Client Protection: Are we there Yet?  The State of Practice, 2011
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Client Protection: Are we there Yet? The State of Practice, 2011 European Microfinance Week November 3, 2011 Isabelle Barrès www.smartcampaign.org. 2011. 2009. Principles updated to 7 Principles Certification Program. Timeline of the Smart Campaign. 2008-2009.

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Timeline of the smart campaign

Client Protection: Are we there Yet? The State of Practice, 2011 European Microfinance WeekNovember 3, 2011Isabelle Barrèswww.smartcampaign.org


Timeline of the smart campaign

2011 2011

2009

  • Principles updated to 7 Principles

  • Certification Program

Timeline of the Smart Campaign

2008-2009

  • October: Smart Campaign officially launched

2008

  • Center for Financial Inclusion’s Beyond Codes project and dialogue groups produce learning on client protection

2004

  • The industry comes together to start a client protection Campaign

  • Smart Campaign defines 6 Client Protection Principles

  • Pocantico Declaration from microfinance leaders emphasizes client protection failures

  • Many organizations adopt their own statement ofprinciples

Input fromtheindustryonthecertificationprogram


Social performance
Social Performance 2011

Client Protection

+ Social Commitment

Progress Out of Poverty Index (PPI)

  • Invest in systems to manage double bottom line

  • Measure social goals

  • Tailor services to client need and vulnerability

Smart

Campaign

MFT

Investor Principles for Inclusive Finance

Do No Harm!

Improve Clients’ Lives


Client protection 3 pillars
Client protection: 3 2011 pillars

Financial education and capability

Regulation for client protection and supervision

RESPONSIBLE FINANCE

RESPONSIBLE FINANCE

Standards and codes of conduct for the industry


The state of practice report
The State of Practice Report 2011

  • How is the microfinance industry moving from awareness to implementation of client protection?

  • How is the industry currently doing on the implementation of the Client Protection Principles (CPPs)?


Client protection principles
Client Protection Principles 2011

  • Appropriate product design and delivery

  • Prevention of over-indebtedness

  • Transparency

  • Responsible pricing

  • Fair and respectful treatment of clients

  • Privacy of client data

  • Mechanisms for complaint resolution


Smart campaign activities
Smart Campaign Activities 2011

  • Outreach

    • Partnerships with 30 national and regional associations

    • Participation in major conferences and events where client protection continues to be an important topic

    • Through endorsements and partnerships, touching organizations that serve over 40 million low income people

    • Website and many tools available in 5 languages



Strategic partners cont
Strategic Partners cont. 2011

  • * In discussion.

  • ** Level 2 refers to associations that have committed to requiring their members to complete a client protection self-assessment with the Smart Campaign's Getting Started Questionnaire, report to the MIX annually, and participate in CPP trainings. Level 1 associations encompass all of the above, but additionally are conducting a number of in-depth, third-party client protection assessments.


Smart campaign activities cont
Smart Campaign Activities Cont. 2011

  • Tool development and dissemination

    • Now 40+ tools on www.smartcampaign.org

    • 81,000 hits

  • Trainings

    • 53 Trainers and 42 Assessors

    • 1000 managers and staff of MFIs

  • Collaborations with key industry players

    • CGAP, MFTransparency, SPTF, etc.

    • Raters, Investors



Cpp implementation
CPP Implementation 2011

  • Two streams of self-reported data submitted by MFIs: The Smart Campaign’s “Getting Started Questionnaire” and the MIX Social Performance Reports

  • Specific examples of client protection practices of MFIs around the world

  • Third-party assessment data, the CPP Benchmarks 0.1


Self reported vs 3 rd party data
Self Reported vs. 3 2011 rd party data











Case studies
Case Studies 2011

  • Setting Standards to Prevent Over-indebtedness at AccessBank, Azerbaijan

  • An Investor Investing in Client Protection, Oikocredit

  • Sushila and Revati Help Ujjivan Teach by Example, India

  • Gatsby Shows All, Uganda

  • Arohan’s Clockwork Microfinance, India

  • Treating Defaulters with Dignity at FMM Popayan, Colombia

  • Alo, Fonkoze? Haiti


In short
In Short… 2011

  • Client protection in microfinance is still relatively new, but thriving

  • Organizations are at different levels of implementation

  • The state of practice is improving


What comes next
What Comes Next? 2011

  • Tools Trainings

  • Client Voice Task Force

    • Client Education Resource Library focusing on rights and responsibilities

    • Questionnaire to gather information from clients around client protection

  • Certification

    • Public Comment

    • Testing

    • Pilot Phase


Certification program
Certification Program 2011

  • Main rationale for the Client Protection Certification program

  • Minimum standards for client protection

  • How much will certification cost?

  • What happens if a financial institution is certified?

  • What happens if a financial institution is NOT certified?

  • How often will the certification be done?

  • How will the certification be used?

  • Who will certify?

  • Other intended outcomes from certification

 Tentative proposal will be presented



Thank you questions comments send us an email comments@smartcampaign org www smartcampaign org
Thank you! 2011 Questions? Comments?Send us an email:comments@smartcampaign.orgwww.smartcampaign.org