1

Gender PerformanceCelina Kawas

2

What is Gender Performance?

With 74% of MFIs claiming to target women, and over half declaring women’s empowerment or gender equality as an objective: How can we hold ourselves accountable to the financial inclusion and

empowerment principles we advocate? How can we understand if financial institutions are serving women well?

The Gender Performance initiative aims to develop, monitor, and analyze more and better gender-based social and financial performance indicators.

Develop Hypotheses

Identify Key Indicators Conduct Pilots Analyze Data Finalize GPI

Framework

Develop “Select Few” GPI Indicators

3

How do we measure how well we are serving women?

In this context, we tested indicators to measure:• Outreach to low-income women• Diversity of products and services to meet women’s lifecycle

needs• Quality of service • Protection of women clients• Gender diversity within financial institutions• Financial performance

• Can we build the business case for serving low-income women?• Social performance

• Are there any outcomes for women that we can track through data collected by MFIs?

4

The Next Phase in Measuring Gender Focus

Current Gender Indicators

• % women borrowers• % women staff• % women managers• % women board

members

GPI “Select Few”

• % new women borrowers

• Average loan size per woman borrower

• Women borrower retention rate

• PAR>30, by gender• Staff retention rate,

by gender

5

The “Select Few” Gender Performance Indicators

•“% women borrowers” provides a snapshot of an organization’s outreach to women. •% new women borrowers indicates the direction in which an organization is moving.

% new women borrowers

•Average loan balance is commonly used as a simple and comparable proxy for measuring depth of outreach.

•Disaggregating by gender can o ensure that the organization is reaching low-income women.

Average loan balance per woman borrower

•Retention is a proxy for customer satisfaction with products and services. Institutions that seek to serve women well must look at disaggregated retention data.

Women borrower retention rate

•Gender has long been one of the most important variables to measure financial risk. •Disaggregated financial data enables an institution to better understand its portfolio.

Portfolio at risk >30, by gender

•Staff retention is critical to productivity and maintaining operational efficiency. • Institutions must disaggregate retention data to understand if workplace conditions are meeting women’s needs.

Staff retention rates, by gender

6

% new women borrowers

2007 2008 2009 2010 2011 Portf0%

20%

40%

60%

80%

100%

Women; 68%

Men; 32%

New client distribution (MFI 1)

0%

20%

40%

60%

80%

100%

Women; 38%

Men; 62%

New clients (MFI 2)

7

Average loan balance per woman borrower

0.1 - 1.9

2 - 3.9 4 - 7.9 8 - 29.9 30 - 85 Overall0%

20%

40%

60%

80%

100%

50%32% 28% 25% 20%

40%

50%68% 72% 75% 80%

60%

Client Distribution by Loan Size (MFI 1)

MenWomen

Rural Urban Total

1,2541,149 1,183

1,4691,308 1,377

Average Loan Size (MFI 2)

WomenMen

8

Female borrower retention rate

2007 2008 2009 2010 201150%

60%

70%

80%

90%

Women

Men

Retention Rate

9

Portfolio at risk >30, by gender

PAR 7 PAR 30 PAR 60 PAR 90 PAR 180 PAR 360

5.8%

2.7%2.1%

1.7%0.9%

0.3%

5.1%

2.4%1.9%

1.5%0.8%

0.4%

PAR by client gender (MFI 1)

MaleFemale

0.1 - 1.9 2 - 3.9 4 - 7.9 8 - 29.9 30 - 85 Overall0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

PAR 30 by loan size (MFI 2)

WomenMen

10

Staff retention rates, by gender

pre-2008

2008 2009 2010 2011 Total0%

10%20%30%40%50%60%70%80%90%

100%

Women; 52%

Men; 48%

Number of LOs, by join year (MFI 1)

2007 2008 2009 2010 2011 2012 Overall0%

10%20%30%40%50%60%70%80%90%

Women; 27%

Men; 73%

Number of LOs, by join year (MFI 2)

11

Moving Forward

• Partnership with the MIX to test select few indicators• Disseminating and promoting adoption of “select few”

• MFIs• Donors• Investors• Raters• Industry Initiatives