People with low incomes have shown that they want and need savings and deposit accounts, and those that have access to them can use them well. However, servicing numerous small savings accounts is costly for financial institutions. Instead of using formal services, people often keep their savings somewhere in their home, place money with friends or family for safekeeping, invest in livestock or goods, or join a savings group. Informal savings play an important role in many people’s lives, although these channels can be riskier than formal savings accounts.
Technology, such as mobile transactions, automatic teller machines, and agent networks, is helping to reduce the cost of collecting and servicing small deposit accounts. Banks are spared the obligation to directly service these small accounts, which makes them more cost effective for both client and provider.
In conjunction with better services through new channels, more research is needed to develop and market better tailored products and services. People want to save for their children’s education, to improve their communities, to cope with death and disaster, and to make themselves less vulnerable to unpredictable shocks. Providers need to better understand why and how people save and then develop products tailored to their needs.
What can you find in this Topic Hub?
Curated by FinDev editors, this Topic Hub offers you access to key resources on the topic of savings for financial inclusion, including:
- Our latest blogs and publications on savings contributed by organizations around the world.
- Any upcoming webinars, events and recent news on this topic.
- Resources on fundamentals (listed above on the right) where you can learn more, including answers to frequently asked questions (FAQs) about savings, a glossary of savings terms, a list of recommended reading on the topic, and a guide to web resources and organizations working on this topic.
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Featured
A meta-review leads to two mental shifts in approaches to savings research.
DreamStart Labs is re-thinking assumptions about how to design solutions for people in emerging economies, starting with a new product which aims to distribute risks more fairly.
A Scale2Save project in Cote d’Ivoire shares what they’ve learned working with farmer cooperatives as financial agents.
News & Events
The latest news and upcoming events and training from the global financial inclusion community on this topic.