Savings in the Context of Microfinance: Lessons Learned from Six Deposit-taking Institutions

Publication Date: 1997
Published by: GTZ - Deutsche Gesellschaft für Technische Zusammenarbeit GmbH
Document Type: Paper (Microsoft Word)

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Benefits, issues, and lessons in providing microsaving services to the poor

This paper summarizes the benefits of offering savings facilities from the client's and the institution's perspective. The key questions on mobilization of small savings are raised and lessons learned from case studies in Thailand, Indonesia, Philippines, Colombia, Mali and Benin are summarized as:

• Lessons learned in developing savings products and technologies;
• Lessons learned in management capabilities, human resource development, control mechanisms, and liquidity management;
• Lessons learned in cost management.

• Financial intermediation which includes savings is much more complex than credit-only programs and requires special management capabilities;
• Individual voluntary savings facilities attract a larger volume of depositors than compulsory savings do;
• Savings products must be designed to respond to characteristics of different market segments;
• Access to soft government or donor funds discourages saving mobilization;
• Small and microsavings can be a profitable source of funds if designed appropriately.