> Posted by Center Staff
A New Year for microfinance is fast approaching, and if we’ve learned anything lately, it’s that you can’t be too prepared.
MIX Market, an important tool to research and analyze MFIs, is one place to begin that preparation. You may find the MIX useful for your year-in-review — and beyond.
Below are three quick steps to get started with MIX Market, but if you want to make the most of their data and analytics for your MFI due diligence, you can register for their free webinar on Tuesday, January 10 @ 10:00am EST.
1. Contextualize Before Analyzing
MIX Market MFI profiles provide important context to help you make sense of all the available indicators and performance data. Is this MFI a regulated microfinance provider? You may want to review the legal charter and other institutional background before analyzing those efficiency or capital adequacy numbers. Does this MFI have poverty alleviation or targeting the poor as one of its development goals? Look at the profile’s social performance section before you go looking for data on poverty outreach.
2. Drill down into data
High level indicators such as Portfolio at Risk > 30 days give you a quick view onto MFI performance trends at a glance, but they are just a starting point. Why is the cost of funding rising for this MFI? You may want to look more closely at its funding liabilities or interest expense make-up in the financial statements. Why has growth in the loan portfolio slowed, but the average loan balance increased? A look at the types of credit products in the portfolio may shed some light. Without leaving the Data and Reports tab, you can dig further into more detailed reports, such as the Balance Sheet, or learn more about gender, product or other portfolio breakouts from any data point where you see an arrow in front of the term. With MIX premium services, you have access to over 500 data points for your MFI due diligence.
3. Go straight to the source
Looking for basic KYC documents for your MFI review? Complement your performance due diligence with the largest repository of MFI corporate documents, from annual reports and audits to social ratings and product descriptions. MIX has already compiled key documents to help you get started, and they are all available from the Files tab in each MFI profile. If you don’t have time to read through all the notes in the audit report, don’t worry. MIX analysts have already done that for you. More than 75% of MFI data submitted to MIX Market backed up by audits.
Have you read?
How MFIs are Doing on Client Protection – First Reports from the MIX
Metrics That Matter
Industry Experts Testify on the State of Global Microfinance