The Microfinance Information Exchange's 2007 Rankings of Microfinance Institutions, a ranking of the top-performing MFIs throughout the developing world released on Jan. 2, 2008, identifies a number of institutions affiliated with ACDI/VOCA.
In analyzing 2006 data, MIX ranked 1,126 reporting microfinance institutions in 6 categories:
- outreach (number of clients)
- scale (size of portfolio)
- profitability (return on assets)
- efficiency (cost per borrower)
- productivity (borrowers per staff member)
- portfolio at risk more than 30 days.
They also analyzed the MFIs according to a composite ranking to identify the top-performing MIX Global 100. A number of institutions affiliated with ACDI/VOCA made the top 100 in one or more categories:
- at number 49, Mongolia's XAC Bank, which was originally launched as a nonbank MFI under an ACDI/VOCA project funded by UNDP
- at number 100, KLF—known now as KazMicroFinance LLC (KMF)—a nonbank financial institution founded by ACDI/VOCA in Kazakhstan and launched under a USAID-funded project
FVRM, a program launched by ACDI/VOCA in Uzbekistan's Fergana Valley under a USAID project, was ranked the most profitable financial institution in the MIX Market, with a 36 percent return on assets in 2006. Unfortunately, as a result of regulatory changes and government intervention, FVRM ceased operations in 2006.
In other categories, XAC bank also was ranked number 83 in terms of scale with a loan portfolio of more than $50 million, while KMF was ranked number 74 in terms of portfolio quality. MLF MicroInvest, a nonbank financial institution founded by ACDI/VOCA under a USAID-funded project, was ranked 78 in portfolio quality. Both KMF and MicroInvest had a portfolio at risk of 0.1 percent or less.
KMF ranked 37 on another prestigious list in 2007: The World’s Top 50 Microfinance Institutions. The list was developed by Forbes.com based on 2006 data from the Microfinance Information Exchange, Micro-Credit Ratings International Limited and MicroRate. Forbes considered six variables: gross loan portfolio, operating expense, operating expenses divided by the average number of active borrowers as a percentage of gross national income per capita, the outstanding balance of loans overdue by more than 30 days as a percent of gross loan portfolio, and return on assets and equity. Rankings were then based on the combined average score of those four categories.
ACDI/VOCA’s Senior Managing Director of Financial Services & Integrated Rural Development, Fred Smith, commends the MFIs for their achievements saying, "ACDI/VOCA is heartened to see the progress of our microfinance partners as they grow and evolve from their nonprofit roots to commercial financial institutions that are leaders, not only in their countries, but also in the larger community of microfinance institutions. It is a testament to the skill and commitment of the management and staff of these organizations that they grow and develop in increasingly competitive markets as transparent institutions that observe best practices."
MIX is a leading business information provider dedicated to strengthening the microfinance sector. The nonprofit has served as a clearinghouse for benchmarking and information on worldwide microfinance activities since 2002. These are its second annual MIX 100 rankings based on data from MIX's publicly available database. For more information, visit www.themix.org.
The World’s Top 50 Microfinance Institutions was a first for Forbes.com, a website dedicated to business and financial news that is affiliated with Forbes Magazine. Forbes reported that microfinance funding from private investors tripled to $2 billion in 2006, and with more than 12,000 MFIs worldwide, Forbes issued the list to help investors makes sense of the field. For more information, visit www.forbes.com/microfinance.
The MIX and Forbes’ recognition of ACDI/VOCA's work in financial services follows the SEEP Network's recognition of the Azerbaijan Microfinance Association (AMFA) in Oct. with the 2007 Network of the Year Award for excellence in improving demand-driven services, topping a group of 36 microfinance networks from around the world. AMFA receives funding and technical assistance under ACDI/VOCA’s $6.4 million Azerbaijan SME Support through Financial Sector Development project.
For more information on ACDI/VOCA's work in financial services, click here.