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Client Protection – are we there yet?(The MCPI Experience)

Mila M. Bunker, ChairpersonMicrofinance Council of the Philippines, Inc.

(MCPI)

(November 3,2011)


About MCPI

MCPI is the national network of MFIs and support organizations working towards sustainable, innovative, and client-responsive solutions to poverty in the Philippines.

MCPI is composed of 47 institutions including 39 MFIs and 8 support organizations.


MCPI & Client Protection:how it started

Social Performance Management as one of the core programs of MCPI Client protection (doing no harm to clients) as

fundamental in social performance management Arising issues on client protection such as:

over-saturation of MF services, multiple borrowing, unethical MFI practices, etc.

Participation in the Beyond Codes Project in 2009

Smart Campaign endorsement


Client Protection Initiatives

of MCPI Advocacy – raising awareness on client protection issues and on the six Client Protection Principles; research- and information-based advocacy: Pricing transparency Multiple borrowing study Client-mapping initiative to determine saturation levels of MF services

Training MFIs on the Client Protection Principles Assessment of MFIs’ client protection practices Engaging key stakeholders and participating in major initiatives

Bangko Sentral ng Pilipinas (for the standardized disclosure format) The Smart Campaign The SEEP Network (network strengthening project) The MIX (reporting) MicroFinance Transparency Oikocredit


Some Findings To-date Appropriate product design and delivery

MFIs with market research and business development services units are more effective in terms of appropriate product design and delivery

Prevention of over-indebtedness Need to be translated in terms of policies to ensure

practice and implementation Governance (Board and senior management) plays

an important role Transparency

Pricing transparency still has to be improved; Communicating to clients using local language in

marketing materials and other documents are commonly practiced


Some Findings To-date Fair and respectful treatment of clients

The role of HR, including training, is critical in ensuring that staff adheres to appropriate treatment of clients

Privacy of client data A conducive regulatory environment which gives

importance to client privacy can be supportive of this principle, particularly for bank MFIs

Mechanisms for complaint resolution MFIs taking advantage and making use of social

networks and SMS in getting feedbacks from clients Presence of a product development unit is effective in

incorporating changes or adjustments in products and services based on client feedback


Where is MCPI now? Raising awareness

Continuing efforts on raising awareness through learning activities (training, fora)

Proposed Microfinance Code Integration of client protection principles in

the proposed code Coordination

Bangko Sentral ng Pilipinas for policy advocacy particularly on pricing disclosure

Microfinance Transparency - the state of pricing transparency in the Philippines

Engaging more regulators and MFIs


MARAMING SALAMAT!

[email protected] Client Protection – are we there yet? (The MCPI Experience) Mila M. Bunker,...

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