Savings Groups: Scale, performance, replication and trends.

Savings Groups: Scale, Savings Groups: Scale, performance, replication performance, replication

and trendsand trends

Scale: global estimates (but probably double)Scale: global estimates (but probably double)

Scale: Latin AmericaScale: Latin America

Scale: ColombiaScale: Colombia

Performance: The SAVIX - www.thesavix.orgPerformance: The SAVIX - www.thesavix.org

The SAVIX: Key global metrics over timeThe SAVIX: Key global metrics over time

• High returns, averaging 35%. Closer to 15% in LA

• Declining cost (INGOs), averaging $21.6. Local organisations achieving >$10

• 89% 4-year long-term survival

• Increasing member investment

• Effectiveness of group-paid Community-Based trainers

The SAVIX: 4-year Tracked sample of 331 groups - 1The SAVIX: 4-year Tracked sample of 331 groups - 1

The SAVIX: 4-year Tracked sample of 331 groups - 2The SAVIX: 4-year Tracked sample of 331 groups - 2

Study sample: 20 project groups, selected at randomReplication: Foundation sampleReplication: Foundation sample

For every formal project group, an estimated 2 replicated groups formed

Replication: Number of new groups emergingReplication: Number of new groups emerging

3 types of replicated groups3 types of replicated groups

Replicated Groups Identified (Total)

N=84

Replicated Groups Interviewed

N=46

More replicated groups were self-formed than agent-More replicated groups were self-formed than agent-formedformed

Replicated groups performed similarly to project-trained Replicated groups performed similarly to project-trained groupsgroups

Loan accessSimple return on

savings

Replication: Issues for further studyReplication: Issues for further study

• Membership in multiple groups. ± 30%. Does this represent a risk and is it evidence of over-indebtedness?

• Spontaneous groups are more likely to pay for Community-based trainer (CBT) services than groups mobilised by CBTs. How should this influence our approach?

• Are spontaneous groups likely to be more durable over time?

• How important is it to retain some influence over the evolution of the methodology as informal replication predominates ?

Thank you for your attention!To view the full report, visit To view the full report, visit http://www.daturesearch.com/

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Trends in the industryTrends in the industry

• Upside:• Recognition that SGs are credible, highly profitable, and

beneficial - and here to stay• Significant impact on family well-being and social capital• Very large-scale programmes• Widespread use of Village Agents to reach scale at low

cost and support post-project replication• Financial inclusion based increasingly on mobile

money/banking

• Downside:• Too much focus on reducing costs at expense of quality• Too much enthusiasm for external credit• Stendency to stay too long• Insufficient respect for what SGs are, and what they are

not

Things for governments and the formal sector to Things for governments and the formal sector to considerconsider

• Don´t assume that the formal sector offers superior services Can you do compete in terms of:

• Accessibility?• Transparency?• Profitability?• Flexibility?• Social benefit?• Ownership?

• Be careful about regulation• Can you actually do it?• Will it add value?• Will it actually protect the consumer?

Things for implementing agencies to considerThings for implementing agencies to consider

• Are you serious about self-reliance, autonomy and self-management. How does this show itself?

• Should you keep it simple? (that‘s really hard, but it seems to matter)