[email protected] transparent pricing for responsible pricing alexandra fiorillo, vice president ...
TRANSCRIPT
[email protected] www.e-mfp.eu
Transparent Pricing for Responsible Pricing
Alexandra Fiorillo, Vice President
www.mftransparency.orgDecember 1, 2010
[email protected] 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
[email protected] 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.
[email protected] www.e-mfp.eu
Transparency Must Come First
[email protected] www.e-mfp.eu
Combined Approach
[email protected] www.e-mfp.eu
How Do We Define a Transparent Price?
[email protected] www.e-mfp.eu
How Do We Define a Transparent Price?
[email protected] www.e-mfp.eu
Price Depends on Loan Size… and Other Factors
[email protected] www.e-mfp.eu
Average Portfolio Yield Masks the True Price
[email protected] www.e-mfp.eu
Portfolio Yield Hides Price Variations
[email protected] www.e-mfp.eu
What Can We Learn From Truth-in-Lending Legislation?
[email protected] www.e-mfp.eu
Example 1: Cambodia
[email protected] www.e-mfp.eu
Example 2: Bosnia
[email protected] www.e-mfp.eu
Example 3: Peru
[email protected] www.e-mfp.eu
MFTransparency facilitates self-regulation on pricing transparency.
[email protected] www.e-mfp.eu
What have we learned?
[email protected] www.e-mfp.eu
What have we learned?
[email protected] www.e-mfp.eu
2010 Kenya Pricing Data
[email protected] www.e-mfp.eu
Business loans, 12 month terms
[email protected] www.e-mfp.eu
Why so much price variation?
[email protected] www.e-mfp.eu
How does transparency affect pricing?
[email protected] www.e-mfp.eu
What does this mean for responsible pricing?
[email protected] www.e-mfp.eu
Conclusions
[email protected] www.e-mfp.eu
Promoting Transparent Pricing in the Microfinance Industry