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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