Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.
-
Upload
kellie-lindsey -
Category
Documents
-
view
213 -
download
0
Transcript of Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.
![Page 1: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/1.jpg)
Social Performance for Credit Unions
Day 1
Isabelle KidneyBless DarkeyCuTRAC, Kasoa, Ghana
![Page 2: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/2.jpg)
Session 1Advisor Introduction
• Name
• Occupation/job
• Background
• Brief information regarding role in this project
![Page 3: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/3.jpg)
Participant Introductions
•Name
•Role
•Experience – other positions
•Length of time, etc.
![Page 4: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/4.jpg)
Learning Objective and Sessions, 27th Nov
Objective: To help cultivate a pro-poor orientation of the CU movement by familiarising participants with the concept of Social Performance Management, Assessment, existing initiatives as well as poverty dynamics of the different regions (and The Gambia)
Session 1: Introductions and Regional Poverty CharacteristicsSession 2: Reporting to the Group on Regional Poverty CharacteristicsSession 3: What is Social Performance, why is it important and who is doing what in this field?Session 4: Group work exploring cost benefit of SPM
![Page 5: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/5.jpg)
Timetable: Day 1
•8:30 – 10:15 Session 1: Getting to know the group: introductions, expectations, and start of
Presentation by Regional Managers•10:15 – 10:30 Break•10:30 – 12:00 Session 2: Presentations by Regional Managers•12:00 – 01:00 Lunch•01:00 - 02:30 Social Performance Management •02:45 – 04:15 Exercise on Social Performance
![Page 6: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/6.jpg)
Day 1 Day 2 Day 3
Social Performance Management Social Performance Assessment
Poverty Assessment Tools
Session 1
Introductions and Orientation
Session 1
Orientation and Social Performance Mgt.
Session 1
Poverty Assessment Tools
Session 2
Regional Characteristics of Poverty
Session 2
Social Performance Appraisal
Session 2
Poverty Assessment Tools: Application
Session 3
Social Performance Management: Overview
Session 3
Social Performance Appraisal
Ends
Session 4
Social Performance Management: Exploration
Session 4
Social Performance Appraisal: Application
![Page 7: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/7.jpg)
A note on the delivery•Technical Language•Misunderstanding•Note any word or term I use, which you think needs a
definition or clarification•ASK !
Mark Twain – “the only dumb (silly) question is the one you don’t ask”
![Page 8: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/8.jpg)
Quote
The most important thing you bring to the table is your brain
-Edward Filene, Credit Union Pioneer USA
![Page 9: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/9.jpg)
Expectations
What do you expect to get from these two and a half days?
![Page 10: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/10.jpg)
![Page 11: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/11.jpg)
• Capacity Building
• Expansion into Under-mm served mm areas
• Social Performance Management
• Knowledge Management
National apex body developed
& strengthene
d
Credit Unions & member-
ship
Poor and Extremely
poor
Regional Hub &
Steering Group
West African Credit Unions Against Poverty Programme
![Page 12: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/12.jpg)
Exercise Each Regional Manager to Develop Flipchart Presentation on their own Regions – Highlight: - Geographical characteristics- Political factors- Demographic characteristics (population size, whether high level of
female headed households, migration etc.)- Education levels - Health and nutrition issues - Issues around access to services (schools, infrastructure, clinics,
extensions etc.)- Economic characteristics- Wealth and Welfare indicators (typical rich, middle, poor
characteristics)
![Page 13: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/13.jpg)
Session Two: Presentations Flipchart Presentation on Regions highlighting:
- Geographical characteristics & infrastructure- Political factors- Demographic characteristics (population size, whether high level of
female headed households, migration etc.)- Education levels - Health and nutrition issues - Issues around access to services (schools, infrastructure, clinics,
extensions etc.)- Economic characteristics- Wealth and Welfare indicators (typical rich, middle, poor characteristics)
![Page 14: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/14.jpg)
The Definition of Social Performance
The effective translation of an institution’s mission into practice
Vision: your idea of a better worldMission: your idea of how to bring this about
![Page 15: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/15.jpg)
Starting Point for Social Performance Management
What is the mission of your credit unions?
![Page 16: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/16.jpg)
Missions
•Banks▫Maximize profits / shareholder value
•Credit Unions▫Build democratic institutions with strong
common bond•Microfinance Institutions
▫Alleviate Poverty▫Help clients build livelihoods, improve
wellbeing
![Page 17: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/17.jpg)
What do we mean by ‘Social’?
![Page 18: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/18.jpg)
What qualifies as ‘social’?
•Who you are reaching based on poverty or vulnerability criteria
•Expanding access to financial service for economic development
•Reaching women / providing opportunities for families•Promoting equity •Promoting progress towards Millennium Development
Goals•Fostering participation and empowerment
![Page 19: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/19.jpg)
Common Social Missions:• Serving increasing
numbers of poorer and more excluded people sustainably
• Improving the quality & appropriateness of financial services through assessment of members’ needs
• Increasing members’ social capital, assets, income, and access to services
• Reducing members’ vulnerability
• Improving members responsibility of the institution toward clients, employees, and communities
![Page 20: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/20.jpg)
What is Social Performance?
The effective translation of an institution’s social mission into practice
▫No Social Mission▫No Social Performance▫No Social Performance Management
![Page 21: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/21.jpg)
Who is working for who?
![Page 22: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/22.jpg)
The effective translation of an institution’s mission into practice relates to:
•Reaching target market•Delivering high quality and appropriate financial services •Responding to the needs of members, their families and
communities
• Ensuring responsibility towards:• Its members • Its employees, volunteers, the community it serves and the
environment
![Page 23: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/23.jpg)
Results• Reaching target members
• Meeting target members’ needs
• Change in target members’ lives
23
Social Performance Pathway
Operations
Strategy
Information use
![Page 24: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/24.jpg)
Poor households have very active financial lives and different needs.
![Page 25: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/25.jpg)
Photos credit: Fonkoze, Haiti
![Page 26: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/26.jpg)
Trends in Microfinance
•Double bottom line: changing context•Growth and competition •Commercialisation & legal status•Skepticism
Social Performance Cannot Be Taken for Granted
![Page 27: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/27.jpg)
Big Problems?
![Page 28: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/28.jpg)
What Went Wrong ?Commercial Mission Drift:
Fast growth (15-30% + p.a) High competition Market saturation Coercive collection practices Over-indebtedness …
Financial Mission Drift: High return on investment
expected Minimize costs, maximize profits Fast profitability Few products IPOs (stock market launch) …
![Page 29: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/29.jpg)
Open Floor Discussion
•What are the dangers in the Ghanian / Gambian context??
![Page 30: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/30.jpg)
Core Problem
•If you can’t measure it, you can’t manage it
•No Action Talk Only – NATO
•Social Performance Measurement Backlash▫Donors▫Investors▫TA Advisors
![Page 31: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/31.jpg)
• Client protection
• Development standards, good practices, certification
• 7 principles
• 1 750 endorsers from 120 countries
Responses of the Sector …
• Microfinance Transparency
• Campaigns for fair and transparent pricing
• 28 countries
• More than 1000 different loan products
• Seal of Excellence for poverty outreach and Transformation in Microfinance
• To recognize those institutions doing the most to help families lift themselves out of poverty
• Platform for dialogue, learning and collaboration
• Facilitating engagement and advocacy
• Setting industry standards for social performance management
• Promoting good practices
• Gathering quality evidence and research
![Page 32: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/32.jpg)
SP vs. SPM
•Social performance
▫Whether or not you achieve your social goals
•Social performance management
▫How you achieve your social goals.
![Page 33: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/33.jpg)
The Definition of “SPM”
The processes an institution uses to translate its mission into practice.
These include:▫Setting social targets▫Measuring the progress toward these targets▫Using the results for strategic decision-making-
namely, to improve products, services, and delivery channels
![Page 34: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/34.jpg)
Achieve Your Mission Through Performance Management
Mission
Performance Management
Social Performance
Financial Performance
![Page 35: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/35.jpg)
Managing for Social Results
Define desired performance
Measure progress toward desired performance
Use performance results to improve products, services,
& systems
30% new members are
female
New membership recorded by CU staff and reported to
board
CuTRAC training led to
more inclusion of
women
![Page 36: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/36.jpg)
AMK Company Profile
• Largest number of borrowers in Cambodia : > 300,000• Outreach to > 10,000 villages: > 70% of the villages in Cambodia• Absolute Commitment to Mission: 50% of new clients in 2011 were
below the Cambodia Rural Food Poverty Line• Leader in Social Performance Management and Responsible Finance• Finance at Your Doorstep Methodology: Loan disbursement and
collection at community level• Average Loan Size lowest of nationwide MFIs in Cambodia: USD 172;
94% of loans are for less than USD 300• Lowest interest rates in the group lending market
Key Stats• Population: 14.1 million
• GNI per capita, Atlas method: USD 750
• Poverty Level: 30%
Mature SPM Example – AMK Cambodia
AMK Client Profile
• 50% are below Poverty Line• 87% of clients are female• 63% of clients are literate, and 81% attended some school• Average household has 5.2 persons including 3 income earners• Clients are predominantly rural, but 63% of clients’ main source of cash
inflow is non-farm activity; 35% is farm activity• Food is one of the top three expenditures for 96% of clients• 83% of clients own land, but 76% of clients have no toilet facilities• 33% of clients’ economic situation stayed the same in the previous 12
months; 55% improved, and 13% worsened
![Page 37: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/37.jpg)
AMK SPM Framework
![Page 38: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/38.jpg)
Social Performance Progress and Challenges•Strengths:
▫Synergies between social and financial performance▫Practical way to answer critics▫Tools, approaches and support are good
•Challenges▫Confusion of tools▫Verification process / credibility ▫Developing process, practices and internal accountability▫What about impact?
![Page 39: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/39.jpg)
Cost benefit of SPM
![Page 40: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/40.jpg)
Trade offs:- Individual targeting of poverty - Non financial services- Client protection (early stage)
Synergies:- Geog. targeting & participation improve productivity- Quality of services & reasonable interest rates improve portfolio quality- Service adaptation improve efficiency
Links between social & financial performance
(Cerise)
![Page 41: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/41.jpg)
Other studies on the SP/FP correlations (Cerise)
•A rating agency: Microfinanzas Rating▫ Financial cost of poverty outreach, but▫ Positive Correlation between staff prod/pov outreach, OSS &
SR staff, OSS & breadth of outreach – 36 MFIs, verified data
•A platform for reporting: Mix Market▫ Cost per borrower increases with targeting very poor/poor▫ But SR staff linked with better productivity and SPM training
linked to better PAR – 204 MFIs, self reported
![Page 42: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/42.jpg)
Overall, same trends in data analysis SP/FP
•Costs of individual/direct targeting of the poor •But other means to reach poor people: geographic, methodologies, clients’ participation
•SP & FP are compatible when different dimensions of SP are taken into account
![Page 43: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/43.jpg)
Different levels of support for the MFI
•Purely self assessment: The MFI fills in the questionnaire alone
•Accompanied self-assessment:The MFI fills in the questionnaire with support from an external reviewer
▫The external reviewer knows the SPI tool and can answer to the questions of the MFI
▫Final doc= full questionnaire / excel data-graphs•Self-assessment with external audit
▫The auditor verifies the quality of the information▫At least one day for external audit▫Final doc= full questionnaire/ Excel data-graphs/2p
summary•Purely external assessment: done by the external
auditor
![Page 44: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/44.jpg)
Group Work
In small groups, answer the following questions:
1. In your opinion, why do social performance?
2. How can social performance of credit unions be improved?
3. What are the resource implications of introducing social performance?
![Page 45: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/45.jpg)
Wealth Ranking Exercise
•There are 10 households in this small but typical village. •Make up fictitious names and divide them into Well Off,
Middle Ranking and Poor. •Allocate how many you think will be in each category•Describe each category
•Report back on Flipchart Paper
![Page 46: Social Performance for Credit Unions Day 1 Isabelle Kidney Bless Darkey CuTRAC, Kasoa, Ghana.](https://reader033.fdocuments.in/reader033/viewer/2022042821/56649d895503460f94a6eb84/html5/thumbnails/46.jpg)
Recap Questions
1. List 3 common social missions of financial service providers
2. What does NATO stand for?
3. Why was the microfinance sector’s reputation damaged?
4. What is meant by the term ‘double bottom line’?