The Smart Campaign: How did you learn about The Smart Campaign? Why did you decide to endorse The Smart Campaign?
Anne-Françoise Lefèvre: I became involved in the industry’s discussion of consumer protection before these efforts even became a formal campaign. There were very early meetings with CGAP in 2008, and while at the time we weren’t certain what the future of a campaign could be, we knew the industry needed to focus on the protection of microfinance consumers and their access to information.
We liked the idea that a Campaign would bring together a whole range of different microfinance stakeholders – investors, donors, providers, support organizations, and others. We viewed this industry-wide approach as a promising way to raise awareness of both microfinance providers and clients, and to encourage take-up by MFIs.
TSC: Why is this effort important for the industry? How do you see The Smart Campaign transforming the microfinance industry on a global-scale?
AFL: My organization, as a banking network, is faces serious challenges when communicating to stakeholders that it cares not only about profit maximization but also about social impact. Our member banks are microfinance providers who believe in the social mission of microfinance. Protecting consumers, especially low-income and vulnerable clients, is a full part of their mission. As a network we need to ensure that the path to a better life doesn’t lead to over indebtedness or other negative consequences for our clients.
A number of our members already have to comply with consumer protection and information access regulations. But we think it is essential that all clients, whatever the institution they choose to operate with, can benefit from a similar level of protection.
It’s a bit early to tell how The Smart Campaign will affect the larger microfinance industry, but the goal is to build a common frame of reference for consumer protection. By adhering to The Smart Campaign, we will contribute to better balanced microfinance relationships, with a clear understanding of providers’ and clients’ responsibilities and commitments. Ultimately we want to help the microfinance sector anticipate what could go wrong at the industry-level and ensure that clients are adequately protected.
TSC: What changes do you want to make or have made already within your organization as a result of your endorsement?
AFL: So far we’ve been talking to members about the Campaign and we’ve found that it gave us an opportunity to fill a gap in our dialogue. Previously we talked a lot about products, delivery channels, and institutional strengthening. Consumer protection was not on the agenda. This dialogue has opened up a whole range of issues that we think the members should exchange on.
In November, WSBI adopted a charter on responsible business. Those members who endorse the charter commit to a number of principles, such as fair and transparent relations with customers, being a responsible employer, etc. This charter has a close connection to the objectives of the Campaign.
Perhaps thanks to the current financial context, I feel that ‘putting clients first’ has gained a lot of momentum as an operating principle and the Campaign is an integral part of this approach to maintain high levels of customer trust and confidence.
TSC: What advice would you give to colleagues and institutions in the industry who haven’t yet endorsed the Campaign?
AFL: Although many of our members still need to be convinced of the merits of joining the Campaign on an individual basis, affiliating as a network has already enabled us to open up a dialogue about the needs of our consumers, the importance of making sure that they are protected, and the approach that we all have to take with them going forward. I think it makes sense to follow this affiliation model in order to allow for dissemination time and let the providers guide what ‘consumer protection’ will mean within their region, network, or specific industry. Once this dialogue has been completed, I am confident that the Campaign will gain overwhelming support.
