Case 1: Promotion in a Market New to Banked Savings

Vital Savings Statistics: Credit Unions in the Central African Republic Type of institution Credit unions Number of deposit accounts 5,163   Demand deposits 5,163   Term deposits n/a Average savings account (for individual savers) $ 15.50   Demand deposits 19.70   Term deposits n/a Total value of savings($) 104,732   Demand ($) 104,732   Term($) n/a Total number of borrowers 604 Loan portfolio($) 36,111 Percentage of rural/urban clients n/a Number of branches 14 Data as of first quarter of 2006.

Technique:
Using non-traditional media such as songs, theater, and film to create demand for credit union savings services

Takeaway:
Where financial institutions are lacking, clients are often used to saving in informal mechanisms. Traditional advertising may not be enough to change client habits.

Results:
Participating credit unions registered client growth rates up to 22% in the quarter following the promotional campaign - sometimes exceeding total client growth or even reversing declines in client numbers in preceding years.

Case:
Promotion can look very different when an institution is trying to create demand for savings products than when it is competing for existing demand. In the Central African Republic, credit unions in the capital found themselves in the former situation: they needed to establish among potential clients the value of saving in a credit union. Their target market includes small farmers, petty traders, and poor active women micro-entrepreneurs, living in particular sections of the capital. The Union Centrafricaine des Caisses d'Epargne et de Crédit (UCACEC), a network of 14 credit unions, therefore developed a promotional campaign to inform these potential customers about how credit unions function and the advantages of putting their savings in a credit union rather keeping them at home.

In November and December 2005, UCACEC launched an information campaign in the capital city of Bangui. Various activities were undertaken in the different districts where the credit unions operated. These included having a national singing star record a song that highlighted the importance of saving in a credit union, and making it available in both French and the local language, Sango. Videos that depicted what it means to save were also recorded in the local language. In addition, through the collaboration of UNDP microfinance staff and the managers of the different credit unions, a local theater group was tapped to prepare three theater sketches which were used to present to the audience in a very simple and real way what happens when people keep their money at home. These sketches were also used to explain why and how a member pays to enjoy the services of a credit union, through shares, administration and penalty fees, interest rate on loans, and social funds.

In all these presentations, the message was consistent: putting your savings in a credit union helps one avoid the risks associated in keeping money at home, including loss through theft, natural disasters, fire, or even sudden expenditure due to family pressures. The campaign highlighted how putting one's savings in a credit union not only keeps it safe, but also acts as a safety net for the depositor by allowing him or her to access loans in the future.

To complement these presentations, a team of journalists and television media was invited to conduct interviews with credit union members, who spoke about their experiences and gave testimonials about the benefits of putting their savings in a credit union. These interviews aired on both TV and radio, and also featured credit union managers and key local authorities. More than 8,000 brochures were distributed during the campaign, providing more detailed information regarding the membership criteria and the different functions of a credit union. Additional incentives (T-shirt giveaways) were also provided those who signed up for membership by the end of the year.

The brief period following the campaign is already providing positive feedback on the activities undertaken in late 2005. Participating credit unions have registered growth in savings clients from 5% to as much as 22% for the first quarter of 2006. In some of the credit unions, growth in active savers for the first quarter of 2006 even exceeded annual growth for 2004-2005. One of these credit unions, which had experienced a 32.6% reduction in their number of active savers in the previous year, recorded a 12.7% increase by the end of March 2006.

Upon the completion of the campaign, every member credit union of the network will get a CD containing the theater sketches and videos produced for the campaign, as well as other supporting marketing collateral, in order to help each of the credit unions as they organize their own set of activities following the campaign. Different credit unions are planning to present the video-CD via local cinemas in regions not covered by the last promotional campaign. This will help continue the creation and increase of awareness of the value of saving in credit unions.