Tools & Resources Client Protection: The State of Practice (A look at client protection practices in Pakistan’s microfinance industry)
PoorBest

This MicroNote primarily draws on the results of the 10 Smart Assessments conducted for MFPs in Pakistan during 2013. These 10 MFPs account for approximately 70 percent of the market in terms of number of clients and approximately 65 percent in terms of gross loan portfolio.

MicroNOTE 23 banner

By Zahra Khalid and Aimen Shahid

This MicroNote primarily draws on the results of the 10 Smart Assessments conducted for MFPs in Pakistan during 2013. These 10 MFPs account for approximately 70 percent of the market in terms of number of clients and approximately 65 percent in terms of gross loan portfolio.

Due to its developmental origin, it is in the nature of microfinance that clients be placed at the heart of it. Given the reputational risks faced of late, it is pertinent to ensure that the industry – practitioners and investors alike – stay true to the clients they serve. For this reason, wider industry stakeholders have been promising long term sustainability to microfinance practitioners (MFPs) who place clients at the center of their work and subscribe to attaining the minimum standards of client protection, as defined by the global microfinance industry.

Indeed, protecting clients is the bare minimum that MFPs ought to do while aiming to reach their social or business objectives. In this respect, tenets of client protection serve as the lowest common denominator for benchmarking practices, as these apply to all microfinance practitioners – irrespective of social mission (which can be quite variable from one institution to the next, ranging from bringing the most marginalized populations out of poverty to simply providing access to formal finance).


 

Download the MicroNOTE (English) »

MicroNOTE 23 Client Protection – The State of Practice