Blueorchard

BlueOrchard's Social Performance Report 2011

Delivering on the promise

This presents social performance data collected by BlueOrchard analysts from over 75 MFIs, interviews with microfinance experts on such themes as transparency of pricing and client protection, and contributions from BlueOrchard staff on related topics. The report also includes a summary of the first econometric analysis conducted by BlueOrchard based on data collected through its social performance scorecard.

The report describes BlueOrchard’s commitment to responsible microfinance and its involvement in improving social data collection and monitoring efforts as well as its active participation in industry initiatives. It discusses:

• Social performance management at BlueOrchard;
• Social Performance, Impact Reporting and Intelligence Tool (SPIRIT), BlueOrchard’s proprietary social scorecard;
• Results from SPIRIT;
• Relationship between financial and social performance;
• Andhra Pradesh microfinance crisis and its broader implications;
• Success of microfinance in Peru;
• Importance of transparent pricing in microfinance.

The report also presents interviews with Pilar Ramirez, founder of Banco Fie and Isabelle Barrès, Director of the Smart Campaign. It concludes with updates on social performace, news and information on key partnerships.

Read the Social Performance Report 2011 in English

Implementing Client Protection in Microfinance - The State of the Practice, 2011

BlueOrchard contributes data for an unprecedented analysis on client protection practices

The Smart Campaign recently published a progress report (Rozas 2011) on the implementation of the Client Protection Principles offering a first systematic look at the actual client protection practices of MFIs across the world, something that had not been done before.  BlueOrchard, together with Incofin, Symbiotics Triple Jump and microfinance rating agencies contributed the body of data on which the report is based. The data we shared was collected through the implementation of SPIRIT [1] our social performance assessment tool.  One of the scorecard’s five dimensions- the most heavily weighed of all- examines MFI client protection principles and practices.

The results of the study covering 300 MFIs show that a basic level of client protection is widespread in the practices of many MFIs. Results also indicate that Sub-Saharan Africa lags in client protection, while the MENA region leads. Also, the report shows no significant difference in client protection by institutional type (Banks, NGOs, Non-banking financial institutions, cooperatives) but does indicate relative weakness in client protection for very small MFIs (with less than $2 million in assets). The report provides some differentiated analysis per client protection principles, read the complete report.

The Client Protection Principles were launched in 2008 and the Smart Campaign a year later to help the industry implement these principles. The Campaign now has over 2,300 endorsers from 130 countries,

including 700 microfinance institutions (MFIs) . As a next step the Smart Campaign will be launching a client protection certification in early 2012, in partnership with the specialized rating agencies.

BlueOrchard was pleased to participate in this study and share data on MFI client protection practices. We believe collaborative efforts like this one that aggregate and analyze MFI social performance data will help the microfinance industry build and uphold better practices . We also strongly encourage partner MFIs to make active use of the Smart Campaign’s resources and tools for CPP implementation (over 50 are available in several languages www.smartcampaign.org ). MFIs are also encouraged to respond to the campaign’s Call for Tools to present and share their CPP implementation tools with peers.