1. The Savings Group Information Exchange (SAVIX) Evolution and lessons learned Microfinance Club of the UK, London, 23 May 2012

2. Myths Savings groups are a second class type of service that pose unacceptable risks to member savings Savings groups are a second class type of service that pose unacceptable risks to member savings Savings groups are unable to meet the needs of their members for useful amounts of investment capital Savings groups are unable to meet the needs of their members for useful amounts of investment capital Savings groups are unlikely to survive when facilitating agencies leave Savings groups are unlikely to survive when facilitating agencies leave

3. What are Savings Groups? – The basics SGs are Accumulating Savings and Credit Associations that mobilise and manage their own savings, provide interest-bearing loans to members and offer a limited form of insurance SGs are Accumulating Savings and Credit Associations that mobilise and manage their own savings, provide interest-bearing loans to members and offer a limited form of insurance SG are self-managed and independent SG are self-managed and independent Members can save, borrow and reimburse in varying amounts for varying periods of time Members can save, borrow and reimburse in varying amounts for varying periods of time SGs are usually time-bound – they share out member equity at least once a year in proportion to savings SGs are usually time-bound – they share out member equity at least once a year in proportion to savings

4. Here’s one….

5. Here’s another….

6. And another.

7. What are SGs– Current products and features What are SGs – Current products and features Savings: Savings: Regular contributions (weekly, fortnightly, monthly)Regular contributions (weekly, fortnightly, monthly) Savings or share purchase: 1-5 at value set by group. May allow withdrawal on demandSavings or share purchase: 1-5 at value set by group. May allow withdrawal on demand Loans: Loans: Loan criteria, loan term and interest rate set by groupLoan criteria, loan term and interest rate set by group Flexible repaymentsFlexible repayments Insurance/Social fund Insurance/Social fund Eligibility criteria and benefits set by groupEligibility criteria and benefits set by group Benefits in the form of grants or zero-interest loansBenefits in the form of grants or zero-interest loans No transactions take place outside a meeting No transactions take place outside a meeting

8. What are SGs – Group norms Legal personality: Almost always informal Legal personality: Almost always informal Group size range: 10 – 30 Group size range: 10 – 30 Membership criteria: Self-selected Membership criteria: Self-selected Meeting frequency: Optional, but usually weekly Meeting frequency: Optional, but usually weekly Procedures and administration: Highly standardised Procedures and administration: Highly standardised Attendance: Obligatory Attendance: Obligatory Leadership: Democratically elected: annual mandate Leadership: Democratically elected: annual mandate Record-keeping: Varies: All transactions in front of all members. Record-keeping: Varies: All transactions in front of all members. Time to self-management/independence: 1-2 years, averages 14 months Time to self-management/independence: 1-2 years, averages 14 months Source of loan funds: Overwhelmingly member savings/investment Source of loan funds: Overwhelmingly member savings/investment

9. What are SGs – How many people are members and where?

10. Performance measurement – Background SEEP Savings led financial services working group. 16 ratios developed in 2008 SEEP Savings led financial services working group. 16 ratios developed in 2008 Standardised data set agreed upon, based exclusively on management data in use by SGs Collected in most cases quarterly Standardised data set agreed upon, based exclusively on management data in use by SGs Collected in most cases quarterly Use of standardised MIS by most major facilitating agencies, with outputs based mainly on SEEP ratios. Funded by major INGOs and the Gates Foundation. Now in its fourth version Use of standardised MIS by most major facilitating agencies, with outputs based mainly on SEEP ratios. Funded by major INGOs and the Gates Foundation. Now in its fourth version

11. The SAVIX – Purposes A fundamental purpose of the SAVIX is to assist Savings Group implementing organisations to analyse and compare their performance with peers and thus to generate, over time, consensus on norms, by type of organisation, delivery channel and type of operating environment A fundamental purpose of the SAVIX is to assist Savings Group implementing organisations to analyse and compare their performance with peers and thus to generate, over time, consensus on norms, by type of organisation, delivery channel and type of operating environment Equally important, the SAVIX is intended to assist the microfinance industry, donors and practitioners to understand the nature and importance of savings groups in designing and funding microfinance strategies Equally important, the SAVIX is intended to assist the microfinance industry, donors and practitioners to understand the nature and importance of savings groups in designing and funding microfinance strategies

12. Performance measurement – MIS

13. The SAVIX – Background Gates Foundation funding of large SG programmes, mainly in Africa. Required centralised monitoring. Gates Foundation funding of large SG programmes, mainly in Africa. Required centralised monitoring. Revised and expanded list of metrics agreed by CARE, CRS, Oxfam and Plan (now 31) Revised and expanded list of metrics agreed by CARE, CRS, Oxfam and Plan (now 31) System designed by VSL Associates and built, maintained and administered by Software Group of Sofia and Nairobi. Internet-based relational database System designed by VSL Associates and built, maintained and administered by Software Group of Sofia and Nairobi. Internet-based relational database Data derived from MIS-generated datafile. Went live in Q1 2010. Now completing 9th quarterly posting Data derived from MIS-generated datafile. Went live in Q1 2010. Now completing 9th quarterly posting Initially restricted to Foundation-funded projects but expanded to include any FA project in any country and now includes AKF and Plan Initially restricted to Foundation-funded projects but expanded to include any FA project in any country and now includes AKF and Plan

14. The SAVIX - Home page: www.thesavix.org

15. The SAVIX – Elements PROJECTS: Description and analysis of SG project performance using 19 portfolio indicators and 13 on performance. Currently covers 148 projects in 23 countries, covering about 25% of the known sector PROJECTS: Description and analysis of SG project performance using 19 portfolio indicators and 13 on performance. Currently covers 148 projects in 23 countries, covering about 25% of the known sector COMPARISON: Ratio comparison of Facilitating Agencies, Projects, type of trainer, Regions and sub- regions, countries both in tabular and graphic form COMPARISON: Ratio comparison of Facilitating Agencies, Projects, type of trainer, Regions and sub- regions, countries both in tabular and graphic form RESEARCH: Long-term panel study tracking performance of 332 SGs in 6 countries for 5 years to determine survivale and performance. Uses 17 portfolio and performance indicators RESEARCH: Long-term panel study tracking performance of 332 SGs in 6 countries for 5 years to determine survivale and performance. Uses 17 portfolio and performance indicators

16. The SAVIX – Global project results Quarterly reporting covering: Quarterly reporting covering: 1,693,366 participants (82.1% female)1,693,366 participants (82.1% female) 75,838 groups (project average 478)75,838 groups (project average 478) 148 projects148 projects 23 countries in Africa and Asia23 countries in Africa and Asia Financial scale Financial scale $50.4 million in assets$50.4 million in assets $37.8 million in savings$37.8 million in savings $23.9 million in loans outstanding$23.9 million in loans outstanding Member satisfaction and programme efficiency Member satisfaction and programme efficiency Retention rate 98.9%Retention rate 98.9% $23.5 average cost per member assisted$23.5 average cost per member assisted 48.8% of groups formed by Village Agents48.8% of groups formed by Village Agents

17. The SAVIX – Global project results Global financial results: Global financial results: $34.6 average savings per member per cycle$34.6 average savings per member per cycle $29.9 average outstanding loan size$29.9 average outstanding loan size 47.3 % of members with loans outstanding47.3 % of members with loans outstanding 49.1% Loans outstanding as % of performing assets49.1% Loans outstanding as % of performing assets 157.9% ratio of savings to loans outstanding157.9% ratio of savings to loans outstanding 34.1% annualised return on total assets: end-of-cycle average of 31%34.1% annualised return on total assets: end-of-cycle average of 31% 0.2% average group debt/equity ratio0.2% average group debt/equity ratio

18. The SAVIX – Global Trends Capital adequacy (for current loan products)

19. The SAVIX – Comparative sub-regional trends: RoA Annualized return on assets by sub-region

20. The SAVIX – Comparative sub-regional trends: Costs Cost per member assisted by sub-region

21. The SAVIX – Comparative Facilitating Agency trends: Costs Cost per member assisted

22. The SAVIX – Comparative trends: Trainer effectiveness Annualized return on assets by type of trainer

23. The SAVIX – Comparative trends: Trainer effectiveness Savings per member by type of trainer

24. The SAVIX – Comparative trends: Trainer effectiveness % of members with loans outstanding by type of trainer

25. The SAVIX – Long-term panel study

26. The SAVIX – What we don’t yet know The effect on performance of linking of SGs to formal-sector financial institutions, especially in terms of additional finance capital. The effect on performance of linking of SGs to formal-sector financial institutions, especially in terms of additional finance capital. The degree to which groups continue to be created through Village Agents post-project and how these groups perform in the long-term The degree to which groups continue to be created through Village Agents post-project and how these groups perform in the long-term The degree to which groups emerge spontaneously, how we learn about them and how they perform in the long-term The degree to which groups emerge spontaneously, how we learn about them and how they perform in the long-term How the investment behaviour of groups evolve, post-project How the investment behaviour of groups evolve, post-project

27. The SAVIX – Next steps Development of web-based V5.0 MIS Development of web-based V5.0 MIS Web-server (cloud) based, low bandwidth.Web-server (cloud) based, low bandwidth. User-acceptrance testing scheduled for JulyUser-acceptrance testing scheduled for July Go-live and stakeholder training workshop in Nairobi in early September 2012Go-live and stakeholder training workshop in Nairobi in early September 2012 Maintenance of V4.03 for 4 years for use only by FAsMaintenance of V4.03 for 4 years for use only by FAs

28. The SAVIX – Next steps Integration into the SAVIX. New MIS: Integration into the SAVIX. New MIS: Being web-server based, allows for auomatic updates and software error correctionBeing web-server based, allows for auomatic updates and software error correction Stores and accesses historical dataStores and accesses historical data Allows projects (not only FAs) to post resultsAllows projects (not only FAs) to post results Allows for other SG methodologies, including SHGsAllows for other SG methodologies, including SHGs Allows for project-level database analysis (4.03 does not)Allows for project-level database analysis (4.03 does not) Permits aggregation, analysis and comparison at VA, FO, Supervisor, Project, Country, Regional & international levelsPermits aggregation, analysis and comparison at VA, FO, Supervisor, Project, Country, Regional & international levels Allows for creation of unlimited user-defined variablesAllows for creation of unlimited user-defined variables Allows for creation of private user networksAllows for creation of private user networks Permits user discretion on public postingPermits user discretion on public posting Allows real-time data update for V5.0Allows real-time data update for V5.0 Has API for mobile `phone data entry and downloadHas API for mobile `phone data entry and download

29. The SAVIX – Challenges Roll-out marketing Roll-out marketing Long-term support Long-term support Re-definition of purpose Re-definition of purpose