What is the Smart Campaign for Client Protection in Microfinance?

A special presentation for

YOUR INSTITUTION made

possible by the Smart

Campaign

www.smartcampaign.org

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What is The Smart Campaign? • Global, microfinance industry client protection initiative

• Sharing tools, resources & best practices

• Collaboration of industry leaders from all stakeholder groups

– 800-plus endorsers– International Steering Committee

• Housed in Center for Financial Inclusion at ACCION International

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What is the Campaign’s vision?

• Put the interests of clients first

• Provide transparent, respectful services

• Distinguish microfinance industry as leader in responsible finance

• Facilitate implementation of the client protection principles

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What is the Client Protection Webinar Series?

• Seven presentations that outline client protection, detail each principle, and discuss real-world good practices and practitioner experiences

• Flexible tool for use by networks, MFIs, and other organizations to create in-person seminars or distance learning opportunities

• A product of the Smart Campaign

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1. Avoidance of over-indebtedness

2. Transparent pricing

3. Appropriate collections practices

4. Ethical staff behavior

5. Mechanisms for redress of grievances

6. Privacy of client data

What are the client protection principles?

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• Creates client loyalty

• Increases client satisfaction & retention

• Strengthens institution’s reputation

• Helps builds healthy portfolio

Why is client protection good for business?

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• Demands for accountability & transparency as a result of the global financial crisis

• Microfinance crises in several countries

• Public & political concern over high interest rates

• Rising competition & consumer lending

Why focus on client protection now?

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• Why is your institution/network interested in client protection?

Your perspective: Why focus on client protection now?

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• Includes commercial MFIs, NGOs, and credit unions

• Countries represent four regions• Process:• Guided self-evaluation of client

protection in the MFI• Pilot Projects to improve operations• Monitoring and lessons learned• Develop criteria for a certification

process• Sharing experiences

Beyond Codes: An action research project to operationalize Client Protection Kenya

Bosnia-Herzegovina

Mexico

Philippines

India

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Institutions• Banco Delta• Banco Solidario• BANEX • Compartamos Banco• Financiera el Comercio• SKS• WWB Colombia Networks• ACCION International • Freedom from Hunger• Opportunity International • Pro Mujer • ProDesarrollo• Red Financiera Rural• Unitus • Women’s World Banking

Smart Campaign endorsers include Investors

• BlueOrchard• Citigroup• Credit Suisse• Deutsche Bank• INCOFIN• Oikocredit• ResponsAbility• ShoreCap Management• Triodos Investment

Management• Triple JumpGovernments / Donors• BBVA Foundation • IADB• Japan

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• We invite you to learn more about the Smart Campaign at: www.smartcampaign.orgAt the site you can:• Join the Campaign as an individual or

institutional endorser.• Download resources and tools to help

examine and improve the client protection practices at your institution

• Download the rest of this training series to continue learning about client protection.

Next Steps

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• Create a certification process in the coming years

• Design a ‘Seal of Quality’ (similar to ISO, Organic, Fair Trade) that recognizes microfinance practices that promote client protection

• Certify leading institutions worldwide

Certification: The Long-Term Goal

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You have learned what the Smart Campaign is and the basics of the principles of client protection.

How can your organization become involved and support client protection microfinance?

Discussion

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Next time…We will discuss Principle #1:

Avoiding Client Over-indebtedness

We will examine concrete examples:•Steps you can take to avoid client over-indebtedness in your institution•Strategies, incentives, and product designs that facilitate prevention of over-indebtedness•Examples of good and bad practices

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Questions?Contact the Smart CampaignFor more information visit:

www.smartcampaign.org

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www.smartcampaign.org

Thank you!

Join the Campaign & Endorse the Principles of Client

Protection