Responsible Finance Forum

Case Study: Investing in Responsible Financial Inclusion – Profile of Smart Campaign Client Protection Certified Institutions

30 January 2018
Source:  Partnership for Responsible Financial Inclusion

This report captures data from 89 financial service providers (FSPs) which were Smart certified as of July 2017. Some of the data was gathered from the database maintained by PRFI on its members as part of its work with the Smart Campaign. Assets, client reach (using active borrower), and portfolio-at-risk data was collected from the Mix Market, which publishes financial, operational and social performance data on over 1,300 FSPs and other financial service providers. Because the 2017 data is not available for most FSPs on the Mix Market, the report relies on 2013-2016 for analysis. In addition, the currency used in this report is in USD, for asset size, and does not attempt to analyze any potential exchange rate fluctuations.  To evaluate size of an institution, we utilized asset size over client outreach because size tiers in the market are based on asset size.

This case study is part of the IFC-PRFI Accelerating Responsible Microfinance Project, which is a three-year collaboration to accelerate responsible finance by supporting Smart Certification missions among the PRFI’s network. The collaboration is aimed at building a critical mass of certified institutions to advance responsible microfinance globally. Participating FSPs are selected based on commitment, capacity, and client reach. By providing financial resources, the joint collaboration enables affiliated FSPs to prepare for and undergo certification to meet the Smart Campaign’s Client Protection Principles.  Making such practices an industry standard is central in realizing a vision where all clients are not only included, but both clients and institutional stability are also protected.

Originally posted on PRFI’s website