NMI invests in microfinance institutions (MFI) that have clear social objectives and work systematically to achieve them. The social goals of an MFI can both be universal or unique in nature. MFIs also need to meet certain general standards for how they work with and treat their clients.
NMI sets certain requirements for MFIs’ measurement and reporting to ensure that important social and financial goals are reached. This enables us to make a holistic assessment of their business. Measurement and reporting of social development also means that we can document the impact of microfinance on the lives of the poor, and show that microfinance can be an effective tool for reducing poverty and creating jobs.
The Client Protection Principles (CPP) are the microfinance industry’s universal standards for good customer care. All microfinance institutions in which NMI invests, has endorsed these principles, and we monitor regularly that they adhere to them. Through The Smart Campaign, NMI supports efforts to ensure that most MFIs are working in line with the CPP.
Microfinance Information Exchange (MIX) is an industry organization that prepares objective, quality assured and relevant information for the microfinance sector, based on reports from over 2,000 institutions. NMI is a member of MIX, and strongly encourages its portfolio MFIs to report to the MIX on an annual basis.
NMI’s Social Performance Report for Q4 2017 is available below. The microfinance institutions (MFIs) NMI is directly invested in, reach a total of 6,6 million borrowers - mainly women and mainly microentrepreneurs - with a weighted average loan size of $725.
Social Performance Report 4Q2017 ALL FUNDS_WEB_v4