Financial inclusion: How does Oikocredit select its partners?

That makes it clear why the process can take a long time…

However, this lengthy process is not a negative aspect because Oikocredit’s partners typically maintain long-lasting relationships [with us]. Many partners receive multiple repeat loans, and active working relationships often exceed 10 years. The partner with whom Oikocredit has the longest-standing relationship is Banco Pyme de la Comunidad from Bolivia. We approved the first facility to them in June 1990 – 33 years ago.

How about our partners’ end-clients? Does Oikocredit monitor whether they experience a positive social impact?

Absolutely. Oikocredit consistently monitors this aspect, utilising the ESG scorecard. Social performance is assessed at the beginning of the relationship, and progress is monitored on an annual basis throughout the loan’s duration. This feedback is instrumental in measuring the social impact of our joint work. Oikocredit has a dedicated team, the social strategy and social impact team, and this monitoring and evaluation is a joint responsibility of the regional teams and the social strategy and social impact team.

Can you give us an insight into the work of the social strategy and social impact team?

We are in constant exchange with our partners worldwide. For example, last year we conducted an end-client survey in collaboration with 19 partners and other organisations, interviewing 16,500 clients. We posed 30 questions in the local languages, focusing on their wellbeing, the impact of financing and the effects of climate change.

The survey yielded interesting results, with 90% of end clients indicating ‘Yes, there's a positive effect on my wellbeing of the loan which I got indirectly from Oikocredit’. We find this feedback very important. As far as I know, Oikocredit is the only impact investor that undertakes an end-client survey. We plan to do the survey again this year, involving more than 30 partners.

Does the end-client survey help monitoring potential negative side effects?

Of course. We closely examined the 10% of clients who did not perceive a positive effect. With the findings from the study, we aim to reduce that number by developing new products or initiatives. For instance, survey respondents in Ecuador mentioned that they sometimes have cash available but lack a safe place to store it for a short period of time. Based on this information, our partner developed a special short-term savings product to address that need.

Do you meet face-to-face with partners on a regular basis?

Yes, regular face-to-face meetings with our partners are an integral part of our collaboration. They allow us to strengthen our relationships and better understand partners’ operations and impact on the ground. In the past two months I visited Côte d'Ivoire and India to meet with partners there and gain firsthand insights into their work and the local context. These visits help foster closer connections and enable us to work together more effectively. The next trips being planned are to Latin America and Nigeria.

Thank you for the interview!

Thank you for giving me the opportunity to provide more insight in the good work we try to do with Oikocredit!