Major Microfinance Investors Sign on to Client Protection Principles

Thirty-four of the world’s largest microfinance investors have signed on to the Client Protection Principles, a microfinance industry-wide initiative that encourages providers to ensure that low-income clients are treated fairly and protected from potentially harmful financial products. The Principles are distilled from the work of MFIs, international networks and national microfinance associations to develop pro-consumer codes of conduct and practices. The Client Protection Principles are an effort to define minimum standards for providers to safeguard the interests of vulnerable clients.

The 34 signatories have committed to a process to translate the Principles into standards, policies, and practices appropriate for different types of microfinance clients, products, providers, and country contexts. By doing so, these institutions commit to incorporate the Principles into their investment selection and oversight processes. While it is microfinance providers themselves that are in a position to apply the Principles, investors can encourage compliance and provide positive incentives.

CGAP is joining with others to support an industry-wide awareness-raising campaign and consultative process to develop appropriate client protection standards. While the Principles are universal, meaningful and effective implementation on the ground will require careful attention to the diversity within the provider community and conditions in different markets.

Read Full Article

About Us  |  Contact Us  |  Partners  |  Help  |  Site Map  |  Terms and Conditions  |  Privacy Policy  |  Manage Subscriptions

© CGAP 2012 ALL RIGHTS RESERVED