Agenda
1. Client protection principles
2. Principle #1 in practice
3. Participant feedback
4. Tools for improving practice
5. Conclusion and call to action
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Client Protection Principles
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 client data
7. Mechanisms for complaint resolution
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Agenda
1. Client protection principles
2. Principle #1 in practice
3. Participant feedback
4. Tools for improving practice
5. Conclusion and call to action
4
Appropriate product design and delivery
The Principle in Practice:
•
Providers take adequate care to design products
and delivery channels in such a way that they do
not cause clients harm.
•
Products and delivery channels are designed with
client characteristics taken into account.
Consider this:
Appropriate products and services not only provide
access to clients, but they also create value for
clients.
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The Principle in Practice
Suitable
Products
Multiple and/or flexible loan products
address different business and
family needs.
Suitable
Design
Repayment schedules are flexible
and match cash flows. Loan size
matches financial need.
Suitable
Delivery
Services are reliable, convenient,
and function as advertised.
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The Principle in Practice (Continued)
Simple
Products
Affordable
Products
Minimum
Changes
Product terms and conditions are
easy for clients to understand and
compare.
The product cost, size (or coverage),
and frequency of payment fit within
the client’s capacity to pay.
Changes to the product (cost, terms,
conditions) are minimal/ infrequent.
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Beyond credit
Savings
Payments
Service provider
covers costs but
does not deplete
small savings
through excessive
fees.
Service provider
makes payments in a
reasonable amount of
time.
Clients are not
excluded from
savings, nor are
gradual savers
penalized.
Clients know when to
expect the payment
and have access to
their money quickly.
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Agenda
1. Client protection principles
2. Principle #1 in practice
3. Participant feedback
4. Tools for improving practice
5. Conclusion and call to action
9
Feedback from participants
Does your financial institution offer
multiple loan products or flexible
ones that address different
businesses and family needs?
How do you know if clients think your
products/services are convenient
and easy to use?
How do client characteristics (e.g.
location, gender, access to
technology) affect how you deliver
your products?
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Agenda
1. Client protection principles
2. Principle #1 in practice
3. Participant feedback
4. Tools for improving practice
5. Conclusion and call to action
11
Tools available from the Smart Campaign
Technical
Tools
Samples
and Case
Studies
Getting Started Questionnaire: Self Assessment for
MFIs
Smart Lending
Smart Savings
Educating Clients About Client Protection
A Technical Guide for Investors
How to Talk to a Bank: A Brochure for Consumers
Client Protection and Financial Education Simulation
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Agenda
1. Client protection principles
2. Principle #1 in practice
3. Participant feedback
4. Tools for improving practice
5. Conclusion and call to action
13
Conclusion
Appropriate products and services are in line with client needs.
Appropriate delivery channels offer reliability and convenience.
Credit, savings, insurance, and payments products should be
designed with client characteristics taken into account.
Appropriate product design and delivery is essential for
preventing over-indebtedness.
The Smart Campaign is developing tools to help practitioners
adhere to this principle.
Call to Action: What next steps can your institution
take to ensure that products and services are
designed and delivered in an appropriate manner?
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Thank you!
Endorse the Smart Campaign. Visit
www.smartcampaign.org
What’s
next?
Sign up to receive news and
information.
Download the Getting Started
Questionnaire and conduct a client
protection self-assessment.
Email us!
comments@smartcampaign.org
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