From 2-3 May 2018, UNCDF MicroLead held a workshop to evaluate and edit the draft of MicroLead’s upcoming savings group linkage toolkit. The toolkit aims to fill the gap in modeling methods for linking savings groups to formal financial institutions (FIs).

The two-day workshop in Accra, Ghana included 26 participants from 17 FIs. The workshop was the first step as part of UNCDF MicroLead’s validation approach to developing the savings group linkage toolkit.
The toolkit aims to serve as a guideline for FIs in linking with saving groups, providing practical hands-on guidance and including reviews of types of savings groups, linkage models, case studies, success stories and tools to measure profitability.

Participants shared their experiences with savings groups, and a number of key issues arose. Participants discussed challenges FIs have faced in terms of educating savings group members about the benefits of regulated services and linking savings groups on a cost-effective basis. However, participants also raised several strong advantages to group linkages, including the finding that deposits raised through savings groups are the least expensive source of funds for the FSPs represented at the workshop and when FSPs lend to savings groups (whether through a loan to the group or loans to individual group members) the portfolio quality is excellent.
The workshop not only served to strengthen the toolkit, but also served as a knowledge-sharing platform for participants who were able to learn about each other’s programmes.

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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