This year’s second annual Microfinance Index from US-based impact measurement firm 60 Decibels draws on phone calls to approximately 32,000 users of microfinance services delivered by 115 financial services providers (FSPs) in 32 countries. In general, FSP clients reported higher confidence in dealing with economic shocks than non-clients. Clients that took out loans for their microbusinesses reported being better equipped to handle household financial matters. On average, female clients reported “slightly stronger outcomes in confidence and decision making” than did men. Additionally, clients that took out group loans reported higher confidence in dealing with FSPs than those who took out individual loans. In Southeast Asia, especially in Cambodia, clients reported that loan repayment is more of a burden than did clients elsewhere.
Based on client improvements in financial “access, business impact, household impact, financial management and resilience,” 60 Decibels recognized the following FSPs as deserving of Top Impact Awards: Guatemala-based Friendship Bridge, Guatemala-based Fundación Génesis Empresarial, Grace and Mercy Households Improvement Initiative of Nigeria, Tajikistan-based Humo, Kenya Women Microfinance Bank, MicroLoan Foundation Zambia, Svasti Microfinance of India and Vietnam-based Tinh Thuong One Member.
60 Decibels plans to release a public report on its Microfinance Index later in 2023, and it is selling access to the source data now for USD 1,499. From offices in India, Kenya, the UK and the US, the firm measures the progress of firms in sectors such as energy, health, jobs and supply chains toward a “fairer future.”
By Anaya Jhaveri, Research Associate
Sources and Additional Resources
Microfinance Index description
https://60decibels.com/insights/mfi-index/
Source data offerings
https://60decibels.com/insights/mfi-data/
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Download a sample at https://www.microcapital.org/products-page/.
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