Vitas 2015 Bi-Annual Social Performance Report

Tracking Client Progress and Satisfaction

Executive Summary

Vitas 2015 Bi-Annual Social Performance ReportSocial Performance Management (SPM) is the process ofmanaging an organization to achieve its social mission. Its implementation puts clients at the center of all strategic and operational decisions. The importance of balancing financial and social performance allows institutions to pursue financial goals while benefiting clients. As a member of the Social Performance Task Force, Vitas Group has endorsed the Universal Standards for Social Performance and has taken the initials steps to implement these standards.

The Social Performance report is produced on a bi-annual basis and attempts to gauge how well network institutions are addressing Standards one, three and four, which focus on customers, namely articulating clear social goals and target clients, designing products and services that meet clients’ needs and preferences, and treating clients responsibly.

Global Communities launched its first survey of network institutions in 2013 and released its first Social Performance report in 2014. This second report is based on the findings for the period of FY15, covering the same seven institutions in Bosnia, Colombia, Iraq, Jordan, Lebanon, Palestine and Romania, with a combined portfolio of $185,675,350 and 99,816 active clients as of September 30, 2015. Business surveys were administered to current and former borrowers to determine how loans have been used to increase business profits, create jobs, expand business and increase household consumption. For housing loans, surveys sought to find out the extent to which loans were used for their intended purpose. Finally, this exercise was used to better estimate the impact on our clients, with special focus on women, youth and rural borrowers. Some of the main findings of this year’s report include:

  • By and large, clients have increased business profits after taking loans, in all institutions.
  • Nearly 90% of clients described customer service as excellent or good. The institutions with the highest rating of “excellent” (over 70%) were Lebanon and Bosnia.
  • All institutions had a positive impact on employment generation. In FY15, an estimated 27,869 full-time jobs and 8,996 part-time jobs were created.
  • Over 41% of clients are female, who on average had comparable business profit increases to men.
  • Nearly a third of clients are 30 years old and under, and loans to the youth group showed higher increases in business profits than loans to other age groups.
  • Over 40% of the loan clients live in rural areas.
  • For institutions offering housing loans, 80% of the loans were used for their intended purpose.

Compared to the 2013 survey, the network on average showed similar results in terms of the percentage increase of net business profits. Both average full-time and part-time employment increased this year, with estimates of actual employment nearly tripling since 2013. Client satisfaction has also increased from 2013. However, home surveys this year reveal that less loans, as a percentage, are being used for their intended purpose. 

Read the full report here