Introduction to Saving for Change
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Transcript of Introduction to Saving for Change
Saving for ChangeA joint Initiative of Oxfam America and
Freedom from Hunger
… Basic facts
SAVING FOR CHANGEFacilitator (not Provider)
Microfinance
• Informal groups of 20• Under regulatory radarscope• Build on ROSCA traditions• Group Saves• Loans with interest $1 -$100• Saving +interest divided yearly • No matching funds• No link to external credit
Gates Grant Four Components
1. Expansion
2. Manuals/Training-Oxfam/FfH
3. Research
4. Latin American feasibility study
If successful much more
funding in 2 to 3 years
Saving for Change Created a new MF Market
• 10% had MFI or Credit union loan
• 20% members of tontines (ROSCAS)
• 70% to 80% had no access to improved financial services
• Cambodia 20% had access to MFI credit
What makes us DifferentFrom VSLA
• Oral record keeping• Pictographic Manual • ROSCA Associations • No link to external capital or
matching funds• Focus on Replicating agent• Saturation to reach poorest• Innovations from the groups• Additional services FfH Malaria
and Business education modules
• Social movement • Research
…the SfC Model
Different Financial Products in Different Markets
*Sources: VISA International, World Bank, C.K. Pralahad
Detitute
$1 to $2 per day/ $360–$730/yr. Poor
4 Billion People
$2 to $4 per day/ $730–$1,500/yr.
2 Billion People
Upper PoorNear P
oor
$1,500–$20,000 or more/yr.
Commercial Banks
Credit Unions
MFIs
Less than $1 per day/ $360/yr. Destitute
$1 to $2 per day/ $360–$730/yr. Poor
4 Billion People
$2 to $4 per day/ $730–$1,500/yr.
2 Billion People
Upper PoorNear P
oor
$1,500–$20,000 or more/yr.
Commercial Banks
Credit Unions
MFIs
Savings Led
Different Financial Products in Different Markets
SfC ModelCurrent Savings
lose 20% per year
HomeAnimalsJewelryTontines
Remittances
Money LendersSuppliers
MFIs
Current Lending Costs
Current Savings lose 20% per year
HomeAnimalsJewelryTontines
Remittances
Money LendersSuppliers
MFIs
Current Lending Costs
More savings
20%-40%
More Income
Income Generating Activities
Social Capital
SfC Model
$400,000
1000 groups20,000 members
300 villages200,000 population
1 coordinator10 animators
Potential for Country-wide
Impact (10,000 groups, 200,000 villagers)
Self-Managed GroupsSavings and Lending
BusinessesIncreased Food Consumption
Access to Health CareSolidarity and Networks
Empowerment
OUR COMMITMENT: 10 YEARS, 1,260,000 VILLAGERS, 63,000 GROUPS, 8-10 COUNTRIES
Oxfam America: Saving for Change A Savings-led, Low Cost, Sustainable Microfinance Initiative for
the Rural Poor
REPLICATION
$5,000,000
Theory of Change
power
Group Assets $
Change
Household
Village
…Benefits of the SfC Model
Starting Amount Year 1 Year 2 Year 3 Year 4 Year 50
10
20
30
40
50
60
70
80
Impact of Saving for Change 30% Return on $20 over Five Years Versus 20% Loss in Traditional Savings
30% Return per Year 0% Return per Year 20% Loss per Year
Do
llar
s at
En
d o
f Y
ear
Member Satisfaction with SfC
0% 20% 40% 60% 80% 100%
Loan sizes are adequate
I understand the records
I can get a loan when needed
Loans are shared fairly
Group functions harmoniously
I know how much I have saved
Secure place to save
It is worth my time
Mali Cambodia
What Members value most
Solidarity and Mutual
Assistance39%
Savings and Loans27%
Malaria education
18%
Increased Income
5%Others11%
…Program Scale-up and Replication
SfC Strategy for Scale Up
Build on World Class Experience
Leverage Local TraditionsMass-scale, Low-costBuild in Sustainability
Villagers train VillagersAdapt to Levels of Literacy
Chose an Expansion StrategyBuild on OA Strengths
One Product-Keep FocusedDelivery through Local NGOs
Simple Metrics to Assess Performance
Constant ImprovementDocument Outcomes and
ImpactFundraiseAdvocate
DESIGN DELIVERY
Replication Process
Number of Groups Formed
Time
Program Start Year 4 Year 6 Year 100
200000
400000
600000
800000
1000000
1200000
1400000
4,000 mbrs./mo. 10,000 mbrs./mo. 15,000 mbrs./mmo.
168,000
550,000
1,260,000
Growth In Membership
Areas of Operation and Expansion in Mali
Areas of operation of CEDAC (green) and RACHA (red)
Expansion Plans
Build existing programs:• Senegal• El SalvadorStart New Programs:• Laos• Vietnam• Guatemala• PeruOthers:• China (Yunnan)• Ethiopia• Bolivia• Nicaragua
Thank you