This would require them to adopt approaches to select their borrowers with diligence, ensure that their lending is not leading to over-indebtedness and be more human and ethical in their recovery methods. Building enabling organisational climate There is a strong need to build good practices within the institutions and encourage organisational culture which values customer protection and well being.
The frontline staff need to be educated about the organisational values and social mission so as not to get swayed by the short term performance targets. Further, the organisational culture should nurture values like honesty, respect, transparency etc.