Microfinance partner now certified in tracking poverty levels
20-10-2011
Oikocredit partner ASKI is the first organization in South East Asia to be fully certified in measuring client poverty levels with the Progress out of Poverty Index (PPI).
Earlier this month Oikocredit partner ASKI became the first South East Asian organization to be fully certified in measuring client poverty levels with the Progress out of Poverty Index (PPI).
The PPI tool is a ten-question survey that, if used over time, can gauge whether a clients’ economic situation has changed. Oikocredit promotes the PPI to partners as one method of formally measuring the social results and social orientation of an organization. The results can provide invaluable feedback for an organization in emphasizing target groups, tailoring products and services or ensuring an MFI does not shift to other target groups.
Oikocredit has guided 26 partners in Asia and Latin America in implementing the PPI; ASKI was among the first. ASKI executive director Rolando Victoria said the partnership between Oikocredit and ASKI has prompted valuable social changes.
“Not only for ASKI as a development organization, but more importantly to the lives of our clients and their communities,” Mr Victoria said. “The support provided by Oikocredit on the use of PPI tools served as a guide for ASKI on its product development and client targeting. We can say that because of Oikocredit’s support, ASKI was able to strengthen its strategies, and put mission into action.”
ASKI first used the programme in 2007, piloting it at one of its branches the following year. By 2009, the PPI process was fully integrated in its operations, and by 2010, the first comparative results were available.
Around 5000 clients surveyed in 2008 were still with ASKI for a second survey in 2010. Survey results showed 14.58% of the clients crossed the national poverty line within that time. Tracking clients’ poverty levels over time as ASKI has done presents the biggest challenge for an MFI in terms of resources and process. By the end of 2010, ASKI surveyed more than 76,000 current clients, showing 16.44% of clients were below the national poverty line.
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