SPTF Webinar
Sergio Guzmán – Lead Specialist, The
Smart Campaign
January 9, 2013 www.smartcampaign.org

•
Introduction to the Smart Campaign
•
Client Protection Principles
•
Available tools to strenghten client protection
•
Certification Program
•
Call to action and conclusion
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RESPONSIBLE
FINANCE
Regulation for client protection and supervision
RESPONSIBLE
Financial education and
FINANCE capability
Standards and codes of conduct for the industry
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…represents a global, industry-wide effort:
…has an international steering committee
…collaborates with the Social Performance Task
Force (SPTF), MIX Market Social Reporting,
MF Rating Agencies, MF Transparency , and many others
…is housed at the Center for Financial Inclusion at Accion International
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http://maps.smartcampaign.org/
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The Smart Campaign envisions a fundamental transformation of the microfinance industry in four key ways:
Focus on clients
• All industry stakeholders will put the interests of clients first
Transparent and prudent services
• MFIs will provide transparent, respectful, prudent financial services
Full integration of client protection
• Client protection principles will be fully integrated into all microfinance operations
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Gain proconsumer reputation
• The microfinance industry will be distinguished as leader in responsible finance

1. Appropriate product design and delivery
2. Prevention of over-indebtedness
3. Transparency
4. Responsible pricing
5. Fair and respectful treatment of clients
6. Privacy of clients data
7. Mechanisms for complaint resolution
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Now is a critical time to focus on client protection, for several reasons:
•Demands for accountability and transparency
•Microfinance crises in several countries
•Negative media attention regarding impact
•Public and governmental concern over high interest rates
•Rapid growth, rising competition, and new players
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• Partnerships with 30 national and regional associations
• Through endorsements and partnerships, touching organizations that serve over 40 million low income people
• Website and many tools available in 5 languages
• Participation in major conferences and events where client protection continues to be an important topic
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• Tool development and dissemination
• Now 60+ tools on www.smartcampaign.org
• 121,336 hits
• Trainings
• 53 Trainers and 61 Assessors
• 1,300+ managers and staff of MFIs trained
• Collaborations with key industry players
• CGAP, MF Transparency, SPTF, Raters,
Investors
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“My institution believes that client protection is important —but we need help improving practice!”
• The Smart Campaign offers over 50 practical tools to help financial service providers implement the client protection principles.
• All of the tools are available for download free of charge.
• New tools are added regularly.
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“How to”
Guides
Strategic planning guides
Case studies
Training presentations
Technical guides
Example forms
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Getting Started Questionnaire:
Client Protection Self Assessment for Microfinance Institutions
Principle
Indicators
Explanation of indicators
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Your score

Sample results from Getting Started questionnaire:
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To enable financial institutions worldwide to demonstrate their adherence to the Campaign's client protection principles as verified by third-party Certifiers.
To highlight publicly financial institutions who meet the minimum standards for client protection.
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October – December
2011
Public comment period:
Open webinars for Q&A in:

Spanish – October 25

English – October 26

French – November 7
Piloting period of standards and indicators November 2011 –
December 2012
January 2013 – June
2014
June 2014 – onward
First Year Launch of Client Protection Certification
Program with eligible specialized microfinance rating agencies.
Revisions to methodology based on first year learning. Expansion of coverage to full range of financial products. Licensing of additional certifying organizations.
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The key elements of the content of the certification are as follows:
• Five major categories : governance, policies and procedures, staff incentives and staff training, compliance, and results.
Organized Around
•Key adequate standards and Appropriate Indicators
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Not subject to abuse
Listened
Well
Informed
Respected
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1. MFI shows commitment
Endorses principles
Conduct appropriate ex ante work to decide whether its time for
Certification
2. Application
FI:
Contacts licensed certifiers listed on SC site
Certifier:
Prepares Certification
Mission proposal
If proposal accepted, contract negotiation and signature
3. Desk review
- FI
3. Desk review
- Certifier
4. On-site visit
5. Certification
Has a public opt-to appear as ‘certification in progress’
Payment of first installment
Sends FI the
Certification
Preparation
Guide
Provides initial feedback on desk review results
FI:
Cooperates as needed with
Certifier
Certifier:
Conducts analysis and determines whether MFI passes or not, or whether they need to fix a few small things.
Certifier:
Conducts debriefing with the
FI at the end of the visit
SC:
If passes Issues
Certification. If
19 fails SC tells them they failed.
SC: Adds MFI name on SC website

Endorse the Smart Campaign. Visit www.smartcampaign.org
Sign up to receive news and information.
Download the Getting Started Questionnaire and conduct a client protection self-assessment.
Email us with questions or comments! comments@smartcampaign.org
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