MIX’s Social Performance Documents Validation
Scope of the quality check
MIX continuously strives to provide the microfinance industry with the most reliable data possible. MIX has created a quality-check system to help our users differentiate between self-reported social performance data and validated data, and to improve the level of data reliability for analysis and investment decisions.
This validation system aims to ensure quality data for each social performance indicator reported to MIX by MFIs while establishing some minimum criteria for data quality and completeness in each area of social performance that MFIs are asked to report.
The current methodology aims to assess the quality of indicators developed by the SPTF to date but will be updated to include any new indicators that may be developed in the future in compliance with the SPTF standards.
The aim of this desk review is to verify the existence of policies, strategies, procedures, products and services that the MFI is reporting to MIX to have in place. The desk review, however, cannot ensure that the existence of a certain policy is matched by its application; nor can it assess the appropriateness of certain products. In order to assess the appropriate implementation of the indicators, a rating or on-site due-diligence is required.
Validation methodology and MFIs’ recognition
Social performance data reported by MFIs are mainly validated by MIX’s analysts through the review of social ratings no later than two years from the year of reporting to MIX. MIX analysts also use the latest version of the CERISE SPI tool, which is compatible with MIX’s indicators and externally validated, for the validation process. If an MFI reports to have in place indicators that have been adopted after it receives a social rating, or indicators that are not part of CERISE SPI (outcome type of indicators), then the MFI will be asked to provide evidence of the existence of such indicators through the provision of original policy documents, studies or certifications received.
Each validated indicator will appear in a summary document and placed on each MFI’s MIX Market profile. The document will contain information on the type of validation performed, year of validation and a link to supporting documents. MFIs may choose to share this information publicly on MIX Market or limit it to their private use only.
Those MFIs who will report to have in place at least one indicator for each area of social performance management and have each indicator reported through the quality check, they will receive a certificate of recognition of social performance transparency and responsibility (STAR certificate), and it will be visible on the MFI’s MIX Market profile. .
Alignment of social performance indicators collected by MIX with the SPTF standards
The indicators collected by MIX are already aligned with most of the new SPTF Universal Standards on Social Performance Management (USSPM). Nevertheless, some areas of the standards still need to be captured by an indicator, and MIX is currently working with the SPTF’s indicators working group to assess whether any new indicators will be included in MIX’s data collection for2014.