MICROCAPITAL BRIEF: Smart Campaign Calls for Input on Microfinance Client Protection Certification Program

The Smart Campaign, an initiative to improve accountability regarding client protection in the microfinance industry, has called for public input on its Client Protection Certification Program, which has been under development since June 2010. The effort is intended to enable financial institutions to demonstrate their adherence to the Smart Campaign’s core Client Protection Principles (CPPs) as verified by third parties. The CPPs include appropriate product design and delivery, prevention of over-indebtedness, transparency, responsible pricing, fair treatment of clients, privacy of client data and mechanisms for complaint resolution. Certified financial institutions would be recognized publicly.

You may access the full Certification Program proposal at http://centerforfinancialinclusionblog.files.wordpress.com/2011/11/20111115_certification_proposal-for-public-comment_final1.pdf

Field testing will take place during the first quarter of 2012 and the pilot Certification Program is expected to launch in the first half of 2012. You can send your questions and/or comments via email at comments@smartcampaign.org. Feedback will be accepted through the end of December 2011.

The Smart Campaign is housed at the Center for Financial Inclusion in Washington, DC, and was founded with seed money from US-based nonprofit ACCION International. As of October 2011, approximately 1,900 microfinance institutions (MFIs), microfinance support organizations, investors, donors and individual industry professionals have endorsed the Smart Campaign.

By Kristha Abores, Research Associate

About Smart Campaign: The Smart Campaign, which was founded with seed money from US-based nonprofit ACCION International and is located at ACCION’s Center for Financial Inclusion in Washington, DC, is an “effort to unite microfinance leaders around a common goal: to keep clients as the driving force of the industry.” It promotes seven core consumer protection principles including: appropriate product design and delivery, prevention of over-indebtedness, transparency, responsible pricing, fair and respectful treatment of clients, privacy of client data and mechanisms for complaint resolution. As of October 2011, approximately 1,900 microfinance institutions (MFIs), microfinance support organizations, investors, donors and individual industry professionals have endorsed the Smart Campaign.

Sources and Additional Resources:

[1] Center for Financial Inclusion: “The Smart Campaign Calls for Industry Input on Certification Program Proposal,” http://centerforfinancialinclusionblog.wordpress.com/2011/11/21/the-smart-campaign-calls-for-industry-input-on-certification-program-proposal/

MicroCapital.org article, August 17, 2011, “MICROCAPITAL BRIEF: Smart Campaign Revises “Client Protection Principles” for Microfinance Institutions (MFIs),” https://www.microcapital.org/microcapital-brief-smart-campaign-revises-%E2%80%9Cclient-protection-principles%E2%80%9D-for-microfinance-institutions-mfis/

MicroCapital.org article, April 5, 2011, “MICROCAPITAL BRIEF: Smart Campaign Releases New Guidance Document, Proposed Revisions to ‘Client Protection Principles’,” https://www.microcapital.org/microcapital-brief-smart-campaign-releases-new-guidance-document-proposed-revisions-to-client-protection-principles/

MicroCapital.org article, February 22, 2011, “MICROCAPITAL BRIEF: ACCION International’s Smart Campaign to Launch Certification Program for Client Protection in Microfinance,” https://www.microcapital.org/microcapital-brief-accion-international%E2%80%99s-smart-campaign-to-launch-certification-program-for-client-protection-in-microfinance/

MicroCapital Universe Profile: SMART Campaign, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SMART+Campaign

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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