MIX Microfinance World: State of Social Performance in Mexico

This report discusses social performance management (SPM) in Mexico. It examines Mexican social performance (SP) profile information in conjunction with quantitative SP and financial data.The report describes the MFIs submitting SP profile data to Microfinance Information Exchange (MIX). It evaluates the ability of Mexican MFIs to track and report on social outcomes related to specific development goals. It takes a closer look at the goal of financial inclusion and examines indicators related to social responsibility to staff. Findings include:

• Mexico's status as one of two countries with the second-highest number of SP profiles on MIX Market demonstrates that MFIs care about SPM transparency and want to improve the social side of their operations;
• MFIs should focus on tracking and reporting outcomes associated with institutional development goals;
• MFIs must improve their client poverty measurement practices in order begin assessing the level and direction of poverty outreach;
• There is a need to analyze the drivers of Mexico's high staff turnover rates;
• Networks and other apex institutions can help MFIs develop good SPM practices, along with other factors such as motivation from investors, and a beneficial regulatory environment.