LOLC Micro Credit first Lankan MFI to get certification on Client Protection

Thursday, 13 February 2014 00:20 - - {{hitsCtrl.values.hits}}

LOLC Micro Credit Ltd. (LOMC) was recently conferred the ‘Smart Campaign Client Protection Certification,’ becoming the first-ever Sri Lankan Microfinance Institution (MFI) to be evaluated and presented with this top global honour. This certification guarantees that LOMC and its members of staff subscribe to set principles designed to practice good ethics, sound business and protection of clients set out by this global initiative of over 4,000 endorses. The Smart Campaign unites worldwide MFIs around a common goal: to protect clients and to ensure their continuity as the driving force of the microfinance industry.

This initiative, together with its panel of established certifiers, analyses and evaluates the compliancy levels of organisations against a set code of principles. These are: appropriate product design and delivery, prevention of over-indebtedness, transparency, responsible pricing, fair and respectful treatment of clients, privacy of client data and mechanisms for compliant resolution. LOMC, in this regard, has been guaranteed by Micro-Credit Ratings International Ltd. (M-CRIL) – a licensed certifier of the Smart Campaign’s Client Protection Certification Program – as compliant, including fulfilling all 30 standards of care in the treatment of their clients. The Smart Campaign initiative encourages MFIs to incorporate client protection principles and practices into their institutional culture and to the overall operations of the microfinance industry. It encourages MFIs to foster strong relationships with clients, increase client-retention, ensure healthy returns, reduce financial risk and thereby, sustain a robust microfinance industry. LOMC Director/CEO Ravi Tissera said: “It is indeed an honour to have been the first Sri Lankan MFI to be conferred this prestigious accolade amongst 13 other international establishments. This demonstrates our commitment to responsible lending and I would encourage all microfinance providers to obtain this certification and recommend that industry authorities develop this into a process.” He added: “This distinction also manifests our deep commitment to our staff members. As an organisation bestowed with the ‘Great Places to Work’ award, this achievement is a testament to their dedication and passion to place the LOLC Micro Credit brand in par with global standards.”

Smart Campaign Director Isabelle Barres observed: “Certified financial institutions have demonstrated their commitment and practice to treat the people they serve fairly. They contribute to a microfinance industry that prioritises client care.” LOLC Group Group Managing Director/CEO Kapila Jayawardena stated: “Aligning the Group’s business strategy with the national vision to fully harness Sri Lanka’s post war potential, has always given rise to our companies to grow. This certification has been bestowed upon LOLC Micro Credit as a true sentiment of its vision to empower people to achieve their dreams, with a focus on the practices and policies of Client Protection.” LOLC Micro Credit Ltd., which commenced operations in 2009, is at present crowned an industry leader in microfinance in Sri Lanka. Its unique business model is founded on the triple bottom line approach which is further enhanced by its socially focused business strategy. LOMC has been consistently dedicated towards uplifting the micro segment of the country as demonstrated by its growing borrower base of 200,000 and total portfolio of Rs. 20 b. Backed by the financial strength and technical support of bilateral and multilateral funding agencies as well as the LOLC Group, the company has taken greater measures to ensure continued development and protection of their clients, whilst paving the way for peers and industry authorities to implement stronger client protection measures and systems within the overall financial services landscape of the country.