Pagasa Philippines Lending Company Inc. is committed to the Universal Principles of Social Performance Management.
“Social performance management (SPM) refers to the systems that organizations use to achieve their stated social goals and put customers at the center of strategy and operations. A provider’s social performance refers to its effectiveness in achieving its stated social goals and creating value for clients.” (Microfinance Gateway)
Learn more about Social Performance Management here
SMART Campaign
PPLCI also supports and promotes the SMART Campaign upholding the Client Protection Principles (CPP) in its operations and overall management.
“The Smart Campaign is a global campaign committed to embedding client protection practices into the institutional culture and operations of the microfinance industry. The Smart Campaign embodies a set of core principles for the treatment of microfinance clients – the minimum standards that clients should expect to receive when doing business with a microfinance institution.” (Retrieved from: SMART Campaign page)
The Client Protection Principles are as follows:
- Appropriate product design and delivery
Providers will take adequate care to design products and delivery channels in such a way that they do not cause clients harm. Products and delivery channels will be designed with client characteristics taken into account. - Prevention of over-indebtedness
Providers will take adequate care in all phases of their credit process to determine that clients have the capacity to repay without becoming over-indebted. In addition, providers will implement and monitor internal systems that support prevention of overindebtedness and will foster efforts to improve market level credit risk management (such as credit information sharing). - Transparency
Providers will communicate clear, sufficient and timely information in a manner and language clients can understand so that clients can make informed decisions. The need for transparent information on pricing, terms and conditions of products is highlighted. - Responsible pricing
Pricing, terms and conditions will be set in a way that is affordable to clients while allowing for financial institutions to be sustainable. Providers will strive to provide positive real returns on deposits. - Fair and respectful treatment of clients
Financial service providers and their agents will treat their clients fairly and respectfully. They will not discriminate. Providers will ensure adequate safeguards to detect and correct corruption as well as aggressive or abusive treatment by their staff and agents, particularly during the loan sales and debt collection processes. - Privacy of client data
The privacy of individual client data will be respected in accordance with the laws and regulations of individual jurisdictions. Such data will only be used for the purposes specified at the time the information is collected or as permitted by law, unless otherwise agreed with the client. - Mechanisms for complaint resolution
Providers will have in place timely and responsive mechanisms for complaints and problem resolution for their clients and will use these mechanisms both to resolve individual problems and to improve their products and services.
(Retrieved from: http://www.smartcampaign.org/about/smart-microfinance-and-the-client-protection-principles)
What we are doing…
- To fully-implement Social Performance Management, a full-time staff was hired to monitor social performance, conduct research, and implement social programs including CSR.
- Training sessions on SPM and CPP are included in all training of the company including the Pre-Service Orientation (PSO) for incoming Development Officers, Refresher Courses for Branch and Assistant Branch Managers, and Training for Regional Managers and Assistant Division Managers.
- The company conducts Client Satisfaction Survey on a yearly basis to monitor client satisfaction with the company’s policies, management, and programs and services.
- We also conduct Staff Satisfaction Survey among our employees to assess their satisfaction towards the governance and management of the company, their immediate supervisors, their professional growth, training and development and the support service units of the company.
- The Client Economic Yield (CEY) conducted annually as well to look into how our clients are doing year-on-year economically. The survey looks into their Average Working Capital (AWC) and Average Weekly Income (AWI) to assess whether our loan services are helping them grow their business
- The company has formed a Complaint Resolution Committee (CRC) that meets quarterly to resolve complaints sent via e-mail, text messages, phone calls, or via the complaint box installed in all of Pagasa branches. Complaints are directed to concerned parties by the committee members for resolution.
- The Client Services Committee (CSC) was formed to develop transformational programs for the clients. In 2016, the “One Scholar per Branch Program” was launched in partnership with Pagasa ng Masang Pinoy Foundation Inc. (PMPFI), the company’s social arm to provide financial assistance to clients’ children who are finishing their college or diploma degree. So far, the program has benefited 24 children scholars.