Moscow, RussiaNovember 19th, 2009

Symbiotics SAJerome SavelliRegional Manager Europe and Asia

2009 Russian Micro finance Center Conference“Microfinance Investors & Client Protection: New Standards”

Symbiotics SA | 75, rue de Lyon · 1203 Geneva Switzerland | www.symbiotics.ch

1. Symbiotics acts as intermediary between MFIs and investors

Market researchMFI due diligence

Investment servicesPortfolio management

Structured finance

30 specialized staffGeneva/Mexico/Singapore

MFIs:

> 500 visited> 300 registered > 110 financed97 outstanding

> 554 investments

MIVs

15+ MIVsTheir investors, managers, agent banks, administrators

and auditors

> USD 570 million disbursed

2. Investors’ need to manage and report on Social Responsibility

• Social Responsibility part of the institution’s credit risk

• Investors need to fulfill their social mission and report on it

»Generating high positive social impacts»Raising money from the SRI market, looking for a social return»Creating sustainable partnerships with socially responsible MFIs»Using microfinance as a tool to invest in social and “green” sectors (high potential markets: renewable energy, water, etc.)

Credit Risk Analysis

Governance

Market Strategy

Finance

IT & Controls

Social Responsibility

3. Symbiotics’ Social Rating Tool

Strong social responsibility

Symbiotics Social Responsibility Index

Symbiotics’ Social Responsibility Rating

4. Client Protection assessment at Symbiotics

• Prevention of over indebtedness »In depth analysis of clients repayment capacity »Analysis of clients' indebtedness level »Participation to a credit bureau or information sharing initiatives»Delinquency level»Share of consumer loans vs. total portfolio

• Transparency of products and conditions »Transparency of products' terms and conditions »Financial literacy to clients (trainings…)

 • Ethical staff behavior

• Mechanisms for complaints and problem resolution

• Overall quality of the relationship with clients (flexibility, mutual understanding…)

•Compliance with regulations and voluntary codes regarding consumer protection 

5. Our belief and challenges

» The overall objective of client protection and more generally social responsibility assessment

is to build a sustainable microfinance industry, generating a high positive social impact on all

its stakeholders while taking into account their respective needs

» Measurement of the client protection is increasingly important, especially in the context of

financial crisis

Few challenges…

» CGAP’s Implementing the Client Protection Principles : “It is harder for an investor on its

own to change behaviors in a market; the roles of networks and policy makers are also

important”

» CGAP’s Implementing the Client Protection Principles : “How should an investor respond

in a market where none of the MFIs is transparent? Should they decide not to invest, or invest

while engaging with partners to improve practice?”