Dear colleagues,
I really appreciate this blog on saving, and the interesting paper. We have been conducting grass-root research on saving mobilization in Ethiopia, especially by microfinance institutions which have been allowed to mobilize ‘’public savings’’ from day-one of acquiring their license from the Central bank! The finding (in a comprehensive SAVING Manual http://assets.fsnforum.fao.org.s3-eu-west-1.amazonaws.com/public/discus…) was a bases for conducting several rounds of effective staff training…. A summarized version is also posted at this web-site https://www.findevgateway.org/case-study/2015/02/overview-practical-cha…
Some issues for deliberations:
*Staff at the frontline are perhaps the IMAGE of institutions. They need to develop pro-poor perspectives, attitude, etc. Women staff are often more preferred by women clients. … In our research, I remember a story told by a women customer officer. She moved from the MFI (where she used to work) to another MFI which pays better, and all the 24 women savers (who have been with the customer officers for long) closed their accounts at the former and opened new accounts at the MFI where the staff moved to. In fact the clients didn’t ask or question the potential difference in saving INTEREST rate in the two financial service providers.
*Building TRUST on institutions is critical for mobilizing savings (--demonstrate their competitive advantages, for example, in what ways are the institutions better than alternative service providers (formal and informal, including saving at home). However, most staff at the frontline are less equipped on this, and such staff spend much of saving promotion time teaching the ‘’benefit’’ of savings (including advertising on the level of interest rate, etc)…. In many cases, such frontline staff – who otherwise accumulate a lot of suitable PRODUCT IDEAS from their day-to-day contacts with clients and potential clients – have lower VOICE, or participation in institutional decision making regarding product design
*Household gender relations have impact on savings by women. As we all know in ruralfinance, creating the ACCESS TO CREDIT to poor women was considered for long (since Grameen bank’s earlier years three-four decades ago) to be the most effective approach to empower women. … HOWEVER in most recent discussions at FinEquity (@UNCDF/CGAP) the importance of ensuring women’s ‘’control’’ of such resources are more emphasized. … There are research outcomes highlighting the fact that women who are not sure of having control on her newly earned income (or even the newly accessed loan) are very RELUCTANT TO APPLY FOR LOAN, even when the service is available nearby, and easily accessible!! See an interesting recent discussion at CGAP/FinDev https://www.findevgateway.org/blog/2022/06/how-do-savings-contribute-fi…
However, women starting ‘’independent saving’’ can also give rise to mistrust and suspicion, and potential Intimate Partner Violence in many contexts where patriarchy is dominant. Efforts need to be made to promote mutual TRUST and ultimate collaboration. Gender transformative household methodologies such as GALS are increasingly becoming appreciated in development interventions.
Thanks and Regards
Getaneh
Dear colleagues,
I really appreciate this blog on saving, and the interesting paper. We have been conducting grass-root research on saving mobilization in Ethiopia, especially by microfinance institutions which have been allowed to mobilize ‘’public savings’’ from day-one of acquiring their license from the Central bank! The finding (in a comprehensive SAVING Manual http://assets.fsnforum.fao.org.s3-eu-west-1.amazonaws.com/public/discus…) was a bases for conducting several rounds of effective staff training…. A summarized version is also posted at this web-site
https://www.findevgateway.org/case-study/2015/02/overview-practical-cha…
Some issues for deliberations:
*Staff at the frontline are perhaps the IMAGE of institutions. They need to develop pro-poor perspectives, attitude, etc. Women staff are often more preferred by women clients. … In our research, I remember a story told by a women customer officer. She moved from the MFI (where she used to work) to another MFI which pays better, and all the 24 women savers (who have been with the customer officers for long) closed their accounts at the former and opened new accounts at the MFI where the staff moved to. In fact the clients didn’t ask or question the potential difference in saving INTEREST rate in the two financial service providers.
*Building TRUST on institutions is critical for mobilizing savings (--demonstrate their competitive advantages, for example, in what ways are the institutions better than alternative service providers (formal and informal, including saving at home). However, most staff at the frontline are less equipped on this, and such staff spend much of saving promotion time teaching the ‘’benefit’’ of savings (including advertising on the level of interest rate, etc)…. In many cases, such frontline staff – who otherwise accumulate a lot of suitable PRODUCT IDEAS from their day-to-day contacts with clients and potential clients – have lower VOICE, or participation in institutional decision making regarding product design
*Household gender relations have impact on savings by women. As we all know in ruralfinance, creating the ACCESS TO CREDIT to poor women was considered for long (since Grameen bank’s earlier years three-four decades ago) to be the most effective approach to empower women. … HOWEVER in most recent discussions at FinEquity (@UNCDF/CGAP) the importance of ensuring women’s ‘’control’’ of such resources are more emphasized. … There are research outcomes highlighting the fact that women who are not sure of having control on her newly earned income (or even the newly accessed loan) are very RELUCTANT TO APPLY FOR LOAN, even when the service is available nearby, and easily accessible!! See an interesting recent discussion at CGAP/FinDev https://www.findevgateway.org/blog/2022/06/how-do-savings-contribute-fi…
However, women starting ‘’independent saving’’ can also give rise to mistrust and suspicion, and potential Intimate Partner Violence in many contexts where patriarchy is dominant. Efforts need to be made to promote mutual TRUST and ultimate collaboration. Gender transformative household methodologies such as GALS are increasingly becoming appreciated in development interventions.
Thanks and Regards
Getaneh