Designing Savings: Equity Building Society’s Jijenge Savings Account

Publication Date: 2003
Document Type: Journal Article

View this Document   Email this Document

A look at the importance of savings for a microfinance institution

This issue of the MicroBanking Bulletin focuses on ‘savings’ and attempts to answer key questions around savings mobilization.

In the Feature Articles section:

• Madeline Hirschland provides a framework for thinking about savings. She describes creative ways through which MFIs have addressed challenges so as to offer their clients a range of valued services.
• Dave Richardson examines the delivery costs of savings mobilization and argues that credit unions are uniquely positioned to offer savings services due to their low cost structure.
• Ben Reno-Weber presents the ‘Activity-Based Costing Tool’ and some preliminary results from savings mobilizers that have piloted the tool.
• Renee Chao-Beroff examines the experience of savings mobilization in rural Africa and argues that development partners have much to do to support “productive” savings that help the poor build an asset base and rise out of poverty.

In the section Talking about Performance Ratios, Elizabeth Rhyne proposes that the microfinance industry work together to identify prime indicators to measure the performance of MFIs that mobilize savings.

The issue also presents case studies that describe:

• A client-driven approach to offering savings;
• How MFIs can develop savings products that are attractive to clients;
• A network of rural branches and how they attained sustainability while providing savings services.

Stuart Rutherford reviews the book, New Direction in Poverty Finance.

Finally, the ‘Bulletin Highlights’ look at the performance of financial intermediaries versus non-financial intermediaries.