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
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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What are the client protection principles?
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
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Why is client protection good for business?
• Creates client loyalty
• Increases client satisfaction & retention
• Strengthens institution’s reputation
• Helps builds healthy portfolio
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Why focus on client protection now?
• 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
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Your perspective: Why focus on client
protection now?
• Why is your institution/network interested in client
protection?
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Beyond Codes: An action research
project to operationalize Client Protection
Kenya
• 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
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Bosnia-Herzegovina
Mexico
Philippines
India
Smart Campaign endorsers include
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
Investors
• BlueOrchard
• Citigroup
• Credit Suisse
• Deutsche Bank
• INCOFIN
• Oikocredit
• ResponsAbility
• ShoreCap Management
• Triodos Investment Management
• Triple Jump
Governments / Donors
• BBVA Foundation
• IADB
• Japan
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Next Steps
• We invite you to learn more about the Smart
Campaign at: www.smartcampaign.org
At 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.
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Certification: The Long-Term Goal
• 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
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Discussion
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?
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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 overindebtedness 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 Campaign
For more information visit:
www.smartcampaign.org
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Join the Campaign &
Endorse the Principles of Client
Protection
www.smartcampaign.org
Thank you!
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