Increasing Voluntary

Savings Mobilization

in Ethiopia

WEDP Savings TA

30 Branch Visits

8 MFIs

60 Focus Groups

Current VS/LP Ratios – 125% cover required to give 100% after satisfying 20%

Liquidity Reserve

0%

10%

20%

30%

40%

50%

60%

70%

80%

8 Participating WEDP MFIs

Perc

en

tag

e o

f L

P c

ov

ere

d b

y V

S

1 3 VS

Desirability

Head Office

Initiatives

Frontline

Capacity

1 2 3

VS DESIRABILITY

1

VS DESIRABILITY

STRATEGIC FOR GTP

IT’S RELATIVELY LOW

COST FINANCING

SOME MFI SUPPORT

NEEDS VS

READILY AVAILABLE

AN

ORGANISATIONAL

TOWARDS SAVINGS

HAS TO TAKE PLACE

SHIFT

PRACTICAL PROVEN WAYS TO INCREASE VOLUNTARY

SAVINGS MOBILIZATION

HEAD OFFICE

INITIATIVES 2

SAVINGS MANAGER

DRIVES SAVINGS

GROWTH

EMBEDDED

SAVINGS

REPORTING

WILL

INCREASE EFFICIENCY OF

SAVINGS

MOBILISATION

LACK OF MIS

AUTOMATION

EFFICIENT

MANAGEMENT

OF SAVINGS

PRODUCTS AND

REPORTING

INHIBITS

SAVINGS BRANCH PRODUCTS

BALANCES AND ACCOUNTS REPORTING

TABLE - BY MONTH THROUGH MIS

SYSTEM IN SOFTWARE end last month accounts accounts deposits withdrawals/ end of this month average

Product balance # savers opened closed in month

closures in

month balance #savers bal. start

ETB ETB ETB ETB ETB

Passbook 500 25 3 2 70 50 520 26 20

Ordinary Savings

Fixed Time Deposit 700 20 5 3 20 30 690 22 35

Instalment 400 5 2 1 90 70 420 6 80

Totals 1600 50 10 6 180 150 1630 54

FRONTLINE STAFF NEED

TO BE INCENTIVISED TO

MOBILISE VS – DRIVEN

BY THE URGENCY TO

INCREASE VS

INCENTIVES

CAN BE

INDIVIDUAL-

RELATED

FINANCIAL AND /

OR PROMOTION

LINKED

COMPETE

MFIS HAVE TO

WITH

COMMERCIAL

BANKS

TIME DEPOSITS

SOLIDIFY

YOUR

LIQUIDITY

DO NOT

FEATURE

HEAVILY IN MFI

BALANCE

SHEETS

TIME

DEPOSITS

FRONTLINE

CAPACITY 3

FRONTLINE STAFF

NEED

CONFIDENCE AND

CAPACITY TO

PROMOTE VS

PROMOTION SHOULD

BUILD A BRAND OF

TRUST

CLIENTS HAVE

TO DEPOSIT

AND

WITHDRAW

FAR FROM

HOME!

ACCESSIBILITY

DOOR TO DOOR COLLECTION

POS/PDA DEVICES

COINBOX SAVINGS PRODUCT

Point of Sale device (POS)

PDA (Personal Digital

Appliance) Can give rural

outreach to capture

previously unbanked

liquidity

LACK OF MOBILITY

LIMITS SAVINGS

MOBILIZATION

INFORMAL

FINANCIAL

SERVICES

COMPETE FOR

LOCAL

LIQUIDITY

LINKAGES ARE NEEDED

FLEXIBLE HOURS

TRANSPARENT PROMOTION

FIND THE LIQUIDITY IN THE

LIFECYCLE

22,500

NGO-

PROMOTED

INFORMAL

GROUPS

LINKAGES ARE NEEDED

AVAILABLE LIQUIDITY

VARIES

SAVINGS POSSIBILITIES

FLEXIBILITY AND RESPECT

ARE NEEDED

NOT AS FAR AS YOU

THINK!

WHAT VS IMPROVEMENT

CAN BE EXPECTED?

DAI / PEPE / WEDP

Anthony Storrow

Getaneh Gobezie

Anne Figge