MICROCAPITAL BRIEF: Microfinance CEO Working Group Issues Road Map for Microfinance Industry Promoting Smart Campaign, Microfinance Transparency, Social Performance Task Force

A group of eight CEOs of nonprofit microfinance organizations has issued a “Road Map for the Microfinance Industry: Focusing on Responsible and Client-Centered Microfinance.” The road map suggests that the industry improve its standards of responsibility to clients through “principles and procedures that ensure ethical, transparent business and client safety.” It also recommends that the microfinance industry create measurable social and economic value for its clients by offering a range of services based on client needs. The report further highlights the support of the signatories for three US-based initiatives: the Smart Campaign, which aims to protect the interests of microfinance clients; MicroFinance Transparency, a nongovernmental organization working to increase the transparency of MFI pricing; and the Social Performance Task Force, group founded by CGAP (Consultative Group to Assist the Poor) that works to promote social values in microfinance [2].

The CEOs signing the letter represent UK-based VisionFund International and the following US-based nonprofit organizations: ACCION International, FINCA International, Freedom from Hunger, Grameen Foundation USA, Opportunity International, Pro Mujer and Women’s World Banking. At the moment, the Center for Financial Inclusion at ACCION International is the secretariat for the Working Group [1]. The Center for Financial Inclusion also hosts the Smart Campaign.

The Working Group members ask their fellow microfinance stakeholders to join them in supporting the three campaigns, putting their principles into action and working to develop improved ways to provide services to poor people.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

[1] The Center for Financial Inclusion Blog: “Microfinance CEOs Unite on Road Map to Responsible Microfinance,” http://centerforfinancialinclusionblog.wordpress.com/2012/01/18/microfinance-ceos-unite-on-road-map-to-responsible-microfinance/

[2] “Road Map for the Microfinance Industry: Focusing on Responsible and Client-Centered Microfinance,” http://centerforfinancialinclusionblog.files.wordpress.com/2012/01/microfinance-ceo-working-group-road-map_120118_final.pdf

MicroCapital Universe Profile: ACCION International
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACCION+International

MicroCapital Universe Profile: FINCA International
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

MicroCapital Universe Profile: Freedom from Hunger
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=freedom+from+hunger#Description_140_word_limit_

MicroCapital Universe Profile: Grameen Foundation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Foundation

MicroCapital Universe Profile: Opportunity International
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+International

MicroCapital Universe Profile: Pro Mujer https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Pro+Mujer

MicroCapital Universe Profile: VisionFund International https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=VisionFund+International

MicroCapital Universe Profile: Women’s World Banking
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Women%27s+World+Banking+%28WWB%29