By defining its impact model in 2019, the Foundation has set itself the goal of improving the living conditions of vulnerable populations. In order to measure the achievement of this objective, the Foundation needed to collect data in the field, directly from its partners’ clients.
In 2022, the Foundation contributed to the first microfinance index created by 60-Decibels, a company specializing in social impact measurement, which surveyed nearly 18,000 clients from 72 microfinance institutions in 41 countries that year.
In 2023, 60-Decibels expanded its index coverage by surveying more than 30,000 clients from nearly 110 MFIs in 30 countries. This year, the Foundation again contributed to the index in cofunding 8 impact studies to multiply the number of partners with whom it engages on the theme of impact and contribute to a particularly innovative and promising initiative for the sector to improve its impact.
What are the results in 2023?
- Clients continue to access microcredit for the first time;
- Clients who use their loans for commercial (rather than consumer) purposes report better results for their household and business;
- There is a burden of reimbursement, which affects individuals and households. This last point reminds us of the importance of having institutions that are committed to applying customer protection standards, such as microfinance institutions engaged in the customer protection journey.
The Foundation’s partners are on average better than the 2023 benchmark (congratulations to them!) and some are even champions in their region (MLF Zambia in Africa and Humo in Asia).
The Foundation decided to engage, in collaboration with the other co-financiers (Global Partnerships, SIDI, Symbiotics, Gojo, Triodos, Triple Jump, Baobab Group, VisionFund International)), discussions with each MFI on the results in order to support them in taking action. Most MFIs plan to communicate the results (internally and externally), deepen client investigations to dig into the conclusions that challenged them, or improve communication in agencies.
The Foundation wishes to continue its collaboration with its partners and 60-Decibels in the coming years to continue to engage its partners on the measurement of results, so that they improve their products and services through the feedback of their customers.
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