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Beyond Credit: The Role of Savings in Microfinance<br />Dylan Higgins dylan@savetogether.org<br />Twitter: @SaveTogether<b...
The World’s Unbanked<br />Worldwide:  2.5 billion unbanked<br />United States:  9 million unbanked<br />Washington State: ...
Even the Unbanked Find Ways to Save<br />The world’s poor lead complex financial lives and find ways to save<br />Examples...
Managing life’s risks – medical emergencies
  Paying for life-cycle events – weddings, funerals
  Investing in opportunities – home purchase, school, microenterprise</li></li></ul><li>Approaches – Savings<br />Common S...
Susus
 ROSCA (Rotating Savings and Credit Association)
 ASCA (Accumulating Savings and Credit Association)
Grameen Pension Scheme</li></li></ul><li>What’s Wrong…What’s Needed<br />Solutions:<br />Accessible<br />Secure<br />Flexi...
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SeaMo Microfinance and Microbrews

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SeaMo Microfinance and Microbrews

  1. 1. Beyond Credit: The Role of Savings in Microfinance<br />Dylan Higgins dylan@savetogether.org<br />Twitter: @SaveTogether<br />Facebook: SaveTogetherOrg<br />April 28, 2010<br />
  2. 2. The World’s Unbanked<br />Worldwide: 2.5 billion unbanked<br />United States: 9 million unbanked<br />Washington State: 103,000<br />Seattle: 52,000<br />
  3. 3. Even the Unbanked Find Ways to Save<br />The world’s poor lead complex financial lives and find ways to save<br />Examples: home banking (i.e. mattress), sending to relatives, insurance policies, informal savings groups<br />Portfolios of the Poor <br />What are they saving for? <br /><ul><li>Everyday purchases
  4. 4. Managing life’s risks – medical emergencies
  5. 5. Paying for life-cycle events – weddings, funerals
  6. 6. Investing in opportunities – home purchase, school, microenterprise</li></li></ul><li>Approaches – Savings<br />Common Savings Schemes <br /><ul><li> Saving-Up Club
  7. 7. Susus
  8. 8. ROSCA (Rotating Savings and Credit Association)
  9. 9. ASCA (Accumulating Savings and Credit Association)
  10. 10. Grameen Pension Scheme</li></li></ul><li>What’s Wrong…What’s Needed<br />Solutions:<br />Accessible<br />Secure<br />Flexible <br />Incentivized <br />Commitment-Based<br />Problems:<br />Hard to access<br />Unreliable<br />Too Short<br />Mismatched<br />
  11. 11. Matched Savings – How It Works<br />Federal<br />Monthly Deposits<br />=<br />Non-Federal<br /> Saver sign-up with CBO, establishes savings goal and asset target<br />Donors make matching contributions (public and private)<br />Saver invests in asset <br />Total to Invest:<br />$4,500<br />Saver’s Funds: $1,500<br />Matching Funds:<br />$3,000<br />
  12. 12. The Case for Matched Savings<br /><ul><li>Accessible, Commitment-Based, Flexible, Incentivized
  13. 13. Ready to Scale – Nearly 20 years of operations. 500+ programs, over 73,000 accounts
  14. 14. Proven Success – program success, long-term savings, responsible asset purchases, behavior changes
  15. 15. Leveraged Model – Saver, community-based organizations, financial institutions, financial education provider, donors</li></li></ul><li>SaveTogether’s Role<br />Creating a world where everyone has an opportunity to save and invest in their future <br />What we’re up to: <br /> - Profiling the savings programs that work and the inspiring people who are participating<br />- Inviting people like you to participate<br />
  16. 16. Early Results<br /><ul><li>Launched in October 2009
  17. 17. Partnering with 6 matched savings programs, profiling 30 savers
  18. 18. 380+ members
  19. 19. $28,000 in matching funds raised and ready to be distributed to successful savers</li></ul>“I hope we'll be just as excited about helping people save as we are about helping people spend” – Sandy Stonesifer<br />“I believe in a community that provides everyone with incentives and opportunities to save for the future” – Donna, SaveTogether donor <br />
  20. 20. Beyond Credit: The Role of Savings in Microfinance<br />Dylan Higgins dylan@savetogether.org<br />Twitter: @SaveTogether<br />Facebook: SaveTogetherOrg<br />April 28, 2010<br />

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