In the pursuit of financial inclusion, microfinance institutions (MFIs) must balance the drive for growth with the critical responsibility of protecting their clients from harm. The unique vulnerabilities of low-income clients—including low literacy, a lack of formal legal knowledge, and limited financial buffers—can expose them to a range of risks, from over-indebtedness and predatory lending to fraud and privacy violations. Microfinance customer protection systems are a comprehensive and proactive framework designed to embed ethical practices into every aspect of an MFI's operations. This commitment moves beyond a mere compliance exercise; it is a strategic imperative that builds trust, fosters long-term client relationships, and ensures the sustainable integrity of the institution and the microfinance sector as a whole.

This course is designed to provide microfinance professionals with the strategic and practical knowledge to design, implement, and monitor a robust customer protection system. You will learn the core principles of client protection, including responsible pricing, transparent communication, and effective grievance redress. By exploring a range of tools and methodologies, from ethical marketing to data privacy best practices, this program will equip you to build a client-centric culture that safeguards your institution's reputation and ensures that financial access leads to genuine empowerment and well-being for all.

Duration: 5 days

Target Audience:

• Microfinance institution (MFI) managers and executives
• Compliance and legal officers
• Customer service and relationship managers
• Professionals in charge of product development
• Risk management professionals
• Financial inclusion practitioners
• Social entrepreneurs and startup founders
• Regulatory and policy advisors
• Internal audit and control staff

Objectives:

• Master the core principles of client protection.
• Understand the strategic business case for a robust protection system.
• Learn how to design a transparent and responsible pricing policy.
• Grasp the complexities of a robust grievance redress mechanism.
• Explore strategies for preventing over-indebtedness.
• Understand the importance of a clear and fair communication policy.
• Learn how to protect client data and privacy.
• Understand the legal and regulatory frameworks for consumer protection.
• Analyze successful case studies from different regions.
• Develop a strategic roadmap for a customer protection system.

Module 1: Foundations of Customer Protection

• The rationale for client protection in microfinance
• The core principles: responsible pricing, transparency, and fairness
• The link between client protection and social mission
• The benefits for MFIs: reduced risk and enhanced reputation
• The role of customer protection in a client-centric culture

Module 2: Responsible Pricing and Transparency

• The importance of a clear and transparent pricing policy
• How to calculate and communicate the effective interest rate
• The role of a well-defined fee structure
• The importance of a clear and simple loan contract
• The link between pricing and over-indebtedness

Module 3: Prevention of Over-Indebtedness

• The main drivers of over-indebtedness
• The importance of a thorough client assessment
• The role of a credit bureau and a credit registry
• Strategies for monitoring a client's debt burden
• The importance of a well-defined policy on multiple borrowing

Module 4: Client-Centric Grievance Redress

• The importance of a clear and accessible complaint channel
• The role of a dedicated complaint management team
• Strategies for managing and resolving complaints efficiently
• The importance of a transparent and fair process
• The role of a well-defined communication protocol

Module 5: Ethical Product Design

• Designing products that meet client needs
• The importance of a flexible and adaptable product
• The role of a clear and transparent product
• The link between a product and a client's well-being
• The importance of a well-defined product development process

Module 6: Data Privacy and Protection

• The main risks of a data breach
• The importance of a well-defined data privacy policy
• The role of a secure data management system
• The legal and regulatory frameworks for data privacy
• The importance of a well-defined communication plan

Module 7: Client Education and Communication

• The importance of a clear and well-defined communication policy
• The role of a client education program
• The importance of a clear and simple language
• The role of a well-defined marketing and advertising policy
• The importance of a well-defined communication plan

Module 8: The Role of the Board and Senior Management

• The responsibility of the board in client protection
• The importance of a client-centric culture from the top down
• The role of senior management in implementing the framework
• The importance of a well-defined policy
• The link between governance and client protection

Module 9: The Regulatory Framework

• The legal and regulatory frameworks for client protection
• The role of a well-defined code of conduct
• The importance of a clear and well-defined regulatory framework
• The role of a regulatory sandbox for innovation
• The importance of a well-defined compliance plan

Module 10: Scaling and Sustainability

• The challenges and opportunities of scaling a client protection system
• Measuring the return on investment (ROI)
• The long-term financial sustainability of the approach
• The future of financial inclusion with a robust system
• New trends and innovations in the sector

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.