2 1.Client protection principles 2.Principle #6 in practice 3.The client perspective 4.Participant feedback 5.Tools for improving practice 6.Conclusion and call to action Agenda

3 1. Appropriate product design and delivery 2. Prevention of over-indebtedness 3. Transparency 4. Responsible pricing 5. Fair and respectful treatment of clients 6. Privacy of client data 7. Mechanisms for complaint resolution Client Protection Principles

4 1.Client protection principles 2.Principle #6 in practice 3.The client perspective 4.Participant feedback 5.Tools for improving practice 6.Conclusion and call to action Agenda

5 Privacy of Client Data The Principle in Practice: The provider complies with all local data privacy laws. Client information is only used in the ways agreed upon at the time of data collection. Consider this: Clients trust financial service providers with very sensitive personal and financial information.

6 Use a privacy policy Use appropriate systems Inform clients Use a written privacy policy that governs the gathering, processing, use, and distribution of client data. Use technology that keeps client data secure. Train staff to keep data confidential, secure, and accurate. Inform clients how their information will be used internally and externally— including data shared with 3 rd parties and the use of photos. The Principle in Practice

7 Obtain client permission Train clients Obtain client consent for using information in promotions, marketing materials, and other publications; and for sharing personal information with any external parties, including credit bureaus. Offer information, orientation, or educational sessions to clients on how to safeguard information, access codes/ PIN numbers, and group information. The Principle in Practice

8 Good practices for privacy and security Ask employees to sign a confidentiality agreement at the same time as their employment contract. Establish a clearly defined “user access hierarchy” for staff accessing sensitive data. Hold periodic campaigns for clients to update their data and incentivize them to participate. Don’t allow information available on the ‘intranet’ to be printed or downloaded for use outside the office.

9 Good practices for privacy and security Spot check the security of physical files in branches (e.g. using internal auditors). Train clients on how to keep group information private. Describe the sanctions for the misuse of client data in the staff book of rules.

10 1.Client protection principles 2.Principle #6 in practice 3.The client perspective 4.Practitioner feedback 5.Tools for improving practice 6.Conclusion and call to action Agenda

11 Can your clients agree with the following? I have been told that the institution will ask my permission before sharing my information with third parties, and before using my photo in any marketing materials. I know how to keep my PIN number safe. I know how the keeps my data secure. The institution explained the importance of keeping group information confidential. The client perspective

12 1.Client protection principles 2.Principle #6 in practice 3.Protecting client data & the client perspective 4.Participant feedback 5.Tools for improving practice 6.Conclusion and call to action Agenda

13 Feedback from Participants Do your clients care about data security? If something went wrong and their personal or financial information was compromised, would it affect your business? Have data management practices and systems evolved at your institution since you have worked there? How so? Have you witnessed privacy or security lapses at your institution? How did your institution respond?

14 1.Client protection principles 2.Principle #6 in practice 3.The client perspective 4.Participant feedback 5.Tools for improving practice 6.Conclusion and call to action Agenda

15 Technical Tools Getting Started Questionnaire: Self Assessment for MFIs Security is the Key: Pocket Guide to Financial Security for Clients Smart Lending Smart Savings Technical Guide for Investors Samples and Case Studies Client Welcome Kit Smart Note: Customized IT at Caja Morelia Smart Note: Protecting Client Data Tools available from the Smart Campaign

16 1.Client protection principles 2.Principle #6 in practice 3.The client perspective 4.Participant feedback 5.Tools for improving practice 6.Conclusion and call to action Agenda

17 Financial institutions satisfy this principle by respecting the privacy of client data and keeping it secure. Maintaining the privacy of client data requires implementing adequate safeguards, systems, and policies, but also informing the client about the use of their personal information and obtaining client consent before sharing it with a third party. Staff and client training is important for making sure privacy and security procedures are successful. Conclusion Call to Action: What “next steps” can your organization take to institutionalize and/or improve systems for maintaining the privacy and security of client data?

18 Thank you! Endorse the Smart Campaign. Visit Sign up to receive news and information. Download the Getting Started Questionnaire and conduct a client protection self-assessment.Getting Started Questionnaire What’s next? us!