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The cost-effectiveness of social performance assessment: the case of Prizma in Bosnia-Herzegovina
The microfinance institution, Prizma, targets poor women in Bosnia-Herzegovina. To monitor whether it was fulfilling its mandate Prizma developed three tools: a poverty scorecard, an exit monitoring system and market research focus group discussions. This article describes how the toolswere developed and how much this process cost. It then goes on to discuss how possible improvements in client retention would affect the profitability of Prizma's joint enterprise loan, based on figures for average loan cycle profits. Reductions in the client drop-out rate of 50, 25 and 10
per cent are modelled, demonstrating that even modest improvements in client retention have substantial effects on profits, and easily cover the cost of the client assessment tools.
The microfinance institution, Prizma, targets poor women in Bosnia-Herzegovina. To monitor whether it was fulfilling its mandate Prizma developed three tools: a poverty scorecard, an exit monitoring system and market research focus group discussions. This article describes how the tools
were developed and how much this process cost. It then goes on to discuss how possible improvements in client retention would affect the profitability of Prizma's joint enterprise loan, based on figures for average loan cycle profits. Reductions in the client drop-out rate of 50, 25 and 10
per cent are modelled, demonstrating that even modest improvements in client retention have substantial effects on profits, and easily cover the cost of the client assessment tools.
were developed and how much this process cost. It then goes on to discuss how possible improvements in client retention would affect the profitability of Prizma's joint enterprise loan, based on figures for average loan cycle profits. Reductions in the client drop-out rate of 50, 25 and 10
per cent are modelled, demonstrating that even modest improvements in client retention have substantial effects on profits, and easily cover the cost of the client assessment tools.
Mainstreaming Microfinance: Social Performance Management or Mission Drift?
Copestake, James
World Development, Vol. 35 (2007), Iss. 10 P.1721
https://doi.org/10.1016/j.worlddev.2007.06.004 [Citations: 215]Money with a Mission (Volume 1)
Back Matter - Money with a Mission - Volume 1
Copestake, James
Greeley, Martin
Johnson, Susan
Kabeer, Naila
Simanowitz, Anton
Knotts, Katherine
2005
https://doi.org/10.3362/9781780440866.010 [Citations: 0]Tabs navigation
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