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
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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]
Agenda
• Introduction
• Opportunity – Global Network perspective
• CERISE – SPI4 Reporting Tool
• Triple Jump – Social Investor perspective
• Discussion with participants
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
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
Agenda
• Introduction
• Opportunity – Global Network perspective
• CERISE – SPI4 Reporting Tool
• Triple Jump – Social Investor perspective
• Discussion with participants
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)
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
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
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
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
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
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).
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
Agenda
• Introduction
• Opportunity – Global Network perspective
• CERISE – SPI4 Reporting Tool
• Triple Jump – Social Investor perspective
• Discussion with participants
Measuring Social Performance Management
Essential Practices
Standards
Dimensions
Indicators
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.)
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
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)
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
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
Agenda
• Introduction
• Opportunity – Global Network perspective
• CERISE – SPI4 Reporting Tool
• Triple Jump – Social Investor perspective
• Discussion with participants
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
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?
