An institution that, in addition to the ACHIEVER Milestone requirements (see below), must have earned Smart Certification.
Cashpor’s annual survey data aims to track change over time and is collected by their internal audit team to analyze PPI score by loan cycle. After six cycles, of the approximately 25 percent of clients who have borrowed continuously, about 59 percent are above the USD 1.25 line and about 44 percent are above theUSD 1.50 line. In accepting the award, Mukul Jaiswal, managing director of Cashpor, explained, “Our commitment to reaching out to the poor, our commitment to client protection principles, our commitment to carrying out annual client satisfaction and impact surveys, our commitment to providing not only microcredit but all other microfinance products (like microinsurance, access to safe savings facilities)…has contributed” to their being recognized as a Truelift LEADER institution.
An institution that has shown strong performance following the Pro-Poor Principles, as validated by a Truelift assessor.
According to the 2011 client satisfaction survey, 89 percent of clients rated the financial services received from FINCA Perú as very good or good. For non-financial services, 82 percent of customers rate the quality of training as 16 or higher (out of 20). In offices with the highest concentration of poverty, satisfaction was 80 percent.
Microfund for Women (MFW), Jordan
MFW implemented new systems to include poor households. In particular, with each new loan it collects, it looks at its clients’ income levels and proxies, such as access to education, as part of its loan appraisal process. MFW was the only institution in the market that cancelled the upfront fee and voluntarily lowered interest rates, while maintaining an above average return on assets for Jordan at 7.4 percent.
Small Enterprise Foundation (SEF), South Africa
SEF excelled with the three Pro-Poor Principles and scored in the range of the Truelift LEADER milestone. However, this milestone requires Smart Certification, so for now SEF is recognized as an ACHIEVER. Upon successfully completing Smart Certification, SEF will automatically move to the LEADER milestone. John de Wit, SEF managing director, said, “When we began, we didn’t really have a very good idea about poverty. We didn’t really understand how you could have ‘very poor’ people, ‘poor’ people, ‘ultra-poor’ people and all the challenges people face. And as time went on, we just learned more and more. Eventually, we realized we would have to do targeting. We were running our program, we were delivering a product that we thought was ideal for the very poor, and we found we weren’t reaching the very poor. There was a big section of the population that simply wasn’t coming to us, wasn’t accessing our loans, wasn’t becoming part of the system. So, we developed a targeting methodology and used that.”
Negros Women for Tomorrow Foundation (NWTF), Philippines
NWTF shows the highest poverty rate of all the MFIs in the Grameen Foundation poverty-calculation research (64 percent). The board of directors receives a regular report showing poverty change based on PPI data. The board established a Social Performance Management Committee to work more on positive change in clients’ lives and provide direction based on the poverty-movement data received, including an increase in the activities of the Client Service Department for non-financial services. Executive Director Cecilia del Castillo explained, “When we started Negros Women for Tomorrow Foundation…we really wanted to do something for the very poor. We were working on this and we thought we were succeeding. But, when the PPI came about, we found out that we didn’t really reach as much as we wanted…After that, we made sure that we would reach who we wanted to reach. Since 2012, 82 Percent of the newcomers to Negros Women are very poor, they’re below the poverty line. Our hope is that 50 percent can [move out of poverty] after three years and 30 percent [more] after five years.”
Grameen Financial Services Private Ltd. (“Grameen Koota”), India
Grameen Koota has used the PPI regularly since 2009 and provides comprehensive poverty outreach reports to senior management and its board of directors. Most importantly, routine collection of PPI data for all clients in every cycle allows comparison at later cycles for the same clients. Grameen Koota has seen the poverty rates of those living on less than USD 1.25 drop from 41 percent at “first PPI instance” (2009–2010) to 26 percent at “fourth PPI instance” (2012–2013).
An institution that has demonstrated reasonable performance and a minimum appropriate assessment score, as validated by an approved third-party verifier.
Banco FIE, Bolivia
Banco FIE represents an excellent example of a not-for-profit MFI that has transformed into a regulated bank, while maintaining its social focus on reaching and serving poor people. Forty-eight percent of Banco FIE’s savers and borrowers live below the national poverty line.
CAURIE is the only MFI in Senegal to offer credit and savings using the village banking methodology, which is more suited to the needs of the poorest households. It does not require a minimum amount for credit and savings, and savings collected in the group account can be given out as internal credit to generate profits, which can then be capitalized in the village bank or redistributed to members in the form of dividends. From its annual PPI survey on this same cohort of customers, the percentage of clients falling below the national poverty line is decreasing slowly over time: 46.9 percent for 1–3 cycles, 44.8 percent for 4–6 cycles, and 42.9 percent for 7+ cycles.
In addition to the three milestone levels above, there is also an ASPIRANT Milestone for institutions that have submitted the completed tool for verification to the Truelift Secretariat or an approved third-party verifier.
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– John de Wit, Small Enterprise Foundation
Table of Contents
- Executive Summary
- Taking Steps to Target the Poorest
- A Global Context for Extreme Poverty
- Microfinance & Health Providers Can Partner for Greater Results
- Commercial & Social Businesses Can Expand Value Chains to Include Those in Poverty
- Mobile Network Operators Can Build Systems that Reach the Poorest and Most Remote
- Regulators & Policymakers Can Build a National Ecosystem for Inclusion
- Social Support Payments Can Become a Bridge to Financial Inclusion
- Being Accountable for Results
- A Commitment to End Extreme Poverty by 2030
- Read the Full Report
- Get Your Copy
that we would reach who we wanted to reach.”
— Cecilia del Castillo, Negros Women for Tomorrow Foundation