Digitization Risks & Barriers

What works when linking financial institutions and savings groups? Practitioners from VisionFund, FINCA Uganda, Turame Community Finance, and Imbita Women's Finance Trust share practical lessons on digitization, group readiness, partnerships, payment systems, and sustainable models for serving savings groups.

Financial institutions often view savings groups as highly promising clients, but serving them sustainably is not always straightforward. In this webinar recap, practitioners from VisionFund, FINCA Uganda, Turame Community Finance, and Imbita Women's Finance Trust share candid lessons on regulation, digitization, group readiness, operating costs, and what they wish they had known earlier.

This brief explores how CARE is using VSLA data, digital tools, and partnerships to help women entrepreneurs access formal credit. By digitizing savings group records and developing alternative credit scores, the approach creates pathways for women to transition from small group loans to larger, formal financing. Early pilot efforts in Uganda aim to demonstrate a scalable model for inclusive financial services and business growth.

CARE Uganda’s “Echoes of Change” campaign uses radio drama, community events, and VSLA discussions to challenge social norms that restrict women’s use of mobile technology. Early insights suggest strong engagement and emerging shifts in attitudes, with both women and men beginning to see the value of women’s access to digital tools.

A randomized controlled trial in Uganda evaluated the Child-Optimized Financial Education (COFE) curriculum delivered through Savings and Internal Lending Communities (SILC). Results show that COFE significantly increased caregivers’ ability to pay for children’s school expenses compared to SILC-only groups. However, COFE did not significantly affect health-related spending or financial self-efficacy. Findings suggest that child-focused financial education can improve educational outcomes for vulnerable households.

This learning brief explores how Savings and Internal Lending Communities (SILC) in Northeastern Nigeria help members manage financial shocks and strengthen resilience. Through participatory research and co-design, the study highlights the role of SILC in supporting income stability, social networks, and motivation, while identifying opportunities for further innovation and adaptation.

This report lays out a practical, proportionate approach to regulating savings groups—keeping the strengths of informality while opening pathways to safer savings, better governance, and stronger links with formal finance. Drawing from field research in East Africa and India, it offers a roadmap for policymakers to design light-touch regulation that lowers risk, improves data visibility, and supports women’s economic empowerment without overwhelming groups with compliance.