The seminar was organized as part of PROMISE IMPACT Project which is funded by the Swiss State Secretariat for Economic Affairs (SECO). The seminar provided a platform to exchange knowledge in financial services to MSEs and measures to promote both economic and social development. The seminar was attended by over 50 participants including senior government officials, managers of financial institutions, representatives of financial associations and networks, academics, think-tanks, and practitioners from the finance industry.
Many commercial businesses including the banking industry consider “customer satisfaction” and “customer demand” as an important part of doing business. So, providing client-centric services responsibly and with an explicit aim of creating value for the clients is, therefore, not a departure for financial institutions. But, they need to demonstrate that they are incorporating that in their management practices."Owais Parray, the Chief Technical Adviser of ILO’s Promoting Micro and Small Enterprises through Improved Entrepreneurs’ Access to Financial Services (Promise Impact) Project
SPM helps financial institutions to ensure healthy financial returns, but at the same time to look beyond short-term profitability. Many think SPM and corporate social responsibility (CSR) is one and the same thing. But that is not the case. SPM is a way to manage financial institutions to achieve a double bottom line."Frances Sinha from M-CRIL and an active member of the Social Performance Task Force (SPTF)
“SPM helps financial institutions to ensure healthy financial returns, but at the same time to look beyond short-term profitability. Many think SPM and corporate social responsibility (CSR) is one and the same thing. But that is not the case. SPM is a way to manage financial institutions to achieve a double bottom line,” explained Frances. She added that SPM provides a clear framework for financial institutions to adapt their business processes, realize their financial objectives, as well as contribute towards social welfare of their clients.
The seminar took a closer look at challenges and opportunities in Indonesia to mainstream SPM. A full session was dedicated to discussing SPM approaches and practices in Indonesia. Senior managers from Bank BRI, BMT ITqan, BPR UMKM Jatim, and Komida shared the results of their work. The underlying message from these initiatives was that providing services with the client at the center is in fact more profitable in the long-term. Client-oriented focus can enable financial institutions to minimize risks, ensure client retention, and improve outreach.
“Through this initiative, ILO hopes that more financial institutions will be able to adopt the SPM framework. In this regard, ILO will continue to support financial institutions and financial regulators to mainstream SPM,” concluded Owais.