Savings Groups: Scale, performance, replication and trends

Scale: global estimates (but probably double)

Scale: Latin America

Scale: Colombia

Performance: The SAVIX -

The SAVIX: Key global metrics over time High returns, averaging 35%. Closer to 15% in LA Declining cost (INGOs), averaging $21.6. Local organisations achieving >$10 89% 4-year long-term survival Increasing member investment Effectiveness of group-paid Community-Based trainers

The SAVIX: 4-year Tracked sample of 331 groups - 1

The SAVIX: 4-year Tracked sample of 331 groups - 2

Study sample: 20 project groups, selected at random Replication: Foundation sample

For every formal project group, an estimated 2 replicated groups formed Replication: Number of new groups emerging

3 types of replicated groups

Replicated Groups Identified (Total) N=84 Replicated Groups Interviewed N=46 More replicated groups were self-formed than agent- formed

Replicated groups performed similarly to project- trained groups Loan access Simple return on savings

Replication: Issues for further study Membership in multiple groups. ± 30%. Does this represent a risk and is it evidence of over- indebtedness? Spontaneous groups are more likely to pay for Community-based trainer (CBT) services than groups mobilised by CBTs. How should this influence our approach? Are spontaneous groups likely to be more durable over time? How important is it to retain some influence over the evolution of the methodology as informal replication predominates ?

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Trends in the industry Upside: Recognition that SGs are credible, highly profitable, and beneficial - and here to stay Significant impact on family well-being and social capital Very large-scale programmes Widespread use of Village Agents to reach scale at low cost and support post-project replication Financial inclusion based increasingly on mobile money/banking Downside: Too much focus on reducing costs at expense of quality Too much enthusiasm for external credit Stendency to stay too long Insufficient respect for what SGs are, and what they are not

Things for governments and the formal sector to consider Don´t assume that the formal sector offers superior services Can you do compete in terms of: Accessibility? Transparency? Profitability? Flexibility? Social benefit? Ownership? Be careful about regulation Can you actually do it? Will it add value? Will it actually protect the consumer?

Things for implementing agencies to consider Are you serious about self-reliance, autonomy and self- management. How does this show itself? Should you keep it simple? (that‘s really hard, but it seems to matter)