CGAP Country-Level Savings Assessment: Bosnia & Herzegovina
This report discusses the Savings Initiative developed by CGAP in Bosnia-Herzegovina. It identifies its following features:
- To gather and disseminate knowledge about small-balance savings mobilization;
- To analyze the constraints and opportunities at country level.
- Analysis of the financial system at the micro, meso and macro levels;
- Focus group discussions with microfinance credit organizations (MCOs).
The report finds that:
- Not all the money is in the banks;
- Bank deposits are high when compared to neighbouring countries;
- An estimated 50% of the money entering the country moves through informal channels;
- A definite demand for bank accounts exists.
The report identifies the following challenges in reaching the unbanked:
- At the client level-lack of trust and financial education;
- At the institutional level-lack of:
- Physical access,
- Appropriate products for small-balance depositors,
- Customer service.
- At the meso level-lack of:
- Local resources for training and technical assistance,
- Financial infrastructure.
- Weakness at the policy level.
The report recommends the following areas for exploration:
- Financial education, which focuses on savings, for low-income clients;
- Market research to understand the needs of low-income people;
- Development of products and services for the low-income market;
- Expansion of the e-payment infrastructure;
- Policy dialogue between policy makers and MCOs.