Posts filed under ‘Kiva Team’
Obviously, as a Kiva Fellow, I’m always excited to hear about how our field partners offer savings to their clients. While I was unaware of the agenda of this last weekend’s UGAFODE-wide training, I was pleasantly surprised to be a part of personal Savings Account utilization and client mobilization! The whole weekend was not only necessary but also fun and interesting. While the first day focused on team building with trust games and group coordination exercises, the second day was designated to Savings Account mobilization.
This savings aspect of UGAFODE has only recently been a possibility and after much hard work and restructuring of the organization. This field partner only became a Micro Deposit Taking Institution (MDI) on September 23, 2011, but they are moving quickly to utilize this capacity in the products they offer to their clients.
Now, back to the training we received on Savings Mobilization. I was impressed that the first half of the training was dedicated to training all ~135 employees in personal savings practices and recommendations. The reason being, “How can you tell a client to save when you yourself don’t know how?” Although, some of the tips were quite basic they were good reminders of how and why we save.
Next, we split into groups to discuss the different forms of savings that clients utilize and why they do this. I knew that micro business clients use often unorthodox forms of savings, but this really opened my eyes to other barriers that institutions have to encourage and educate people toward savings. Although, saving in a bank is not always the best option, many times it is a far better option then the alternative. In Uganda, with an economic history of bank closures and untrustworthy institutions, many people are hesitant to trust their money with an organization. One of the facilitators shared a story that he had a group of woman that he was helping open savings accounts for. When he filled out the paper work and took their cumulatively substantial amount of $6,000 he brought back passbooks (small ledgers recording account activity) that were worth $0.25. The women were confused and angry that they gave him all that money and they only got a cheap book to replace it.
I have learned that this is the kind of context that many of the rural branches of UGAFODE deal with on a daily basis. When improving the financial literacy of low-income clients it is not telling them that saving is a good habit, but rather how will they directly benefit from savings. The credit officers’ job is to not only to disburse loans and savings accounts, but to educate clients on the benefits of savings. What they call customer sensitization was heavily emphasized in training, to not only explain the benefits, but also the step-by-step deposit and withdrawal terms of any given account.
I was somewhat unaware of the marketing aspect of savings accounts, but now totally understand that savings accounts not only benefit the borrower with safe and secure savings but also with interest. And while this is a great social mission for UGAFODE, it makes sense for them to increase their clients’ savings portfolio, so that they have access to this cheaper form of capital that they can then lend to other borrowers.
I love these win-win situations for all parties involved! Now, I’m currently compiling a report to propose to UGAFODE to give back to their Kiva borrowers by opening a fixed deposit savings account for 3-6 months that would be given to Kiva clients who make all their repayments on time. Therefore, only clients with good repayment histories would receive a reward by a portion of the interest charged by UGAFODE deposited into this account at the loan-end date. The fixed term of 3-6 months would inherently teach clients the benefits of savings and hopefully encourage continued utilization.
Please share with me any ideas or recommendations for this!
Jon is a second-term Kiva fellow volunteering in Kampala, Uganda with UGAFODE. From the desolate plains of Mongolia to the lush jungle and mountains of Uganda, Jon has been experiencing much of the amazing world of Micofinance. If you like what he has said about UGAFODE, make a loan to any of their clients here.
By Ward Lassoe / KF18 / Armenia
“This is the true story of seven strangers, picked to live in a house, work together and have their lives taped, to find out what happens when people stop being polite… and start getting real.”
— Introduction to “The Real World” on MTV
We were actually nine strangers. We did live and work together, but somehow we never stopped being polite. And it was definitely real.
Welcome of the Kiva edition of “The Real World.”
Michael Slattery | KF17 | Togo
Is Togo much different from what the 1969 edition of the Encyclopaedia Britannica has to say? Agriculture still dominates the economy, people still haul in the fishing nets by hand on the beach in the morning, pagnes are still sold in the markets, and animism is still practiced — though not as much as before. Pictures don’t define a nation, so read on.
Dusk in Lomé is a special time when people leave their offices and head home for the evening. On street corners and along avenues, evening vendors lay out their wares. Charcoal fires are stoked in old oil drums or large metal basins to cook chicken and beef brochettes — thin skewers of heavily spiced meats — tempting passersby. In these moments when the roar of traffic momentarily silences, a faint muezzin’s call can be heard, reflecting Islam’s lesser presence in these parts.
Sitting on a patio along the boulevard circulaire — the ring of road that girds the city center — I can both see the ocean and admire the rush of speeding motorcycle taxis as they carry their passengers to and from destinations unknown. In the time I have been here, nearly all road and storm sewer work in the core has been finished: the paving stones that make up the sidewalks are falling into place, and even young palm trees have been planted along the medians. The sense of well-being that comes from well-paved roads and proper sidewalks is palpable. And so Lomé la Belle moves further away from the denizen’s local moniker of Lomé la Poubelle (the garbage bin). (more…)