Driven by its values, FMFB believes in making distinct efforts to translate its mission into practice in line with globally accepted social values. FMFB activities endeavors to assess the impact of its services against its stated objectives, the effectiveness of its systems and services in meeting these objectives, and the related outputs and changes in the quality of life of clients.
During the past few years, FMFB has implemented various initiatives to build its internal capacities to define and monitor social goals. In 2009, FMFB partnered with Kennedy School of Government, Harvard University to develop MIS-linked social indicators at the client level for regular tracking of holistic poverty metrics. FMFB has been reporting annually to the MIX Market on social indicators.
FMFB intends to mainstream a standard poverty measurement tool within its operations, refine its products and services based on client needs, and improve practices in client protection. It intends to regularly monitor the conformity of its practices to the Universal Standards for Social Performance Management (USSPM).
Some of the initiatives of FMFB are as follows:
Understanding Client Segments
To better understand the clients whom FMFB is serving and crystalize client segments and provide client centric products, the FMFB geared itself to mainstream capturing of the Progress out of Poverty Index (PPI) for all its loan clients from 2014. The recording of the PPI for all clients over different time periods will enable the FMFB to assess who it is targeting and whether there have been any changes in their social indicators over time. The FMFB is building an interactive database over time to assess its clients based on their PPI scores, with other demographic and economic indicators of client profiles (captured in the MIS), the use of products and services and quality of life (QOL) changes.
Quality of Life Impact Survey
FMFB has initiated Quality of Life (QOL) Impact Surveys to assess the changes in the clients’ lives by utilizing its products and services. This qualitative research studies are aimed to understand the changes in clients’ lives from the time loans were taken from FMFB, and how the loans directly or indirectly affected the clients and their family’s lives. These impact assessment studies would enable the FMFB over time to understand the linkages between the changes in the life of clients and the specific product parameters, to thereafter modify and adjust its products to be more client-centric. The first QOL survey has been conducted in 2014 and the FMFB envisages conducting such surveys every two years.
Periodic Client Satisfaction Surveys and Client Exit Surveys
Learning from clients’ experiences to modify and adapt financial products has been a regular aspect of product development at FMFB. FMFB conducts periodic Client Satisfaction Survey (CSS) and Client Exit Survey (CES) to assess the suitability of products and features for the target clients, identify potential improvements to enhance the product portfolio, as well as impact of these products on the lives of its clients. Both surveys are conducted every alternate year.
Social Performance Working Group
FMFB is a member of the Pakistan Microfinance Network’s (PMN) Social Performance Working Group (SPWG) to assist in developing and executing an industry level strategy to implement USSPM. Being part of this group, FMFB committed to work on its compliance to three main sections of the USSPM – Section 2 ‘Ensuring Board, Management and Employee Commitment to Social Goals’, Section 3 ‘Treating Clients Responsibly’ and Section 4 ‘Design Products, Services, Delivery Models and Channels That Meet Clients’ Needs and Preferences’. In this regard, FMFB is also introducing a Social Champion on its Board of Directors.
In order to build strong, lasting relationships with its clients, increase client retention, and reduce financial risk, FMFB is cognizant of incorporating client protection principles into its due diligence criteria. To assess its abilities and processes to meet this objective and to remain both socially focused and financially sound, FMFB took the initiative of having a SMART Assessment done in 2013, with the support of PMN. This assessment has enabled FMFB to determine improvements in two specific areas of client protection.
Building on to this initiative, FMFB also started reporting on the MF Transparency in 2014.