2a. SEEP LearningBrief COVER

This learning brief examines the design options and essential tradeoffs in solution development based on a survey of 12 digital savings group (DSG) solution providers. The findings are outlined in six sections: 1) Introduction; 2) The benefits of savings groups; 3) User experience; 4) The business of DSGs; 5) Consumer protection, and 6) What will successful groups look like? These sections cover a wide range of topics, including digital, social, financial, and economic inclusion, the accuracy of records, security of funds, data privacy and security, and costs of implementing and participating in DSGs. Findings indicate that the success of DSGs relies on the sustainability of both solutions and providers. While the prospect of serving hundreds of millions of people and expanding the impact of savings groups justifies the effort and investment in digital solutions, patience and prudence are required to protect the interests of users along the way.

The brief will be helpful to institutions that recognize the commercial potential of new digital approaches for savings groups. The target audience for this brief includes non-governmental organizations implementing DSGs as well as private sector actors including impact investors, microfinance investment funds, banks, non-bank lenders, and mobile network operators. FinTech innovators may also find this document useful for identifying new opportunities and risks in developing digital solutions for savings groups.

Leave a Reply

View all comments

Related Resources

Read
Tool
Data Privacy & Security Digital Literacy Digital Transformation Digitization Planning
DSG Toolkit
Tool
Data Privacy & Security Digital Literacy Digital Transformation Digitization Planning

DSG Toolkit: Tools to Support Safe and Gender-responsive Digitization of Savings Groups

By Lauren Hendricks, Dennis Mello, Paula Rudnicka
Global Communities, Women for Women International
2022

DSG Toolkit: Tools to Support Safe and Gender-responsive Digitization of Savings Groups

The DSG Toolkit, also available in Kinyarwanda, consists of seven practical tools to support safe, effective, and gender-responsive digitization of savings groups. These tools include practical guidance for implementers and trainers across multiple aspects of digitization, such as: Each tool can be used by implementers just beginning to think about their first DSG project and […]
Read
article
Digital Inclusion Digital Payments Digital Recordkeeping Digital Transformation
Next Billion Cover image
article
Digital Inclusion Digital Payments Digital Recordkeeping Digital Transformation

Reaching Informal Savings Groups with Formal Financial Products: A Study’s Unexpected Findings Reveal the Challenges of Digitizing Transactions

By Raksha Vasudevan
NextBillion
2022

Reaching Informal Savings Groups with Formal Financial Products: A Study’s Unexpected Findings Reveal the Challenges of Digitizing Transactions

This article discusses the main findings from a qualitative assessment of Savings at the Frontier (SatF) projects in Ghana, Tanzania, and Zambia, implemented in 2015-2022 and funded by the Mastercard Foundation. The program sought to bridge the gap between formal financial services and informal savings groups, enabling members to access the financial services that best […]