The SmartAid Index measures whether funders are set up to support financial inclusion effectively. It is based on the simple premise that strong internal management systems lead to better projects on the ground. Since the pilot round of the SmartAid Index in 2007, twenty development institutions participated in SmartAid, representing the major funders supporting financial inclusion.
The SmartAid Index is a service for all types of funders that want to improve their effectiveness in supporting financial inclusion. Past SmartAid participants include development finance institutions, multilateral development agencies, regional development banks, and bilateral agencies using different instruments, such as grants, debt and equity investments, or loans to governments. The main benefits of SmartAid include:
- Helps identify internal best practices and areas for improvement. Institutions can use SmartAid to understand where they are strong and where they need improvement to support financial inclusion projects effectively. It can be used to draw management attention to issues that may have been overlooked and helps identify priorities for change.
- Spurs internal dialogue on improving effectiveness. Funders can use SmartAid to facilitate an internal dialogue about effectiveness in supporting financial inclusion. Implementing SmartAid requires collaboration across the organization and helps spark discussions among different departments that work on financial inclusion or between staff and management.
- Allows funders to compare their performance with peers. SmartAid helps funders understand where they stand relative to other funders. This provides opportunities for peer learning and collaboration. It also helps funders track their progress over time and compare progress with that of their peers.
- Provides evidence of commitment to effectiveness. By participating in SmartAid, funders show their commitment to effectiveness to both internal and external stakeholders. Funders who validate and publish their SmartAid results demonstrate their commitment to transparency and accountability, which sends a strong signal to partners, stakeholders, and peers.