Encouraging rural borrowers to save by linking savings groups seemed a no-brainer for Uganda’s UGAFODE, a deposit-taking microfinance institution (MFI). It would enable the MFI to mobilize more funds for on-lending and expand its product offerings to a relatively untapped market.

But things didn’t go as planned. The six-month pilot revealed numerous challenges to their new GroupSave product, and account openings were well below targets.

What went wrong, and more importantly, what was the solution?

Explore the challenges and opportunities of linking savings groups to formal financial services for rural, low-income women and men in Uganda in the new case study from UNCDF MicroLead: Group Savings from Theory to Practice.

And don’t miss UGAFODE’s companion case on their new alternative delivery channel, AirSave, here.

About MicroLead

MicroLead is a joint initiative of UNCDF and Mastercard Foundation challenging regulated FSPs to develop and roll-out deposit services which respond to the rural vacuum of services. With additional support of the Bill & Melinda Gates Foundation and the LIFT Fund in Myanmar, MicroLead works with a variety of FSPs and technical service providers to reach rural markets, particularly women, with demand-driven, responsibly priced products offered via alternative delivery channels such as rural agents, mobile phones, roving agents, point of sales devices and group linkages. This is combined with financial education, so customers not only have access but can effectively use quality services.

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