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New Frontiers in Micro-Savings
Mar 2008, Counts, A. & Meriweather, P.
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Collecting savings deposits for the continued growth of the microfinance sector

This paper states that savings mobilization is critical to the continued growth and evolution of the microfinance sector. Mobilizing savings will empower depositors, strengthen MFIs and alleviate poverty in ways that lending alone cannot offer.

The paper draws on the experience of the Grameen Bank, Grameen Foundation MFI partners and emerging consensus of thought and practice leaders. It makes the following recommendations:

Influential institutions should stress the importance of microsavings to the poor and the MFIs that serve them;
Product development, technology and awareness about best practices are important for MFIs introducing savings services;
Institutional development is critical in the context of microsavings;
MFIs need human, financial and technical support to introduce savings faster and more responsibly, in a regulatory environment that is often not supportive.

Interviews with leading practitioners offered insights for MFIs seeking to launch and promote savings programs. These include:

Do your market research;
Create options, reliability, and flexibility for clients;
Educate clients about the advantages of savings;
Create incentives to save, and market your products creatively;
Be innovative and proactive.

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16 Sep 2009
*****


United Kingdom

05 Jul 2009


Micro credit program's basic mission to create own capital of the poorest people by saving a little amount weekly. First time a member enroll as a member of MFI nearest to her house and then she pay a fixed amount of savings per week which is possible to her. T he amount of savings could not be fixed up by MFI. It depends up on member's ability. Every MFI has his own policy to operate his program. There are lot of difference in field operation of everry MFI. MFI design diffrent types of savings product for his borrwer. Some MFI collect only one type of savings and this savings refundable but there is condition, member will pay full amount of loan. This type of savings called mandatory. Some MFI collect different types of savings. Mandatory and flexible. Flexible savings mean that a amount collect in different tier. One type is refundable in any time, another type fixed up like as fixed deposit for a time. Fixed up savings only refundable when member take decission to withdraw his membership from MFI and settle all types of his transacion. Another type of savings is collected like as insurance premium. To survey the demand of borrower in field level regarding savings product and every MFI should diversify his product according to borrower's expectation. MFI should understand the motive of borrower regarding present perspect of the society. Finally savings producct should be diversified according to the expectation of borrower.

Mohammod Mohsin Dushtha Shasthya Kendra (DSK) Bangladesh

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Journal Volume/Pages:
22

Publisher(s):
Grameen Foundation