Client Voices Georgia Country Report - Client Protection and Microfinance in Georgia: A Responsible Market with Opportunities for Improvement

This report presents key findings from qualitative and quantitative research for the Smart Campaign’s Client Voices project. This research project aims to understand what MFI clients consider both problematic and good treatment by MFIs, and to assess how common problems are in four markets: Pakistan, Benin, Peru, and Georgia.

The Georgia report lays out the findings and makes suggestions on what the industry can do to create the incentives for a more functional financial consumer protection ecosystem. The Smart Campaign believes that all actors have a crucial role to play in fostering a culture of client protection—and provides standards and tools for improvement.

Key findings include:

• Client understanding of loan terms and conditions is still lacking;
• Clients are not fully aware of the high risks associated with taking loans in U.S. dollars;
• Some microfinance clients experience high levels of debt;
• Clients are not aware of how CreditInfo Georgia, the only Georgian credit bureau, works;
• Clients’ willingness to take out loans for others may present risks to clients and providers;
• Clients do not report having reasons to complain, but they may not have sufficient channels to do so if needed.