1. Community Driven Development Savings and Internal Lending Communities (SILC) Guy Vanmeenen Senior Technical Advisor Microfinance – Africa Guy.vanmeenen@crs.org

2. SILC: Banking in the bush!

3. What is a SILC Group? Informal groups of 20 Self-selected Regular meetings Committee Group saves Loans Social/emergency fund Savings and interest divided yearly No external credit Independent Self-regulated Rural

4. What does a SILC need?

5. 5 Savings

6. Loan fund

7. Social Fund

8. From subsidy to market-led development: the Private Service Provider Model  Sustainability = predominant concern in development.  Savings groups = no exception.  CRS’s answer and market niche = enacting one of most sustainable delivery models on savings-group landscape today. Local, affordable and accessible.  Sustainability = predominant concern in development.  Savings groups = no exception.  CRS’s answer and market niche = enacting one of most sustainable delivery models on savings-group landscape today. Local, affordable and accessible. The Private Service Provider (PSP Model)  Agents paid only by members.  End-goal = direct foreign aid plays no role in ongoing service delivery.  Market demand & profit motive provide drive to sustain & create more groups.  Quality of service escalates under market forces.  PSPs to replace Field Agents (FAs), salaried under external aid funding.  Offer a path to long-term sustainability. The Private Service Provider (PSP Model)  Agents paid only by members.  End-goal = direct foreign aid plays no role in ongoing service delivery.  Market demand & profit motive provide drive to sustain & create more groups.  Quality of service escalates under market forces.  PSPs to replace Field Agents (FAs), salaried under external aid funding.  Offer a path to long-term sustainability. Great program… but how do we keep it going?....

9. Certification Timeline FA PSP Induction Training Networks Apprentices (free) (fee-for-service) Certification Exam Refresher 1 Refresher 2 Apprentice Exams Probation

10. Certification Process FA PSP Training Supervision Examination DCF FGDs Oral exam Networks Apprentices (free) (fee-for-service)

11. Sustainability Perpetual return on investment (3 levels): –Group sustainability –Private Service Provider Model (PSP) – new group creation through fee-for-service structure –PSP Network – Certification of apprentices into PSPs

12. Research Agenda and results Group quality and financial performance Impact on group members and their households Poverty outreach Member satisfaction with agent services Agent satisfaction with their work and remuneration Sustainability of services to groups Research Briefs available on: http://www.crsprogramquality.org/microfinance/

13. Short Video