Watu Credit Awarded Client Protection Certification

By Victor MUJIDU

Asset financing firm Watu Credit‘s subsidiaries in Kenya and Uganda have been awarded a Client Protection Certification in recognition of their commitment to client protection by the Microfinanza Rating (MFR) certification committee.

The two subsidiaries were awarded Bronze level Customer Protection Certification, becoming the first financial institution in Kenya and the third in Africa to achieve this accolade.

Read: Watu Credit transforming lives one loan at a time

This recognition underscores Watu’s commitment to upholding rigorous standards, ethical business practices, and total compliance with various client protection regulations and standards outlined in the Cerise+SPTF Methodology and the Universal Standards for Social and Environmental Performance Management.

Andrii Volokha, General Manager for East Africa at Watu, expressed gratitude for the recognition, stating that the award is a reputation and a trust towards customer service provision and assistance.

“We are privileged to have been awarded this certification, which is a vote of confidence for our customers and investors. This recognition highlights our commitment to our customer’s welfare and reinforces our reputation as a trusted asset financing provider. I want to reassure our investors that we have aligned our systems and practices to adhere to the globally accepted client protection standards,” he said.

Watu was certified on key parameters of client protection services, including, Transparency, Appropriate Product Design and Delivery, Privacy of Client Data, Governance and Human Resources, Responsible Pricing, Prevention of Indebtedness, Fair and Respectful Treatment of Clients, and Mechanisms for Complaint Resolution.

“With a compliance rate of 99 per cent across indicators including transparency, fair and respectful treatment of clients, prevention of over-indebtedness, responsible pricing, appropriate product design, and privacy of customer data, we have solidified our position as a model of integrity within the asset financing sector,” he added.

Since its inauguration in 2015, Watu has served over 500,000 clients in Kenya and Uganda, enabling them to acquire various innovative assets, including motorbikes, tuk tuks, smartphones, and cars. The company remains the foremost asset financing provider on the continent.

The MFR Certification Committee is approved to conduct Client Protection Certifications under the Cerise+SPTF framework. The MFR, a leading Certifier, seeks to improve practices in the finance inclusion industry. The Client Protection Pathway is the global home for all stakeholders committed to ensuring that financial products and services do not harm clients.

The certification framework includes three levels: gold, silver, and bronze, with certifications valid for three years. To achieve a Bronze level certification, financial service providers must meet specific criteria outlined in the Client Protection Pathway, such as compliance with entry-level indicators and scoring at least 65 per cent on total indicators.

Prestigious Client Protection Certification Awarded! Watu Credit Kenya and Uganda become industry leaders in ethical practices and customer welfare. This groundbreaking achievement marks them as the first financial institution in Kenya and third in Africa to receive this honor.

Their commitment to transparency, responsible pricing, and preventing over-indebtedness sets a new standard for the asset financing sector.