Keeping Clients First in Microfinance

FINCA is a Leader in the Protection of Microfinance Clients

SMART Campaign
FINCA has long been a leader in the microfinance industry in setting standards for the protection of microfinance clients. FINCA and other leading microfinance institutions (MFI) worldwide recently drafted and endorsed a statement in support of the Smart Microfinance Campaign, a core set of client protection principles to help MFIs practice good ethics and smart business. These pro-client codes of conduct and practices include: avoidance of over-indebtedness, transparent and responsible pricing, appropriate collections practices, ethical staff behavior, mechanisms for redress of grievances, and privacy of client data. Underscoring FINCA’s commitment, FINCA President and CEO Rupert Scofield is a founding member of the Smart Campaign Steering Committee.

Since its earliest days over 25 years ago, FINCA has been dedicated to safeguarding the interests of our clients through fair practices, enforced through a code of conduct, and strict policies about loan collection practices and evaluations. Our loan officers are committed to helping clients build successful businesses while ensuring that they are protected from unnecessary risks. Before making loans to clients, we conduct a training process during which clients learn about credit and how to manage cash flows; retain a portion of their profits for savings, and determine whether they have the capacity to expand their businesses. This type of training is important for our clients and for our long term success, as well.  

FINCA’s commitment to the wellbeing of our clients is expressed in several other critical elements of our business practices:

  1. FINCA offers our clients access to a broad range of financial services—including credit, savings, insurance, and money transfers—that enable them to finance income-producing activities, improve their living standards, build assets, and create a financial safety net to protect them in the event of external shocks.
  2. Before making loans or providing other financial services to clients, FINCA conducts a training process during which clients learn about credit and cash flow management, how to retain a portion of their profits for savings, and determine whether they have the capacity to expand their businesses. This type of training is important for our clients as well as for our long term success. 
  3. For nearly a decade, FINCA has actively conducted rigorous customer research throughout our network to better understand who our clients are and what effect microfinance is having in their lives. Our goal is to ensure that our programs serve FINCA's defined target client base (the lowest-income entrepreneurs), assess whether our products and services are meeting the needs of our clients, and to make changes when needed.

Recent updates on the SMART Campaign:

 


 

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