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

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

5. 5 Responsible Pricing The Principle in Practice: Pricing, terms, and conditions are set in a way that is affordable to clients while allowing for institutional sustainability. Providers will strive to provide positive real returns for clients. Consider this: Financial sustainability is required to continue serving clients, but is not an end in itself.

6. 6 Market-Based, Non- Discriminatory Efficiency Ratios Aligned No Excessive Fees Offer market-based, non- discriminatory pricing. Align efficiency ratios with those of peers. Do not charge excessive pre- payment penalties, account closure fees, transaction fees or other penalties. The Principle in Practice

7. 7 Three important steps for responsible pricing Formalize pricing procedures for each product. Compare prices with similar competitors. Manage profitability targets and offer better value for the money

8. 8 1.Client protection principles 2.Principle #4 in practice 3.Participant feedback 4.Tools for improving practice 5.Conclusion and call to action Agenda

9. 9 Feedback from Participants What effect does the competitiveness of the local microfinance market have on pricing? Have you seen examples of irresponsible pricing? What about examples of inefficient operations? How do FIs commonly determine the prices of their products?

10. 10 1.Client protection principles 2.Irresponsible pricing 3.Principle #4 in practice 4.Participant feedback 5.Tools for improving practice 6.Conclusion and call to action Agenda

11. 11 Technical Tools Getting Started Questionnaire: Self Assessment for MFIsGetting Started Questionnaire: Self Assessment for MFIs and Guide on Smart AssessmentsGuide on Smart Assessments Calculating Transparent Prices (MFTransparency) Putting Transparency into Practice: Communicating About Pricing Responsible Pricing State of Practice Smart Operations Samples and Case Studies Essential Documents for New Clients Essential Documents for New Clients (see Loan Contract Guidelines) Transparent & Responsible Pricing at Mi-Bospo Tools available from the Smart Campaign

12. 12 1.Client protection principles 2.Irresponsible pricing 3.Principle #4 in practice 4.Participant feedback 5.Tools for improving practice 6.Conclusion and call to action Agenda

13. 13 Pricing, terms, and conditions must be responsible— affordable to the client, sustainable to the institution. Earning returns is the means to an end (serving clients in the long-term), and not an end unto itself. The Smart Campaign offers tools to help practitioners improve their practices in this area. Summary Call to Action: What next steps can your institution take to make sure that your prices are affordable to clients and sustainable for the institution?

14. 14 Thank you! Endorse the Smart Campaign. Visit www.smartcampaign.org 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? Email us! comments@smartcampaign.org