Measurement of indicators of the change in client lives, that are plausibly associated with the Financial Service Providers services (FSP), in the areas of income, assets, financial access, well-being, ability to cope with shocks, women empowerment and other areas relevant for the mission of the FSP Institution.
Impact management is necessary both for improving the change in clients’ lives and for ensuring accountability. It allows you to:
- Report on what you have achieved. Demonstrate the positive change you managed to create in clients’ lives.
- Have a decision-making process based on clear and reliable data.
- Expose FSPs to an outcome measurement process and technique that can be adapted and replicated internally.
Investors and financial service providers willing to gain a better understanding of the changes in clients’ lives and may be willing to develop a change measurement system or improve the existing one.
How it works?
- The indicators used will be aligned to the Universal Outcome Indicators defined by the Social Performance Task Force (SPTF) and to the United Nations Sustainable Development Goals (UN SDGs) which will be adapted based on the Financial Service Provider’s (FSP) mission or theory of change.
- MFR will use its own internal Impact Assessment tool to produce a comprehensive reporting with detailed graphs, table as well as statistical analysis (regressions, impact at micro level, correlations, confidence levels among other) for each of the different selected dimensions of impact.
- Provides an external and independent validation of what are the changes in clients’ life that are plausibly associated with the FSP services. The assessment gives an opinion on the commitment and capacity to put in practice the institution’s objectives in terms of impact desired and their contribution (if requested) to the UN Sustainable Development Goals (SDGs).
- MFR will use both secondary data available at the institutional level and primary data.
- Can be easily combined with additional services including e.g. Social Ratings.
Examples of indicators analysed: