WSBI’s journey in making small-scale savings work

WSBI_Mobile Popote product Tanzania_605

Mobile banking service, Popote, in Tanzania, allows savings banks clients to access their account information anywhere. Photo courtesy of WSBI

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>>Authored by Ian Radcliffe, Director, WSBI-ESBG, Belgium

WSBI has long been a supporter of the Microcredit Summit Campaign and its goal of helping 100 million families lift themselves out of extreme poverty. As an organisation that represents the interests of approximately 6,000 savings and retail banking institutions across 80 countries, advancing financial access and financial usage for everyone is core to our members’ missions.

In fact, it is part of a heritage that can be traced back to our members’ roots that in some cases go back to the late 18th and early 19th centuries in promoting self-help among poor communities. And, since it has nowadays become broadly accepted that financial inclusion brings material economic and societal benefits including lifting people out of poverty, the Microcredit Summit Campaign’s mission is entirely congruent with WSBI and its members’ values.

Our Commitment to the Microcredit Summit Campaign was announced during the 2013 Microcredit Summit in the Philippines and renewed again at last year’s Summit in Mexico. Our commitment focuses on two elements:

  1. Identifying successful inclusive finance strategies for youth markets.
  2. Holding events with our partners and member banks to share knowledge about pricing research and the implications on offering savings products for the poor.

Both Commitments have been pursued under the auspices of WSBI’s major financial inclusion program that started in 2008 and that will come to an end later this year. The program’s aim was to significantly increase the number of savings accounts among the poor, working with savings and retail banks primarily in 10 countries [1]. We were developing new business models and distribution channels and, in many cases, taking advantage of mobile technology.

At the end of this particular journey, we are delighted that six of the banks that sustained projects throughout the life of the program doubled savings accounts, and their growth continues. They have developed business models based on lower-income populations and in so doing, these six banks have undergone significant internal cultural shifts, leading to strengthened identities by clarifying their market positioning. One bank even managed to turn a 75 percent dormant customer base into a 75 percent active one with almost all improvement coming from modest-turnover, low-balance savings accounts.

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Making small-scale savings work in a digitized world
September 23, 2015
Four Seasons Hotel | Washington, D.C.
8:15 AM to 2 PM
Learn more

The banks’ projects were inevitably supported by a great deal of research and analysis performed by WSBI (including the youth research referred to in our Campaign Commitment), which is available on our website. And, apart from project implementation, the core goals of the program included articulating and disseminating lessons learned to a variety of stakeholders, which is where the Campaign Commitment of holding events with partners and member banks comes in.

On September 23rd, WSBI will run its final major event under this program: a workshop in Washington, D.C., entitled Making small-scale savings work in a digitized world.” We will showcase the successes and challenges faced by the banks that participated with us in our journey. Panel sessions and debates will address how banks and their projects have evolved to adapt to changing environments and competitive pressures. We will explore how strategies, institutional cultures, and practices have adapted as a consequence of program lessons. We will also examine what remains to be done and how the banks and others see the way forward.

The accumulated learning on display at “Making small-scale savings work in a digitized world” will be of clear interest to savings and retail banks, policymakers, and other practitioners involved in the financial inclusion world. The program and registration may be found here; participation is free and we really encourage anyone interested to join us at this workshop.

As we all work together in progressing our journey towards full financial inclusion, WSBI remains committed to continuing its work in this field, as witnessed by its commitment to the Universal Financial Access 2020 goal announced at the World Bank Group’s 2015 Spring Meetings. We are actively forging new partnerships aimed at addressing critical legal and regulatory reforms needed to facilitate WSBI members’ activities in improving financial access. We will continue to support the development of financial infrastructures that are tailored to individual environments. We will draw on the wealth of experience generated by our savings program to support savings and retail banks by way of advisory services aimed at overcoming technical or capacity shortcomings and promoting cultural or behavioral change. And finally, more than ever these days, we will support banks in adapting to the digitized world in which we all now exist to stimulate innovation so as to reach out to new customers, in particular those who currently have little or no access to financial services.

Footnote

[1] Mainly Burkina Faso, El Salvador, Indonesia, Kenya, Lesotho, Morocco, South Africa, Tanzania, Uganda, and Vietnam. Initiatives have also been pursued during 2015 in Ghana and Sri Lanka.


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