Global Networks of Financial Service Providers (FSPs ... · •Promoting best practices in social...
Transcript of Global Networks of Financial Service Providers (FSPs ... · •Promoting best practices in social...
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Global Networks of
Financial Service Providers (FSPs) –
Promoting Best Practices in Social
Performance Management
4 October 2016
SPEAKERS Calum Scott, Opportunity International
Cecile Lapenu, CERISE Christophe Bochatay, Triple Jump
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Agenda
• Introduction
• Opportunity – Global Network perspective
• CERISE – SPI4 Reporting Tool
• Triple Jump – Social Investor perspective
• Discussion with participants
Please do use the chat function – at any timeType in your message – bottom right of your
screen. Address it to “everyone” or to SPTF Host (Katie Hoffmann)
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Our speakers today
Christophe BochataySocial Performance & Impact Manager, Triple [email protected]
Calum ScottGlobal Impact Director, Opportunity [email protected]
Cecile LapenuExecutive Director, [email protected]
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Agenda
• Introduction
• Opportunity – Global Network perspective
• CERISE – SPI4 Reporting Tool
• Triple Jump – Social Investor perspective
• Discussion with participants
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Work of the Social Performance Task Force
• Developing and promoting best practices: Universal Standards for SPM
• Providing Tools and Support
• Working with the sector▫ Working Groups
▫ Online Trainings
▫ SPTF Annual Meeting
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Universal Standards 2.0 :
Evolving standards for an evolving industry
• Coordinated Approach between Smart Campaign, SPTF and CERISE
• Content Expanded, Simplified and Streamlined:
▫ New products – savings, insurance
▫ New delivery models – digital services, agent models
▫ New content on responsibility to the environment
▫ Broadened focus on FSPs (versus MFIs)
• Stability in Standards – no further changes until end 2019
• Updated tools and resources in development
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Agenda
• Introduction
• Opportunity – Global Network perspective
• CERISE – SPI4 Reporting Tool
• Triple Jump – Social Investor perspective
• Discussion with participants
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Who is Opportunity International?
• 40 partners, 20 developing countries, 4m loan clients
• Social mission focus
• Group and individual lending, financial education, non-financial services
• Investor, capacity building support, product/service development (Education finance, Agriculture value-chain development)
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Opportunity SPM Strategy
• Promoting best practices in social microfinance across our network of partners:▫ Client protection principles ▫ Universal Standards for SPM▫ Monitoring client outcomes (PPI + other indicators)▫ Social Performance Reporting (SPI4)
• Using social data internally in our decision making• Transparency in reporting externally to Opportunity
funders • Promoting innovation in SPM in collaboration with others in
the sector
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Why Universal Standards?
• Benefits to clients from more effective needs-based services
• Reduced risk of client harm – reputational damage
• Benefits to FSPs from more effective management of social goals
• Benefits to Networks from improved communication with partners; improved monitoring
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Board & investors
• Better governance, policies & procedures
• Improved access to social investors and potentially cheaper funding
Staff
• “New sense of identity” (Increased staff loyalty)
• Better staff understanding of OBS impact
• Profile of the ideal OBS staff member – “we can now hire the right people”
Business results
• Differentiates OBS from commercial lenders
• Client loyalty & retention (market share growth)
Clients
• Products tailored to clients’ needs
• Highest client protection standards
Opportunity Serbia – Example Benefits from Smart Certification
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Implementing Universal Standards:
what is most valued by partners?
• Defining social goals and setting social targets.
• Customer satisfaction surveys and customer complaints mechanisms.
• Employee satisfaction survey and staff grievance redressal mechanism.
• Defining acceptable and unacceptable collection practices and incorporating these into training.
• Clarifying policy on over-indebtedness and use of credit bureau for all loans
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Challenges in adopting SPM
• Upfront costs from changing/developing policies, training staff
• Change in practices is perceived to increase costs, or reduce competitiveness
• Lack of technical capacity in FSPs to develop and implement policies
• Competing priorities for FSP management
• Benefits of best practices are not visible
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Support Networks Can Provide to Partners
• Fund technical assistance to local management:▫ Assess current practices and help partners develop plans to
close gaps
▫ Assist in policy development
▫ Aid implementation – especially staff training, embedding new processes
• Share tools, knowledge and experience across network partners – in particular, show benefits to other partners from implementing specific practices.
• Provide support at the Board level to the CEO and management team to prioritize SPM
• Tap into third-party funding sources – e.g. Responsible MF Facility for Africa (SPTF/AFD), SP Fund (MFC/Ford Foundation).
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Monitoring Opportunity Partner
progress – SPI4
• SPI4 – setting clear reporting expectations
• SPI4 Piloted in 2015 – 22 partners reporting
• SPI4 Roll-out in 2016 – 23 partners reporting
• Global management and Board reports include partner ratings based on SPI4
• Quarterly updates from Q3 2016
• SPI4 self assessments and guided assessments: now provide a basis for ongoing SPM work plans with partners
• Note: experience suggests self assessments typically overstate compliance with best practices
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Agenda
• Introduction
• Opportunity – Global Network perspective
• CERISE – SPI4 Reporting Tool
• Triple Jump – Social Investor perspective
• Discussion with participants
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Measuring Social Performance Management
Essential Practices
Standards
Dimensions
Indicators
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SPI4 – a management tool
A data collection and assessment tool aligned with the Universal Standards of SPM: the “social statements”
Can be customized to fit the institution’s mission through optional modules on poverty, gender, and environment
A free tool – downloadable on cerise-spi4.org
See the very new 2.0 version
A management tool– dashboard, graphs – best practices linked to technical resources (Smart, SPTF, etc.)
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SPI4 is gaining traction (August 2016)
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200+ completed SPI4 (180 in database)
60+ in pipeline
56 different countries
350 people trained
66 qualified auditors around the world
Audits SPI4 by outreachAudits SPI4 by regionAudits SPI4 by legal form
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From Assessment to Management
• Benchmarks
• Link with technical resources to answer to identified weaknesses
• Harmonized reporting for key stakeholders
▫ Board members
▫ Investors/funders
▫ Regulators
▫ Networks (national and global)
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Benchmarks by region andworldwide
Average score by standard
Improvements for FSP AAA could focus on
1a – Social strategy 2a – Board accountability 2b – Senior management accountability
This proposal of focus areas is based on a review of the SPI4 questionnaire and the report, analysis of benchmarks, and where
possible, context and sector trends at the country level.
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CLIENT PROTECTION RESULTS
0%20%40%60%80%
100%
AppropriateProduct Design andDelivery Channels
Prevention of Over-indebtedness
Transparency
Responsible PricingFair and Respectful
Treatment ofClients
Privacy of ClientData
Mechanisms forComplaintResolution
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Agenda
• Introduction
• Opportunity – Global Network perspective
• CERISE – SPI4 Reporting Tool
• Triple Jump – Social Investor perspective
• Discussion with participants
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ALINUS –ALigning INvestors due diligence
with the Universal Standards
Speak the same language
Harmonize data investors collect
Spend less time on reporting (FSP) and data collection
process (investor)
A sub-set of indicators in SPI4 for investors
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Agenda
• Introduction
• Opportunity – Global Network perspective
• CERISE – SPI4 Reporting Tool
• Triple Jump – Social Investor perspective
• Discussion with participants
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SPTF Resources
• USSPM Implementation Guide http://sptf.info/universal-standards-for-spm/the-implementation-guide
• SPM Resource Centerhttp://sptf.info/resources/resource-center
• TA Provider Database http://sptf.info/resources/find-a-ta-provider
• SPTF Newsletter and Spotlight http://sptf.info/about-us/sptf-news
• SPTF Annual Meeting http://sptf.info/annual-meetings/2016-annual-meeting-logistics
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Thank you
• For follow up, please contact: [email protected], [email protected]
• Please note: this presentation and a recording of the Webinar will be posted to the SPTF website
• Please also see: Institutionalising Social Performance Management In Financial Institutions: What Does It Take?