Applying a Market Systems Approach to Savings Groups
For Savings Groups to reach significant numbers of poor people in a sustainable manner, it is necessary to develop a vision for the future where Savings Groups are formed and continue to operate without development agency assistance. This will require commitment from all stakeholders to support pilots, share results and learn how best to reach scale, sustainably. This learning brief proposes the application of the market systems approach to support the development of a well-functioning system where Savings Groups effectively reach all those who seek participation. Equally important, this paper proposes an agenda for sector stakeholders moving forward, envisaging a new role for development agencies through active coordination and proactive experimentation in the formation and operations of Savings Groups.
The primary audience of this learning brief is development actors, who perform two key functions in the sector: funding and facilitation. The paper’s secondary audience includes other stakeholders seeking to establish a sustainable Savings Group system including local governments, financial service providers and other service providers. Other practitioners using a market systems framework may also find the application of the approach relevant.