RIF Working Group presentation

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.


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


Working Group

Collaborating to streamline efforts, avoid duplication and reduce confusion of the

various resources and tools related to responsible inclusive finance.


CLIENT PROTECTIONSOCIAL 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 (USSPM)



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


Truelift

CERISE

PPI

MIX

Client

Protection

Principles

Client

Protection

Principles

Client

Protection

Principles

Client

Protection

Principles



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


Truelift

CERISE

PPI

MIX

MFTransparency

Rules for Pricing

Transparency



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: Sign up, join the community

of practice, complete a self-assessment


Truelift

CERISE

PPI

MIX

Truelift Pro-Poor

Principles



MANAGEMENT

Smart Campaign

MFTransparency


Truelift

CERISE

PPI

MIX

MISSION: Provide 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)



MANAGEMENT

Smart Campaignfi

MFTransparency

MISSION: To help institutions assess themselves

against the Universal Standards

RELATION TO RIF: Developed the SPI4 to help

institutions identify strengths and weaknesses

against the Universal Standards for Social

Performance Management

FIRST STEP: Complete an SPI4.


Truelift

CERISE

PPI

MIX

0

20

40

60

80

100

1 - Define and monitorsocial goals

2 - Commitment tosocial goals

3 - Design products thatmeet clients' needs

4 - Treat clientsresponsibly

5 - Treat employeesresponsibly

6 - Balance social andfinancial performance

Universal Standards Score by dimensions

SPI4



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


Truelift

CERISE

PPI

MIX

Reporting to MIX from SPI4



MANAGEMENT

Smart Campaign

MFTransparency


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.

RIF Working Group presentation

Economy & Finance

Transcript of RIF Working Group presentation