Transforming
Lives

Social
Performance
Management

Our Mission

By providing financial solutions and training, we empower people living in poverty to transform their lives, their children's futures and their communities.

Our Vision

Our vision is a world in which all people have the opportunity to achieve a life free from poverty, with dignity and purpose.

Our Motivation

We respond to Jesus Christ's call to love and serve the poor. We seek to emulate the Good Samaritan, whose compassion crossed ethnic groups and religions. We serve all people regardless of race, faith, ethnicity and gender.

Transforming Lives:What is SPM?

Our approach to alleviating poverty is framed by Social Performance Management, which is about effectively translating our social mission into reality. Social Performance Management ensures that we understand clients’ needs and equips us to design products and services that will enable them to most effectively transform their futures and their communities.

Opportunity empowers people living in poverty to transform their lives, their children’s futures and their communities through financial services and training. We achieve this through our global network of more than 40 socially focused microfinance partners.

With over 40 years’ experience in microfinance, we have seen the powerful ripple effect that’s created when a woman can access a loan to start a business, open a bank account to secure savings, purchase insurance and participate in training opportunities — she is able to strengthen her family, create jobs and fuel local economies.

SPM Journey Diagram
The Need

The Need

Are we reaching those in need?

To be certain we are achieving this mission, we need to understand our clients’ circumstances when they join our programs. Low income is a factor in poverty, but so too are lack of access to basic services as well as vulnerability to shocks. Data on these dynamics can help us understand and improve our outreach to those in need.

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Our Response

Our Response

Are we meeting their needs?

We provide a range of financial and non-financial services to our clients. Opportunity is committed to listening to clients and giving them a voice. This means collecting their feedback on products and services, and responding with improved services. This also means implementing industry best practices, and ensuring our clients get access to effective, fair and transparent products and services.

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The Impact

The Impact

Are we transforming their lives?

We also need to understand how our clients’ lives are changing and as far as possible understand the contribution our programs and services are making to those changes.

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Glossary

A

APR
Annual Percentage Rate
APY
Annual Percentage Yield

B

BC
Banking Correspondent
BI
Business Intelligence

C

COCA
Code of Conduct Assessment
CGAP
Consultative Group to Assist the Poor
CPP
Client Protection Principles: The 7 Client Protection Principles (CPPs) describe industry best practices relating specifically to the protection of microfinance clients. They were developed by the Smart Campaign in 2009.

E

EIR
Effective Interest Rate

I

IRR
Internal Rate of Return

M

MCWG
Microfinance CEO Working Group - a group of 8 microfinance networks who collaborate to encourage endorsement of Triple Crown initiatives in microfinance.
MFI
Microfinance Institution
MFT
Microfinance Transparency - an industry initiative to promote transparency around credit product pricing
MIS
Management Information System(s)
MIX
runs "Mix Market", a public data hub where MFIs share institutional data to enhance transparency and market insight

N

NPS
Net promoter score

O

OER
Operating Expense Ratio
OSS
Operational self-sufficiency

P

PAR
Portfolio at Risk
PPI
Progress out of Poverty Index - a poverty measurement tool designed by Grameen Foundation
PRS
Partner Reporting System

R

ROA
Return on Assets
ROE
Return on Equity

S

Social audit
third-party assessment of SPM practices
SMART objectives
stands for Specific, Measurable, Achievable, Relevant, Time-bound
Smart Campaign
An initiative to standardize best practices for client protection (includes Smart client protection certification process)
SME
Small medium enterprise
SPI4
CERISE Social Performance Indicators 4 - a self-assessment tool for partners to assess adherence to the USSPM and other best practice standards
SPM
Social Performance Management
SPTF
Social Performance Task Force - developed the Universal Standards for SPM. Calum Scott is a Board member.

T

TA
Technical Assistance
Triple Crown Initiatives
refers to 3 key SPM initiatives: 1) Endorsing the Smart campaign, 2) Endorsing Microfinance Transparency campaign and 3) Committing to implement the USSPM

U

USSPM
Universal Standards for SPM are a global, industry-wide effort to clarify and standardize SPM practices. Their development was coordinated by the Social Performance Task Force (SPTF) with input from stakeholders and they were published in 2012.