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Savings Groups

Ghana BOC Savings Groups
Displayed wares of VSL beneficiary

The Banking on Change (BoC) programme (Phase I), a three-year partnership with Barclays Bank, Care UK and Plan International UK (2009-2012) focused on introducing and expanding the Savings Groups methodology in Egypt, Ghana, India, Indonesia, Kenya, Mozambique, Peru, Tanzania, Uganda and Zambia.  Assessed against its two main objectives, the programme’s achievements were substantial.

In terms of outreach, the programme directly benefitted over half a million people worldwide, 34% beyond its target. It also performed very well in terms of group quality, such as attendance (on average 91% of group members attend meetings) and group retention rates (on average 97% of group-members stay in the group throughout the first cycle). In terms of outreach to special underserved groups, the programme has been able to successfully reach out to women.  In most of the countries, 80% of the group members are women. The programme has also successfully included unschooled individuals, specifically women, as well as people of all ages.

The programme has created a direct impact on people’s access to savings and loans. The accumulated savings of Savings Group members ranged from US $20-100 per cycle of nine to 12 months, with an average return on savings of between 35 - 60% in the sub-Saharan African countries. This is substantially higher than the interest rates offered on savings by deposit taking institutions. Despite the short duration between endline and baseline (maximum just two years), the programme has seen modest successes in improving the socioeconomic situation of group members. Examples of these changes include slight increases in educational expenses (these went up from 63.9% of the respondents having education expenses to 67.5%) and decreases in beneficiaries failing to access healthcare due to the lack of funds (down from 17.5% to 14.5%). This is impressive, as such impacts are usually only measurable after five to eight years.