Microcredit Summit Campaign A Project of RESULTS Educational Fund

1730 Rhode Island Avenue, NWSuite 400 Washington, DC 20036United States of America

phone | +1.202.637.9600 fax | +1.202.466.1396www.microcreditsummit.orginfo@microcreditsummit.org

Being Accountable for ResultsFinancial institutions with a mission to help build resilience for those living in poverty take on a huge task. To be accountable to their mission, they need to measure whether or not they are reaching their intended clients and track whether their clients are benefitting from the products and services they of-fer. They need to be able to listen to their clients, so that they can adapt their products, services, and delivery systems in order to meet their client’s needs and serve their aspirations. Truelift gives recognition to those who do this well. Campaign Commitments serve as a mechanism to build movement around applying these practices.

Organizations that Have Made a Campaign Commitment

Truelift Milestone Institutions

Arab Gulf Programme for Development (AGFUND)BRAC Maendeleo TanzaniaAhon Sa Hirap (ASHI)CDFCenter for Financial InclusionFINCAFreedom from Hunger with The Microcredit Summit CampaignGrameen FoundationIGNITEMicrofinance Council of the Philippines, Inc. (MCPI)Microfinance CEO Working GroupMicrofinance Information Exchange (MIX) with The Microcredit Summit CampaignOpportunity InternationalPalli Karma-Sahayak Foundation (PKSF)SEEPVisionFundWorld Savings Bank Institute (WSBI)

Cashpor, IndiaFINCA, PeruMicrofund for Women, JordanSmall Enterprise Foundation, South AfricaNegros Women for Tomorrow Foundation, PhilippinesGrameen Financial Services Private Ltd. (“Grameen Koota”), IndiaBanco FIE, BoliviaCaurie-MF, Senegal

E X E C U T I V E S U M M A R Ystateofthecampaign.org

Goals for 20151) Reaching 175 million poorest families with

microfinance

2) Helping 100 million families lift themselves out of extreme poverty

This report has been made possible by a

generous grant from the Citi Foundation.

ResilienceThe State of the

Microcredit Summit Campaign Report, 2014

Larry R. ReedWith Jesse Marsden,

Amanda Ortega, Camille Rivera, and

Sabina Rogers

Microcredit Summit CampaignA Project of RESULTS Educational Fund1101 15th Street, NW, Suite 1200Washington, DC 20005Phone: +1 (202) 637-9600Fax: +1 (202) 452-9356

www.microcreditsummit.org www.stateofthecampaign.orginfo@microcreditsummit.org

Photos courtesy of:

Front: © Allan Rey Sarmiento (for CARD MRI) Back (beginning bottom left clockwise): © Microcredit Summit Campaign © Microcredit Summit Campaign © Vikash Kumar (www.vikashkumarphotography.com) © Microcredit Summit Campaign © Microcredit Summit Campaign © Microcredit Summit Campaign

SARI-SARI

Ending Extreme PovertyOur goals are clear at the World Bank Group. End extreme poverty by 2030. Boost prosperity and ensure that it is shared with the bottom 40 percent and with future generations. We have an opportunity to bend the arc of history and commit ourselves to do something that other generations have only dreamed of.

– Jim Yong Kim, President, World Bank

The coming years will bring dramatic reductions in poverty, but extreme poverty will not be eliminated unless more is done to improve resilience for those living in the most fragile conditions.

Benchmarking tools for measuring poverty levels have become more widely adopted and, when applied, often show that MFIS did not reach as many people living in poverty as they thought they did. In 2012, the number of poorest clients reported by microfinance providers continued to decline, while the total number of clients recovered its growth trajectory.

Moving and Staying out of Poverty

Applying the data from benchmarking tools to redesign products, services and systems helps MFIs to ensure that those in extreme poverty are able to access and make good use of them as MFIs in the Philippines did. “As a result of their work, client outreach in the Philippines rebounded to 1.9 million in 2012 – from a low of 1.6 million in 2011.

Partnering for Greater Results

1. Mobile Network Operators & MFIs

3. Microfinance & Health

2. Mobile Network Operators & Insurance

4. Regulators & Policymakers

Financial services can have an impact on poverty reduction. Partnering with other organizations like MNOs can multiply the effect and help bring access to the 2.5 billion financially excluded adults.

Combining Conditional Cash Transfers and the Graduation Model

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

250

200

150

100

50

0

Total clients

Total poorest clients

Num

ber

of c

lient

s (i

n m

illio

ns)

13

55

113

82

107

155

205 204

138

195

125116

27

8

HEALTHEDUCATION

Reaching clients through existing infrastructure such as CCT-linked savings accounts allows MFIs to spend less ontransactions and more on client services. MFIs also deploy livelihood training to clients.

MFI

Metoo!

LIVESTOCK

SHEA BUTTER

CO

FFEE

GR

OC

ERY

STO

RE

OUTCOMES

CCTReceived

MFISAVINGS

ACCOUNTS

MFI

Yeah!

MFI

We’re building

livelihoods!

CCTReceived

TEA STALL

FISH & VEGETABLES

2009 2010 2011 2012

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

Total clients

Total poorest clients

Num

ber

of c

lient

s (i

n m

illio

ns)

4,333

3,849

2,218

1,927

3,447