2. 2 1.Client protection principles 2.Principle #5 in practice 3.How dissatisfied clients affect the institution 4.Participant feedback 5.Practitioner lessons and good practices 6.Conclusion and call to action Agenda

3. 3 1. Avoidance of over-indebtedness 2. Transparent and responsible pricing 3. Appropriate collections practices 4. Ethical staff behavior 5. Mechanisms for redress of grievances 6. Privacy of client data Client Protection Principles

4. 4 1.Client protection principles 2.Principle #5 in practice 3.How dissatisfied clients affect the institution 4.Participant feedback 5.Practitioner lessons and good practices 6.Conclusion and call to action Agenda

5. 5 Mechanism for Redress of Client Grievances A financial institution measures up to this principle by having a mechanism for collecting, responding in a timely manner, and resolving problems for customers.

6. 6 A Mechanism for Redress of Grievances Includes: Having a process for collecting and resolving concerns and complaints from clients. Dedicating staff resources to the complaints system. Responding quickly. Internal audit or other monitoring systems check that complaints are resolved satisfactorily. Incorporating client feedback into the improvement of products and services. A suggestion box is not a substitute for proper handling of concerns and complaints.

7. 7 1.Client protection principles 2.Principle #5 in practice 3.How dissatisfied clients affect the institution 4.Participant feedback 5.Practitioner lessons and good practices 6.Conclusion and call to action Agenda

8. 8 How Dissatisfied Clients Affect the Institution Findings from the Field: A very satisfied client will talk about his/her experiences with 3-4 people, but a dissatisfied client will tell 8-9 people. When a dissatisfied client’s complaints are received, answered, and solved, there is a 90% chance that s/he will return to the institution. 90% of dissatisfied clients whose problems are not resolved will never return to do business with the institution again.

9. 9 No Complaints Completely Satisfied Customers If your institution does not receive concerns or complaints, be careful: Clients could be happy with your products and customer service, or Clients might not feel empowered to share their concerns and complaints or They might not know how to do so, or Clients might not feel like they can complain without this affecting their business relationship with the institution.

10. 10 1.Client protection principles 2.Principle #5 in practice 3.How dissatisfied clients affect the institution 4.Participant feedback 5.Practitioner lessons and good practices 6.Conclusion and call to action Agenda

11. 11 Feedback from Participants What channels does your institution use to receive, respond to, and resolve complaints? What complaints or suggestions have you received at your institution? How did your institution respond? Has the complaints management system evolved at your institution since you began working there? Do clients take the opportunity to give their feedback?

12. 12 1.Client protection principles 2.Principle #5 in practice 3.How dissatisfied clients affect the institution 4.Participant feedback 5.Practitioner lessons and good practices 6.Conclusion and call to action Agenda

13. 13 [Write your points for the presentation here:] Points Lessons from Practitioners

14. 14 A written policy requires customer complaints to be taken seriously, fully investigated and resolved in a timely manner without bias. Written Policy A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. Mechanism Customers are informed of their right to complain and know how to submit a complaint to the appropriate person. Informed Customers Indicators of Good Practice (1 of 2)

15. 15 Staff is trained to handle complaints and refer them to the appropriate person for investigation and resolution. Trained staff Internal audit or other monitoring systems check that complaints are resolved satisfactorily. Internal audit monitors system Complaints information is used to improve products, sales techniques, and other interactions with customers. Use complaints information Indicators of Good Practice (2 of 2)

16. 16 Good Practice: Using Multiple Complaints Channels Suggestion/ Complaint on-site Branch Teller Written suggestion / complaint Branch Manager Suggestion/ Complaint via feedback mechanism Complaints Agent Immediately Up to 14 days At one institution, complaints are handled through several channels depending on the urgency and complexity of the complaint: Source: Adapted from Banco Solidario

17. 17 Good Practices from Around the World One MFI includes the phone number for its call center on the first page of all its contracts. The same MFI also includes the phone number for the government agency responsible for client protection on the same page of the contract. One MFI requires its Internal Audit department to check a sample of dissatisfied clients to make sure they received quick responses and resolutions. If they didn’t, the department prompts more investigation.

18. 18 1.Client protection principles 2.Principle #5 in practice 3.How dissatisfied clients affect the institution 4.Participant feedback 5.Practitioner lessons and good practices 6.Conclusion and call to action Agenda

19. 19 Summary: The Smart Campaign has developed six principles of client protection, one of which is mechanisms for redress of client grievances. Financial institutions can adopt this principle by having a mechanism for collecting, responding to, and resolving problems for customers. By adopting this principle, financial institutions can attract and retain clients and build a positive, trustworthy image. Conclusion Call to action What “next steps” can your institution take to institutionalize and/or improve a mechanism for redress of client grievances?

20. 20 Join the Campaign and Endorse the Principles of Client Protection Have questions? Want more information? Contact the Smart Campaign Email: info@smartcampaign.org Thank you!