in learning more on Social Performance related topics to improve their practices.

The results of the same study confirm that while a high level of knowledge of sector frameworks and standards linked to social performance are observed, implementation appears yet to be lagging. With this context and based upon the recommendation expressed in the same study, the case of one “champion of SPM” will be shared with the European sector to promote good practices.

Objective

One main output of the above-mentioned EMN Study is the gathering of the 35 participating MFIs around four clusters: Incipient, Aspirants, Implementers and Champions . While only one champion has been identified, the distribution of the three other profiles is quite balanced: 2/3 of microfinance providers are quite advanced, 1/3 of respondents are starting to build capacities around social performance. With the aim to facilitate capacity building and allow learning from peers, EMN invited Mi-Bospo from Bosnia Herzegovina, the identified Champion in the Study, to share its experience in an interactive way.

In this webinar, Mi-Bospo presented some insights into their way of managing social performance up until receiving the Smart Campaign Certification. We were particularly interested in understanding how the SPM evolved from its beginning (Dec 2000) and linking the evolution with its growth as most European MFIs are yet quite young and small.

Outputs

Here you will find the two presentations shared with attendees during the session:

  • EMN webinar on Good Practice by MI-BOSPO (EMN presentation) download below the video

  • EMN webinar on Social Performance: where do we stand? (MI-BOSPO presentation) download below the video 

  • Did you miss the session? Watch the video below

 

Good Practice on

Social Performance Management

from MI-BOSPO

EMN Webinar

November 24th 2015

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Agenda

1. Context

2. EMN Study (2014) “European

microfinance and social performance:

where do we stand?”

3. Mi-Bospo - Case Study presented by Ms.

Nejira Nalic, Director

4. Q & A

http://www.european-microfinance.org/docs/grey_blocks/IL SPM_EU MF and SPM where do we stand.pdf
http://www.european-microfinance.org/docs/grey_blocks/IL SPM_EU MF and SPM where do we stand.pdf
http://www.european-microfinance.org/docs/grey_blocks/IL SPM_EU MF and SPM where do we stand.pdf

Context

• Revision of the definition of microcredit

• Currently: Predominance of the Amount and

for self-employment and entrepreneurship

• Aim to: Reinforce importance of

• For Whom? (Client targeted)

• Who? (Type of institution offering)

• What? (Type of services offered )

• EMN Annual Conference 16 + 17th June

2016 in Warsaw (PL)

Scope of the Study

• Objective of the study: Collecting qualitative information

on whether and how the European MFIs assess,

monitor and use their social performance

• 119 targeted European organizations, of which 34

responded.

• Measures:

• Level of formalization of the social mission;

• Why do MFIs engage with SP (the rationale);

• Level of involvement with different tools such as EU Code of

Good Conduct, Smart Campaign etc.;

• Kind of information collected by the MFIs;

• And more…

23%

31%

19%

3%

25%

63%

47%

53%

34%

12%

19%

13%

12 %

9%

22%

9%

15%

Other

Poverty outreach / assessment (PPI, PATs,…

Universal Standards for SPM (SPTF)

European Code of Conduct (European Commission)

Client Protection Principles (Smart Campaign) 1. Ignored

2. Informed

3. Trained

4. Endorsed

5. Implemented

6. Certified

Respondents are very familiar with the European Code of Conduct

Less buy-in for initiatives linked to Poverty assessment/outreach, Smart Campaign’s CPP, and SPTF’s Universal Standards.

Globally, involvement stops at ‘informed’, Implementation is still hard to reach

Involvement with sector SP

initiatives

Typology of respondents

29%

32%

35%

3%

Incipient Aspirant

Implementer Champion

 Incipient: no social objectives or target clients, no/limited SP indicators, low knowledge of sector standards, no recent social assessment, no clear SPM strategy  Aspirant: defined social objectives and/or target clients, advanced knowledge of sector initiatives/standards (trained/endorsed), conducted social assessments Implementer: clear social objectives, target clients, and developed social indicators, sector standards endorsed or implemented, conducted social assessments, clear SPM strategy  Champion integrated SPM + have demonstrated good practices (certified)

Ms Nejira Nalić is the Director of Microcredit Foundation MI-BOSPO

based in Tuzla, Bosnia and Herzegovina.

MI-BOSPO has become affiliated to the Women’s World Banking in 1999

and is certified by the Smart Campaign. Ms. Nalic is committed to

responsible finance and has been playing a role of an initiator of debt

advisory program in B&H.

thanks!

Caroline Lentz

EMN Operations Manager

c.lentz@european-microfinance.org

European Microfinance Network aisbl

10 rue de l’Industrie

1000 Brussels – Belgium

Tel: +32 2 893 24 49

www.european-microfinance.org

EMN webinar on Social

Performance: where do we stand?

MI-BOSPO provides access to loans primarily to low

income women entrepreneurs with a goal to strengthen

entrepreneurship, their economic and social position.

• Since 1996

• Pro women entrepreneurs

• Pro consumer protection

• More than 20,000 clients, 65% women

• More than 21 mill EUR in portfolio

• Women’s World Banking affiliate

Mission and SP Indicators • Growth vs. interest rates – cost/income ratio and

business performance to support interest rate decline – operational efficiency

• Number of (new) women clients, retention rate of women clients

• Number of enterprises, economic activities, retention rate

• Average loan size per woman client

• Women staff – gender balance

• PaR>30 of women clients

• Responsible finance – around consumer protection

Is SMART Certification SP?

• Hard due diligence process: expensive,

too

– Staff and clients - very engaged

• 6 principles and 94 indicators

• However, it is pays off that one is proven

to not do harm and that we have system in

place to protect our clients.

Trend with lenders to MFIs...

• Lenders seek some form of reporting on

SP: suprisingly not so many really truly

seek reporting of significant SP indicators

• Most of lenders believe in well managed

organizations: with both bottom lines,

believing that profit means long term

presence of service providers therefore

mission is served

Growth and SP

• Motivation for growth - seek better lending

conditions for clients

• Motivation for SP is to reach clients who do

not have access to banks

• Balance is necessary.

• Profitability is ability to survive and serve more

clients – SP brings goals of targeted market.

European Code of Conduct and SMART my comment

• Both have similar/same purpose.

• Code of Conduct covers all aspects of organizational processes.

• SMART is focused on system that organizations maintain in order to ensure clients’ protection.

Thank you.

Any questions?

Post date

19 December 2017

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One of the many functions of the European Microfinance Network (EMN) is to organise debates and webinars addressing a wide range of subjects pertinent to microfinance in Europe. These activities are a chance to foster an exchange of ideas among different partners, and contribute to spreading knowledge of microfinance throughout Europe.
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