Microfinance, now a multi-billion dollar industry, faces growing pressure to ensure transparency in its operations. Just as traditional banks must guard their credibility, microfinance institutions need to prove convincingly that they are meeting their financial and social goals.

To that end, microfinance institutions need to adopt best practices and standardized tools to measure their financial and social performance. The information derived from such tools can help regulators better assess risks and serve as guides to potential funders. For microlenders themselves, enhanced monitoring can yield feedback for cutting costs and improving products and services. For their clients, greater transparency will lead to stronger trust and better-informed decisions.

The MIF is contributing to the development of robust and cost-effective monitoring tools for the microfinance industry. It has raised awareness of their importance through the annual Inter-American Microfinance Forum (Foromic), the funding of credit ratings for microlenders, the Microscope index of microfinance business conditions in individual countries, and the promotion of regional principles for microfinance regulation.

Through diverse activities, the MIF aims to have at least 450 microfinance institutions in the region reporting both standardized financial information and social performance indicators by 2015.