Is There a Business Case for Small Savers? (Brief)

Rethinking the business case for small savers
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For most of its history, microfinance has focused on credit. Savings, which are very important in helping poor people start a business, mitigate risks, and maintain at least a minimum level of consumption, has traditionally played a secondary role. In recent years, MFIs have increasingly recognized the importance of savings and introduced savings products. Now, faced with growing competition, many MFIs are rethinking whether they can continue to provide the level of cross-subsidies they believe is required to serve the low end of the savings market, namely, the small savers.