1. Trust Through Transparency Policy for Success Example of ACDI/VOCA Frontiers- Kyrgyzstan SEEP October 2005

2. Customer Perceptions of Microfinance Institutions Target the right clients Enforce contractual obligations Retain customers and adapt services to their needs Discrimination Pressure to borrow Hidden costs No choice Cheated MFIs Customers

3. SEEP Network Issues Identified Cost of Debt Transparency Over-indebtedness Compliance Aggressive collections Poor customer service Misused savings Inappropriate security for loans

4. SEEP Pro-Client Working group Objective To promote a trusting relationship between MFIs and customers through transparency. Method Adoption by MFIs and national microfinance associations of Codes of Practice for Client Protection

5. Benefits of a Code of Practice in Consumer Protection higher degree of professionalism higher degree of consumer confidence differentiation between scrupulous and unscrupulous service providers fend-off burdensome regulation Code of Practice = practical, specific, verifiable SEEP Template for developing a Code of Practice

6. SEEP Template Themes Operations/Products and Services Marketing, Distribution, Pricing, Collections Transparency Disclosure and accessibility Community Engagement Customer education, satisfaction, questionable practices Accountability Compliance and complaints

7. Proposed Pro-Client Principles Quality of Service Dignified Treatment Truthful and Transparent Information Appropriate Pricing Protection from Unethical and Illegal Practices Privacy of Client Information

8. SEEP members agree to: Apply these principles in their own organizations. Promote the widespread application of these principles among member implementing institutions. Raise awareness about the importance of pro-client principles where SEEP members work around the world.

9. ACDI/VOCA Frontiers- Kyrgyzstan Trust Through Transparency Policy Appropriate Pricing Protection from Unethical and Illegal Practices Privacy of Client Information

10. ACDI/VOCA Frontiers- Kyrgyzstan Trust Through Transparency Policy Dignified treatment Disclosure and accessibility- truthful and transparent information Customer satisfaction, quality of service

11. ACDI/VOCA Frontiers- Kyrgyzstan Trust Through Transparency Policy Enforcement: Access to General Manager- open door policy -complaints Follow-up and corrective measures for compliance Suggestions for process improvement

12. ACDI/VOCA Frontiers- Kyrgyzstan Trust Through Transparency Policy Challenges Lessons learned

13. Thank You!