FISE Tool: A Quadruple Bottomline MFI Branch Performance Rating Tool

This paper describes the FISE (Financial, Institutional, Social and Environmental) rating tool that aims to internalize the concept of rating among the staff of MFI branches. Describing the objectives of the rating tool, rating parameters and the rating process, the paper states that:

• Although NGOs are turning into MFIs at a rapid rate in India, they lack professional financial management capacity;
• Only a few companies offer rating services for MFIs, and these are usually too expensive;
• Rating reports mostly stay with the top/ middle management and do not reach the branch level;
• There is a need to internalize the rating process within MFIs and train the branch staff to use the rating process to improve performance;
• Use of the FISE tool will equip the branch to move forward and to bring about holistic development among the target group;
• Tool is simple to use, and can be used even by the non-technical staff at the branch.

The paper concludes that rating results can help branches in taking corrective action and refine their strategy. This will help them avoid mission drift and enable their members and community to seek holistic development.