72 microfinance institutions join the first financial inclusion index

Measuring the impact of microfinance institutions' performance in 41 countries will be launched in the second quarter of 2022 with the support of industry leaders.

April 13, 2022 – In a global effort to promote standardized and comparable impact data for the microfinance industry, 60 Decibels will release the first microfinance index based entirely on end-client responses later this quarter. This groundbreaking initiative will include aggregated client data from all 72 participating microfinance institutions (MFIs), supported by 19 founding partners. Collected through telephone surveys, the resulting data and insights will be shared in a public report and dashboard to establish performance benchmarks for the measurement and ongoing management of impact by MFIs and the funders working with them.

Global MFI participation was made possible through the support and collaboration of the initiative's 19 founding partners: Accion, Advans, BRAC, ECLOF, FMO, Fundación Netri, Global Partnerships, Grameen Foundation, Kiva, LeapFrog Investments, MCE Social Capital, Nordic Microfinance Initiative, Opportunity International, Pro Mujer, ResponsAbility, SPTF, Symbiotics, WaterEquity, and Women's World Banking. Catalytic and structuring sponsorship for this inaugural effort came from the Tipping Point Foundation on Impact Investing and Ceniarth. Together, these sponsors and founding partners funded projects and committed their portfolios to include MFIs from 41 countries in this research.

“As an investor in microfinance for 14 years, the Grameen Crédit Agricole Foundation is truly delighted to participate in this initiative and support its partners in collecting this data. When it published its impact model in 2020, the Foundation committed to further monitoring its impact. We are therefore pleased that our team has comparable impact data for the first time.”, said Alice Rullier, impact analyst at the Foundation.

For each participating MFI, 60 Decibels researchers surveyed a representative sample (200 to 250 respondents) of MFI clients and conducted a standardized telephone survey to collect quantitative and qualitative data across five key dimensions of impact. The survey, developed by 60 Decibels and based on its experience working with hundreds of businesses in the field of financial inclusion, uses proven questions to assess and compare social outcomes across five impact themes: access, business impact, household impact, financial management, and resilience. Aggregated data from all participating MFIs will establish benchmarks to be shared in the public report, providing essential insight into the range of performance on these key outcomes for use across the microfinance industry.

"We started listening to end customers eight years ago because the standard of practice – things like counting the number of customers reached – didn't give us any insight into whether people's lives were improving.", said Sasha Dichter, CEO and co-founder of 60 Decibels. “We are delighted with the response to this initiative and the collaboration of so many industry leaders to listen better and set a new standard in understanding social outcomes. This index takes the value of our impact benchmarks to a new level and helps MFIs and investors understand client outcomes with 100% comparability for each metric.”.

In addition to providing information that will be directly applicable to impact management in the microfinance sector, the index signals and demonstrates the value of rigorous end-stakeholder outcomes data for understanding impact performance. In the coming year, 60 Decibels will generate sector-level benchmarks through similar indexing efforts in other sectors to increase the importance of listening to end stakeholders to achieve greater impact.

The index is designed to complement and integrate with existing frameworks and standards in microfinance, impact investing, and international development. Participating in the MFI index to conduct client surveys provides MFIs and investors with feedback on SPTF and CERISE recommended practices in the Universal Standards and Client Protection Principles, as well as the SDG Impact Standards, and provides data aligned with IRIS+ metrics and the five dimensions of impact orientation established by the Impact Management Project.

For more information and to receive the 60 Decibels Financial Inclusion Index, Click here.

About 60 Decibels

60 Decibels is a global, technology-enabled impact measurement company that brings speed and repeatability to social impact measurement and customer insights. We provide true impact performance benchmarks, enabling organizations to understand impact relative to peers and set performance targets. We have a network of over 850 researchers in over 70 countries and have worked with over 800 of the world's leading impact investors, corporations, foundations, societies, NGOs, and public sector organizations. 60 Decibels makes it easy to listen to the people who matter most.

About the Grameen Crédit Agricole Foundation

Created in 2008 under the joint leadership of Crédit Agricole SA's management and Professor Yunus, the Grameen Crédit Agricole Foundation supports microfinance institutions and impact businesses in 37 countries as of the end of 2021. A recognized player in the sector, the Grameen Crédit Agricole Foundation aims to work in countries where poverty and financial exclusion are most prevalent. As an investor, lender, technical assistance coordinator, and fund advisor, the Foundation supports 81 partners in 37 countries with more than €78 million in commitments.