MICROCAPITAL BRIEF: Truelift Updates Truelift Indicators Tool for Assessing Pro-poor Focus of Microfinance Institutions

Truelift, an initiative that recognises institutions that exhibit commitment to the “pro-poor objective of microfinance,” has announced an updated version of its Truelift Indicators Tool, a set of criteria intended to assess how much microfinance institutions (MFIs) meet the needs of low-income people [1]. The tool, first introduced in October 2013, is based on three “Pro-Poor Principles” – purposeful outreach to people living in poverty; services that meet the needs of people living in poverty; and tracking the progress of people living in poverty. The indicators reflect the Universal Standards for Social Performance Management (USSPM) of the Social Performance Task Force (SPTF), a working group initiated in 2005 by a group of NGOs based in the US and Switzerland, and the Client Protection Principles (CPP) of The Smart Campaign, a microfinance-consumer protection initiative affiliated with US-based NGO Accion.

The updates to the tool include a “streamlined” process for institutional assessment; a summary that highlights strengths and opportunities for improvement; and updated terminology to further align with USSPM and CPP.

To request the Truelift Indicators Tool, you may visit http://form.jotform.co/form/32616470308855.

By Nisha Koul, Research Associate

About Truelift: Truelift, originally known as the “Seal of Excellence for Poverty Outreach and Transformation,” is an initiative that aims to recognize the efforts of microfinance institutions (MFIs) in the field of poverty reduction. It offers assessment tools that MFIs can use to evaluate their “pro-poor” performance as well as the strength of the “evidence” that is used for the assessment. The framework used by Truelift is derived from the Universal Standards for Social Performance Management (USSPM) from the Social Performance Task Force (SPTF), a working group initiated in 2005 by a  group of NGOs based in the US and Switzerland, and the Client Protection Principles (CPP) of The Smart Campaign, a microfinance-consumer protection initiative affiliated with US-based NGO Accion.

About the Social Performance Task Force (SPTF): The Social Performance Task Force (SPTF) was created in 2005 as an initiative of US-based CGAP (Consultative Group to Assist the Poor), Switzerland’s Argidius Foundation and the US-based Ford Foundation. As of 2012, SPTF consists of approximately 1300 members from microfinance stakeholder groups including practitioners, donors, investors, national and regional networks, technical assistance providers, rating agencies, academics, researchers and others. It has been charged with clearly defining social performance and addressing questions about measuring and managing social performance. According to SPTF, social performance includes operating “in line with accepted social values that relate to serving larger numbers of poor and excluded people.”

About The Smart Campaign: The Smart Campaign, which was founded by US-based nonprofit Accion and is located at Accion’s Center for Financial Inclusion in Washington, DC, is an “effort to unite microfinance leaders around a common goal: to keep clients as the driving force of the industry.” It promotes seven core consumer protection principles including: “appropriate” product design and delivery, prevention of over-indebtedness, transparency, responsible pricing, fair and respectful treatment of clients, privacy of client data, and mechanisms for complaint resolution. As of 2013, The Smart Campaign is endorsed by approximately 3,348 microfinance institutions (MFIs), microfinance support organizations, investors, donors and individual industry professionals.

Sources and Additional Resources:

[1] Truelift, “Announcing: New and Improved Truelift Indicators Tool,” http://sealofexcellence.wordpress.com/2014/02/26/announcing-new-and-improved-truelift-indicators-tool/

MicroCapital Story, March 22, 2014, “OPINION: No Silver Bullet: While Microfinance Alone Won’t End Poverty, It Is Making an Impact – So Let’s Re-focus It to Serve the Poor,” https://www.microcapital.org/opinion-no-silver-bullet-while-microfinance-alone-wont-end-poverty-it-is-making-an-impact-so-lets-re-focus-it-to-serve-the-poor/

MicroCapital Story,March 22, 2013, “Social Performance Task Force (SPTF) Calls for Submissions for “Balancing Social and Financial Responsibility” Section of the Universal Standards Resource Library,” https://www.microcapital.org/microcapital-brief-social-performance-task-force-sptf-calls-for-submissions-for-balancing-social-and-financial-responsibility-section-of-the-universal-standards-resource-library/

MicroCapital Story, January 31, 2013, “Smart Campaign Launches Certification of Microfinance Institutions Regarding Client Protection,” https://www.microcapital.org/microcapital-brief-smart-campaign-launches-certification-of-microfinance-institutions-regarding-client-protection/

MicroCapital Story, January 26, 2012, “Microfinance CEO Working Group Issues Road Map for Microfinance Industry Promoting Smart Campaign, Microfinance Transparency, Social Performance Task Force,” https://www.microcapital.org/microcapital-brief-microfinance-ceo-working-group-issues-road-map-for-microfinance-industry-promoting-smart-campaign-microfinance-transparency-social-performance-task-force/

MicroCapital Universe Profile, Truelift, http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Truelift

MicroCapital Universe Profile, Social Performance Task Force, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Social+Performance+Task+Force

MicroCapital Universe Profile, The Smart Campaign, http://microcapital.org/microfinanceuniverse/tiki-index.php?page=SMART+Campaign

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