MICROCAPITAL BRIEF: Cambodia Microfinance Association, Social Performance Task Force (SPTF), Partner on Consumer Protection

Two NGOs, the Cambodia Microfinance Association (CMA) and the US-based Social Performance Task Force (SPTF), recently agreed to create a plan to foster “responsible growth, financial stability and customer protection in Cambodia’s microfinance and broader financial sector.” Elements of the plan include financial literacy training and third-party certifications relating to inclusive finance and client protection. The effort complements the Client Protection Pathway, which offers a suite of resources to support financial services providers in achieving standards in areas such as Appropriate Product Design & Delivery; (2) Prevention of Over-indebtedness; and (3) Responsible Pricing. The Client Protection Pathway was developed by SPTF and the French NGO Comité d’Echange, de Réflexion et sur les Systèmes d’Epargne-Crédit (CERISE). Under the new partnership with SPTF, CMA members will be able to request financing to support their work in these areas.

CMA was established in 2004 and seeks to improve the operations of its members, including by increasing communication among microfinance institutions and other stakeholders such as government authorities, donors and investors. As of 2022, CMA has approximately 120 members.

SPTF, founded in 2005, works to improve the social and environmental performance management (SEPM) of microfinance institutions worldwide. SEPM refers to the systems that organizations use to achieve their social and environmental goals, such as improving clients’ well-being. SEPM strategies include defining and monitoring goals, developing client-centric products and services, treating clients and employees responsibly, and balancing social, environmental and financial performance. The NGO has 4,800 members as of 2022.

By Ben Greissman, Research Associate

Sources and Additional Information

CMA press release
https://cma-network.org/information-center/events-announcement/detail/sptf-and-cambodia-microfinance-association-sign-agreement-to-strengthen-client-protection-in-cambodias-financial-services/

CMA homepage
https://www.cma-network.org

CMA member profiles
https://cma-network.org/our-members/member-profile/

SPTF homepage
https://sptf.info

SPTF description
https://sptf.info/about-us/what-we-do

Previous MicroCapital article on SPTF
https://www.microcapital.org/microcapital-brief-cerise-sptf-invite-microfinance-institutions-to-join-client-protection-pathway/

Previous MicroCapital article on CMA
https://www.microcapital.org/microcapital-brief-cambodian-microfinance-association-members-refusing-charge-clients-value-added-tax/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.