From Intent to Action:

Resources to Pursue Responsible Inclusive Finance

Institutions along the value chain of responsible inclusive finance – whether socially or financially motivated –

employ responsible, client-centric practices at every level of business and demonstrate commitment to fulfilling

their mission.

Responsible Inclusive Finance

Responsible inclusive finance is the provision of financial services in a way that targets excluded

people, protects the interests of clients, and protects the mission and sustainability of the

institution.

Responsible Inclusive Finance

CLIENT PROTECTION SOCIAL PERFORMANCE

MANAGEMENT

•  Prevent harm to clients •  Assures transparent,

respectful, and prudent financial services to all clients

•  Ensures institutional focus on client well-being

•  Measures progress against social goals

•  Balances financial and social objectives

Applicable to institutions with a double-bottom line

Applicable to all financial institutions

•  Includes client protection

Responsible Inclusive Finance Working Group

Collaborating to streamline efforts, avoid duplication and reduce confusion of the various resources and tools related to responsible inclusive finance.

Responsible Inclusive Finance

CLIENT PROTECTION SOCIAL PERFORMANCE MANAGEMENT

Social Performance Task Force

Smart Campaign

MFTransparency Truelift

CERISE

PPI

MIX

What is the

Social Performance Task Force?

Today, the task force consists of more than 2,200 members, including: �  Practitioners �  Donors and investors (multilateral, bilateral and private) �  Global, regional and national networks �  TA providers �  Regulators

In 2005, CGAP, the Ford Foundation and the Argidius Foundation brought together leaders from various social performance initiatives in the microfinance industry to come to agreement on a common social performance framework and to develop an action plan to move social performance forward.

These stakeholders work together as the task force to develop the Universal Standards for Social Performance Management (USSPM).

Comprehensive  manual  of  good  practices  

By  and  for  people  in  the  field  

Resource  for  achieving  social  goals  

Credibility  for  institutions  and  industry  

Realistic  implementation  process  

     

Based on leading industry initiatives and practices implemented successfully by MFIs Voluntary resource—not a rating, regulatory or certification system

Universal Standards for Social Performance Management

Responsible Inclusive Finance

CLIENT PROTECTION SOCIAL PERFORMANCE

MANAGEMENT

Smart Campaign MISSION: To embed a set of client protection principles deep within the fabric of the microfinance industry RELATION TO RIF: Provides access to resources and tools to improve client protection FIRST STEP: Review the Client Protection Principles and complete a self-assessment

MFTransparency

Social Performance Task Force

Truelift

CERISE

PPI

MIX

How is Smart Campaign’s work integrated in the Universal

Standards?

Dimension 1: 0

Dimension 2: 1 standards

25 client protection standards

Dimension 3: 3 standards

Dimension 4: 18 standards

Dimension 5: 0

Dimension 6: 3 standards

Responsible Inclusive Finance

CLIENT PROTECTION SOCIAL PERFORMANCE

MANAGEMENT

Smart Campaign

MFTransparency MISSION: To address the lack of transparency in MF product pricing RELATION TO RIF: Improving product pricing transparency will boost client protection FIRST STEP: Use MFTransparency’s Calculating Transparent Pricing Tool to evaluate true prices of products

Social Performance Task Force

Truelift

CERISE

PPI

MIX

MFTransparency Rules for Pricing Transparency

Responsible Inclusive Finance

CLIENT PROTECTION SOCIAL PERFORMANCE

MANAGEMENT

Smart Campaign

MFTransparency

MISSION: To renew focus on the pro-poor objective of MF RELATION TO RIF: Provides roadmap through Universal Standards for Social Performance Management for MFIs focused on reducing poverty or that have poor clients FIRST STEP: Visit the website to learn more about Truelift’s Pro-Poor Principles

Social Performance Task Force

Truelift

CERISE

PPI

MIX

Truelift Pro-Poor Principles

Responsible Inclusive Finance

CLIENT PROTECTION SOCIAL PERFORMANCE

MANAGEMENT

Smart Campaign

MFTransparency

Social Performance Task Force

Truelift

CERISE

PPI

MIX

MISSION: Provides a poverty measurement tool for organizations and businesses with a mission to serve the poor.  RELATION TO RIF: If institutions have a poverty-focused social mission, they must be able to measure poverty to assess their progress against those goals. FIRST STEP: Download the Standards of Use.

Progress out of Poverty Index (PPI)

Responsible Inclusive Finance

CLIENT PROTECTION SOCIAL PERFORMANCE

MANAGEMENT

Smart Campaignfi

MFTransparency

MISSION: To help institutions assess themselves against the Universal Standards for SPM RELATION TO RIF: Developed the SPI4 to help institutions identify strengths and weaknesses against the Universal Standards for SPM FIRST STEP: Complete an SPI4.

Social Performance Task Force

Truelift

CERISE

PPI

MIX

0

20

40

60

80

100

1 - Define and monitor social goals

2 - Commitment to social goals

3 - Design products that meet clients' needs

4 - Treat clients responsibly

5 - Treat employees responsibly

6 - Balance social and financial performance

Universal Standards Score by dimensions

SPI4

Responsible Inclusive Finance

CLIENT PROTECTION SOCIAL PERFORMANCE MANAGEMENT

Smart Campaign

MFTransparency

MISSION: To strengthen the microfinance sector with objective data and analysis RELATION TO RIF: Provides platform to share and benchmark social performance data FIRST STEP: Share social performance data with MIX

Social Performance Task Force

Truelift

CERISE

PPI

MIX

Reporting to MIX from SPI4

Responsible Inclusive Finance

CLIENT PROTECTION SOCIAL PERFORMANCE MANAGEMENT

Smart Campaign

MFTransparency

Social Performance Task Force

Truelift

CERISE

PPI

MIX

Learn Assess Plan Implement Demonstrate

RIF: From Intent to Action

SOCIAL PERFORMANCE MANAGEMENT

CLIENT PROTECTION

POVERTY FOCUS

1.

Learn

2.

Assess

3.

Plan 4.

Implement

5.

Demonstrate

RIF: From Intent to Action

Quiz: True or False?

True or False?

The Universal Standards for Social Performance Management (USSPM) do not include the Client Protection Principles.

True or False?

MFTransparency’s tool draws a line where interest rates should be.

True or False?

The Universal Standards for Social Performance Management (USSPM) are standards for social outcomes all financial institutions should achieve.

Thank you!