Auditing MFIs

Is it possible to get genuine performance measures concerning the social performance of microfinance institutions (MFIs)? In a recent article, I was pleased to notice that CERISE provided a tool to “capture” this information.

Microfinance Knowledge Network (CERISE), based in Paris, gathers five leaders in French microfinance to provide technical assistance to MFIs around the world. One of the expertises of CERISE is to perform social auditing of MFIs with their own tool that has been created.
The Reuters article mentions: “The latest innovation in social performance measurement is to look not only at the performance of the microfinance institutions, but also to undertake a social audit of private financiers. […] Cerise is at the forefront of social performance, and serves as an exchange platform on practices in microfinance. Cerise’s Social Performance Indicator tool, a social audit instrument for microfinance institutions, is recognized by CGAP, SEEP network and donors worldwide. The tool is currently being developed to analyze financier’s internal systems and processes.”
As mentioned in the article, Oikocredit, one of the world’s largest sources of private funding to the microfinance sector, has recently released the results of it social audit results “to know that investments of some EUR 370 million lead to positive changes in the lives of the working poor.” You can have a glimpse of the audit results and read the article here. You can also visit their Website for a detailed analysis.