CGAP-MicroSave Virtual Savings Exchange Report

Publication Date: 2005
Published by: Consultative Group to Assist the Poor (CGAP)
Document Type: Other (PDF)

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Summary of discussions from Virtual Savings Exchange conference on the challenges of mobilizing small deposits

The Virtual Savings Exchange conference examined some of the chief challenges involved in mobilizing small deposits: cost management, products, delivery, promotion, and environmental factors. This paper summarizes key points made during the conference. These include:

• Deposit mobilization costs can be managed by attracting adequate volume of deposits and controlling operating costs;
• Before offering products, managers must understand basic product types as well as their variants;
• Alternative delivery channels, such as doorstep collection, mobile banking units and electronic banking are key to serving the poor;
• MFIs must promote the habit of savings and also focus on building trust;
• Environmental factors that affect the mobilization of small savings include government regulation, financial sector policies, infrastructure and the economic and political environment.