In this video, Kate McKee, Senior Advisor, CGAP, explains the six core principles of client protection for responsible finance, namely, Transparency, Suitability of Product, Appropriate Collection Practices, Staff Ethics, Access to Effective Recourse by Clients, Data Privacy and Security. She also highlights two other issues: fair pricing and non-discrimination. She emphasises that transparency is the bedrock of client protection where all financial information should be explained to the clients in plain language. She further explains the other principals of responsible finance.
Blog
MFIs as Business Correspondents – To Be or Not to Be?
The Reserve Bank of India (RBI) has encouraged the use of Business Correspondents (BCs) as a means for promoting financial inclusion in India. This IFN examines the viability of the BC model for MFIs, based on field experiences in India.
This IFN defines the Business Correspondent Model and identifies the key stakeholders involved in the Indian case. It highlights the key growth impediments both at the policy and the operational levels, and examines the viability of the Business correspondent model in India.
Responsible Finance Why it is Timely Now
In this video, Kate McKee, Senior Advisor, CGAP, discusses responsible finance and shares why it is the need of the hour. Kate further discusses how success of MF has attracted the attention towards client protection and transparency. She also mentions the formation of industry associations and drafting code of conduct as a step towards more transparency. The client protection and responsible finance in microfinance gained media attention due to some events like Compartamos crisis in Mexico and cases in India.
Lessons Learned from MicroSave’s Action Research Programme 2007-2009: Market Conditions for Microfinance in India
This note discusses the lessons learned from MicroSave’s two years of working in the Indian microfinance market. It highlights some of the broad issues and how these have been addressed by MicroSave and its partners, as well as where additional documents are available. It essentially highlights the growing competition in the Indian microfinance market, the issue of savings and the “No Frills Accounts” opened by banks, and electronic and Mobile banking techniques. In addition, the IFN addresses the credit crunch and the challenges of reaching under-served areas, along with social performance management, and the issues related to training and technical assistance
Lessons Learned from MicroSave’s Action Research Programme 2007-2009: Delivering Training and Technical Assistance
This India Focus Note builds on MicroSave’s Action Research Programme financed by the Bill and Melinda Gates Foundation to draw lessons in delivering training and technical support to Indian Microfinance Institutions. In addition, it provides an overview of the supply of trainings to these MFIS and highlights the needs for capacity building of the middle and upper management in Indian MFIs, and the MicroSave tools that are used to fill this gap.
Process Mapping
In this video, Pamela Champagne, Consultant, ShoreBank International, explains the importance of process mapping for MFIs and the benefits these could provide to the MFIs. Pamela emphasises that process maps can be used for various purposes such as staff training and orientation, to help visualise processes in their future state without making major capital investment etc. MFIs gain a lot because of process map as it helps them to improve account opening efficiency and cut cost. She also discusses the optimisation of efficiency and risk through process mapping.