CGAP (Consultative Group to Assist the Poor), an independent policy and research center that is housed at the World Bank Group, recently drafted a technical guide entitled “Advancing Savings Services: Resource Guide for Funders” that is intended to help donors and investors understand savings mobilization as it relates to microfinance. While microfinance institutions (MFIs) have traditionally focused on lending, the sector is seeing an increase in the number of MFIs that offer diversified products and services, including savings. Investors that have funded the conventional lending services of MFIs have become more interested in savings and require more knowledge on how to support savings mobilization. According to the guide, in order to expand savings, investors should support the initial investments needed to scale up savings services and train personnel as well as help in building the capacity of regulatory and supervisory bodies. CGAP’s guide includes information pertaining to the demand and supply of savings as well as regulation and supervision. The guide also advises funders on how to evaluate their own organization’s capacity to support savings mobilization and how to use different funding instruments to achieve their goals.
Development of the guide began in February 2010 following a workshop that was attended by funders and other stakeholders in the field to discuss how donors and investors can contribute to savings mobilization. The guide also builds on studies conducted by CGAP and other institutions. CGAP has released the guide for public review with the hopes of gaining further input and suggestions before releasing the final version. The deadline to submit comments is February 1, 2011 [1].
By Julie Moksim, Research Associate
About CGAP (Consultative Group to Assist the Poor): Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center that was established in 1995 and is dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.
[1] CGAP (Consultative Group to Assist the Poor): “Advancing Savings Services: Resource Guide for Funders”, http://www.cgap.org/p/site/c/template.rc/1.9.48183/#reviewsList
MicroCapital”s Microfinance Universe Profile: CGAP (Consultative Group to Assist the Poor)
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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