Expanding the reach of financial services to underserved communities is only the first step toward creating a fair and inclusive economy. To ensure financial products are not only accessible, but useful to those who’ve been excluded — we need high-quality data on client outcomes.
To advance this goal among the companies we support and the broader industry, in 2022, Accion became a founding partner of the MFI Index, created by the firm 60 Decibels. Now in its fourth year, the MFI Index has given the microfinance industry greater visibility into customer outcomes by surveying more than 88,000 customers from 126 financial service providers globally, including many Accion partners.
Accion has continued to deepen our partnership with 60 Decibels over the past few years, supporting additional survey modules on savings and customer protection in 2023, and adding gender and climate modules in 2024. We’ve also increased the number of our portfolio companies participating each year — and their results have helped inform our Impact Report.
Accion’s partner IKF Finance in India participated in the MFI Index last year. Serving more than 50,000 clients, IKF provides vehicle and housing loans, as well as secured loans for small businesses. According to their survey, 54 percent of IKF’s clients are accessing formal credit for the first time.
Many of IKF’s clients are self-employed drivers like Rajanna, who operate small transportation and logistics businesses. Rajanna delivers food to local grocery stores, and uses his income to pay for his children’s education, as well as rent, truck maintenance, and fuel. His biggest challenge: navigating the heavy traffic in Bangalore.
In 2024, the Accion Digital Transformation Fund invested in IKF to accelerate and strengthen the company’s use of digital technology. Through growth capital and strategic support, the $152.5 million fund is helping financial institutions like IKF across the world better meet the needs of small businesses that are currently excluded from the financial system.
What the data shows about IKF’s work in India
IKF’s 60 Decibels results show how the company’s solutions are making a difference in the lives of their clients. In the 2024 Index, IKF scored in the top 20 percent in Asia on business income and increased employment, with 67 percent of customers reporting increased income, including 32 percent of customers saying their business income ‘very much’ increased. Additionally, 13 percent reported an increase in the number of paid employees.
Through the survey, one IKF vehicle loan client said, “My business profit has increased by at least 20 to 30 percent. Previously, I had to rely on agents and pay them a commission, but now, with my own transport, I can deal with contractors directly. This allows me to keep the full profit for myself, making my business more profitable and independent.”
New clients of IKF reported particularly strong outcomes across multiple indicators, a positive sign for IKF’s efforts to support those who may be less familiar with digital and financial tools. New clients reported improvements in business income, savings and resilience, ability to manage finances and meet financial goals, confidence and decision making, access to food, and spending on children’s education.
The survey results also helped IKF identify areas to strengthen their services for clients. Clients with longer tenure at IKF were more likely to report some form of challenge with their services, and while clients had positive comments regarding the loan approval process, they were more likely to find issues with some processes post approval.
Accion is actively supporting IKF to strengthen their customer service and client protection practices. Accion Digital Transformation Fund requires all investees to conduct a client protection assessment, develop an action plan for improvements, and achieve at least a silver level certification on the Client Protection Pathway within a few years of the initial investment.
After this first year of listening to their customers through 60 Decibels surveys, IKF has a solid foundation to deepen their already significant impact.
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