by James Stevenson -

MICROCAPITAL BRIEF: DreamStart Labs Adding VisionFund as Preferred Financial Service Provider in Savings Groups App DreamSave

The US-based nonprofit World Vision International and its microfinance subsidiary VisionFund recently entered an agreement with the US-based financial software development company DreamStart Labs with the goal of enrolling 3 million people in 130,000 new savings groups over six years using DreamStart’s mobile app DreamSave. The organizations will focus on

by Arin Atluri -

MICROFINANCE PAPER WRAP-UP: “Driving Financial Resilience Through Formal Savings Among the Low-Income Population,” by Laura Courbois et al, Published by World Savings and Retail Banking Institute

This paper explores the extent to which saving through the Scale2Save program allows customers to increase their financial resilience. Two NGOs, the Canada-based Mastercard Foundation and the Belgium-based World Savings and Retail Banking Institute, created

by the MicroCapital Team -

MICROCAPITAL BRIEF: In Pakistan, Microfinance Portfolios Rise 7.5% Quarterly to $2b

According to data attributed to the Pakistan Microfinance Network, microfinance providers in the country grew the number of savers they serve by 2.9 percent to 87 million from March 2022 to June 2022. During that period, however, the aggregate amount saved by those customers fell 8.9 percent to PKR 391 billion (USD 1.8 billion).

Meanwhile, microlending in Pakistan is growing unambiguously, and it is expected to continue its upward trend as new regulations recently

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “The Business Case for Linkage With Informal Savings;” by Constantin Albot, Stephen Peachey; Published by MasterCard Foundation, Oxford Policy Management

This report describes Savings at the Frontier (SatF), a partnership between Canadian NGO MasterCard Foundation and UK-based consultancy Oxford Policy Management, that provided USD 17.6 million in technical assistance and direct funding to establish relationships between formal financial service providers (FSPs) and informal savings mechanisms (ISMs). The program ran from 2015 to 2022, engaging 10 FSPs in

by Benjamin Greissman -

MICROCAPITAL BRIEF: ADEL, CGF Bourse, UNCDF Announce First Disbursement from Fonds d’Investissement Territorial (FIT), Harnessing Diaspora to Invest in SMEs in Senegal

Two Senegalese investment firms, Alliance Diaspora Economies Locales (ADEL) and CGF Bourse, have partnered with the UN Capital Development Fund (UNCDF) to create an investment fund intended to generate both profits and social returns. The fund, Fonds d’Investissement Territorial (FIT), is enlisting

by Benjamin Greissman -

MICROCAPITAL BRIEF: Aman for Microfinance Targets Unbanked in Egypt via Youm-B-Youm Savings Fund, Target Return Is 8%

Aman for Microfinance, a member of the Egypt-based Aman Group, in partnership with the asset management unit of Egypt’s Prime Holding, recently announced an investment fund called Aman Youm-B-Youm, whose name can be translated as Aman Day-by-Day. Aman for Microfinance anticipates the fund will generate returns of

by Zach Deluca -

MICROFINANCE PAPER WRAP-UP: “Market Opportunities for Women’s Savings: Evidence From India,” Published by Women’s World Banking (WWB)

Approximately 80 percent of people in India over the age of 15 own a bank account, however only 34 percent of adults – and just 30 percent of women – saved money in the year leading up to this study. The authors surveyed 2,000 women in the states of

by Zach Deluca -

MICROFINANCE PAPER WRAP-UP: “The Power of Jan Dhan: Making Finance Work for Women in India,” Published by Women’s World Banking

This paper concerns a pilot savings program for women that was designed as an add-on to the Indian government’s Pradhan Mantri Jan Dhan Yojana (Jan Dhan) scheme, which allows any previously unbanked person to open a savings account at any bank in the country. Jan Dhan accounts have no minimum deposits or balances to maintain, and the customer earns interest on his or her savings. Jan Dhan was launched in 2014, and it has been credited in the rise in percentage of women with access to financial services from 26 percent in 2011 to 77 percent in 2017. One of the successes of Jan Dhan is its reach to illiterate customers due its minimal paperwork requirements.

The pilot program was to offer “Jan Dhan Plus” accounts in an effort to encourage more women to save. The new accounts offer users a credit facility of INR 10,000 (USD 134) if they

by Harriet Ritchie -

MICROFINANCE PAPER WRAP-UP: “Microfinance Clients Facing the COVID-19 Crisis: From Findings to Action for MFIs;” by Mathilde Bauwin, Thu Hien Dao; Published by ADA

This paper explores the impact of the COVID-19 pandemic on clients of microfinance institutions (MFIs) in terms of: “Which client segments are most affected? How are they coping with the situation? What are they doing to

by Bradley Shulman -

MICROFINANCE PAPER WRAP-UP: “Savings and Climate Resilience;” by Elisa Sandri, Leonie Beckmann, James Robinson; Published by Itad

This paper explores how inclusive finance increases the ability of vulnerable populations to “anticipate, cope and adapt to climate shocks and stresses.” Savings groups, for example, can “enhance social capital by building group solidarity and networks,” and they have been successful outside of the financial arena, such as

by Bradley Shulman -

MICROFINANCE PAPER WRAP-UP: “Helping Low- and Moderate-income Malaysians Save: Insights from UNCDF’s Work With GoGet and Pod,” Published by UNCDF

Data from Bank Negara Malaysia, the country’s central bank, illustrate a downward trend in household savings from 2018 through the beginning of the COVID-19 pandemic. The latest data available indicate that “two thirds of self-employed respondents have savings equivalent to one month’s expenses, while 83 percent

by Anesa Kratovac -

MICROCAPITAL BRIEF: Depositors Withdraw Savings from Microfinance Firms in Kumasi, Ghana amid Lack of Safety Nets for Clients

High rates of deposit withdrawals reportedly are occurring in Ghanaian city of Kumasi, which allegedly is attributed to the lack of safety nets protecting depositors in case firms are shut down by the Bank of Ghana (BoG), the country’s main financial regulator.