Small Money Big Impact

Glossary

Assets under management (AUM)

AUM refers to the volume of assets that are managed by a financial institution (banks, asset managers, fund managers etc.) on behalf of their investors.

Conventional investment

Conventional investment exclusively focuses on generating a financial return.

Credit bureau

A credit bureau collects data about outstanding or previous loans of borrowers and makes this information available for microfinance institutions and other loan service providers. Credit bureaus boost the efficiency of lending, and at the same time effectively prevent over‐indebtedness.

Double bottom line (DBL)

The term “double bottom line” refers to a new way of extending the conventional bottom line that solely measures financial performance. It adds a second bottom line to the aspect of performance in terms of positive social impact. An increasing number of companies now opt for a means of measuring performance that includes social aspects.

Development finance institution (DFI)

DFIs are financial institutions that occupy the space between public aid and private investment. Very often they provide funds for investments in developing countries, for which there are not enough private funds available. Examples of development institutions are the German Development Bank (KfW), the Dutch FMO or the Asian Development Bank (ADB).

Economically active poverty

Economically active poverty refers to persons who have some form of employment and reliable income and who are ...