this presentation is solely for viewing. no part of it may be circulated, quoted, or reproduced for...

This presentation is solely for viewing. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from SKS Microfinance.

Sep 2011

CLIENT PROTECTION PRINCIPLES

SKS MICROFINANCE


SKS MICROFINANCE

1

AGENDA

• Background

• Microfinance CPP

• Gold Loans CPP

2

INITIATIVE TO FOCUS ON CLIENT PROTECTION

• SKS will continue to :

˗ Incorporate significant client protection measures into the business model to ensure ethical lending and collections and educate both staff and borrowers

˗ Work closely with regulatory bodies (RBI), leading banks (SIDBI, ICICI) SRO (Sadhan, MFIN) to incorporate their inputs in the CPP

AND

˗ Cap ROA on microfinance loans

˗ Avoid hyper growth in microfinance to ensure quality of our processes, people and Sangams

3

To create a separate vertical for CPP headed by a Senior resourceTo create a separate vertical for CPP headed by a Senior resource

To appoint a social sector veteran as an OmbudsmanTo appoint a social sector veteran as an Ombudsman

SKS

Independent agencies

Leading Banks

Regulatory body

Industry leaders

FEEDBACK TO BE TAKEN FROM ALL STAKEHOLDERS

GUIDING PRINCIPLES OF CPP STRATEGY

5

Improve standard of

living by access to capital

Improve standard of

living by access to capital

Right level of debt to avoid

service difficulties

Right level of debt to avoid

service difficulties

Financial literacy

Financial literacy

Livelihood training through

partnership

Livelihood training through

partnership

Incentivize staff on ethical behavior

Incentivize staff on ethical behavior

Lend only for income

generating and productive purpose

Lend only for income

generating and productive purpose

Detailed background

check of staff - KYE

Detailed background

check of staff - KYE

Group dynamics and

concept of shared risk

Group dynamics and

concept of shared risk

CURRENTCURRENT

IMMEDIATEIMMEDIATE

SHORT TERMSHORT TERM

Realign incentive structure across all levels based on CPP guiding principlesRealign incentive structure across all levels based on CPP guiding principles

New product and services to assist financial

inclusion

New product and services to assist financial

inclusion

AGENDA

• Background


• Gold Loans CPP

6

PRINCIPLES OF CLIENT PROTECTION – CGAP & SMART CAMPAIGN

Avoidance of over-indebtedness

Transparent &

responsible pricing

Appropriate

collections practices

Ethical staff behavior

Mechanisms for redress

of grievances

Privacy of client data

TRAINING PROVIDED TO BORROWERS TO AVOID OVER-INDEBTEDNESS

Thrust Areas Compliance Compliance +

• HHI captured in housing survey by SM (surrogate indicators in addition to self declaration, higher of the two will be taken)

• HHI assessment to be done yearly for repeat borrowers

• Cap on loans from 3 MFIs • Maximum loan amount to be capped

• HHI captured in housing survey by SM (surrogate indicators in addition to self declaration, higher of the two will be taken)

• HHI assessment to be done yearly for repeat borrowers

• Cap on loans from 3 MFIs • Maximum loan amount to be capped

• Eligibility criteria : • Annual House Hold Income (HHI)

limit of Rs 60,000 for rural areas and Rs 1,20,000 for urban areas

• Total outstanding not to be above Rs 50,000.

• Housing Survey and Target Details during group formation

• Credit bureau report before conducting CGT on number of MFI loans , total outstanding and default which will be used in decision making

• Asset prices and loan sizes to be linked• All loan amounts to be below Rs 15,000 till

Jan ‘12.• Loans to be utilized for income generation • Problems in using Loans for consumption • Savings as a useful instrument• Problems of multiple borrowing and over

indebtedness• LUC made mandatory for all loans

disbursed• LUC incentive introduced for branch staff • Asset viewing mandatory to check frauds

• Eligibility criteria : • Annual House Hold Income (HHI)

limit of Rs 60,000 for rural areas and Rs 1,20,000 for urban areas

• Total outstanding not to be above Rs 50,000.

• Housing Survey and Target Details during group formation

• Credit bureau report before conducting CGT on number of MFI loans , total outstanding and default which will be used in decision making

• Asset prices and loan sizes to be linked• All loan amounts to be below Rs 15,000 till

Jan ‘12.• Loans to be utilized for income generation • Problems in using Loans for consumption • Savings as a useful instrument• Problems of multiple borrowing and over

indebtedness• LUC made mandatory for all loans

disbursed• LUC incentive introduced for branch staff • Asset viewing mandatory to check frauds

Avoidance of Over-indebtednessAvoidance of Over-indebtedness

FINANCIAL LITERACY TRAININGTO BE DONE FOR OUR BORROWERS TO ENSURE THEIR UNDERSTANDING OF THE PRICING


• Refresher CGT for the center on yearly basis

• Group Leaders Meeting (GLM) on periodic basis instead of Sangam Leaders Meeting (SLM)

• Outbound calls to members to test their awareness of products & policies

AND

• Pricing to be lower than RBI guidelines

• Refresher CGT for the center on yearly basis

• Group Leaders Meeting (GLM) on periodic basis instead of Sangam Leaders Meeting (SLM)

• Outbound calls to members to test their awareness of products & policies

AND

• Pricing to be lower than RBI guidelines

• Member to be trained on˗ Interest rate (Diminishing balance)˗ Calculation of EWI˗ Loan processing fee and actual insurance

premium ˗ No penalties for delayed payments or pre-

closure ˗ Detailed product features˗ Passbooks as receipt for the payments

made˗ Collateral free loans˗ Choice of frequency of repayment

AND

˗ Pricing as per RBI guidelines˗ All Operation manuals to be revised every

year

• Member to be trained on˗ Interest rate (Diminishing balance)˗ Calculation of EWI˗ Loan processing fee and actual insurance

premium ˗ No penalties for delayed payments or pre-

closure ˗ Detailed product features˗ Passbooks as receipt for the payments

made˗ Collateral free loans˗ Choice of frequency of repayment

AND

˗ Pricing as per RBI guidelines˗ All Operation manuals to be revised every

year

Transparent and Responsible pricingTransparent and Responsible pricing

BORROWERS AND STAFF ARE TRAINED REGARDING APPROPRIATE COLLECTION PRACTICES & ETHICAL BEHAVIOUR


• Guidelines for moratorium for hardship cases

• Refresher CGT for the center on yearly basis to reinforce JLG


• Refresher CGT for the center on yearly basis to reinforce JLG

• Members are made aware of˗ Their responsibility in group lending

methodology˗ Peer support as against peer pressure˗ That all financial transaction are done

˗ in the presence of all members ˗ at a public place and not during odd

hours˗ by employees and not outsourced

• Members are made aware of˗ Their responsibility in group lending

methodology˗ Peer support as against peer pressure˗ That all financial transaction are done

˗ in the presence of all members ˗ at a public place and not during odd

hours˗ by employees and not outsourced

Appropriate Collection practicesAppropriate Collection practices

• Training on assessment of HHI using surrogate indicators

• Independent assessment of staff behaviour through outbound calls to members

• Training on assessment of HHI using surrogate indicators

• Independent assessment of staff behaviour through outbound calls to members

Inculcate culture of compliance along withculture of customer service• Respect members• No abusive or rude language • No visiting of home / workplace of members• No taking of bribes / commissions• No confiscation of assets• Encourage employees to inform deviations

through employee toll free number• Staff to be retrained on

˗ Group lending methodology˗ Product training˗ Peer support as against peer pressure˗ Soft skill training˗ Emphasis on Core Values ˗ Responsible lending

Inculcate culture of compliance along withculture of customer service• Respect members• No abusive or rude language • No visiting of home / workplace of members• No taking of bribes / commissions• No confiscation of assets• Encourage employees to inform deviations


˗ Group lending methodology˗ Product training˗ Peer support as against peer pressure˗ Soft skill training˗ Emphasis on Core Values ˗ Responsible lending

Ethical Staff behaviourEthical Staff behaviour

GRIEVANCE REDRESSAL MECHANISM & DATA PRIVACY ARE PUT IN PLACE


• Implement manning of the toll free telephone lines to 16 hours in 2 shifts

• Conduct outbound calls to confirm resolution of the complaints/ queries of members.



• Members to be made aware of ˗ Toll free number of 1800 300 10000˗ Resolution process of their complaints /

queries / suggestions˗ Timelines for resolution˗ Their right to escalate unresolved

complaints to Ombudsman




Mechanisms for redress of Grievances


• Borrowers’ data is kept confidential and not shared with anyone except in cases of

• RBI approved Credit Bureaus for assessing the number of loans and total outstanding of borrowers

• Legal requirement from any court


• RBI approved Credit Bureaus for assessing the number of loans and total outstanding of borrowers

• Legal requirement from any court

Privacy of Client dataPrivacy of Client data

THIRD PARTY VALIDATION OF KEY PERFORMANCE INDICATORS

• FLCC (Financial Literacy and Credit Counseling)

• CGT and GRT

• Physical cross check of household income

• Transaction details

• LUC

• Grievance redressal

12

Results to be published on the website and shared with key stakeholders

AGENDA

• Background


• Gold Loans CPP

13

TRAINING PROVIDED TO BORROWERS TO AVOID OVER-INDEBTEDNESS & APPROPRIATE COLLECTION PRACTICES

Thrust Areas Compliance +

• Number and outstanding of loans to be incorporated in loan application form• IA team to verify 20% of forms and randomly check with2% members• Taking self declaration for ownership of gold• Reiterate product features during the visit

Members to be made aware of • Problems of consumption loans • Advantages of on time payment• Saving as a useful instrument• Loans as a proportion to income• Problems of multiple borrowing and over indebtedness

• Number and outstanding of loans to be incorporated in loan application form• IA team to verify 20% of forms and randomly check with2% members• Taking self declaration for ownership of gold• Reiterate product features during the visit

Members to be made aware of • Problems of consumption loans • Advantages of on time payment• Saving as a useful instrument• Loans as a proportion to income• Problems of multiple borrowing and over indebtedness

Avoidance of Over-indebtednessAvoidance of Over-indebtedness

• All transactions would be done at the branches during business hours by employees• Outbound calls to follow up on repayment • All transactions would be done at the branches during business hours by employees• Outbound calls to follow up on repayment

Appropriate Collection practicesAppropriate Collection practices

BORROWERS AND STAFF ARE TRAINED REGARDING TRANSPARENT PRICING & ETHICAL BEHAVIOUR

Thrust Areas Compliance

• Outbound calls to capture feedback on staff behaviour

• Training on implication of mis-selling and responsible lending

• Outbound calls to capture feedback on staff behaviour

• Training on implication of mis-selling and responsible lending

• Inculcate culture of compliance along with culture of customer service

• Respect members by not using abusive or rude language

• No bribes/commissions to be taken• Encourage employees to inform deviations


˗ Product training˗ Soft skill training˗ Emphasis on Core Values

• Inculcate culture of compliance along with culture of customer service

• Respect members by not using abusive or rude language

• No bribes/commissions to be taken• Encourage employees to inform deviations


˗ Product training˗ Soft skill training˗ Emphasis on Core Values

Ethical Staff behaviourEthical Staff behaviour


• Outbound calls to capture feedback on understanding of product features


• Outbound calls to capture feedback on understanding of product features

• Member to be trained on˗ Interest rate (Diminishing balance)˗ Choice of bullet and EMI payments with

monthly flexibility and cap of 12 months˗ Loan processing fee˗ No penalties for delayed payments˗ Detailed product features˗ Receipt for the payments made˗ Choice of frequency of repayment

• Terms and conditions in vernacular being provided in writing to member.

• All Operation manuals to be revised every year

• Member to be trained on˗ Interest rate (Diminishing balance)˗ Choice of bullet and EMI payments with

monthly flexibility and cap of 12 months˗ Loan processing fee˗ No penalties for delayed payments˗ Detailed product features˗ Receipt for the payments made˗ Choice of frequency of repayment

• Terms and conditions in vernacular being provided in writing to member.

• All Operation manuals to be revised every year

Transparent and Responsible pricingTransparent and Responsible pricing

Compliance +

GRIEVANCE REDRESSAL MECHANISM & DATA PRIVACY ARE PUT IN PLACE















• Regulatory requirement• Legal requirement from any court


• Regulatory requirement• Legal requirement from any court

Privacy of Client dataPrivacy of Client data

THIRD PARTY VALIDATION OF KEY PERFORMANCE INDICATORS

• Understanding of charges and product

• Transaction details

• LUC

• Grievance Redressal

17

Results to be published on the website and shared with press and media


Avoidance of Over-Indebtedness. ▪ Providers will take reasonable steps to ensure that credit will be extended only if borrowers have demonstrated an

adequate ability to repay and loans will not put borrowers at significant risk of over-indebtedness. Similarly, providers will take adequate care that only appropriate non-credit financial products (such as insurance) are extended to clients.

Transparent and Responsible Pricing. ▪ The pricing, terms, and conditions of financial products (including interest charges, insurance premiums, all fees,

etc.) will be transparent and will be adequately disclosed in a form understandable to clients. Responsible pricing means that pricing, terms, and conditions are set in a way that is both affordable to clients and sustainable for financial institutions.

Appropriate Collections Practices. ▪ Debt collection practices of providers will not be abusive or coercive. Ethical Staff Behavior. ▪ Staff of financial service providers will comply with high ethical standards in their interaction with microfinance

clients and such providers will ensure that adequate safeguards are in place to detect and correct corruption or mistreatment of clients.

Mechanisms for Redress of Grievances. ▪ Providers will have in place timely and responsive mechanisms for complaints and problem resolution for their

clients. Privacy of Client Data. ▪ The privacy of individual client data will be respected in accordance with the laws and regulations of individual

jurisdictions, and such data cannot be used for other purposes without the express permission of the client (while recognizing that providers of financial services can play an important role in helping clients achieve the benefits of establishing credit histories).

18

CGAP

PRINCIPLES OF CLIENT PROTECTION – SMART INITIATIVE

19

Principles of client protection

Source: http://www.smartcampaign.org/tools-a-resources/3/268

Points to REMEMBER

Our members are the lifeline of our existence

It is our duty to take care of our members

We are here because of our members



Transparent &

responsible pricing

Appropriate



Mechanisms to redress

grievances




Transparent &

responsible pricing

Appropriate




of grievances


Understanding indebtedness

Member name

MFI name Loan amount taken(Rs)

Loan amount repaid (Rs)

Loan amount o/s (Rs)

Lakshmibai

MFI 1 40,000 8,000 32,000

MFI 2 16,000 3,500 12,500

SKS 15,000 5,500 9,500

Total loan amount outstanding of the member = Rs.54,000

This is called Total indebtedness

Over indebtedness

As per the new RBI guidelines, If a member’s total indebtedness is more than Rs. 50,000/-, It is considered as over indebtedness

Source: DAI

Member may …

• Have to work longer hours to generate more income

• Reduce consumption – (Eat less, feed less)

• Use savings for loan repayment

• Take new loans to pay off the existing loans

• Sell assets, including productive assets

• Invest less in income generating activity

• Search for help from family and friends leading to

strained relationships

Over indebtedness impacts the member

How do over-indebted clients affect us?

Increase in arrear casesOur image and reputation is at riskUnwanted stress levels for all of usIncrease in dissatisfied membersExtra time spent for collections in the center meetingsGenuine members would suffer because, we would not able to disburse loans if collections sufferOur career is dependent on satisfied members

Think & Answer

Total indebtedness ___________

Is the member eligible for a loan?

If “yes”, what is the eligible amount?

If “no”, why?

Loan amount applied for : Rs.14,000

Loan O/s from MFI 1 : Rs.24,000


Loan O/s from SKS : Rs.12,000

Total indebtedness ___________



If “no”, why?

Loan amount applied for : Rs.14,000



Loan O/s from SKS : Rs.8,000

Understanding Annual household income

Family member Activity Income Per Annum (Rs)

Member Small business 10,000

Member’s husband Agriculture 35,000

Member’s son Mechanic shop 20,000

Member’s daughter Helps her mother 0

Annual household income 65,000

• Only the Members who are within the below mentioned annual household income limits are eligible for loans

Guidelines on Annual household income

• Members from Rural area – Annual household income

should be below Rs.60,000/-

• Members from Rural area – Annual household income

should be below Rs.60,000/-

• Members from Urban / Semi urban area – Annual

household income should be below Rs.1,20,000/-

• Members from Urban / Semi urban area – Annual

household income should be below Rs.1,20,000/-

Case study 1 - Urban/ Semi urban


Member Sells vegetables 20,000

Member ‘s husband Auto driver 40,000

Member’s son Mechanic shop 20,000

Member’s daughter Helps her mother 0


Is the member eligible for loan as per annual household income limit?

Case study 2 – Urban/ semi urban


Member Kirana shop 35,000

Member's husband Auto driver 35,000

Member's son Works in a factory 30,000

Member’s daughter Sells flowers 25,000

Annual household income 1,25,000


Case study 3 – Rural


Member Agriculture 25,000

Member’s husband Agriculture 35,000

Member's son Works in a factory 30,000

Member’s daughter No activity 0



Case study 4 – Rural


Member Sells flowers 20,000

Member's husband Agriculture 35,000

Member's son No activity 0

Member’s daughter No activity 0



We give loan to a member if the

total indebtedness is below

Rs.50,000/-

Avoid Over-indebtedness: Principle in Practice

We discourage over-borrowing by a memberWe discourage over-borrowing by a member

Think & Answer

Total indebtedness : Rs.54,000

Annual household income : Rs.58,000

Residential status : Rural Area

Loam amount applied for : Rs.14,000

Total indebtedness : Rs.38,000Total indebtedness : Rs.38,000

Annual household income : Rs.98,000 Annual household income : Rs.98,000

Residential status : Urban AreaResidential status : Urban Area

Loam amount applied for : Rs.14,000 Loam amount applied for : Rs.14,000



If “no”, why?



If “no”, why?

How are we helping our members ensure they would not

borrow beyond their capacity to repay?

What efforts would you make to ensure that our members

understand this philosophy?

Think & write

Summary of Learning

We give loans only to those members whose Annual household income is ▪ Rural areas : Less than Rs.60,000/-▪ Urban/ semi urban areas: Less than Rs.1,20,000/-The total indebtedness of the member should be below Rs.50,000/-This includes all loans including the one that she has applied for

Our aim is to help our members avoid debt traps and ensure they can repay the loan with comfort.We do this by understanding their household income and total indebtedness before accepting the loan applications.



Transparent &

responsible pricing

Appropriate




of grievances


Understanding Transparency

We maintain complete transparency in all our transactions.

• During CGT, every member is clearly explained the charges & fees

that she is required to pay.

• All the charges & fees that a member is required to pay, is

announced

in the center meeting

• All our transactions are carried out in the center meeting in the

presence of members

• The collections at the center meeting are sorted and counted by the

center leader before handing over to the staff.

• All transaction details (amount disbursed and collected) are entered

in the center meeting minutes book and signed by the staff and read

aloud in the center before handing over to the center leader

Understanding Transparency

Our passbooks clearly mention the following

Terms and conditions applicable to our loans

Table where date of payment, installment number, installment

amount is written and signed by the staff.

Table printed with Installment number, installment break-up

(showing principal & interest and outstanding amount

Amount paid by the member as loan processing fee

Amount paid towards Term Insurance Premium (TIP)

Our Code of conduct printed in the passbook clearly mentions that we do

not charge any amount other than the charges mentioned above

Understanding responsible pricing

Responsible pricing

All our products are designed keeping our

member

in mind.

Our products meet the regulatory guidelines set by

RBI

No transparency – impact on member

Member may…▪ not understand how much she has paid and how much is pending.

▪ feel that she is paying extra▪ feel that we are taking unnecessary charges▪ feel cheated ▪ conclude that SKS is not a good organization to deal with▪ tell many others in her family and friends circle about the same

No transparency – impact on SKS

Our reputation and image are at riskOur members will not keep faith on usWe will lose respect in the eyes of the memberWe may lose members

Think & Answer

In a center, a replacement member is

ready to join the group. The member

who introduced her says “She knows

all the procedures and methods of

SKS”

What should the SM do?

A. SM agrees and takes her loan

application

B. SM conducts one day CGT and after

she clears the GRT he allows her to

become a member in the group

C. SM seeks permission from BM to

accept her as replacement member.

What are the different opportunities you would get to

demonstrate transparency in a center meeting?

Write down 3 initiatives that you would take to ensure that our

transparency is understood by the members?

Think & write



Transparent &

responsible pricing

Appropriate

collections

practices



of grievances


Understanding Inappropriate Collections Practices

Offensive language and threats

• Staff uses offensive or abusive language/ bad words

• Staff scolds for simple things

• Staff threatens members/ their family or harass them at work, home, or their place of worship.

Unethical seizure of property

• Staff enters a member’s home/ place of work and seizes property

Inappropriate collection methods – impact on member

Member may…▪ feel humiliated/ insulted▪ go to extremes to avoid humiliation▪ undergo mental stress▪ develop hatred towards SKS staff▪ revolt

Inappropriate collection methods – impact on us

Members will not believe SKS & tell others not to believe

SKS reputation may be lost

All other members may observe in silence but talk about SKS staff at their home and other places (work/worship)

Her family members may walk into center and pickup a quarrel

You may not be welcome in the village any more

Think & Answer

In a center meeting a member comes

without the installment amount.

What should the staff do?

Select the correct option

A.Speak to her in a high tone for not

bringing the installment amount.

B.Visit the member’s home after the

center meeting to collect the installment

amount

C.Remind the members of the center

about the member pledge and the JLG

concept. Encourage the other members

in the group to contribute and help her.

Remind the center of the rules

communicated in the CGT

Prepare a list of all sentences that you would avoid while

talking to members

Prepare a list of sentences that you would use while

communicating with the members

Always ask yourself - “how do I feel if someone were to talk to

me like this?”

Think & write



Transparent &

responsible pricing

Appropriate




of grievances


Understanding Ethical staff behavior

Always doing what is right in the right wayNot compromising on valuesSome examples of not following ethics▪ Accepting gifts from members▪ Harassing a colleague, seeking personal favors▪ Using company property for personal use▪ Claiming false expenses▪ Not respecting the place of work

Not having ethical behavior – impact on member

Member may…▪ Lose faith in you▪ Lose faith in SKS▪ Suspect every transaction – even if truth is told

Not having ethical behavior – impact on us

Our reputation is at stake

People may associate every employee with bad behavior

Unethical behavior leads to frauds and all of us would suffer

“Ethics always” is our core value

We must ▪ use our Staff Pledge without fail at every center meeting▪ live and demonstrate the essence of staff pledge in every act of ours▪ be honest to ourselves and our organization▪ not use shortcut methods▪ inform our superiors immediately whenever unethical behavior is noticed▪ always do the right thing in the right way

Think & Answer

One UM and SM were attending a center

meeting. The Center leader offers to pay

extra amount as processing fee to get

loans out of turn. The SM was confused.

What should the UM do?

A. UM should tell the SM to take

decision

B. UM should pretend as though he has

not heard anything

C. UM must remind the center leader

about our staff pledge and refuse the

offer. After coming to the branch, the

UM should assemble all branch staff

and narrate this example and

reinforce the importance of ethical

behavior

As a group - prepare a list of situations that you have faced

where you stood by your ethics

How would you ensure that you and your colleagues follow the

ethics always?

Think & write



Transparent &

responsible pricing

Appropriate



Mechanisms for

redress of grievances


Understanding redress of grievances

When a member has a grievance / complaint she deserves a fair chance of being heardShe must be provided a mechanism where her grievance / complaint can be heardShe has a right for her grievance / complaint to be resolved within a reasonable time frame

Not having a grievance redress mechanism – impact on memberA small problem not solved in time may become a bigger problemA problem that is not heard and redressed will create unhappy membersIncreases frustration amongst membersMay result in unrest and revolt

Not having a grievance redress mechanism – impact on us

Our reputation is at stake

Increase in dissatisfied members leading to collection problems and arrear cases

We lose the opportunity of feedback from our “life line – our members”

We have a grievance mechanism in place

In our constant endeavor to listen to our members and provide them a

platform to interact directly with Head Office - we have come out with a

facility to listen to our member in her language

This is just an other step towards living our core value-

“Right Focus – Customer First”

This is just an other step towards living our core value-

“Right Focus – Customer First”

We have a grievance mechanism in place

We have a toll free number dedicated to listen to the member grievances – 1800 300 10000Our toll free number is mentioned clearly on the first page of the passbook available with the memberThe toll free number is mentioned in the minutes book placed in the center meetingAlternatively, we also mention our branch contact number on the pass book and the minutes bookOur call center team speaks all major Indian languages

Think & Answer

In one center meeting a member asked

the reason for delay in her TIP payout.

SM replied “ Don’t worry. Amma! How

many times do I tell you that your money

would come?”

Another member has asked the reason

for not giving her the loan.

SM replied “I was asked to give only

Rs.4,000/- not Rs.10,000/-”

Both the members were upset.

What best can an SM do in this

scenario?

A. SM was correct as he can not do any

thing more than this

B. SM should give status updates to

both the members and suggest that

they can also call our toll free

number without waiting for the next

center meeting

C. SM should be silent. Complete that

week collection and proceed to next

center meeting

3 methods that you would put to practice to ensure that our

members know the Toll free number and its benefits

At least 5 benefits of calling toll free number

Think & write



Transparent &

responsible pricing

Appropriate




of grievances


Understanding privacy of client data

We collect member details and KYC documentsWe keep this information for our consumption onlyWe never misuse this information

Not providing privacy of client data – impact on member

Member may..▪ not trust us▪ think that her credit information is shared without her

knowledge

Not providing privacy of client data – impact on us

Our reputation is at stakeOur own members lose faith on usWe may develop dissatisfied members

We have to protect the client data

We must keep all our member documents in a safe placeWe must accept only photocopies of KYC documents and discourage if the member offers originals to us.Member information should not be shared with anyone without the prior approval of the member

3 steps that you would take to keep the member information

confidential

Think & write

Let’s not forget

Our members are the lifeline of our existence

It is our duty to take care of our members

We are here because of our members

This presentation is made possible by the Smart Campaign

www.smartcampaign.org

Thank you!

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