the mif blog

Stories of inspiring entrepreneurs and organizations, discussion and commentary of new trends in private sector development, and the latest events and publications.

Mapping the Savings Groups’ Experiences across Latin America and the Caribbean

By Avril Perez

crossposted from ProSavings blog

By Xavier Martin and Avril Perez

The use of savings groups is not a recent practice. This model has been around for centuries and is currently frequent among societies lacking access to formal financial services. The benefit of participating in these groups is clear – if ten people each save $5 every month to purchase an item valued at $50, everyone will have to wait ten months to accumulate enough money to make such purchase. However, if these ten individuals gather up and form a savings group, most will be able to purchase the item prior to the ten month mark – one member will have access to $50 during the first month, another during the second month, and so on until the last member receives the money during the tenth month. The simplicity and immediate benefits offered by this model explain the popularity of these groups among low-income individuals and those living under extreme poverty.

Facilitando la Inclusión a través de la Educación Financiera

By Avril Perez

In English

En el camino hacia la inclusión financiera de las personas pobres y de bajos ingresos, la educación financiera ¿es un facilitador o una barrera? La respuesta: puede ser AMBAS. Estudios realizados por el Center for Financial Inclusion de Accion Internacional, revelaron que de 301 instituciones microfinancieras, el 66% identificó a la habilidad financiera como el principal facilitador de la inclusión financiera; sin embargo, el 57% también la identificó como la principal barrera. Analicemos ambos escenarios desde la perspectiva del cliente.