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Timeline of the Smart Campaign

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

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

  2. 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

  3. Social Performance 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

  4. Client protection: 3 pillars Financial education and capability Regulation for client protection and supervision RESPONSIBLE FINANCE RESPONSIBLE FINANCE Standards and codes of conduct for the industry

  5. The State of Practice Report • 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)?

  6. Client Protection Principles • 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

  7. Smart Campaign Activities • 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

  8. Strategic Partners

  9. Strategic Partners cont. • * 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.

  10. Smart Campaign Activities Cont. • 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

  11. Top 15 tools – Campaign Site

  12. CPP Implementation • 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

  13. Self Reported vs. 3rd party data

  14. CPP Benchmarks 0.1

  15. CPP Benchmarks 0.1, Cont.

  16. CPP Benchmarks 0.1, Cont.

  17. Prevention of Over-indebtedness

  18. Transparency

  19. Responsible Pricing

  20. Fair/ Respectful Treatment of Clients

  21. Privacy of Client Data

  22. Mechanisms for Complaint Resolution

  23. Case Studies • 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

  24. In Short… • Client protection in microfinance is still relatively new, but thriving • Organizations are at different levels of implementation • The state of practice is improving

  25. What Comes Next? • 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

  26. Certification Program • 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

  27. Timeline for Certification

  28. Thank you!Questions? Comments?Send us an email:comments@smartcampaign.orgwww.smartcampaign.org

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