- What are the Microfact tools and how to interpret the results?
- Why do MFIs use the Microfact MFI Factsheet Microfinance?
- How to use the Microfact MFI Factsheet Microfinance?
- How does the MFI Factsheet Microfinance measure financial and social performance?
- Why do MFIs use the Microfact MFI Factsheet Microinsurance?
- How to obtain the Microfact tools?
- How to access the Microfact training modules?
- Who created Microfact?
Microfact key figures :
15 active Microfact trainers on 4 continents
Currently used by 800 MFIs as a reporting and/or management tool
Microfact: visualise and analyse your financial and social performance
Microfact is a joint ADA and BRS initiative which provides tools and training designed to contribute to the efforts made to improve the performances of microfinance and microinsurance institutions.
What are the Microfact tools and how to interpret the results?
Microfact proposes a set of tools in Excel format which calculate the evolution of the main indicators of financial and social performance. Complementary training enables users to interpret and to analyse the results.
Discover below the 4 Microfact tools:
1. MFI Factsheet Microfinance version 4.2
MFI Factsheet Microfinance is a tool used to monitor and to analyse an MFI’s financial and social performance. Once your MFI’s financial results and social data have been entered into the system, the MFI Factsheet calculates the ratios and displays your financial and social performance in graphical form, thereby facilitating the analysis of your performance.
How to interpret the ratios and graphs generated by the MFI Factsheet Microfinance?
ADA and BRS provide training on how to interpret financial ratios so that you are able to take the correct strategic decisions in order to guarantee the future of your institution.
The MFI Factsheet Microfinance has been designed to be used by the largest possible number of people and is available in 10 languages: English, French, Spanish, Portuguese, Russian, Vietnamese, Lao, Khmer, Arabic and Burmese.
Today, more than 800 MFIs worldwide and many investors analyse financial and social performance using this tool.
2. MFI Factsheet BCEAO
MFI Factsheet BCEAO is a version of the MFI Factsheet Microfinance which has been specially developed for the member states of the BCEAO (Central Bank of Western African States). The tool includes the BCEAO prudential indicators and enables MFIs in the sub-region to generate financial reporting which is recognised by the competent authorities.
ADA and BRS offer training in West Africa to members of the West African Economic and Monetary Union (UEMOA) to learn how to analyse the financial ratios of the MFI Factsheet BCEAO and thus be able to make the right strategic decisions to ensure the future of your institution.
3. MFI Factsheet Compiler
MFI Factsheet Compiler is a tool which can be used to import several MFI Factsheets from different MFIs so as to be able to assess and to compare their financial and social performances. This is a valuable tool for networks of MFIs or professional associations which wish to obtain a broader view of the level of financial and social performance in their region or for investors who want to monitor the entirety of their portfolio of MFIs.
Upon request, ADA and BRS may provide training and assistance regarding the use of the Compiler to people who are already acquainted with the MFI Factsheet.
4. MFI Factsheet Microinsurance
MFI Factsheet Microinsurance is a tool to calculate the performance of microinsurance products. It is based on several key principles and calculates the ten main performance indicators applicable to microinsurance. The manual of social performance indicators for microinsurance helps users to interpret the results generated by the Factsheet.
How to interpret the ratios and graphs generated by the MFI Factsheet microfinance?
ADA and BRS offer you training to learn how to use and analyse microinsurance financial ratios in order to be able to make the right strategic decisions to ensure the future of your insurance products.
In the framework of the work carried out by the Microinsurance Network, Microfact has designed several workshop programmes on key performance indicators for microinsurance.
Why do MFIs use the Microfact MFI Factsheet Microfinance?
Because the MFI Factsheet is available online free of charge, it is fast and simple to use and makes it possible to:
- Monitor and analyse an MFI’s financial and social performance indicators in the form of graphs, tables and ratios
- Provide guidance for operational and strategic decisions
- Generate financial reports for the authorities, investors, etc. Automatically imports Mix Market data in order to compare the performance of your MFI against that of your competitors
- Strengthen the credibility of your MFI in the eyes of investors
- Automatically import the data into the SPI4 tool: this is a performance evaluation tool developed by CERISE which allows MFIs to go further in their analysis of social performance.
How to use the Microfact MFI Factsheet Microfinance?
Begin by downloading the MFI Factsheet free of charge from the Microfact website.
Follow the instructions provided in the handbook and the video tutorial to fill out the MFI Factsheet Microfinance with your financial and social data.
Analyse the data displayed in the form of ratios and graphs. You may also choose to sign up for training to learn how to interpret and analyse these ratios generated by the MFI Factsheet.
The Excel sheets of the MFI Factsheet include complete explanatory notes and online assistance is also available on the Microfact.org website.
How does the MFI Factsheet Microfinance measure financial and social performance?
The MFI Factsheet analyses 16 key indicators of financial performance which are grouped into four areas:
- Quality of the loan portfolios
- Efficiency and productivity
- Financial management
- Profitability and sustainability
For each area, Microfact calculates a series of easily-accessible financial ratios which are presented in the form of graphs. The indicators used in Microfact are identical to those set out in the CGAP consensus guidelines.
Microfact also analyses 18 social indicators which are aligned with the universal standards of social performance developed by the SPTF (Social Performance Task Force) and Cerise.
In order to take this process further, the MFI Factsheet data may be automatically imported into the SP14 social performance assessment tool.
Why do MFIs use the Microfact MFI Factsheet Microinsurance?
Because the MFI Factsheet microinsurance has been specifically designed to analyse micro-insurance products. It automatically generates ten key ratios and an analysis in the form of graphs.
How to access the Microfact training modules?
Who created Microfact?
The joint initiative was created in 2010 by ADA and BRS. Microfact has benefitted from the expertise of the KBC, the leading bank and insurance provider in Belgium and has developed its social performance related activities thanks to the contributions made by Cerise and the SPTF.
You can get further information on the Microfact.org website
The Microfact e-learning platform is out!
A historic moment for Microfact and its founding partners, BRS and ADA: after 5 months of intensive and creative development, they finally launched the Microfact e-learning platform on February 8th!
Microfact already has a large community of certified Microfact trainers and Microvision consultants. Now they are also adding a new distribution channel for their workshops. This offers to them and all the participants many advantages and opportunities. For example, they can now offer the workshops to 16 participants from Myanmar, where a coup d'état took place. In these circumstances they would never be able to fly there.
The Microfact e-learning workshops kick off with two digital courses: 'Get to know the MFI Factsheet' and 'Let your figures talk'. 40 participants from all over the world are taking part in the pilot edition. The e-learning training courses are interactive, playful (through quizzes and videos) and offer attractively explained theory and exchange possibilities with the trainers and the other participants.
Curious to know more about Microfact's activities in 2020? Watch the short video on www.microfact.org.