1. contact@e-mfp.eu www.e-mfp.eu Client Protection – are we there yet? (The MCPI Experience) Mila M. Bunker, Chairperson Microfinance Council of the Philippines, Inc. (MCPI) (November 3,2011)

2. contact@e-mfp.eu www.e-mfp.eu 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.

3. contact@e-mfp.eu www.e-mfp.eu 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

4. contact@e-mfp.eu www.e-mfp.eu 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

5. contact@e-mfp.eu www.e-mfp.eu 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

6. contact@e-mfp.eu www.e-mfp.eu 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

7. contact@e-mfp.eu www.e-mfp.eu 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

8. contact@e-mfp.eu www.e-mfp.eu MARAMING SALAMAT!