Case study

Savings Mobilization Strategies: Lessons From Four Experiences

How can microfinance institutions successfully mobilize savings?

This document presents comparative case studies of four banks chaired by GTZ in 1996.Poor households save in cash and in kind. They have limited access to deposit facilities, and therefore, use rotating savings and credit associations and other forms of financial and non-financial savings and loan associations. Evidence shows that they will hold financial savings in savings accounts with financial institutions, if appropriate facilities are available. The document highlights the following factors for successful savings mobilization:

  • Economic reform and financial sector liberalization;
  • Governance, ownership and reputation of the institution;
  • Organizational structure of the MFI;
  • Savings products and technologies;
  • Risk and liquidity management;
  • Prudential regulation and effective supervision;
  • Lowering the cost of savings mobilization.

The document discusses factors that influence the household's decision to hold a savings account. It also lists the benefits and challenges of savings mobilization for MFIs.

This document is also available in French, Spanish, Chinese and Bahasa here.

About this Publication

By Mukherjee, J. & Wisniwski, S.