Seal of Excellence for Poverty Outreach and Transformation in Microfinance

Mission

The Seal of Excellence for Poverty Outreach and Transformation in Microfinance is a global initiative that will recognize those microfinance institutions doing the most to help families lift themselves out of poverty. 

Our movement is not just about money, it is about unlocking human dreams. We seek to employ financial capital to unleash human potential, and by awarding the Seal, we will be able to learn from those who do this well.

Towards a Seal of Excellence in Global Microfinance  

The Seal has been under development since April 2010 with input from a broad range of stakeholders, and is currently expanding from the concept phase to the implementation phase. The Seal was first announced in the State of the Microcredit Summit Campaign Report 2011, and the conversation continued in the 2012 report.

In the following PowerPoint presentation, we show how the Seal builds on the other standards-setting initiatives (Smart Campaign, Social Performance Task Force, among others) and proposes to use systems for validation that already have been developed for social ratings. 

The Practitioner Point of View

In his remarks at the opening plenary session of the 2011 Global Microcredit Summit, John de Wit, Managing Director of Small Enterprise Foundation in South Africa, expressed his hopes for the Seal.

What I as a practitioner [am] hoping for is that the Seal will be able to differentiate between those who are really trying to do constructive microfinance—who are really trying to make sure that we do deliver a difference in the lives of poor people, that we give them their chance at dignity, their chance of climbing out of poverty—from a lot of microfinance that is very, very worrying.

--John de Wit, Managing Director, Social Enterprise Foundation, South Africa

Watch the video of John de Wit’s presentation below. Watch the full plenary session on our YouTube channel.

 

FAQs

1. What is the Seal of Excellence for Poverty Outreach and Transformation in Microfinance?

A: The Seal is a certification that recognizes microfinance institutions who meet a set of indicators that demonstrate significant outreach to the poor (defined specifically for different countries or regions) and a strategic approach and success in helping a portion of them move away from poverty. The Seal is a global initiative that provides microfinance institutions with the necessary tools to help them achieve their poverty outreach missions. 

2. What is the difference between the Seal and other standards-setting initiatives like the Smart Campaign’s Client Protection Principles and the Social Performance Task Force’s Universal Standards?

A:  The Seal has aligned with the Smart Campaign and the Social Performance Task Force to build upon the principles and standards already established. Each institution applying for the Seal would first have to be certified by these initiatives, showing that they meet the Client Protection Principles and the Universal Standards as defined. In addition, each institution must meet financial and organizational indicators as prerequisites to receive the Seal.  

The Seal is unique in that it would certify those institutions that not only protect their clients and meet double bottom line commitments, but also achieve results by demonstrating significant outreach to the poor.

3. How can my microfinance institution apply for certification?

A:  As of the spring of 2012, the indicators that will be used to evaluate institutions are under beta testing which is being led by the initiative’s Technical Committee. We plan to begin institutional assessments towards the end of 2012 or early in 2013. 

In the meantime, review the draft indicators and see if your organization is on the right track to meet the criteria. 

4. On what criteria is the Seal awarded?

A:  The Seal itself will have multiple levels of recognition, e.g., one for those MFIs which serve significant numbers of the poor and excluded (as defined in their country), one for those MFIs which target and serve significant numbers of the poorest and most marginalized populations, and additional level(s) for those which can demonstrate a strategic approach to transformation (including movement out of poverty) for these clients.  A fourth element, an MFI’s contribution to poverty reduction, may be added in the future as reliable measurement tools become available.  

The different levels of certification will be developed as a result of the beta tests and will be available later in 2012.