10 July 2012 – Mexico City

Empowerment & Aspirations

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FINCA defines social performance as:

1. Expanded access to financial services, primarily among underserved, low-income people and communities;

2. Increased employment and incomes;

3. Improved living standards;

4. Empowerment and the achievement of personal aspirations among our clients and in their families;

5. Acting responsibly and equitably towards all stakeholders, and the communities of which we are a part

Conceptual Framework

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Com

mun

ityCo

mm

unity

Fam

ilyFa

mily

Pers

onal

Pers

onal

Busi

ness

Busi

ness

Fina

ncia

lFi

nanc

ial

Decision-makingDecision-making

Relationships With OthersRelationships With Others

Choices/Control of DestinyChoices/Control of Destiny

Perception of SelfPerception of Self

Empowerment

Achievement of Aspirations

Achievement of Aspirations

EMPOWERMENT AND ASPIRATIONS

Areas of EmpowermentChoices/control of Destiny

Self-determinationSocial self-relianceEconomic self-relianceDependence on others with more powerAspirationsExpectations of improvement in statusExpectations of future income

Achievement of AspirationsAchievement of business-related goalsAchievement of personal goals

Decision-makingAbility to make decisionsDependence others with more powerSocial self-relianceEconomic self-reliance

Relationship with othersUse of networks and social support systemsStatus within familyStatus within communityFamily conflict/domestic violence

Perception of selfFeeling of dependence Anxiety and vulnerabilitySelf-esteem/self-confidenceSense of entitlement/self worth

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Nicaragua Proof of Concept

Observations: Client Voices

Focus group with young women: who makes us feel big, the same, or small?

Who or what makes you feel more or less empowered?

EMPOWERMENT AND ASPIRATIONS

Life Event Questionnaire

What changes have you made in the last loan cycle?

EMPOWERMENT AND ASPIRATIONS

Nicaragua Pilots Test

One Framework: Three Tools

Empowerment & Aspirations

• Two simple questions• Coded response options• Used in all loan applications

Goals & Aspirations

• Twelve questions on economic change• Applied at conclusion of loan cycle• Collected by Cashier or SPO

Economic Change

• Life-cycle Calendar Interviews• Analyze connections & drivers• Understand FINCA’s role

Empowerment

1.

2.

3.

Loan Application Questions

1. ¿Do you have a special goal you want to achieve this year?

Mark the option square. þ Examples

☐ 1. Diversify my business "Put a new stall in the market""Sell a new product"

☐ 1. Save for emergencies “To protect myself from unforeseen medical expenses”

☐ 1. Stabilize my income “Be able to cover my household expenses”

☐ 1. Grow my business "Sell more tortillas" “Get more regular clients"

☐ 1. Have a house of my own “Become independent”“Get married, leave my parents’ house”

☐ 1. Improve my home "Fix the roof" "Buy a bigger house"

☐ 1. Go work in another country "Migrate to the United States” "Get a job in Costa Rica"

☐ 1. Buy something for my family "Change the furniture”"Buy clothes for my kids"

☐ 1. Pay my kids’ education "Send my daughter to school" "Buy books for my grandchildren"

☐ 1. Pay my family’s medical bills "Pay a surgery, buy glasses" "Buy medicine"

☐ 1. Be a leader in my community "Participate in church" "Join the neighborhood commitee"

☐ 1. Train or study “Get training in my profession” “Finish high school”

☐ 1. Improve health, lose weight “Eat healthier”“Exercise, lose weight”

☐ 1. Stop working, retire “Close my business to spend more time with my family”

☐ 1. Other

End-of-Loan Questions

1. ¿Buy additional inventory for your business?

Yes No

1. ¿Buy new equipment for your business?

Yes No

1. ¿Have more or less sales than before? ¿Or the same as usual?

More + Less – Same =

1. ¿Make improvements to your home?

Yes No

1. ¿Buy something special for your family or home?

Yes No

1. ¿Spend more or less money on food than before?

More + Less – Same =

1. ¿Spend more or less on education costs for your children?

More + Less – Same =

1. Pay any medical expense for yourself?

Yes No

Final Question

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Stage 1

Research, Proof of Concepts and

Initial Tool Pilots

Stage 2

Large Scale Pilots, Tool Refinement, Documentation

Stage 3

Network Implementation and Analytics

PlanningCompleted

Stage II & IIIEmpowerment & Aspirations

Significant Conclusions

• Adding essential questions to existing processes eased data collection

• Research builds image of FINCA as a supportive figure, interested in clients, and not just an intermediary for financing

• Clients may take advantage of such questions as a moment of reflection and increase the satisfaction from their efforts and success

• The information to be collected should be useful to expand or improve FINCA services with a greater focus on needs.

Empowerment & Aspirations