The World Savings and Retail Banking Institute hosted an interactive conversation on the topic of making small savings work for customers and service providers.
Messages and gaps emerging from WSBI's work with 12 member banks to making small-scale savings work:
- Firstly, we need to better understand who the unbanked are, what their financial needs are and how much they can afford to pay to meet these needs
- Next, we have to work out what we can offer through our own distribution networks, and beyond that look for partnerships with other providers where it becomes less costly to pay them to provide parts of the service package, and
- Finally, we need to develop really smart business models, that help customers to actively replicate traditional forms of payments and allow them to put extra savings aside in a more digital way.
- Our program partners became more customer-centric by partnering with village groups in Uganda, Kenya and Tanzania enabling them to develop a business model which has reduced costs, overcome the proximity gap and created a digital value proposition for savers and loan takers in remote areas.
Key action steps to advance financial inclusion:
Postbank Uganda (PBU)
Within the next6-9 months PBU commits to create 50 community kiosks/ neighbourhood banks for village group members which will serve as information points in the short term and cash in/ cash out points in the long term once the agency law is passed.
Tanzania Postal Bank (TPB)
Within the next 6-9 months TPB commits to create 100 group agents which will serve as cash in/ cash out points for village group members.
Kenya Post Office Savings Bank (KPOSB)
Within the next6-9 months KPOSB commits to improve awarenessof their services to at least 50 % of their customer base through SMS based awareness raisingand financial education campaigns
World Savings and Retail Banking Institute (WSBI)
Within the next 6-9 months, WSBI will provide further guidance to its members in collecting and analyzing customer data for better achievement of financial inclusion and the universal financial access (UFA) 2020 goal.