contact@e-mfp.eu transparent pricing for responsible pricing alexandra fiorillo, vice president ...

Post on 01-Apr-2015

212 Views

Category:

Documents

0 Downloads

Preview:

Click to see full reader

TRANSCRIPT

contact@e-mfp.eu www.e-mfp.eu

Transparent Pricing for Responsible Pricing

Alexandra Fiorillo, Vice President

www.mftransparency.orgDecember 1, 2010

contact@e-mfp.eu www.e-mfp.eu

• What is transparent pricing?• Examples of constructive transparency

regulation • How is industry-led self-regulation working?• What does this mean for responsible

pricing?

Agenda

contact@e-mfp.eu www.e-mfp.eu

What is Transparent Pricing?

Transparent pricing means the pricing, terms, and conditions of financial products will be transparent and adequately disclosed in a form understandable to clients.

contact@e-mfp.eu www.e-mfp.eu

Transparency Must Come First

contact@e-mfp.eu www.e-mfp.eu

Combined Approach

contact@e-mfp.eu www.e-mfp.eu

How Do We Define a Transparent Price?

contact@e-mfp.eu www.e-mfp.eu

How Do We Define a Transparent Price?

contact@e-mfp.eu www.e-mfp.eu

Price Depends on Loan Size… and Other Factors

contact@e-mfp.eu www.e-mfp.eu

Average Portfolio Yield Masks the True Price

contact@e-mfp.eu www.e-mfp.eu

Portfolio Yield Hides Price Variations

contact@e-mfp.eu www.e-mfp.eu

What Can We Learn From Truth-in-Lending Legislation?

contact@e-mfp.eu www.e-mfp.eu

Example 1: Cambodia

contact@e-mfp.eu www.e-mfp.eu

Example 2: Bosnia

contact@e-mfp.eu www.e-mfp.eu

Example 3: Peru

contact@e-mfp.eu www.e-mfp.eu

MFTransparency facilitates self-regulation on pricing transparency.

contact@e-mfp.eu www.e-mfp.eu

What have we learned?

contact@e-mfp.eu www.e-mfp.eu

What have we learned?

contact@e-mfp.eu www.e-mfp.eu

2010 Kenya Pricing Data

contact@e-mfp.eu www.e-mfp.eu

Business loans, 12 month terms

contact@e-mfp.eu www.e-mfp.eu

Why so much price variation?

contact@e-mfp.eu www.e-mfp.eu

How does transparency affect pricing?

contact@e-mfp.eu www.e-mfp.eu

What does this mean for responsible pricing?

contact@e-mfp.eu www.e-mfp.eu

Conclusions

contact@e-mfp.eu www.e-mfp.eu

Promoting Transparent Pricing in the Microfinance Industry

top related