Introduction to Saving for Change

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Introduction to Saving for Change

  1. 1. Saving for ChangeA joint Initiative of Oxfam America and FreedomfromHunger<br />
  2. 2. … Basic facts<br />
  3. 3. SAVING FOR CHANGE<br />Facilitator (not Provider) <br />Microfinance<br /><ul><li>Informal groups of 20
  4. 4. Under regulatory radarscope
  5. 5. Build on ROSCA traditions
  6. 6. Group Saves
  7. 7. Loans with interest $1 -$100
  8. 8. Saving +interest divided yearly
  9. 9. No matching funds
  10. 10. No link to external credit</li></li></ul><li>Gates Grant Four Components<br />Expansion <br />2. Manuals/Training-Oxfam/FfH<br />Research<br />Latin American feasibility study<br />If successful much more <br />funding in 2 to 3 years<br />
  11. 11.
  12. 12. Saving for Change Created a new MF Market <br /><ul><li>10% had MFI or Credit union loan
  13. 13. 20% members of tontines (ROSCAS)
  14. 14. 70% to 80% had no access to improved financial services
  15. 15. Cambodia 20% had access to MFI credit</li></li></ul><li>What makes us Different<br />From VSLA<br /><ul><li>Oral record keeping
  16. 16. Pictographic Manual
  17. 17. ROSCA Associations
  18. 18. No link to external capital or matching funds
  19. 19. Focus on Replicating agent
  20. 20. Saturation to reach poorest
  21. 21. Innovations from the groups
  22. 22. Additional services FfH Malaria and Business education modules
  23. 23. Social movement
  24. 24. Research</li></li></ul><li>…the SfC Model<br />
  25. 25. Different Financial Products in Different Markets<br />Commercial Banks<br />2 Billion People<br />$1,500–$20,000 or more/yr.<br />Credit Unions<br />Near Poor<br />Upper Poor<br />MFIs<br />$2 to $4 per day/ $730–$1,500/yr.<br />4 Billion People<br />Poor<br />$1 to $2 per day/ $360–$730/yr.<br />Detitute<br />*Sources: VISA International, World Bank, C.K. Pralahad<br />
  26. 26. Different Financial Products in Different Markets<br />Commercial Banks<br />2 Billion People<br />$1,500–$20,000 or more/yr.<br />Credit Unions<br />Near Poor<br />Upper Poor<br />MFIs<br />$2 to $4 per day/ $730–$1,500/yr.<br />4 Billion People<br />Savings Led <br />Poor<br />$1 to $2 per day/ $360–$730/yr.<br />Less than $1 per day/ $360/yr.<br />Destitute<br />
  27. 27. SfC Model<br />Current Savings lose 20% per year<br />Current Lending Costs<br />Home<br />Animals<br />Jewelry<br />Tontines<br />Remittances<br />Money Lenders<br />Suppliers<br />MFIs<br />
  28. 28. SfC Model<br />Current Savings lose 20% per year<br />Current Lending Costs<br />Home<br />Animals<br />Jewelry<br />Tontines<br />Remittances<br />Money Lenders<br />Suppliers<br />MFIs<br />
  29. 29.
  30. 30. Oxfam America: Saving for Change<br />A Savings-led, Low Cost, Sustainable Microfinance Initiative for the Rural Poor<br />Self-Managed Groups<br />Savings and Lending<br />Businesses<br />Increased Food Consumption<br />Access to Health Care<br />Solidarity and Networks<br />Empowerment<br />$400,000<br />$5,000,000<br />1 coordinator<br />10 animators<br />Potential for <br />Country-wide<br />Impact (10,000 groups, <br />200,000 villagers)<br />1000 groups<br />20,000 members<br />Replication<br />300 villages<br />200,000 population<br />Our Commitment: 10 years, 1,260,000 villagers, 63,000 groups, 8-10 countries<br /> <br />
  31. 31. Theory of Change<br />Group Assets<br />$<br />power<br />Household<br />Change<br />Village<br />
  32. 32. …Benefits of the SfC Model<br />
  33. 33.
  34. 34. Member Satisfaction with SfC<br />
  35. 35. What Members value most<br />
  36. 36.
  37. 37. …Program Scale-up and Replication<br />
  38. 38. SfC Strategy for Scale Up<br />DESIGN<br />DELIVERY<br />Build on World Class Experience<br />Leverage Local Traditions<br />Mass-scale, Low-cost<br />Build in Sustainability<br />Villagers train Villagers<br />Adapt to Levels of Literacy<br />Chose an Expansion Strategy<br />Build on OA Strengths<br />One Product-Keep Focused<br />Delivery through Local NGOs<br />Simple Metrics to Assess Performance<br />Constant Improvement<br />Document Outcomes and Impact<br />Fundraise<br />Advocate<br />
  39. 39. Replication Process<br />Time<br />Number of Groups Formed<br />
  40. 40. Growth In Membership<br />
  41. 41. Areas of Operation and <br />Expansionin Mali<br />
  42. 42.
  43. 43. Areas of operation of CEDAC (green) <br />and RACHA (red)<br />
  44. 44.
  45. 45. Expansion Plans<br />Build existing programs:<br /><ul><li>Senegal
  46. 46. El Salvador</li></ul>Start New Programs:<br /><ul><li>Laos
  47. 47. Vietnam
  48. 48. Guatemala
  49. 49. Peru</li></ul>Others:<br /><ul><li>China (Yunnan)
  50. 50. Ethiopia
  51. 51. Bolivia
  52. 52. Nicaragua</li></li></ul><li>Thank you<br />

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