Tala, a U.S.-based consumer lending app in emerging markets, recently announced it has partnered with Smart Campaign, a global initiative to promote strong financial client protection for low-income clients housed at the Center for Financial Inclusion at Accion, for digital client protection research.
The duo reported that they recently conducted a client protection research assessment, which consisted of extensive interviews and site visits with Tala’s operations in Kenya to establish best practices in consumer protection for digital lenders.
“Based on the findings from the assessment with Tala and research with other providers, Smart will release industry standards for digital lenders in 2019. The success of new standards for digital lending depends on the willingness of industry leaders like Tala to be transparent and committed to client protection practices.”
While sharing more details about the partnership, Rose Muturi, East Africa Regional Manager at Tala, stated:
“We are proud to collaborate with the Smart Campaign to further our mission to empower the underserved through innovative solutions that put the customer first and set an example for the industry. Collaborating with Smart was a natural fit given our commitment to the core tenets of consumer protection, including transparent pricing, clear customer communications and representative advertising.”
Smart Campaign Director, Isabelle Barrès, also commented:
“Partnering with providers is crucial for establishing standards for digital credit that are sustainable for the industry while ensuring that the most vulnerable clients are protected. Tala has demonstrated a commitment to the client protection principles by engaging in an in-depth examination of their practices.”
Muturi went on to add:
“At Tala, we believe our role as a market leader goes beyond extending access to financial services to include greater awareness, education and care for our customers. In the coming months, along with other leading digital lenders, we will be launching a customer education and industry best practices campaign, along with a code of conduct for responsible digital lending in Kenya.”