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Cost of implementing PPI

Mathilde Bauwin
• Ada microfinance
• Luxembourg
• 12/12/17

Hi everyone,

The question is dedicated to MFIs which implemented the PPI: how much did/does it cost for your organization ? Did you integrate it in your MIS ? Do you have some recommendations to minimize costs and time of data collection ?

Thank you very much for your contribution.



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Mathilde - That is a very large question. We have been using the PPI for 6 years, and I think I can help you think through the costs associated with different methodologies. Costs very much depend on the institution's reasons for collecting and using the information, as that will determine sample size or if a census should be collected and the frequency of data collection. Costs can vary depending on how the institution regularly interacts with its clients - in-person, in service centers, in their (rural?) communities, etc. A best practices is to have the PPI included in the MIS. Our MIS does not house the information collected over-time, so it was not ideal for us. We use a separate, but connected database. Costs also depend on tools used to tabulate the data - paper, tablet, phone, etc. I hope this is helpful.
Hi Mathilde, I wanted to point you to a case study from KOMIDA - a Microfinance Institution in Indonesia. This case study describes KOMIDA’s journey towards implementing the PPI and using the results to improve its products and services to clients. You can view the full case study at Page 11 of this study provides learnings from KOMIDA's experience with PPI implementation for other Social Enterprises. One of the points mentioned here is building MIS capabilities to store and analyze PPI data. On costs, the study concluded that: "Although KOMIDA has not tracked the specific costs of implementing the PPI, they believe the incremental cost was low as it was built into existing workstreams, such as the loan application process and the MIS development." I hope that you find this study helpful.
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Hi Mathilde, On BTPN business model, we have Community Officer (CO) living close to our customers. They perform the acquisition process and interact with our customers every 2 weeks. To minimize the cost and time of data collection: 1. The PPI survey conducted by CO 2. At the time of acquisition process, CO visit customer for 2 purposes (i.e. verification and PPI survey) 3. We are currently developing mobile apps for acquisition also, so that PPI survey can also be done through tablet
Hi Mathilde, A few years ago the IDB did a comprehensive review of the implementation of PPI in MFIs in Latin America. You can find the report here: On page 17, they describe the different elements of the cost of PPI implementation and indicate that the MFIs they interviewed reported costs ranging between $2,000 to $10,000 for a sample of 350 clients. Hope that helps! Best regards, Julie