A new report from the Campaign, written by Jessica Schicks, takes a deep look at how over-indebtedness is perceived among Ghana's MFI clients, whose perspectives have implications for the industry as a whole.
MFIs have a social mission to assist their customers in improving their lives through access to financial services—provided in a responsible way. To give guidance on how to live up to the standard of responsible finance, the Smart Campaign developed the Client Protection Principles with widespread industry participation. Prevention of over-indebtedness is one of these principles. Undoubtedly, most leading MFIs are firmly committed to this principle, as evidenced by the fact that the overwhelming majority of the MIX 500 largest MFIs have endorsed the Smart Campaign. However, commitment is not sufficient to put a principle into practice. This is especially true when there are large knowledge gaps, as is the case with over-indebtedness. This new report by Jessica Shicks makes an important contribution to deepening knowledge on this elusive topic.
