MICROCAPITAL BRIEF: MFR Launches Impact Assessment Rating Service for Microfinance Institutions

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Microfinanza Rating (MFR), an Italy-based rating agency specializing in “inclusive and sustainable finance”, recently unveiled its impact assessment service, which it describes as offering “external, reliable and independent validation changes generated by the activities of the financial institution, in the lives of its customers[ves].” The evaluation uses indicators based on the United Nations Sustainable Development Goals as well as the work of the US-based nonprofit Social Performance Task Force. Examples of measures include customer-reported changes in business income, household income, level of savings, and access to health care. The process results in a range of detailed data as well as a simple score from 1 to 5 regarding the likelihood that the institution has had positive impacts on clients.

MFR started in 2000 as a department of Microfinanza Srl, an Italian consulting firm specializing in microfinance, and became an independent company in 2006. The company’s clients are mainly investors, regulators and banks. In addition to its headquarters in Italy, MFR has offices in Bolivia, Ecuador, Kenya, Kyrgyz Republic, Mexico, Peru and the Philippines.

Microfinanza Srl provides education, research, technical assistance, monitoring and evaluation services to microfinance providers. It is active in Africa, Eurasia and Latin America.

By Saulius Simonas Ramanauskas, Research Associate

Sources and additional sources

FRM press release
https://www.mf-rating.com/2022/05/27/mfr-launches-a-new-impact-assessment-product-2

MFR Impact Evaluation Methodology
https://www.mf-rating.com/wp-content/uploads/2019/07/Methodology-IA-MFR-ENG-Apr22.pdf

United Nations Sustainable Development Goals homepage
https://sdgs.un.org/goals

Social Performance Working Group Home Page
https://sptf.info

Did you know that MicroCapital publishes the MicroCapital Monitor every month? Learn more at https://www.microcapital.org/products-page/.

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