Community
The simple answer: Savings Groups plus access to a formal Financial Services Provider (FSP). Sometimes!
A soon-to-be-published report for World Renew documents my research on Savings Group linkages to FSPs. The key question is whether, when and how to link Savings Groups (such as the CARE Village Savings and Loan model) to formal providers like banks and MFIs.
The bottom line? With the right conditions, the extensive benefits of a Savings Group can be magnified and extended through linkage to an FSP.
Why Does Linkage So Often Fall Short?
Linkage has been tried before. A lot (the report describes a number of experiments). But with mixed success. Sometimes it doesn’t get off the ground, and at other times it provides not to be sustainable. Why?
From the FSP’s perspective
From the Savings Group’s perspective
What Makes Linkage Work?
There is no doubt that at times linking Savings Groups to FSPs has been successful. Success means that:
Here are a few things that I have found to be common factors in successful linkages:
Future Blogs
I plan to publish more blogs over the coming months that will draw upon particular themes in the research. For example, the changing and growing impact of technology; approaches to FSP product design; and the NGO’s facilitating role.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Oleg Boiko Founder at Finstar Financial Group
15 August
Daria Lysenko Senior Lawyer at SBSB Fintech Lawyers
12 August
John Bertrand MD at Tec 8 Limited
11 August
Hajrabibi Mulla MSc International Business Student & Researcher in at Ulster university
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