1
Reporting Lessons Learnt Workshop
NAMMS
Moscow 2012
2
Agenda
• Session 1. Presentation. The Status of Social Performance
Management in Russian MFIs: Results from Social Reports
• Session 2. Presentation of “A survey of 405 MFIs reporting to
MIX in 2009-2010” and Discussion. Identification of Advantages
and Gaps of Russian MFIs from the Point of View of International
Practices of Social Reporting
• Session 3. Discussion. “Quick Wins” for Russian MFIs
• Session 4. Working Group. Development of Individual Clientoriented Work Plans for the Competitive Social Performance
Management for 2013 and Subsequent Years
3
Objectives of the Reporting Lessons Learnt
Workshop
• 1. To understand the experience and opinion of MFIs
on the process of SPS Reporting (after Session 1)
• 2. To understand by all MFIs and invited stakeholders
what is the status of social performance in the country
(Session 1)
• 3. To identify common gaps in social performance of
MFIs and to brainstorm solutions for addressing these
gaps (especially so called quick wins) (Sessions 1,2,3,4)
1
The Status of Social Performance
Management in Russian MFIs: Results
from Social Reports
NAMMS
Moscow 2012
5
Sample
• Social performance status in the country (Country level
report on SP results of participating in the project MFIs)
is prepared for 16 MFIs, participants of the project
• The overall country level report on SP results with
additional MFIs, not participating in the project,
(around 10) will be prepared by September
What do the MFIs aim at in terms of
social goals?
Target Markets
Development Objectives
Target Clients, by Income
What are the results of MFIs’ work in
terms of achieving those goals?
Board Members Trained in SP
Formal Committee for Monitoring SP
Credit Products
Deposits and MFIs
Deposit Products
Compulsory Insurance and MFIs
Compulsory Insurance Products
Voluntary Insurance and MFIs
Voluntary Insurance Products
Other Financial Services
Enterprise Services and MFIs
Enterprise Services
Education Services and MFIs
Education Services
Health Services
Women's Empowerment Services and MFIs
Women's Empowerment Services
MFIs Meeting Certain Client Protection Principles
(1/2)
28
•
% MFIs meeting certain client protection principles:
–
The loan approval process requires evaluation of borrower repayment capacity and loan affordability.
Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a
substitute for good capacity analysis. 94% YES
–
Internal audits check household debt exposure, lending practices that violate procedures including
unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could
increase indebtedness. 94% YES
–
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such
as disbursement or customer growth. Growth is rewarded only if portfolio quality is high. 94% YES
–
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale,
including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products,
third party fees, and whether these can change over time. 100% YES
MFIs Meeting Certain Client Protection Principles
(2/2)
29
•
% MFIs meeting certain client protection principles:
–
Staff is trained to communicate effectively with all customers, ensuring that they understand the product,
the terms of the contract, their rights and obligations. Communications techniques address literacy
limitations (e.g., reading contracts out loud, materials in local languages). 100% YES
–
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of
staff rules or debt collection manual. 69% YES
–
The organization's corporate culture values and rewards high standards of ethical behavior and customer
service. 100% YES
–
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively
used. (Suggestion boxes alone are generally not adequate.) 75% YES
–
Customers know how their information will be used. Staff explains how data will be used and seeks
permission for use. 94% YES
Transparency of Costs of Service to Clients
Human Resources Policy
Staff Incentives
Environmental Policies
Environmental Policies
25% of MFIs follow environmental
policies
MFIs Measuring Poverty
% MFIs with poverty outreach as
development objective (44%) compared
to % MFIs measuring poverty (50%)
MFIs Measuring Poverty
37
How much does the services and products offer fit
into development objectives? GOOD RESULTS
•
% MFIs with poverty outreach (poverty reduction) as development objective
(44%) compared to % MFIs measuring poverty (50%) -> good
•
% MFIs with gender equality and women's empowerment as development
objective (6%) compared to % MFIs offering women's empowerment services
(12%) -> good
•
% MFIs with improvement of adult education as development objective (31%)
compared to % MFIs offering financial literacy education (88% of MFIs
offering education services (50%) => 44%) -> good
38
How much does the services and products offer fit
into development objectives? GAPS
•
% MFIs with development of start-up enterprises (as development objective
(81%) and growth of existing businesses (81%) compared to % MFIs offering
enterprise services (44%) -> gap
•
% MFIs with youth opportunities (50%) and children's schooling (25%) as
development objective compared to % MFIs offering child and youth
education (38% of MFIs offering education services (50%) => 19%) -> gap
•
% MFIs with health improvement (19%) and water and sanitation (6%) as
development objective compared to % MFIs offering basic health/nutrition
education (0%) and having environmental policies (0%) -> gap
39
Members Commitment and Project’s Results (1/2)
•
# of MFIs who participated in the Awareness raising workshop & SP Reporting
Training: 21 MFIs
•
# of MFIs committed to submitting SPS report initially: 16 MFIs
•
# and % of MFIs which submitted SPS report (real commitment): 16 MFIs, participants
of the project, (100%)
•
# and % of SP reports which required corrections: 4 MFIs (25%)
•
# and % of SP reports ready to be sent to MIX (quality): 16 MFIs, participants of the
project, (100%) are going to be sent on June 15, 2012
•
# and % of financial reports ready to be sent to MIX (quality): 8 MFIs, participants of
the project, (50%). Reason for the delay: auditing process of financial statements till
July. NAMMS/RMC request: “Please, send it to us as soon as possible”
40
•
•
Members Commitment and Project’s Results (2/2)
Project targets achieved:
Risen awareness of SP activities among 21 MFIs’ members – Done

Forum “Social business in Russia” (October 2011)

X National Conference on Microfinance in Russia “New Decade, New Challenges: Regulation as a Driver of Development” (November 2012)

Awareness raising workshop and SPM presentations during the Xth National Conference on Microfinance in Russia “New Decade, New
Challenges: Regulation as a Driver of Development” (November 2012)
•
•
•
•

Annual meeting of NAMMS (Moscow, February 2012)

Awareness raising workshop & SP Reporting Training (February 2012 and March 2012)

Video conference “Reporting practices and Microfinance Investors: New Questions, New Role” (February 2012)

Press conference for Award “Social Entrepreneur – 2012” (March 2012)

Private discussions with stakeholders (on-going base)
Increased number of NAMMS members (at least 16) that start implementing (14 new MFIs) and widen a scope
of implemented SPM activities (2 MFIs). Increased number of reporting MFIs to MIX (14 new MFIs and two with
widen scope) – Done
At least developed one case study on SP activities, implemented by MFIs – to be done (identify volunteers after
Session 4)
SP scale up plan developed – to be done (starting with Session 4)
SP analysis at country level developed:
– Social performance status in the country (Country level report on SP results of participating in the project
MFIs) is prepared for 16 MFIs, participants of the project, – Done in presentation form, presented on the
Project lessons learnt workshop
– The overall country level report on SP results with additional MFIs, not participating in the project,
(around 10) will be prepared by September
41
Feedback Collection
• Discussion of the following issues:
•
a. What do you think about the process of reporting?
•
b. What was easy for you in reporting? What was difficult?
•
c. What are the challenges you face in reporting and how can the network (NAMMS)
address it?
•
d. How beneficial is the process of SPS Reporting to you?
With support from
Microfinance Centre
NAMMS/RMC
Tel.: +48 22 622 34 65
Fax: +48 22 622 34 85
Tel./Fax: +7 (495) 258-8705,
+7 (495) 258-6831,
+7 (495) 258-8709
www.mfc.org.pl
SPFund@mfc.org.pl
Thank you!
info@rmcenter.ru
nbabachenko@rmcenter.com