Building the Assets of the Poorest: Savings-Led Financial Services

This paper is about an online, three day, "Speaker's Corner" discussion hosted by USAID's microLINKS.org.

According to the paper, the first day of discussion debated the relevance of savings-led microfinance. Following were the key themes:

• Is the savings led approach appropriate?
• How to move savings of the poor from non institutional to institutional sources?
• What is the relevance of "groups" and issues of sustainability and replicability?
• What methodologies should be used by NGOs for group lending?
• Should credit be from MFIs or groups?
• How to take ahead the savings led movement?

The paper delineates the second day's discussion on the Microenterprise Results and Accountability Act, emphasizing:

• The need for industry-wise standards and ratios;
• Satisfaction with the current group model, and no necessity for any innovation in the same.

The paper describes the third day's discussion focusing on targeting women and special populations like people with HIV-AIDS. The broad issues discussed were:

• The impact of savings led microfinance on women's empowerment;
• Implications of inclusion of men in groups and power dynamics;
• Partnering with non-financial-oriented NGOs to reach special populations.