Responsible finance (RF) is simply offering financial services in an accountable, transparent and ethical manner. By definition, responsible finance must focus on financial service providers, (their practices, what they do or do not do) and on clients, (mainly aimed at improving their capacities to access and use high quality financial services). Responsible finance is clearly essential for the longer-term success of any financial service business serving the poor. This Note highlights the relationship between responsible finance, social performance management and client protection and discusses the opportunities and challenges for MFIs trying to deliver services to the poor in a responsible manner.

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