Kimberly Davies is a Program Associate for the Microsavings Initiative, which is part of Grameen Foundation’s Solutions for the Poorest program.
Last year, Grameen Foundation began a three year journey, funded by the Bill and Melinda Gates Foundation, to increase the number of active monetary savers by 1.45 million people, especially the bottom poor living under US$1.25 per day. For this project, we are working with three microfinance institutions, CARD Bank in the Philippines, CASHPOR in India, and ACSI in Ethiopia. I recently had the opportunity to visit all three MFIs over a four week period, to work with our project managers on the ground, learn more about each project, and visit clients in the field. I will be writing several posts over the next few weeks, so I wanted to introduce myself briefly, and give a bit of background on savings and our project:
What is your project?
We are taking a holistic approach to create safe access to formal savings products by focusing on market research and product design, creating a marketing strategy and financial literacy program, using front-end technologies capable of enabling field-based transactions, and building institutional capacity.
Why is savings important?
The poor often have such inconsistent and unpredictable incomes that savings is an important risk management tool. Bad weather affecting agricultural production, family illness, and natural disasters are just some of the tragedies that commonly occur, creating financial hardships for poor families. Savings can be used during these hard times, cutting down on the need for emergency loans, which often come at high interest rates.