Consumer Protection

As Savings Groups mature, they are confronted with an expanding set of risks related to money management and the safety of group funds, internal procedures and governance, and evolving relationships with external service providers. Development organizations and market actors have a moral responsibility to safeguard the interests of Savings Groups and their members, and empower them to understand their rights and make informed decisions.

A variety of approaches to consumer protection call for: improved and more consistent quality of group training; improved financial capabilities and digital literacy of SG members; improved community-based mechanisms, to provide guidance, support, representation and recourse; and improved regulation and supervision.

An effective consumer protection regime for Savings Groups requires a better understanding of the risks encountered by Savings Groups, the severity of negative outcomes, and effective responses for risk mitigation and remediation.