Tamweelcom bags client protection certification

AMMAN — Tamweelcom, a microfinance institution (MFI), is the first in Jordan to receive the “Smart Campaign – Client Protection” certification, making it also the first in the Middle East, the 5th in the MENA region and the 115th worldwide to obtain it, according to its CEO. 

The MFI received the certification in July, 2019 from an independent third-party called Microfinanza, which assessed Tamweelcom based on seven dimensions of client protection principles, Ali Jabbar, CEO at Tamweelcom, said during an interview at the company’s headquarters in Amman on Sunday.

The main indicators that determine whether an MFI receives the certificate are: Appropriate product design, transparency, prevention of client over-indebtedness, responsible pricing of products and services, being fair and respectful when treating clients, maintaining privacy of data and the mechanism employed for complaint resolution. 

“The only countries with companies that have this certification are Jordan and Morocco, and it is a very rigorous exercise to go through, as the main seven dimensions cover over 150 indicators that the company has to meet,” Jabbar said.

As of May 2018, all the microfinance companies were licensed by the Central Bank of Jordan (CBJ) according to MFI regulations, Jabbar said. 

“The CBJ has been very diligent about introducing regulations that protect the clients, and they are similar to regulations made for banks in 2012, which specify how to treat clients, what to tell them, expectations and so on, and MFIs must abide by these client protection regulations,” the CEO said, adding that these regulations were derived from international standards, which are part of the smart campaign. 

Not all clients have financial literacy or savviness, and these regulations ensure that all clients interested in taking a loan are given the same treatment and amount of information, Jabbar said. 

When asked about the company’s strategy after obtaining the certification, Jabbar said that the company was already on the path to reposition itself into an MFI that supports small and soon big projects, with a process centred on the main core function of lending as well as digitised paperless operations as the world is moving towards digital economy and financial technologies.

Tamweelcom put in place a five-year strategy in 2017, focussing on broadening products and services in the enterprise segment as well as growing into a financial technology company, the CEO said, noting that work is in progress to digitise the company internally and externally. 

Tamweelcom was founded in 1999 with a JD 30,000 grant, five employees and one branch. At its core, it set out to elevate employment rates, foster socio-economic advancement and lift productive, low-income individuals out of poverty. For 20 years, Tamweelcom has provided financial solutions and services to its clients, aiming to ensure financial inclusion for all, according to the company’s website.