Posts tagged ‘Facilitation of Savings’

Cause the money’s all been spent…

Diana Biggs | KF 18 | Burkina Faso

The words of Arcade Fire’s song Lenin, “cause the money’s all been spent” took on a new meaning as I sat writing this blog. Savings has been on my mind a lot over the past two months of my fellowship — most prominently, in the context of the field and the role that microfinance plays in both teaching and facilitating savings for the poor.

This topic brings a lot of difficult questions: With such extremely small amounts of money available, how does one manage to put anything aside? And yet, without this, what happens when you child falls ill with malaria? How does one get together a sum large enough to pay their school fees? How do you put a roof over your head when your hut has been washed away in a flood? If the money stays in your pocket, the little costs of the day-to-day could quickly add up until “the money’s all been spent”…

A group of women count their savings for a payment in Burkina Faso

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18 September 2012 at 08:00 6 comments

Savings Accounts make me way too excited!

Team Building Exercises

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.

All employees from Credit Officers to Senior Management in Training!

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.

Don, a credit officer with UGAFODE talks business with a new Kiva client, James. Let’s get these people some savings accounts!

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

11 August 2012 at 09:00 4 comments

20 Years in 2012: A Celebration of Serving the Filipino Poor

The new year is already in full swing and resolutions are being met or failed as we speak. This New Year’s celebrations, for me, was a little different as I got to spend a full week with Center for Community Transformation staff as they celebrated 20 years of growth and successful service to the poor in the Philippines. President Ruth Callanta spent time reflecting on the past but also casting vision for the future as CCT hopes to transform more communities in the Philippines and reach more marginalized people groups.

Continue Reading 22 January 2012 at 04:51 2 comments

A Fellowship in Photos (Part 1)

My first placement in Ecuador was my first time in the country. Turns out that Ecuador is every bit as incredible as the guide books say, and more. I was continously struck by the warmth and openness of the Ecuadorian people (and their passion for politics!), the beauty of the mountains, jungle, and countryside, the richness of Ecuadorian food, the strength of the Kiva borrowers I met there, and my persisting inability to salsa as well as my coworkers. These are a few of my favorite photos of my time there. Stay tuned for my next post, of my favorite photos from my placement in Perú!

Continue Reading 28 December 2011 at 04:00 1 comment

Mr. Cool: Layla’s Story (Video Blog)

By Laurie Young, KF16

Awhile ago I attended a Kiva loan disbursement for VisionFund Indonesia with my Kiva Coordinator, Valentine. She and I were both intrigued by a product called Mr. Cool that Layla, the leader of the group, has a business turning into ice cream pops. Often times the borrowers we met during field visits were quiet and reserved. However, Layla was extremely excited to have us in her home and show us all about her business making Mr. Cool pops. She was the most outgoing and charismatic borrower I met during my time in Jakarta and, because of this, I wanted to share our visit with you.

Continue Reading 21 December 2011 at 20:00 1 comment

All Loans Lead to Home; When an Agricultural Loan is also a Housing (or Student) Loan

By Marcus Berkowitz, KF16, Ecuador

“We built a little house” she replied happily, when I asked how she had used the loan. I looked down at my sheet. Oops. This loan, according to its Kiva description, was for corn seeds and fertilizers.

Of course, we have no right to insist on any particular loan use. That’s not the point. But of the first three borrowers with whom I had spoken as part of Kiva’s Borrower Verification process, not a single one had used the loan for the purpose listed on Kiva. And two of three had built houses with their loans. What gives?

Continue Reading 15 December 2011 at 05:38 3 comments

And the Winner Is…………

By Jill Hall, KF16, Philippines

“And the winner is……..ppprrrrrmmmmmmm” (drum roll). Now, if you are anything like me, the image in your head is of some famous actress or actor fumbling with a large envelope, complaining about how is it hard to open. Luckily, for this post, we are going skip the envelope and talk about a winner who is a little closer to home for this Kiva Fellow. The winner I am talking about is CCT’s very own, Andresa Javines, who is Citi Bank’s “Entrepreneur of the Year” (MOTY) for Mindanao, Philippines.

Continue Reading 14 December 2011 at 07:00 3 comments

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