The Next Financial Inclusion Revolution: an e-MFP Webinar on Scaling Informal Small Savings Groups in the World’s Poorest Communities
What if the most transparent and community minded leaders of savings circles – tandas, chit funds, dhikutis, susus – and the leaders of Savings Groups trained by NGOs were provided a small financial nudge to train more groups? For every one hundred thousand dollars invested, 5,000 of the world’s poor and poorest would, through their own efforts, save more, and, according to recent research, most will still be saving in their groups nine years from now. At a dollar per person a week (a conservative estimate) they will collectively save $250,000 per year, quite a return on investment.
While 1.8 billion people save informally and via institutions, 2.8 billion only save “under the mattress.” Who better to start them saving more than the skilled leaders of ROSCAs and of Saving Groups who live in their villages or nearby? These leaders speak the local language, understand the culture, and are respected in their communities. They already know how to organize and manage groups, and they are eager to help.
While 1.8 billion people save informally and via institutions, 2.8 billion only save “under the mattress.” Who better to start them saving more than the skilled leaders of ROSCAs and of Saving Groups who live in their villages or nearby? These leaders speak the local language, understand the culture, and are respected in their communities. They already know how to organize and manage groups, and they are eager to help.
Location: Virtual
Date: Wednesday, April 6, 2022
