Principle #5 – Mechanisms for

Redress of Grievances

This presentation is made possible by the Smart Campaignwww.smartcampaign.org

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1. Client protection principles2. Principle #5 in practice3. How dissatisfied clients affect the

institution4. Participant feedback5. Practitioner lessons and good practices6. Conclusion and call to action

Agenda

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1. Avoidance of over-indebtedness

2. Transparent and responsible pricing

3. Appropriate collections practices

4. Ethical staff behavior

5. Mechanisms for redress of grievances

6. Privacy of client data

Client Protection Principles

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1. Client protection principles2. Principle #5 in practice3. How dissatisfied clients affect the

institution4. Participant feedback5. Practitioner lessons and good practices6. Conclusion and call to action

Agenda

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Mechanism for Redress of Client Grievances

A financial institution measures up to this principle by having a mechanism for

collecting, responding in a timely manner, and resolving problems for

customers.

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A Mechanism for Redress of Grievances Includes:

Having a process for collecting and resolving concerns and complaints from clients.

Dedicating staff resources to the complaints system. Responding quickly. Internal audit or other monitoring systems check that

complaints are resolved satisfactorily. Incorporating client feedback into the improvement of

products and services.

A suggestion box is not a substitute for proper handling of concerns and

complaints.

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1. Client protection principles2. Principle #5 in practice3. How dissatisfied clients affect the

institution4. Participant feedback5. Practitioner lessons and good practices6. Conclusion and call to action

Agenda

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How Dissatisfied Clients Affect the Institution

Findings from the Field:A very satisfied client will talk about his/her

experiences with 3-4 people, but a dissatisfied client will tell 8-9 people.

When a dissatisfied client’s complaints are received, answered, and solved, there is a

90% chance that s/he will return to the institution.

90% of dissatisfied clients whose problems are not resolved will never return to do

business with the institution again.

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No Complaints Completely Satisfied Customers

If your institution does not receive concerns or complaints, be careful:

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1. Client protection principles2. Principle #5 in practice3. How dissatisfied clients affect the

institution4. Participant feedback5. Practitioner lessons and good practices6. Conclusion and call to action

Agenda

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Feedback from ParticipantsWhat channels does your institution use to receive, respond to, and resolve complaints?

What complaints or suggestions have you received at your institution? How did your institution respond?Has the complaints management system evolved at your institution since you began working there?

Do clients take the opportunity to give their feedback?

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1. Client protection principles2. Principle #5 in practice3. How dissatisfied clients affect the

institution4. Participant feedback5. Practitioner lessons and good practices6. Conclusion and call to action

Agenda

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[Write your points for the presentation here:]• Points• Points• Points• Points

Lessons from Practitioners

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Indicators of Good Practice (1 of 2)

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Indicators of Good Practice (2 of 2)

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Good Practice: Using Multiple Complaints Channels

At one institution, complaints are handled through several channels depending on the urgency and

complexity of the complaint:

Source: Adapted from Banco Solidario

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Good Practices from Around the World

One MFI includes the phone number for its call center on the first page of all its contracts.

The same MFI also includes the phone number for the government agency responsible for client protection on the same page of the contract.

One MFI requires its Internal Audit department to check a sample of dissatisfied clients to make sure they received quick responses and resolutions. If

they didn’t, the department prompts more investigation.

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1. Client protection principles2. Principle #5 in practice3. How dissatisfied clients affect the

institution4. Participant feedback5. Practitioner lessons and good practices6. Conclusion and call to action

Agenda

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Summary:• The Smart Campaign has developed six principles of

client protection, one of which is mechanisms for redress of client grievances.

• Financial institutions can adopt this principle by having a mechanism for collecting, responding to, and resolving problems for customers.

• By adopting this principle, financial institutions can attract and retain clients and build a positive, trustworthy image.

Conclusion

Call to action

• What “next steps” can your institution take to institutionalize and/or improve a mechanism for redress of client grievances?

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Join the Campaign and Endorse the Principles of Client

Protection

Have questions? Want more information?

Contact the Smart CampaignEmail: info@smartcampaign.org

Thank you!