The Premier Source for Microfinance Data and Analysis

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Microfinance Information Exchange

Reporting Blues: Building an Efficient Data Ecosystem

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MIX, a growing objective data exchange

• 36 employees• Headquarters in Washington, DC• Offices in Azerbaijan, Senegal, India, Peru• MIX celebrating its 10th anniversary

in 2012• Quarterly data collection in 51 countries• Annual data collection in 100 countries

Investors

Networks

Regulators

MFIs

Raters

2100+ MFIs 300+ Service Providers

150+ Networks

200+ Investors

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MIX’s mission and strategic priorities

MIX promotes responsible financial services for underserved populations through data analytics

and market insight

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1. Provide a more comprehensive view of financial inclusion

2. Improve the transparency of governance and social performance

3. Enhance the infrastructure for information and easier reporting

4. Support improved decision-making among industry actors

Four priority areas:

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Agenda

Dissecting MFIs’

reporting burden

Presenting

an innovative

solution

Working together to reduce

the burden

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The Data Supply Chain

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The sector’s current

system is not only

redundant, it’s the primary

reason for growing reporting

burden, poor data quality,

poor transparency and a lack of

impact measurement for funders

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Quantifying the reporting burden for MFIs

in unique ways!: Disparate calculations and indicators total 800 data point requests.

CalculationsLabelsDefinitions

5 =

% $Urban = ?Rural = ?

BorrowingsLoans Funding Liabilities DebtLoan FundsBorrowed Funds

Multiple collectors: The average MFI reports to 7 data collectors 50 times/year!

Asking for multiple reports: Interim updates and new social performance reports contribute to the ballooning requirements.

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.

This presentation is the proprietary and/ or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.

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675

150

75

0100200300400500600700800

Total requests Required dataOverlap Unique n:20 funders

Focus on what is truly important

Interim reporting requirements across 20 large MF funders

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Proliferation of Standards but Multiple Data Requirements Persist

2011 MIX ‘reporting genome’ project to understand:• What information is asked of MFIs? • To what extent do those requests overlap?

Source: Stephens, Blaine. Information Overload: can technology address MFIs' reporting burden?

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What does the reporting burden mean MFIs?

Staff time could be spent on other productive activities

Disincentive for small or start up institution to seek external capital for their growth

MFIs

Funders, Networks, MIX Market, Regulators

Data delays

Data quality issues

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Agenda

Dissecting MFIs’

reporting burden

Presenting an

innovative solution

Working together to reduce

the burden

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Supporting borrowers by supporting investors

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MFIs

Investor & MFI relationship

MFI & Borrower

relationship

BorrowersInvestors

and Donors

20

80

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A Proposed Approach for an Innovative Solution

1. Inconsistent and unreliable MFI data

2. Multiplicity of reporting requirements

3. Potential for error and missing data

1. Standards Building with data requestors (funders, networks)

2. Technology: Ease of reporting via an online reporting interface for data providers (MFIs)

3. Improved data quality basing on MIX’s 10 year experience of collecting and validating MFI data

What are we solving for and how:

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MIX’s New Reporting System

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MIX Gold

MIX Basic

MIX will manage data collection centrally for the sector through MIX

Report Express, driven by stakeholder requirements. These subscribers will

influence harmonized reporting requirements and help sustain public and private data flows for the sector.

MIX Silver

PrivatePublic

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Data collection through MIX Report Express

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MIX Report Express is a flexible and

dynamic reporting interface allowing MFIs to

easily report basic data

to MIX Market and private data to funders with a Gold

license

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Dynamic reporting form creation to

reduce redundancy

Ability to work

online / offline

Customizable data fields based on

stakeholder requirements

Rigorous data

validation

In-line data dictionary

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Performance monitoring (audit tracking)

Data audit flags and description

Time stamp of data submission, audit record, error tracking and covenant compliance

Monitor reporting timeliness

Track data quality

This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.

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Agenda

Dissecting MFIs’

reporting burden

Presenting

an innovative

solution

Working together to reduce

the burden

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Working together

Explicit Harmonization: Direct investors collaborating with MIX platform to reduce reporting burden

Annual Roundtable

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Ensuring data quality

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Data quality was cited as the #1 concern for funders in December 2013 at the inaugural Gold Community Meeting

1 2

3 4

MIX’s quality review is based on experience with more than 15,000 data submissions

Report Express will automate many functions to reduce human errors with inbuilt advanced algorithms

Data is reviewed against internal and third party documents

Harmonization will improve data quality though clear standards

Data quality will improve in 4 ways

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How is MIX Working with the Industry to reduce the reporting burden?

MFIs• Testing of

MIX Report Express

Networks• Assessment

of network reporting needs

Funders• Standards

harmonization

April ‘13 May ‘13 Sep ‘13 Oct-Dec ‘13 Early ‘14Alpha test

of MIX Report Express

Beta test of MIX Report Express

First round of

standards for

adoption

On-boarding to MIX Report

Express

Launch!

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Conclusion

• You can have data without information, but you cannot have information without data

• Connect Data providers with data requestors

• Technology, the way forward?

• Need for Partnerships or collaboration to build an efficient data ecosystem

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MIX partners with a dedicated group of industry leaders:

MIX Global and Project Partners

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www.themix.org www.mixmarket.org

Contact us: info@themix.org

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Regional Offices:

Baku, Azerbaijan 44 J. Jabbarli st. Caspian Plaza I, 5th Floor,

Baku, Azerbaijan

Lima, Peru Jirón León Velarde 333 Lince, Lima 14, Perú

Rabat, Morocco Immeuble CDG Place Moulay Hassan

BP 408 Rabat Morocco

Hyderabad, IndiaRoad #12, Landmark Building, 5th Floor,Banjara Hills, Hyderabad 500034, India

Microfinance Information Exchange

Headquarters:

1901 Pennsylvania Ave., NW, Suite 307

Washington, D.C. 20006 USA