tailieunhanh - Microfinance services by savings banks in Africa - The sleeping giants have started moving, but where are they going?

For a long while, commercial banks have been reluctant to get involved in microfinance. On other hand savings banks and socially committed retail banks often lack expertise in microlending and microinsur- ance. However, the performance of some industry players and “pioneer experiences” by mainstream banks over the recent years has demonstrated that microfinance can be both socially-efficient and profitable when well-managed. Microfinance is certainly a different business model but the growing interest by mainstream banks for microfinance is an indication of the promising future of this industry. The following actions or measures would be applicable beyond the interest of savings banks. | The global voice of savings and retail banking Microfinance services by savings banks in Africa The sleeping giants have started moving but where are they going Table of Content Main Characteristics of Microfinance in the Region .4 Savings banks in the microfinance landscape in Africa .7 Key features of African Savings 1. Accessibility .9 2. Proximity .9 Products and 1. Lending 2. Small Savings Schemes .17 3. Diversifying into insurance and payment services .19 Conclusion and recommendations .23 References .25 Annexe African WSBI Members key figures .26 For a French version of this report please visit or contact info@ 2 Executive summary The dominant paradigm in microfinance till nowadays merely recognises microcredit institutions which savings banks could not be and still are not in many cases in Africa because of their institutional set-ups that commonly prohibited any form of lending. However the definition of microfinance has evolved over the last years from its narrow perspective and the scope of microfinance services largely take into consideration basic financial services that are needed by vulnerable people. Recent research works in the field of Access to Finance have substantially contributed to change the mindset as how experts define microfinance. There is a greater awareness that working poor people even desire more safe and affordable deposit services to protect their little savings. Their demand is also very high for payment services including money transfer services and insurance services. This larger perspective of microfinance brings African savings banks in the picture. Yet their contribution to microfinance is still very often overlooked by experts and policy makers1. The purpose of this study is to survey and give visibility to the activities of savings banks in this field. It complements the summary report on Microfinance in Africa2 with hard evidence supported by data on these .