A presentation of Julie Peachy of Grameen Foundation on Successful Savings Mobilization Session.

1. SUCCESSFUL
SAVINGS
MOBILIZATION
Julie
Peachy
Grameen
FoundaAon
2011
RBAP-­‐MABS
Regional
Roundtable
Conference
Hya=
Hotel
&
Casino,
Manila
November
9,
2011

2. Successful Savings
Mobilization
Julie Peachey
Microsavings Initiative Project Manager
g j g
Grameen Foundation
MABS Roundtable, Manila
,
November 9, 2011
1

3. Agenda
• O
Overview of GF/CARD B k S i
i f Bank Savings M bili ti
Mobilization
project
• Keys to successful savings mobilization:
– Holistic Approach to Product Development
– Data analytics
– Human Capital
– Business model
• CARD Bank savings pilot results
B k i il t lt
• Conclusion
2

4. Grameen Foundation s Microsavings Initiative
Foundation’s
A three year project aimed to reach
1.45
1 45 million new savers in:
(Philippines)
( hili i ) (India)
( di ) (Ethiopia)
( hi i )
Our holistic approach helps offer secure, convenient poverty
focused savings programs, while building sound financial and
institutional practices that transform MFIs from credit led
to client focused demand driven financial institutions
focused,
Funded by the Bill & Melinda Gates Foundation

5. Our approach to microsavings implementation
1. Market
1 M k research & h
Product Design
2. Marketing & financial
literacy
3. Enabling field based
transactions through
alternative delivery
channels
4. Building institutional
capacity

6. CARD Bank Overview
• CARD Bank (1997) is a microfinance
oriented rural bank (part of CARD MRI; • Savings Products
ghlights
CA Bank Profile
1986) • Main product = Compulsory
• Largest MFI (together with CARD NGO) account with option to save more
Project Hig
in the Philippines when measured by • Regular savings and time deposit
number of active borrowers, gross loan • Challenges:
portfolio, and total assets; 1600
• Development of marketing
ARD
employees
function and long term strategic
g g
• Organization owned and overseen by marketing plans
members; offering voluntary savings
since 1997; moved from group to • Delivery Model and Business Case
individual lending in 2003 • Implementation of new core
• Current outreach for savings: banking system, ATM technologies
system
• 45 branches • Change Management
• 242 Micro Banking Offices (MBO)
• 500k active voluntary savers

7. Holistic Approach to Product Development
• Example of product
development life cycle
New Product
for savings
Market
Roll t P
R ll out Prep; Roll out
Segmentation
Product
Institutional
• Incorporating
Marketing &
PPI
Promotion
Assessment institutional capacity
Financial
Literacy across:
Customer
Segmentation
S t ti – IT
and Targeting
Evaluation Market Data – Training
of Pilot Research Analytics
Costing &
– HR and Change
Regulations
Pricing Project Management
HR IT Management – Finance – Costing
and Treasury
Develop
Pilot Test Product Management
Preparation; Concept
Financial Projections – Internal Controls,
Training Internal Audit
l di
Finance
– Marketing
Process
Field Test
Mapping Internal
– Financial Literacy
and Adjust
Costing &
g
Pricing
Controls
– Social
Treasury
Mgmt
Performance
Management
6

8. Market Research: Accessibility is often
valued more than any other savings
p
product attribute
10 Important Attributes of S i
0 ib f Savings Product
d
May 2010 CARD Bank Market Research

9. CARD Bank Savings Delivery Model
Pilot Savings Product Matapat
• Delivery Channels offering
savings services:
– Center meetings and MBOs
pilot branches only
– Deposit collection by Savings
Savings Account Associates and in center collection
Associates Officer sheet
– Withdrawal through ATMs
i hd l h h
– Bank branches
Existing Members
• Dedicated Customer Service
General Public Associate based in Bank branch

10. CARD Pilot Test Findings
• Primarily for the education of children and
emergency needs
• Extra funds for daily needs and utilities
Why Save?*
Save? • Additional business capital
• Separate savings aside from Compulsory
Account (for members)
• Convenient withdrawal transactions
Why • Deposit Collection (SA and SMS Hub)
• Low maintaining balance
Matapat? • Privacy of Savings compared to Compulsory
Account (for members)
• 43% have not yet used their savings
What is • Savings were used mostly for additional
business capital and unexpected events
savings used • Other usage includes education, daily needs,
for?
f ? utility and debt payments.
* Same reasons as given in initial market research

11. Data Analytics: The poor can save
Correlation
between
At CARD Bank, poverty score
we did not find and saving
a correlation balances = .20
between
poverty level*
and savings Exchange rate =
43.1 PHP/USD
balance
N 84,735
N= 84 735
(top 1% removed
due to outliers)
More poor Less poor
*Using GF’s Progress out of Poverty Index tool

12. The Role of Human Capital Mgmt
Structure and
Job
Descriptions
Rewards & Skills Gap
Incentives Analysis
Supporting
Mechanisms
M h i
Performance Recruitment
Targets and Selection
Learning and
g
Development
11

13. Business Model
• Costing exercise completed in June 2010 and
again June 2011 including results from the
g g
pilot
• Actual costing of all 17 products (savings and
loan) using 6 months worth of d
l ) i h h f data
• Initial projections
done for the pilot
d f h il
product – Matapat
• Scenarios for full
time or part time
Account Officers
for savings.
12

14. 4,500 PHP 8,000,000
Matapat Product # of accounts and savings volume
Human Capital Management
PHP 7,519,188
January 2011 to September 2011 source Datamart 4,193
4,000 PHP 7,000,000
3,500
Structure and PHP 6,000,000
Job PHP 5,800,097
Descriptions PHP 5,573,122
PHP 5,024,740
3,000 PHP 5,103,862
2,977
PHP 5,000,000
Rewards & Skills Gap
Incentives Analysis
2,590
2,500 PHP 4,000,000
Supporting Matapat accounts
Mechanisms
PHP 3 148 229
3,148,229
2,158
2,000 PHP 3,000,000
Matapat Volume
PHP 2,745,749
PHP 2,520,054 1,724
Performance Recruitment
1,500 Targets and Selection PHP 2,000,000
PHP 1,852,712
1,000
Learning and PHP 1,000,000
931 Development
799
641 721
500 PHP
Jan 2011' Feb Mar Apr May Jun Jul Aug Sep 2011' 13

15. Conclusion
• Effective Savings Mobilization requires involvement
of the entire organization
f h
• Special focus on the
following is key:
– Disciplined product
development process
– Data Analytics…
understand your
customers
– Human Capital Mgmt
practices to effect
Change
g
– Business case….
understand your costs 14

16. Thank you!
15

17. CASHPOR Business Model Overview
• CASHPOR will act as the BC agent to
ICICI Bank
• Eko Technologies will provide the
technology solution
• Customer owned mobile handsets
along with CASHPOR agents to
6 pilot branches only perform transactions
SCSP
Located at
CM
• Loan business uses Loan Officer,
the branch
(CSP) Mobile based application from
ATOM Technology.
• CASHPOR Delivery Channels are:
– the branch for new customers that are
not CASHPOR loan clients
Non Clients Existing Members
– Center Meetings for existing CASHPOR
loan clients

18. Cashpor India:
The poor demand formal savings
Learn more at www.grameenfoundation.org