institutions, including development agencies and development finance institutions, in sharing knowledge and information on development efforts and potential collaborations, to build on responsible finance frameworks and foster broadbased dialogue and facilitate convergence of views, and to support coordinated action. The Responsible Finance Forum considers issues related to consumer protection regulation, industry action, and financial capability, with an emphasis on more transparent, inclusive, and equitable financial sectors (Responsible Finance Forum 2012; see figure 3.2). Advocacy Industry networks or associations often take a central role in advocating the interests of providers. As associations are formed on the premise of common interests, they can effectively communicate members’ shared concerns about a particular issue. The activities that constitute advocacy are
generally developed on the basis of member needs, internal capacities, and the external political environment. For example, regional or international associations, whose membership typically comprises national-level networks and providers from multiple countries, engage in policy in a more indirect manner. Regional associations often publish information on industry practices or lobby market players on issues affecting their members across countries and markets. By doing so, they facilitate the work of local association representatives. National associations can influence policy more directly by engaging with local authorities who can pursue direct changes to various laws or secondary legislation (for example, regulations and guidelines). They can pursue specific actions that advance an advocacy strategy—letter writing, publicity campaigns, or direct lobbying with policy makers—to communicate or publicize their support for change on a particular issue. Industry
Figure 3.2 Responsible Finance: A Multiple-Stakeholder Approach
Areas of action
Key stakeholders
Cross-cutting issues
1. Consumer protection (regulations): A regulatory framework for financial consumer protection, at both national and international levels 2. Responsible providers: Voluntary commitments, practices, standards, and initiatives in the financial sector (individually and at industry level, nationally and internationally) 3. Financial capability: Interventions aimed to build and enhance financial capability of financial institutions clients – the consumers of financial products and services
Providers of financial services – banks, MFIs, NBFIs, others – and their associations
Regulators (central banks, financial regulators, consumer protection agencies)
Consumersindividuals and businesses – and advocacy organizations
Financial markets stability, poverty reduction, access to finance, job creation and SME development, health and education, sustainable development
Source: Responsible Finance Forum 2011.
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The New Microfinance Handbook